Diversity in crypto is important as it brings a range of perspectives, talents, and experiences to the table, fostering innovation, resilience, and broader adoption. It is no secret that the blockchain and Web3 sector has been historically male-dominated. By including more women in crypto this helps address biases and promote inclusivity, making blockchain technology more accessible and beneficial to a wider range of people and communities.

Here is a list of the most influential women in crypto 2024:

1. Gracy Chen the CEO of Bitget is a well-known figure in the cryptocurrency industry and serves as the Co-founder and Global CEO of Bitget, a leading digital asset trading platform. She is recognized for her contributions to the development and promotion of cryptocurrency trading services. Before joining Bitget, she worked for Phoenix Satellite TV as an anchor and producer on technology and financial channels.  Gracy was also an early investor in BitKeep, Asia’s leading decentralized wallet. In 2015, Gracy was honoured as a Global Shaper by the World Economic Forum. She graduated from the National University of Singapore. In January, Bitget launched a new initiative dubbed the “Blockchain4Her” group which aims to support female-led businesses. Blockchain4Her will launch incubation programs tailored especially for female entrepreneurs. This included a $10 million fund which is being used to support female-led startups in the blockchain industry.
2. Cathie Wood CEO of ARK Invest, once said, “Bitcoin belongs in every portfolio.” She is known for her focus on disruptive innovation. Wood is very much recognized for her bullish outlook on innovative technologies such as artificial intelligence, genomics, blockchain, and autonomous vehicles. Wood is a prominent figure in the investment community and is known for her forward-thinking investment strategies.
3. Elizabeth Stark, co-founder of Lightning Labs, where she is building a programmable financial layer for the internet with fast, scalable Bitcoin transactions. Stark previously taught at Stanford and Yale University about the internet’s impact on society, the economy, and the law, and was a visiting fellow at Yale’s Information Society Project. She has worked with startups in areas ranging from decentralized technology to AI and was an entrepreneur-in-residence at Stanford StartX. Stark holds a J.D. from Harvard Law School.
4. Kathleen Breitman is one of the co-founders of Tezos, a blockchain platform that raised one of the largest initial coin offerings (ICOs) in history. Alongside her husband Arthur Breitman, she has played a key role in the creation and development of Tezos. Kathleen has been involved in various aspects of the project, including its vision, governance, and community engagement. Tezos aims to offer a decentralized blockchain that can evolve through on-chain governance mechanisms. Breitman has since stepped back from the project and is no longer involved.
5. Amber Baldet the co-founder and CEO of Clovyr, a company focused on building decentralized applications and tools to make blockchain technology more accessible to businesses. Before founding Clovyr, Baldet was a prominent figure at J.P. Morgan Chase, where she led the development of Quorum, an enterprise-focused blockchain platform. She is widely recognized for her expertise in blockchain technology, cybersecurity, and fintech innovation.
6. Joyce Kim the co-founder and former Executive Director of the Stellar Development Foundation (SDF), an organization focused on developing the Stellar blockchain network. She played a significant role in the early stages of Stellar’s development and helped shape its vision for financial inclusion and interoperability. Before her work with Stellar, Kim was involved in various ventures in the technology and finance sectors. She is recognized for her contributions to the cryptocurrency and blockchain industry, particularly in promoting financial access and inclusion through innovative technologies.
7. Blythe Masters is another prominent figure in the financial industry, known for her work in derivatives and blockchain technology. She is the former CEO of Digital Asset Holdings, a company focused on developing distributed ledger technology solutions for financial institutions. Masters previously held high-ranking positions at J.P. Morgan Chase, where she played a key role in the development of credit derivatives in the 1990s. She is widely recognized for her expertise in financial markets and her advocacy for the adoption of blockchain technology in the finance industry.
8. Perianne Boring is the founder and former president of the Chamber of Digital Commerce, a leading trade association representing the blockchain industry. She is known for her advocacy work in promoting the adoption of blockchain technology and fostering a supportive regulatory environment for digital assets. Boring has been a vocal advocate for blockchain technology’s potential to transform various sectors, including finance, healthcare, and supply chain management. She is recognized as a prominent figure in the cryptocurrency and blockchain community.
9. Caitlin Long is a financial industry veteran and blockchain advocate known for her work in promoting blockchain technology and cryptocurrencies. She is the founder and CEO of Avanti Bank and Trust, a Wyoming-based bank focused on providing services for digital assets and blockchain-based financial products. Long has a background in traditional finance, having worked on Wall Street for over two decades, including roles at Morgan Stanley and Credit Suisse. She is recognized for her expertise in financial markets and her efforts to create a regulatory-friendly environment for blockchain innovation, particularly in Wyoming.
10. Last but not least, Kavita Gupta the Founder and Managing Partner of Delta Blockchain Fund, an investment fund focused on blockchain technology and cryptocurrencies. She is well known for her extensive experience in the finance and investment industry, with previous roles at organizations like the World Bank, where she worked on investment projects in emerging markets. Gupta is recognized for her contributions to the blockchain and cryptocurrency space, particularly in promoting investment and innovation in the sector. She has also been involved in various initiatives aimed at fostering diversity and inclusion in the technology and finance industries.

