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Bitcoin finally makes its debut in Guinness World Records

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(Kitco News) – The world of cryptocurrencies has now been recognized by Guinness World Records (GWR), which added Bitcoin to its new “Cryptomania” category, recognizing the top crypto as the first decentralized currency. 


GWR has been cataloging record-breaking feats and achievements since 1955, and 2022 marked the first time that developments in the crypto sector have made their way into the record books. Their induction follows several years of a more prominent public profile for the crypto industry, which saw new record high prices in 2021. 


Several other notable blockchain achievements have also been added, including crypto adoption, fan tokens and nonfungible tokens (NFTs).


Along with being recognized as the first decentralized currency, Bitcoin was also acknowledged as the most valuable cryptocurrency due to its market cap of $816.69 billion, which was recorded on March 24, 2022.


“Bitcoin was developed as a solution to the challenge of regulating a digital currency without any centralized organization, or ‘trusted third party’, to oversee transactions,” its description page reads, noting that previous attempts to create such a currency “still required a trusted third party (acting like a bank) to make sure that people didn’t ‘double spend’.


GWR acknowledged Satoshi Nakamoto as the pseudonymous creator of Bitcoin and traced the digital currency’s origins to the “Cypherpunks” online community, a collective that brought together cryptography enthusiasts, libertarians and software developers, including Satoshi Nakamoto. 


“A working implementation of the concept was completed by 3 January 2009, when Nakamoto mined the first block on the blockchain, and the open-source client was released to the public on 9 January 2009.”


The nonfungible token (NFT) project CryptoPunks was also acknowledged by GWR for being the most  “expensive NFT collectible” after CryptoPunk #5822 was purchased for $23.7 million, or 8,000 Ether on Feb. 12 this year by entrepreneur Deepak Thapliya.


Fan tokens also debuted as a category in the book, with Manchester City’s token recorded as the  “most valuable fan token” with a market cap of $47.1 million as of March 24, 2022.


El Salvador was also recognized for being the “first country to adopt Bitcoin as legal tender” in June last year.




This latest development marks an increasing trend of public acknowledgment of advancements in the cryptocurrency sector. 


Last week, the top global crypto exchange Binance announced that it had broken a Guinness World Record after it was recognized for conducting the largest crypto lesson to date, with 289 people in attendance at Blockchain Land Nuevo León on Oct. 7. 


And in early September, Merriam-Webster dictionary added the words “altcoin” and “metaverse” to its reference pages. “Bitcoin” was previously added in 2016, while “cryptocurrency,” “initial coin offering” and “blockchain” we included in 2018.


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.


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Demystifying Metaverse, NFTs and other crypto assets

Did you know that the term “Metaverse” was first used by author Neal Stephenson in his dystopian novel ‘Snow Crash’ (1992) to portray a virtual world? Cut to 2022, India saw its first-ever wedding reception in the metaverse on January 11. Punjabi pop singer Daler Mehndi performed live in the metaverse, making it the world’s largest concert by drawing 20 million spectators globally.

That is the power of Metaverse, a universal virtual world consisting of 3D virtual spaces based on social connection. The technology interests millennials and generation Z, who are bored with static internet pages and social media platforms.

Having experienced AR (Augmented Reality), VR (Virtual Reality), and MR (Mixed Reality), they are more excited about the 3D virtual world that provides real interactions and interesting visuals. Metaverse transports them to an entirely live and interconnected world.

Recently, Facebook rebranded itself as Meta and brought the technology to the mainstream by hiring 10,000 people. By creating a metaverse infrastructure, the company intends to transform itself into something futuristic.

Through the immersive world of Metaverse, users spend time socializing, learning, working, and entertaining, among other things. It is a blend of AR, VR, and MR. It has components of gaming, crypto, and social media embedded into it. For example, Metaverse allows its users to play online games on various avatars. Through VR headsets, they can enjoy an immersive experience that is delightful visually.