The post Who Run The World? Girls! Top Ten Most Influential Women in Crypto appeared first on Cryptonews.

No surprise here, the gentleman advised against it, but did tell my father that it’s his money and he will do as he wishes.

He then sent over an article he wrote in January just a few days after the SEC’s ETF approval, essentially telling his clients that the Bitcoin ETFs exist, however, they do not recommend buying it.

Fair enough, nobody wants to be the financial advisor who told you to buy Bitcoin and then have to explain if the price goes down, after all, their jobs rely on returns and trust.

I do not blame this man at all for that response. It did dawn on me, however, that given all we know now about Bitcoin today, this guy didn’t seem to consider the upside.

How do you explain to your clients that you didn’t think it was a good idea to allocate when Bitcoin ends up doubling in price? 100% is a juicy ROI, in fact, year to date we’re at 150%.

Now, I am aware that Bitcoin is trading 30% lower than it was at all-time highs in Nov of 2021, but if you’re a long-term investor armed with knowledge, you know that bitcoin has done this every 4 years like clockwork. Big parabolic runs up, big drawdowns. If you’re looking at the big picture, the writing is on the wall.

There is no doubt that most financial advisors are unaware of the real underlying technology behind Bitcoin.

They tend to say “speculative” a little more often than I’d like, but again, I don’t blame them; blockchain technology is beyond complex.

Are they aware of SHA256 hashing algorithms, do they know that new blocks are mined every 10 minutes and only 900 Bitcoins come into existence every day, do they know that number gets cut in half in 70 days, to a mere 450 Bitcoin? Do they know the existing float (available for purchase) on exchanges, or how many coins are circulating at this moment?

Of course not; this is happening behind the scenes in simple code, running on a global decentralized network 24/7/365.

For years, there has been a disconnect between institutions and Bitcoin. For instance, a pension fund can’t just go on Coinbase and buy Bitcoin; there’s tons of red tape and regulation in the way.

They’ve wanted to, we know that they were asking BlackRock, Fidelity, and other investment companies for this ability.

The new ETFs are the pipeline between the institutional client and Bitcoin, and the magnitude and importance of this is understated.

Let’s Get Into Why We Go Up From Here

We’re already up 150% from this time last year. We shook out the bad actors, SBF is gone, the FTX logo was removed from Miami’s flagship stadium.

Three Arrows Capital crashed and burned, as did BlockFi, Celsius, and countless others who flew too close to the sun. We cleaned house, and pushed on regulators and the SEC for clarity, (which by the way we’ve been asking for since 2013).

All the while, behind the scenes there were some massive players who, in the bear market, took some time to dig into the tech, and the law, and began to set up their chess pieces accordingly.

Land of the Giants

Enter BlackRock, Fidelity, Ark, Wisdom Tree and the rest of the gang. Unless you’re living under a rock (little pun intended), these are the companies that run the free world.

Larry Fink’s BlackRock alone has $10 trillion dollars of assets under management.

These guys “DO NOT LOSE” and spent millions in legal fees and research, getting the SEC to finally adhere to the law and approve these ETFs. (Fun fact: Gary Gensler, Chairman of the SEC taught a class on Bitcoin at MIT).

BlackRock is not in the business of buying stocks, they’re in the business of selling, and you can bet that when Larry Fink calls the desks at JPMorgan and tells them to push the iShares Bitcoin ETF, they’re picking up their phones.

The Macro

Today is Feb 7th, 2024, I just watched the S&P hit $4999.89, the all-time high.

Less than a week ago I watched Jerome Powell tell the citizens of the United States that he will not increase interest rates, most analysts have first cuts poised to come in Q2. The United States is at $34 Trillion dollars in national debt. Inflation is out of control, contrary to what the Fed is telling us.

It only takes a simple outing to the grocery store to understand this. The average American knows we’re paying at least 50% higher than we did in 2020 for goods. There’s only one move left to make, Quantitative Easing, they will turn on the money printer once again, my friends. Money spigot on = Bitcoin up.

Supply and Demand

The basic principle of an ETF is: a company buys an underlying asset, sells you shares, and holds the asset for you.

Today alone the 9 Bitcoin ETFs did over $1 Billion in trading volume. The ETFs (which are newer than 30 trading days old) now hold a combined 675,000 Bitcoin, worth about $30,000,000,000.

Daily inflows continue, with new funds that never had access to Bitcoin allocating every day in high numbers, these allocations don’t happen overnight.

This is a snowball effect, so we expect these numbers to rise rapidly. Remember, only 900 new Bitcoin are mined every day, that number drops to 450 in 70 days essentially cutting new supply in half.

The float on exchanges such as Coinbase and Binance is not in millions of coins, but only in the hundreds of thousands. A number that can get drained very easily, especially now with the 9 new ETFs gobbling Bitcoin at an extraordinary rate.

If the new ETFs continue to purchase Bitcoin at the current rate, most of the supply will be dwindled by summer. (And before anyone brings up Grayscale Trust outflows, those were absorbed by the new ETFs).

Aside from the ETFs out there buying coins, lest us not forget we have good ol’ retail.

We all know the moment Bitcoin hits $60,000 our phones will be ringing once again with acquaintances, friends and family asking “how do I buy Bitcoin?”.

Coinbase will once again move to the #1 app in the App Store and media will buzz yet again.

Along with that we have the nation-states that have been sending reps to the recent Bitcoin conferences.

Switzerland is Bitcoin friendly, El Salvador made it legal tender and you certainly don’t want to be buying on the same day the Saudis or Emirates fat finger the buy button. Keep in mind there will only ever be 21M Bitcoin, you can’t print more; these must serve a population of 8 billion people.

Demand has begun, supply only shrinks = number go up.

The Stage is Set

We’ve now got the all-clear from the Securities and Exchange Commission – no more government or regulatory anxiety.

I think we’ve moved past the “magic internet money, this is a scam, you’re an idiot” phase and moved into the “buckle up, Wall Street is here” phase.

Which brings me back to my original point: get off zero percent.

Everyone has a risk tolerance, nobody wants to be wrong and nobody wants to lose, but if you had to bet on what happens first, Bitcoin goes to zero or Bitcoin goes to $100,000, which way do you think this goes? So, even if it’s 1% of your portfolio, allocate to one of the new Bitcoin ETFs and get off zero.

~ Richard Levin is Vice President of Cryptonews.com

(If you have questions, I’d love to answer them, DM on Instagram @newyorkorparis. None of this is financial advice, if anyone tells you they know anything about Bitcoin price action, they’re scamming you. I am a mere mortal, I win and lose like everyone else. This is just my opinion based on years of working in this field and thousands of hours studying the tech.)

The post Opinion: The Case for Investing in a Bitcoin ETF and Why It’s Time to Get Off Zero appeared first on Cryptonews.

MiCA’s primary goal will be to establish a unified rulebook for regulating crypto-asset markets. The ‘implementation phase’ of MiCA is from entry – June 2023 when the rules first came into force –  until the date of full application in December 2024.

In January, the European Securities and Markets Authority (ESMA), the top regulator of the European Union’s financial markets, opened a feedback window on guidelines under MiCA regulation.

Industry Feedback on MiCA 

The MiCA regulation requires fiat-backed stablecoins to be backed by a liquid reserve that has a 1:1 ratio. In response to this many industry players are keen to stress that the rules have the potential to impact the crypto market within the EU positively.

Increasing confidence among investors in the stability and reliability of stablecoin offerings. “MiCA regulations have introduced a comprehensive framework for regulating stablecoins, bringing them under the purview of EU financial laws. This has led to increased regulatory oversight and scrutiny of stablecoin issuers and operations,” James Wo, Founder and CEO of investment firm DFG, who previously worked at Ethereum Classic Labs as a Founder and Chairman, told Cryptonews.

The MiCA regulations aim to promote market stability, limit contagion risks and improve investor protection by imposing stringent requirements on stablecoin issuers, such as capital requirements, transparency standards, and consumer safeguards.