Non-FungibleTokens (NFTs)

NFTs are digital products such as art, music, and videos that can be traded by utilizing blockchain technology. Because they are non-fungible, unlike crypto tokens, there exists only one original of an NFT.

NFTs are distinct, having exclusive identifying codes. This is in contrast with most digital items, which are usually unlimited in supply. Removing the stock should ideally raise the worth of a given resource because of its popularity. But in the early days, numerous NFTs were digital creations that existed elsewhere. For example, famous video cuts from NBA games or securitized variants of digital art circulated on Instagram.

Although NFTs have been there since 2014, they started making news in 2021 when an online auction site Christie’s, saw an NFT of $69 million for a digital creation titled “The First 5,000 Days” by artist Mike Winkelmann aka Beeple. They also started making a buzz in the music world when artists such as Kings of Leon, Shawn Mendes, and Grimes released songs in the NFT format.

Since then, NFTs are making their presence felt everywhere, including in the gaming industry. Even something as intangible as a tweet by Twitter co-founder, Jack Dorsey, was sold for over $2.9 million in 2021.

It was his first-ever tweet posted on March 21, 2006. Dolce & Gabbana and Nike have designed apparel and footwear that come with their own NFTs.

The global NFT market size is expected to grow from $3.0 billion in 2022 to $13.6 billion by 2027, at a compound Annual Growth Rate (CAGR) of 35% from 2022 to 2027, according to ReportLinker.com.

But the question arises: Why are people eager to shell out millions of creations they could easily take a screenshot of or download? That is because an NFT allows the shopper to own the unique item. Moreover, the creation also holds an in-built authentication that provides ownership validation.

Crypto assets

These are digital assets that utilize blockchain ledgers to facilitate transactions. They use cryptography, shared networks, and distributed ledger technology (DLT). They can have various roles and features, including being utilized as a mechanism of trade, a method to store value, or for other business uses. When it comes to operations, crypto assets have no dependency on a national/central bank or government.


Common crypto assets include:

Crypto Coins:

This is a digital unit of value and a popular kind of crypto asset that is used to send and receive payments as well as international money transfers easily. They are extremely low-cost, effective, and faster than traditional methods.

India is gradually opening up to the idea of accepting cryptocurrency as a legit payment method. A Bitcoin trading site Unocoin, allows users to buy vouchers from over 90 brands via Bitcoins.

Unocoin’s registered users can use Bitcoin worth anywhere, between Rs 100 to Rs 5,000, to avail of these vouchers and buy anything from brands such as Domino’s Pizza, Baskin Robbins, Himalaya, and Prestige.

Digital currencies such as Monero, Zcash, and PIVX allow their users to make financial transactions that are 100% private and anonymous. This implies that individuals have the freedom to maintain privacy without having to reveal the reason for sending or receiving money.

Utility Tokens

Utility tokens allow users to perform transactions within a certain ecosystem. For example, the BAT token is a utility token that allows users to perform transactions on the Brave Browser.

Like all crypto transactions, Utility token transactions are verified on blockchain ledgers. The supplier of the products or services provides tokens that must be utilized within the supplier’s network.

Security Tokens

These are digital, liquid contracts for parts of any asset that have value, for example, real estate, a vehicle, or corporate stock. Using security tokens implies that investors’ ownership stake is safely preserved on the blockchain ledger.

Some examples of security tokens include Siafunds (used on the Sia Network for revenue sharing) and BCAP Tokens (these are Ethereum-based smart contract digital tokens launched in 2017).

Security tokens are usually sold or auctioned in an Initial Coin Offering (ICO) or an Initial Token Offering (ITO) that permits organizations to fund-raise to finance an idea. The business offers security tokens in return for government-issued currency or other crypto assets.

The security token also provides added advantages such as casting ballot rights, benefit-sharing, or profits.

Web3 is another technology that has evolved over a period of time. Born due to a lack of trust in the internet, Web3 is your answer to unfaithful social media platforms where you cannot keep anything private.