MiCA Raises the Barrier to Entry 

Wo goes on to explain that with MiCA regulations being implemented this in turn has raised the barrier to entry for new stablecoin issuers, leading to market consolidation as smaller players may struggle to comply with the regulatory requirements, resulting in the dominance of larger and more established stablecoin issuers in the market.

“The implementation of MiCA regulations in the EU has also had implications beyond its borders, as stablecoin issuers operating in other jurisdictions may need to comply with similar regulatory standards to access the EU market. This has prompted stablecoin issuers worldwide to reassess their compliance strategies and adapt to the evolving regulatory landscape,” explains Wo.

MiCA’s Compliance Requirements Hinder Innovation 

Being forced to comply with MiCA requirements could hurt small start-ups especially due to the strict regulations which makes seeking legal expertise costly.

“The MiCA regulations do also have their downsides, notably with the potentially negative impact they can have on innovation and competition. Its strict and complex compliance requirements effectively create higher barriers of entry for small and innovative players—likely severely limiting market density and stifling diversity in the stablecoin market,” said Eitan Katz, CEO and co-founder of Kima, a decentralized money transfer protocol.

Risk of Market Fragmentation

Katz goes on to add, that given its location-specific application of the EU, MiCA can further market fragmentation.

“This would inevitably lead to multiple incongruent and disjointed stablecoin regulations across different jurisdictions, causing massive damage to stablecoin adoption and undoubtedly complicating the global landscape,” said Katz.

MiCA regulations around stablecoins aim to avoid another fiasco reminiscent of the TerraUSD’s crash, this move looks to foster greater trust in stablecoins thereby attracting users and encouraging wider adoption.

“MiCA also introduces heightened transparency and oversight measures through its mandatory audits and issuer reporting. This effectively mitigates risks, safeguarding and combating against potential misuse of stablecoins,” adds Katz.

By establishing a comprehensive legal framework for stablecoin issuance and activity within the EU, MiCA regulations provide much-needed—and otherwise noticeably lacking—legal clarity.

One Rule Fits All?

It seems the EU is leading on the regulatory front. Regulation of digital assets is still very new and varies greatly from jurisdiction to jurisdiction.

“The EU has taken the lead when it comes to forward-looking crypto regulations—the union’s approach to regulation through MiCA has prioritized and balanced innovation with financial stability and investor protections,” said Lior Lamesh, CEO and co-founder of GK8, a Galaxy company.

Lamesh explains as the cryptocurrency industry continues to evolve and mature, however, the rules remain highly fragmented. It is worth noting that MiCA hasn’t introduced entirely new information when it comes to stablecoins but reassures that stablecoins must be regulated as electronic money institutions (EMIs).

MiCA’s impact, along with other regulatory bodies, is huge when it comes to digital asset custody.

“Financial institutions should be looking for a governance and policy engine that can craft complex policies aligned with diverse regulatory frameworks such as BaFin, ADGM, Finma, OCC, MiCA, and more,” adds Lamesh.

One thing is for sure the European Union is taking the lead when it comes to introducing regulation around digital assets. This will make Europe the first region in the world to introduce comprehensive guidelines which will be followed by all 27 European countries.

The post Why Europe’s MiCA Raises the Barrier to Entry for Stablecoin Issuers appeared first on Cryptonews.

Retail CBDCs are government-backed digital fiat money which is regulated by the country’s central bank and seen as an alternative to crypto. But when it comes down to introducing CBDCs, there are concerns about data protection and security.

To use CBDCs individuals will have to part with personal information and this is where it gets sticky. Many individuals do not want their everyday transactions monitored. Let alone give the government access to this data which in turn could be used to control consumer behaviour on a mass scale.

Over the years Governments have pushed to develop CBDCs almost in response to crypto. Regulators and governments are wary of crypto due to the lack of transparency around the ecosystem.

Crypto remains volatile so is unlikely to be considered a currency despite El Salvador becoming the first country to make bitcoin legal tender in September 2021. We have yet to see if El Salvador’s Bitcoin bet pays off.

Donald Trump on CBDCs

Most recently former US President Donald Trump grabbed headlines speaking in Portsmouth, New Hampshire. He defined CBDCs as a “dangerous threat to freedom.” Pro-crypto former presidential candidate Vivek Ramaswamy, who recently dropped out of his campaign, was also present on stage, officially endorsing Trump.Trump has been dismissive about the value of cryptos and central bank digital currencies (CBDCs) in the past.