This next-generation internet allows its users to create, control and own their identity. With better tools, Web3 will allow its users and firms to create unique content. It will enable intelligent creation that is tailored to every user.

This would give rise to content distribution platforms that help in making Web3 profitable.

Moreover, personalization would make way for more content interaction, thus, allowing brands and their audiences to ideate new co-creation tools. As these new-age technologies continue to transform various industry sectors, it is an exciting time to see their impact on the future of businesses.

(The author is CEO, Zebpay. Recommendations, suggestions, views and opinions are his own. These do not represent the views of Economic Times)


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Airdrops Vs Icos: Differences Explained

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By CNBCTV18.com  IST (Published)

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Let’s learn more about ICOs and airdrops and how they differ from one another.

The crypto industry is expanding at a dizzying rate. Sometimes, it seems like there is a new crypto project launched every day. However, one thing that all projects, new and old, have in common is the need to raise funds and build awareness.

This is where initial coin offerings (ICOs) and airdrops come into the picture. While both these activities are helpful for a project in several ways, they are very different concepts. Let’s learn more about ICOs and airdrops and how they differ from one another.

What is an Airdrop

An airdrop is an event wherein a new or existing crypto project distributes its tokens to candidates who meet some pre-decided requirements. It is a marketing strategy in which small amounts of cryptocurrency are sent to a wallet address for free or in exchange for doing particular tasks.

What is an ICO

An Initial Coin Offering (ICO) is similar to an Initial Public Offering of stocks. Companies use ICOs to raise funds for developing and launching a crypto/web3 project. Investors buy the project tokens at lower rates, hoping they will appreciate over time.

Differences between Airdrop and ICO

Motive:

Airdrops are primarily a marketing strategy used by startups and new crypto projects. The main motive of airdrops is to raise awareness and promote a cryptocurrency project. Airdrops encourage people and investors to engage with the project and its social media channels. It can also be deployed to reward existing investors and token holders.

On the other hand, ICOs raise funds to support the development and launch of cryptocurrency projects. The main motive of an ICO is to invite investors and raise funds for the cryptocurrency project that will be launched. Since not all startups and projects have enough wealth at inception, ICOs are a helpful way to get things off the ground.

Method:

The process of an airdrop begins by deciding the goals and objectives that need to be achieved. Once the objective is decided, the developers need to raise awareness about the airdrop. This usually means telling people what they need to do to become eligible for the airdrop and what they stand to receive in return.

After this, developers need to collect information about the eligible users. This entails the collection of wallet addresses, email ids, or a snapshot of the user’s wallet balance. Once the required data is collected, the tokens are distributed from a treasury wallet.

When an ICO is conducted, the company must first decide the coin’s structure, as this determines the price and supply of the token. Along with the coin’s structure, the company must release the project’s ‘whitepaper’.

This document outlines the project’s aim, what the token will be used for and what it will achieve. It also discloses the number of tokens distributed to the public and the amount remaining with the founders. These details help investors ascertain the project’s scope and whether or not they should invest in the ICO.

Eligibility:

For a user to be eligible for an airdrop, there are specific criteria that the company can decide upon. Tokens can be airdropped to users who have taken part in a certain activity, like retweeting or posting something on Instagram.

This is a great way for the company to promote the project and create a buzz on social media. At times, only the investors that already hold a certain number of tokens are eligible for the airdrop. The company can also randomly select users through a raffle system.

The good thing about an ICO is that there is no entry barrier. An investor can participate in the ICO as long as they have the necessary funds. ICOs aren’t as popular now because investors have been subject to many scams. Therefore, researching the ICO, the company, and the people behind it is crucial before investing your money.

Conclusion

ICOs and Airdrops are both helpful in their own ways, and developers can use them to support the project at different stages of the token’s lifecycle. Airdrops and ICOs can also be a good way for investors to make returns. However, since ICOs involve putting your money on the line, a deep dive into the legitimacy and scope of the project is a must.