The 2024 Republican frontrunner has once again promised against the creation of a CBDC “to protect Americans from government tyranny.”But would introducing CBDCs solve any issues? Is there a way around privacy and security concerns? The Bank for International Settlements (BIS) claims there is and released a report in November 2023 on “Project Tourbillon” which explores privacy and security.

The BIS claims its findings through Project Tourbillon introduce a new privacy paradigm that balances user needs and public policy objectives: payer anonymity. For example, if a consumer pays a merchant using CBDCs and does not disclose personal information to anyone, including the merchant, banks and the central bank. So if the identity of the merchant is disclosed to the merchant’s bank (as part of the payment) but is kept confidential there. The central bank does not see any personal payment data.

Is China Ahead of the Curve? 

Over the years many countries have been developing their own CBDCs almost in stealth mode. China’s e-CNY pilot has been distributed and used widely. For example from February to March 2022,  e-CNY was piloted in the Beijing Winter Olympics venues.

In December, Singapore’s regulatory body the Monetary Authority of Singapore (MAS)  said it plans to begin piloting the e-CNY in collaboration with China to encourage tourism spending. The two countries first signed a Memorandum of Understanding to work together back in 2020. No timeline was given for when the digital currency would be trialled.

Sweden’s e-krona CBDC – which will be issued by Sweden’s central bank, Riksbank, has put in place privacy architecture for its pilot. Sweden has been moving toward becoming a cashless society.

The Bahamas, Jamaica, and Nigeria have already introduced CBDCs. And more than 100 countries are in the exploration stage. Central bankers in Brazil, China, the euro area, India, and the UK are at the forefront, according to an International Monetary Fund (IMF) report.

The post Exploring the Privacy Concerns Around CBDCs appeared first on Cryptonews.

Once dubbed “the pearl of the Indian Ocean” — Sri Lanka is known for producing the finest tea, fresh coconuts, and spices. Not forgetting the exotic wildlife including the leopard, elephant, sloth bear, blue whale, and sperm whale.

What You Need To Know About Bitcoin In Sri Lanka

Sri Lanka remains anti-crypto. Its stance on cryptocurrencies is that digital currency is not considered legal tender in the country. According to directions No. 03 of 2021 under Foreign Exchange Act, No. 12 of 2017, Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not to be used for payments related to cryptocurrency transactions.

Would Bitcoin Solve Sri Lanka’s Economic Crisis

Sri Lankan economic crisis first started in 2019 and in 2022, Sri Lanka’s economy struggled after fuel supplies ran dry. In terms of GDP, Sri Lanka is expected to reach $76.86 billion by the end of 2024, according to data from Trading Economics, and in the long-term, Sri Lanka’s GDP is projected to trend around $79.54 billion in 2025 and $82.33 billion in 2026, reports Trading Economics. In October 2023, Nandalal Weerasinghe, the Governor of the Central Bank in Sri Lanka, said he believes that the adoption of decentralized cryptocurrencies will worsen the nation’s economic condition.

Last year, American millionaire Tim Draper travelled to Sri Lanka and proposed using Bitcoin as a legal tender to combat the corruption that caused the island nation’s hyperinflation.  But Sri Lanka wasn’t having any of this. During a TV shoot in Sri Lanka, Draper met with President Ranil Wickremesinghe and Weerasinghe to suggest Bitcoin as a practical solution for solving financial issues. But Weerasinghe, the Governor of the Central Bank of Sri Lanka – a major authority figure made it clear that doing so would aggravate the economic condition of the nation.

Central Bank Warns of Crypto Scams 

The Central Bank has warned the public of the growing number of financial scams operating with the promise of high returns based on crypto-investments. “These scams include deceiving individuals and obtaining money from them with the promise of providing a high return by investing money in cryptocurrency, as well as deceiving individuals to invest in fraudulent cryptocurrency projects. Such scams circumvent traditional regulatory and legal protection mechanisms, resulting in individuals losing their hard-earned money.”

The Central Bank made it clear that it has not issued any licence or authorized any individual or business to operate schemes involving cryptocurrency, or mining operations, cryptocurrency exchanges, deposit-taking or custody services related to cryptocurrency or any cryptocurrency investment advisory service.

Central Bank Plans to Launch Digital Currency

Sri Lanka’s Central Bank announced plans to introduce a digital currency by the end of 2024 its official told a top committee in Parliament, as reported by the Colombo-based local media news site Daily Mirror LK.“The exercise of introducing ‘Lanka Pay’ and ‘Central Bank Digital Currencies’ has already begun. The two systems will be launched by the end of this year,” Central Bank officials informed the Ways and Means Committee in Parliament, reports Daily Mirror LK.

Central Bank officials were called before the committee to discuss issues pertaining to online payments in Sri Lanka. Accordingly, the Chairman of Ways and Means Committee Patali Champika Ranawaka inquired about the regulation of online payment systems in Sri Lanka,” Parliamentary Media Unit (PMU) said. In September 2023,  Nandalal Weerasinghe, the Governor of the Central Bank acknowledged in a keynote speech that interest in digital currencies has been gaining traction and within the Central Bank of Sri Lanka.

“We are also engaged in studies on the potential of Central Bank Digital Currency (CBDC) which is the digital form of legal tender issued by the Central Bank. There is consensus across global central banks that CBDC will help enhance the efficiency and resilience of the payment system while also serving to increase financial inclusion.

Importantly, other potential benefits of CBDC include more effective monetary transmission and improved financial transparency,” said Weerasinghe. For now, Sri Lanka is showing signs of revival through growing tourism but cryptocurrency remains an unregulated investment instrument and is not recognized as an asset class. 

The post Sri Lanka’s Stance on Crypto and the Launch of ‘Lanka Pay’ in 2024 appeared first on Cryptonews.

Earlier today GameStop revealed it has shut down its NFT marketplace, signaling its withdrawal from the cryptocurrency space. The announcement was made via a statement on the platform and cites “the continuing regulatory uncertainty of the crypto space” as the primary reason behind this decision.

Another notable move was made by X, formerly known as Twitter, which quietly removed all references and options for owning NFTs as an account avatar. TechCrunch reported on January 8, that X had silently removed a feature for paid subscribers. They’re no longer able to set an NFT as a profile picture.

NFT Trading in Decline 

Trading of NFTs has been in decline for over a year. Data compiled by Statista, shows the number of active wallets involved in NFT trading has declined by more than 25% between Q2 2023 and Q3 2023. This is a notable decline from the end of 2021 — when the number of users was estimated at nearly two million.

The NFT bear market continues which can be linked to the crypto market which has been stagnant. Is it game ove for NFTs? Or will the digital collectible make a come back?

What Causes NFTs to Surge?

NFT trading has at times surged at various moments. Statista highlights that back in 2017, the surge was connected to the popularity of collectible CryptoKitties whereas the second surge was in March 2021, had to do with media reporting the largest NFT sales to date. In August 2021 was likely caused by sales of Axie Infinity, a popular NFT game in Southeast Asia.

In December, Dapp Radar reports there has been a slight surge in NFT trading volume passed $994 million, an increase of 125% from the previous month, with a total of 3.67 million sales. Blur led the NFT sector with 35% market share in trading volume, followed by OKX with 32%. OpenSea dropped to a yearly low at 14%, but retains 191,000 active traders.

Over the years, luxury brands such as  Prada, Gucci, and Dolce & Gabbana have been launching NFTs– fast forward to today and there’s the occasional drop. One of the reasons luxury brands launched NFTs is to increase brand exposure, and combatting counterfeiting. The question arises is there a good use case case for NFTs?

In the art world NFTs have been used to tokenize physical assets, such as art work, and collectibles, this trend is slowly growing and reshaping th the art world and how we own, and trade digital assets.

The post Game Over for NFTs? Will the Market Recover in 2024 appeared first on Cryptonews.

It’s a historic moment for the cryptocurrency market as the US Securities and Exchange Commission (SEC) finally approved eleven spot Bitcoin ETFs. Crypto enthusiasts around the world are looking on excitedly. Unfortunately, a similar product for UK investors is highly unlikely to be approved, according to one financial advisor. 

This latest approval in the US for the first-ever spot crypto ETFs throws open the doors for institutional and retail investors. It seems the UK will lag on the crypto ETF action. 

The UK is the second-largest economy in Europe and currently the sixth-largest in the world, following the US, China, Germany, Japan and India. Where does the UK stand when it comes to crypto products?  Well, it’s no secret the UK has been increasingly tough when it comes to crypto.  