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Huge Cloud Over Binance, the World’s Biggest Crypto Platform

It’s a big fish that is now in the sights of regulators looking to oversee the young crypto industry. 

And it’s a safe bet that the subtle message that the market police want to send — no actor is immune — will be heard loud and clear. Binance, the world’s largest cryptocurrency exchange by volume is under investigation by the Department of Justice (DoJ).

The federal agency is investigating whether Binance.com violated US money laundering sanctions. At the end of 2020, the DoJ asked Binance to submit internal documents relating to how the firm ensures that users of its platform do not launder money, reports Reuters




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The History of Bitcoin, the First Cryptocurrency | Investing

Bitcoin (BTC) was the first cryptocurrency ever created back in 2009, and it remains the most popular and valuable digital currency in the world today. Bitcoin is a blockchain-based decentralized digital currency powered by a network of users who verify and record transactions without relying on a central authority or intermediary.

Bitcoin is an alternative to fiat currencies, such as the U.S. dollar, that are controlled by governments and central banks. Transactions are verified via a process known as a proof-of-work consensus mechanism. Bitcoin miners compete to verify transactions by solving complex mathematical functions using powerful computers.

Some Bitcoin enthusiasts simply see the crypto as a fun asset for trading and speculation, while others believe it could ultimately become the universal currency of the digital world. There’s no question Bitcoin has had a meteoric rise in popularity since its inception, but the first 13 years have also exposed several key flaws and shortcomings of the world’s most popular digital asset.

Here’s an overview of several of the key eras in Bitcoin’s brief history and how they may affect its future:

  • When did Bitcoin start?
  • Bitcoin price history.
  • 2022 Bitcoin crypto winter.
  • Bitcoin price predictions.

When Did Bitcoin Start?

It’s no coincidence that Bitcoin was born during one of the most chaotic financial environments in U.S. history. During the global financial crisis of 2007 to 2009, distrust of banks and central governments was at a peak.

Bitcoin was created in 2009 by a person or group of people using the pseudonym Satoshi Nakamoto, the name which appeared on the original 2008 Bitcoin white paper that first described the blockchain system that would serve as the backbone of the entire cryptocurrency market.

Over the years, several people have stepped forward claiming to be the real Satoshi Nakamoto, but none could provide sufficient evidence to support their claims.

The Bitcoin blockchain was officially launched when the first Bitcoin block, the genesis block, was created on Jan. 3, 2009. In the first seven months following Bitcoin’s launch, Satoshi reportedly mined up to 1.1 million Bitcoins. At August 2022 prices, those coins would now be worth about $22 billion.

Joshua Peck, founder and chief investment officer of cryptocurrency hedge fund TrueCode Capital, says early Bitcoin enthusiasts were captivated with its design, even if they weren’t exactly certain of what it was going to actually be.

“It had some economic value, but I was looking at it more from an engineering perspective thinking that we could use it for secure message passing or getting strong cryptography into the hands of everyday users, so the financial value was somewhat secondary,” Peck says.

The first reported real-world financial transaction involving Bitcoin took place on May 22, 2010, when a Florida man negotiated to pay 10,000 BTC for two Papa John’s pizzas priced at about $25. That transaction valued the price of one Bitcoin at roughly a fourth of a cent. To this day, the Bitcoin community celebrates Pizza Day on May 22.

“Over time, the financial value became more broadly understood and, of course, today it has become the cornerstone of the fastest-growing asset class of my generation,” Peck says.

Bitcoin Price History

Bitcoin first became available to buy, sell and trade on online exchanges in 2010. In April 2011, the price of Bitcoin crossed the $1 threshold for the first time.

Bitcoin also faced its first competition in the crypto space in 2011. Litecoin (LTC) was launched in October 2011. The Ethereum blockchain went live several years later in 2015.

As Bitcoin’s price continued to rise, so too did its visibility, popularity and volatility. By November 2013, Bitcoin prices reached $1,000. Bitcoin prices and trading volumes really started to snowball in late 2017 – with prices hitting $10,000 per coin for the first time in November 2017 – and reached about $20,000 in December 2017.