“I am personally doubtful that the UK’s Financial Conduct Authority will authorise Bitcoin or other cryptocurrency ETFs to be made accessible to UK retail investors any time soon,” said Jason Hollands, Managing Director at investing platform Bestinvest.  

FCA Ban Implemented 2021

In January 2021, the FCA implemented a ban on the sale of derivatives and exchange-traded products. The FCA said it considers the products to be ill-suited for retail consumers due to the potential harm they pose. 

Hollands notes that Bitcoin enthusiasts among the UK’s estimated nine million self-directed investors who use online platforms and apps to manage their investments through ISA, SIPP and general investment accounts –might be in for a wait to have the same choice as their US counterparts. 

Over the years, the FCA has repeatedly flagged its concerns about the extreme volatility of crypto assets, the high risk of losses and the difficulties retail investors face in valuing them. 

“For an ETF to be made directly available by a UK regulated investment platform, under a regulation known as PRIIPs (Packaged Retail and Insurance-based Investment Products Regulation) ETF and other fund providers must comply with UK regulatory requirements in terms of producing a Key Information Document, which a US-listed ETF won’t have,” explains Hollands. 

Institutional Investors Can Access Crypto ETPs 

However, it is important to note that institutional investors (not retail) can access crypto products through Goldman Sachs, ICAP, JPMorgan, and UBS. Exchange-traded products offering exposure to cryptocurrencies are readily available. 

“Even [if] Bitcoin or cryptocurrency ETFs to become authorised in the UK in the near future, it is possible that these would be primarily accessible for professional investors such as discretionary fund managers or those certified as sophisticated investors,” said Hollands. 

 He goes on to explain that this is due to the FCA’s Consumer Duty principle, which was a major regulatory development in the financial services sector last year. 

“It aims to increase consumer protection for retail investors and ensure regulated firms are focused on good client outcomes, and as a result execution-only investing platforms have become more cautious about the access they provide to higher risk or more complex products, rather than relying on the caveat emptor ‘buyer beware’ principle which was widely assumed to have prevailed previously,” explains Hollands. 

For now, UK retail investors will have to watch on in envy as US investors can access a range of exciting new spot Bitcoin ETFs. 

The post US Spot Bitcoin ETF Approved, UK Unlikely to Follow Suit appeared first on Cryptonews.

The US Securities and Exchange Commission (SEC) social media account being compromised is concerning. Impersonations and hacks are nothing new in the cryptocurrency space but could the hack have been avoided?

After the post, the SEC started an internal market manipulation investigation on itself. X, formerly known as Twitter, confirmed the SEC’s account was compromised when it posted the fake spot Bitcoin ETF approval announcement.

Market Manipulation 

Senator Cynthia Lummis tweeted: “Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets. We need transparency on what happened.”

X confirmed that the compromise did not stem from any vulnerability in their systems. Instead, an unidentified individual gained control over a phone number associated with the SEC account through a third party.

We can confirm that the account @SECGov was compromised and we have completed a preliminary investigation. Based on our investigation, the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number…

— Safety (@Safety) January 10, 2024

In turn, the SEC then tweeted the importance of protecting your investment accounts. Despite the false announcement, analysts believe that this security lapse won’t be a reason for the delaying of spot Bitcoin ETF approval which is expected to happen late on Wednesday. Unfortunately, instances of market manipulation in the cryptocurrency sector are a recurring tactic.

Here are the most common risks in the cryptocurrency sector.

Phishing Attacks: This is when users can be tricked into revealing their private keys or login credentials through phishing emails or websites. This involves the practice of sending fraudulent communication.

Hacks and Cryptocurrency Exchanges: Cryptocurrency exchanges are often targeted for large-scale thefts. If an exchange is compromised, users’ funds can be at risk.

Third-party Applications and Software: Third-party applications are any applications that aren’t created or supported by the maker of the device the app is installed on. Hackers may find new ways to exploit bugs in third-party software to retrieve sensitive information.

Wallet Vulnerabilities: Malicious actors can exploit vulnerabilities in cryptocurrency wallets to steal funds.

Smart Contract Flaws: Vulnerabilities in smart contracts can be exploited to drain funds from decentralized applications (dApps) or blockchains.

Ponzi Schemes: Fraudulent schemes promising high returns can deceive users into investing their cryptocurrencies, resulting in significant losses.

51% Attacks: In smaller blockchain networks, malicious actors can gain control of a majority of the network’s mining power, allowing them to double-spend coins. 51% attack is an attack on a cryptocurrency blockchain by miners who control more than 50% of the network’s mining hash rate.