One of the driving forces behind the parabolic rise in Bitcoin prices was an announcement by CME Group Inc. (ticker: CME) that it would be launching Bitcoin futures contracts in December 2017. These contracts represented the first Bitcoin-related financial product offered by a regulated U.S. financial institution.

Jarek Hirniak, founder and CEO of Generation Lambda, says Bitcoin followed a common innovation trajectory known as the Gartner Hype Cycle. According to the model, as a new technology such as Bitcoin gains visibility, expectations initially soar to an unreasonably high level.

“At first, most people ignore it, and then suddenly everyone gets more excited until it becomes obvious that promises can’t keep up with reality,” Hirniak says.

“Such a situation and lack of liquidity, combined with little regulation, made it ripe for market manipulation.”

In late 2017, excitement, hype and a crypto market frenzy created the perfect storm for an asset bubble. Many startups took advantage of the cryptocurrency boom to raise money via initial coin offerings, or ICOs. In 2017 and 2018, more than 800 ICOs raised roughly $20 billion in funding. The ICO space was plagued by outright frauds and scams, and the value of many of these ICO tokens collapsed within a year.

By the end of 2018, the bursting of the crypto bubble had dragged Bitcoin prices back down to less than $4,000 per coin.

2022 Bitcoin Crypto Winter

The next major boom in Bitcoin popularity came during the COVID-19 pandemic in late 2020. Extended shutdowns of entertainment and leisure businesses such as sports and casinos coupled with multiple rounds of government economic stimulus payments left many younger Americans with extra disposable income and time on their hands, which helped fuel another surge in Bitcoin prices in late 2020.

The ProShares Bitcoin Strategy ETF (BITO), the first Bitcoin exchange-traded fund, or ETF, to launch on a major U.S. exchange, began trading in October 2021. The BITO ETF launch was followed by several other cryptocurrency futures ETF launches, including the Valkyrie Bitcoin Strategy ETF (BTF), the VanEck Bitcoin Strategy ETF (XBTF) and the Global X Blockchain & Bitcoin Strategy ETF (BITS).

Bitcoin broke out to new all-time highs of more than $20,000 in December 2020 and eventually made it as high as $68,990 in November 2021.

Unfortunately, persistently elevated inflation prompted the Federal Reserve to begin aggressively tightening monetary policy in early 2022, triggering sharp sell-offs in cryptocurrencies and other risky assets. To make matters worse, the sharp declines in crypto prices in early 2022 triggered a liquidity crisis that led to the collapse of the $10 billion crypto hedge fund Three Arrows Capital and the bankruptcies of crypto lenders Celsius and Voyager Digital.

Crypto market volatility also led to the $60 billion collapse of Luna and its associated stablecoin Terra USD (UST) and caused the world’s largest stablecoin Tether (USDT) to briefly lose its peg to the U.S. dollar in May 2022.

Omid Malekan, author and adjunct professor at Columbia Business School, says the rapid rise in crypto prices in 2021 along with aggressive central bank tightening set the 2022 crypto winter in motion.

“The collapse of Luna and UST blew a hole in the balance sheet of major players and led to cascading failures of crypto lenders like Celsius and over-leveraged hedge funds, accelerating declines,” Malekan says.

Bitcoin Price Predictions

As of this writing, one Bitcoin is worth about $20,000. Its value is well off its 2021 high of more than $68,000, but it is still higher than its 2018 lows of less than $4,000.

Even after its 2022 sell-off during the crypto winter, Bitcoin remains one of the best-performing financial assets over the long term. However, Bitcoin’s extreme volatility remains a hurdle if it is ever going to gain acceptance as a truly universal currency.

At this point, Bitcoin remains a high-risk speculative investment, and there is no clear way to assess its intrinsic value or predict where its price is headed next. Still, Bitcoin bulls remain convinced that the future is bright for the world’s preeminent cryptocurrency.

“It’s hard to predict the future – particularly for something as volatile as Bitcoin – but so long as general adoption continues, digital assets of all kinds normalize further and regulators create sensible guardrails, then prices should appreciate in the long run,” Malekan says.


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Bitcoin Remains a Dangerous Wager Despite Recent Rally

Americans have a high degree of uncertainty about crypto. Only 20 percent have ever owned it, according to a nationally representative survey of 3,208 adults conducted by Consumer Reports from June to July 2022. At least 1 in 5 say they don’t know whether their friends or family own crypto, whether they’d use crypto in different ways, or how crypto firms should be regulated. And there’s substantial public support for crypto regulations. Sixty-two percent of Americans who have heard of crypto say crypto businesses should be regulated the same as other financial businesses, according to CR’s survey.

However, despite the public’s seeming desire for more clarity, financial regulators are still figuring things out about cryptocurrencies. Are they securities like stocks and bonds or are they commodities like gold and oil? Should they continue trading on unregulated non-bank exchanges (famous for their Super Bowl ads featuring stars—like comedian Larry David—who say you don’t really need to understand crypto in order to invest in it) or should crypto-trading happen on highly regulated bank platforms that are mostly shut out of the market? 

The Securities and Exchange Commission (SEC) and other government regulators are aware of the dangers the current uncertain climate can present to the millions of retail investors who still have billions of dollars tied up in the market—or who may be considering putting their money into it. 

In March the Biden administration released an executive order embarking on a comprehensive approach to the regulation of cryptocurrency and other digital assets. Then in April, SEC chairman Gary Gensler said his agency and the Commodity Futures Trading Commission (CFTC) are examining crypto regulatory issues. (The SEC regulates securities like stocks and bonds, and the CFTC regulates commodities like oil and gold.) 

“I’ve asked staff to consider how best to register and regulate platforms where the trading of securities and non-securities is intertwined. In particular, I’ve asked staff to work with the CFTC on how we jointly might address such platforms that might trade both crypto-based security tokens and some commodity tokens, using our respective authorities,” he said. 

Banks also would like more clarity from regulators and say they wish the authorities would hurry up in making rules to govern how they might be able to participate in the market. In August, the American Banking Association sent a letter to the Biden administration requesting that it step up efforts to clarify regulations. It says banks are a safer alternative for investors looking to invest in crypto because they’re highly regulated, but without clearer rules on how to join in, the bank group says its members can’t offer their services effectively. 

“The combination of these two approaches—inaction on the one hand to bring into the regulatory perimeter non-bank crypto companies, and limitation on the other of banks’ ability to engage responsibly in the digital asset market—creates an environment that makes it nearly impossible for responsible financial innovation to occur in this space, causing it to remain in the Wild West,” wrote Brooke Ybarra, head of the American Bankers Association’s office of innovation.  

However, as banks seek ways to enter the crypto investing market more robustly, senators including Elizabeth Warren and Bernie Sanders have called on the Office of The Comptroller of the Currency to walk back rules issued during the Trump administration that had given them some ability to participate. The senators say they’re concerned that the rules “may have exposed the banking system to unnecessary risk,” citing the recent meltdown.

Acting Comptroller of the Currency Michael Hsu defended the regulator’s moves. “I think we’re doing a pretty good job,” he said on Bloomberg. “See Exhibit A: A whole bunch of stuff just happened, and the banking system is in pretty good shape, knock on wood. I think part of that is the actions we’ve taken.”

However, until regulators issue clearer rule making, crypto is likely to continue to be extremely volatile and risky. And even when regulators do issue their new rules, they’ll undoubtedly have a big impact on the price of digital currencies.

Here are four more reasons to be cautious about investing in cryptocurrency.


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Telegram Mulling to Launch Marketplace for NFT-Like Smart Contracts

Telegram is mulling plans to introduce a new marketplace to allow users to transfer usernames via “NFT-like smart contracts.”

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Founder Pavel Durov made an announcement on the messaging platform, saying that the company may launch a new marketplace.

“Imagine how successful Telegram with its 700 million users could be if we put reserved @ usernames, group and channel links for auction,” Durov wrote on Monday. “In addition to millions of catchy t.me addresses like @storm or @royal, all four-letter usernames could be made available for sale.”

According to Durov, the TON blockchain that he designed can host decentralised sales. He also said that the Telegram team can “write bullet-proof smart contracts for TON.”

Following his announcement, TON jumped about 10%. However, further details are yet to be shared by the company or Durov. 

Durov, to support his backing for TON, spoke about the success of a recent auction conducted for domain and wallet names, including wallet.ton which sold for 215,250 Toncoin (about $260,000) and casino.ton for about $244,000.

“Let’s see if we can add a little bit of Web 3.0 to Telegram in the coming weeks,” Durov said. 

In December last year, the TON blockchain partnered with Telegram’s verified payment protocol ‘Donate’ to use its native token ‘Toncoin’ for subscription payments, amongst other things, according to a report from Blockchain.News.

The TON Blockchain was conceived and developed by Telegram Founder Pavel Durov and his brother Nikolai in 2017. The project advanced into the Initial Coin Offering (ICO) stage with GRAM tokens offered to investors in a record $1.7 billion sales in 2018. However, this ICO was the source of the project’s trouble as the US SEC came after the Durov and the TON team, alleging they broke securities laws. The lawsuit was extended for a long period and eventually ended up with Telegram paying $18.5 million in settlements.

Image source: Shutterstock


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The rise of Ethereum blockchain

For developers creating solutions using Ethereum as a base, there is a substantial amount of functionality hosted on the Ethereum blockchain, as reported by Cointelegraph. The native currency of the Ethereum blockchain is called Ether (ETH), and it is used to pay for transactions on the Ethereum blockchain.

As per Cointelegraph, At a Bitcoin conference in Miami, Florida, in January 2014, Buterin introduced the world to the idea of the blockchain project, which is how Ethereum came to be known. Later that year, the project received money through an initial coin offering (ICO), selling ETH tokens worth millions of dollars in exchange for cash to use for project development. The asset sale sold over $18 million worth of ETH, paid for in Bitcoin, between July 22 and September 2, 2014.

Despite the fact that ETH coins could be bought in 2014, the Ethereum blockchain did not go live until July 30, 2015, so ETH buyers had to wait until the blockchain launched before they could transfer or spend their ETH. Why was the Ethereum blockchain initially created? One explanation is that the Ethereum blockchain offers greater development flexibility for the blockchain and its ecosystem.

The switch to PoS that was made in order to scale the network is a significant modification to the Ethereum blockchain. Over the years, a lot of projects have developed applications for the Ethereum blockchain. Even then, during the 2017 era of CryptoKitties, a digital collectible cat platformed by the Ethereum blockchain, the network had difficulties.

Decentralised finance (DeFi) projects built on Ethereum attracted a lot of attention in 2020 and 2021, which brought Ethereum’s scalability difficulties to the fore as high network fees hampered participants. Although it happens gradually, Ethereum’s transition to Eth2 and PoS attempts to scale the well-known blockchain, Cointelegraph stated.

 (With insights from Cointelegraph)

Also read: What is Tokenomics and how does it work

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Cryptos Fear The Fed’s Next Move; Market Cap Falls Below $1 Trillion

Cryptocurrencies dropped below the $1 trillion mark, amidst anxiety surrounding the Fed’s next move on interest rates. While markets generally appear to have priced in a 75-basis points rate hike, anxiety is writ large on whether the successive rate hikes would herald a stagflation, the condition in which an economy experiences simultaneous increase in inflation and stagnation of economic output.

Reports of the SEC investigation into Coinbase Global on whether it improperly let Americans trade digital assets that should have been registered as securities, also dampened market sentiment. The SEC had in a recent crypto insider trading case, labelled 9 cryptocurrencies listed by Coinbase as securities.

Overall crypto market capitalization dropped to $966 billion, versus $1.01 trillion a day earlier. At current levels of market capitalization, Bitcoin dominates 41.7 percent of the overall market. Ethereum follows with a share of 17.8 percent. Stablecoins occupy 15.9 percent of the market and the residual altcoins command 24.6 percent of the overall crypto market.

Market leader Bitcoin dropped more than 3.3 percent overnight to trade at $21,169. BTC also touched a 7-day low of $21,012.048 in the past 24 hours. A dip in the lead cryptocurrency’s price below the 100 hourly simple moving average also impacted sentiment. The percentage of Bitcoin holders making profits at current prices also dropped to 46 percent.

Ethereum, the largest altcoin is trading at $1,415.72, having lost 7.2 percent in the past 24 hours. ETH also touched a 7-day low of $1,402.42 in the past 24 hours. Ethereum’s weekly losses of 8.3 percent as well as year-to-date losses of 62.5 percent, are far higher than that of Bitcoin.

Tether (USDT), ranked 3rd overall and first among all stablecoins traded at $1 in the past 24 hours, comfortably maintaining its peg to the U.S. Dollar.

4th ranked USDCoin (USDC) traded between $1.00 and $0.9994 in the past 24 hours.

5th ranked BNB (BNB) declined 4.6 percent in the past 24 hours and 6.6 percent in the past week.

6th ranked BinanceUSD (BUSD) traded between $1.00 and $0.9983 in the past 24 hours.

7th ranked XRP (XRP) declined more than 4 percent overnight.

8th ranked Cardano (ADA) dropped more than 4 percent in the past 24 hours and in the past week.

9th ranked Solana (SOL) shed more than 7 percent in the past 24 hours. Solana’s weekly loss of 20 percent and year-to-date loss of 80 percent is the highest among the top-10 cryptos.

10th ranked Dogecoin (DOGE), lost more than 4 percent in the same span.

86th ranked Trust Wallet Token (TWT) has gained more than 3 percent overnight despite the general weakness in the crypto market.

48th ranked Quant (QNT) is the biggest loser in the top 100 category, dropping more than 14 percent, overnight.

31st ranked Apecoin (APE),78th ranked Lido DAO (LDO), 96th ranked Synthetix (SNX), 25th ranked NEAR Protocol (NEAR) and 80th ranked Convex Finance (CVX) have all lost more than 10 percent overnight.

Delivering the keynote address at the Brookings Institution Webcast on The Future of Crypto Regulation, Rostin Behnan, the Chairman of Commodity Futures Trading Commission, on Monday announced the launch of the Office of Technology Innovation (OTI). OTI would lead the CFTC’s efforts in incorporating innovation and technology into its regulatory oversight. The OTI has evolved from the LabCFTC, which was set up as a means to accelerate CFTC’s engagement with fintech innovators.

The CoinShares’ Digital Asset Fund Flows Weekly report on institutional investments showed inflow of $29.6 million for the week ended July 22, of which $19 million was attributed to Bitcoin and $8.1 million to Ethereum. Year-to-date flows remained positive at $415 million and month-to-date flows clocked $394 million.

The Department of Justice on Monday reported that Michael Alan Stollery, the CEO of Blockchain Infrastructure Services Inc. (TBIS) has pleaded guilty for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering (ICO), that raised approximately $21 million from investors in the United States and overseas. Although he was required to do so, Stollery did not register the ICO regarding TBIS’s cryptocurrency investment offering with the U.S. SEC, nor did he have a valid exemption from the SEC’s registration requirements.

According to the Department of Justice, Stollery admitted that, to entice investors, he falsified aspects of TBIS’s white papers, which purportedly offered investors and prospective investors an explanation of the cryptocurrency investment offering, including the purpose and technology behind the offering, how the offering was different from other cryptocurrency opportunities, and the prospects for the offering’s profitability. Stollery pleaded guilty to one count of securities fraud and is scheduled to be sentenced on November 18 and faces up to 20 years in prison.

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