Social Engineering: Manipulating individuals to disclose sensitive information or transfer funds through social engineering tactics is another risk. Social engineering isn’t a direct cyber-attack. It is when actors with bad intentions gain the trust of their targets, so they lower their guard and give up sensitive information.

Insider Threats: Employees or individuals with insider access to sensitive information can misuse their privileges to steal funds or sensitive information.

Lack of Regulation: The decentralized nature of cryptocurrencies can make it challenging to enforce security standards and protect investors.

Mitigating Cybersecurity Risks: To mitigate these risks, users and organizations should adopt best practices, such as using hardware wallets, keeping software up-to-date, and conducting thorough due diligence before investing or participating in cryptocurrency transactions. Setting up 2FA is an important first step for security because it immediately neutralizes the risks associated with compromised passwords.

The post Cybersecurity Risks in the Cryptocurrency Industry appeared first on Cryptonews.

There are many retailers accepting cryptocurrency as a form of payment and realizing how important it is to attract and tap into a more tech-savvy client base.

Some would argue that the end of fiat currencies is nigh, and eventually, fiat will be replaced by digital currencies. If we already have a fiat payment system why change this and what are the advantages of using digital currencies for retail transactions?

Data from Deloitte reported roughly 2,352 US businesses accepted Bitcoin in late 2022, and that doesn’t include Bitcoin ATMs. An increasing number of companies worldwide are using Bitcoin and other crypto and digital assets for a host of investment, operational, and transactional purposes.

Benefits of Using Cryptocurrency in Retail

Using digital currencies for transactions offers several advantages such as speed. Digital currency transactions can be completed instantly or in a matter of seconds, compared to traditional banking systems which can take days.

Digital currencies can reduce or eliminate the need for intermediaries, leading to lower transaction fees for retailers. Cryptocurrencies operate on a decentralized platform, making international transactions smoother without the need for currency conversion.

Then there is the issue of security – blockchain technology, which underpins many digital currencies allows for enhanced security features. This in turn can protect both retailers and customers from fraud and unauthorized transactions. 

Another factor is reduced fraud risks. The immutable nature of blockchain ensures that once a transaction is recorded, it cannot be altered, reducing the risk of chargebacks and fraudulent activities.

Financial Inclusion

For the underprivileged cryptocurrency has the potential to foster financial inclusion and improve access to financial services especially those in developing countries. Financial inclusion is important and digital currencies can provide banking services to the unbanked or underbanked populations, potentially expanding the customer base for retailers.

Through accepting digital payments retailers can offer innovative payment solutions, such as loyalty programs, or smart contract-based transactions using digital currencies.

Transparent Transactions 

Every transaction on the blockchain is recorded transparently, allowing for greater accountability and trust between retailers and customers. This also cuts out the need for due diligence before a huge transaction.  Digital transactions cut out the middlemen. Direct peer-to-peer transactions can eliminate the need for intermediaries like banks or payment processors, reducing costs and potential points of failure.

Retailers accepting Bitcoin

So who are the most notable and prominent retailers that have embraced digital currency payments?

• • Microsoft: This American multinational technology corporation has been accepting Bitcoin for use in its online Xbox Store since 2014. However, the firm temporarily paused from accepting Bitcoin due to volatility in the market. Microsoft is once again accepting cryptocurrency strictly for the Xbox store credits.
  • Starbucks: The coffee shop customers pay directly with Bitcoin thanks to a partnership with digital wallet provider Bakkt.  In 2022, Starbucks unveiled Starbucks Odyssey becoming one of the first companies to integrate non-fungible tokens (NFTs) with a loyalty program.
  • Tesla: SpaceX and Tesla CEO, Elon Musk has been open about his interest in Dogecoin. Tesla first began accepting crypto as a form of payment for its cars but discontinued the program soon after. However, Dogecoin is still accepting some Tesla Merchandise.
  • Wholefoods: This grocery chain, owned by Amazon, has shown interest in cryptocurrency and there have been initiatives to enable crypto payments, although the rollout was still in progress as of my last update.
  • Time Magazine: In 2019, TIME magazine first began accepting cryptocurrency as a form of payment for digital subscriptions through a new partnership with Crypto.com exchange.
  • Virgin Galactic: The space tourism venture founded by Richard Branson, is accepting bitcoins as a form of payment for space tourists. Unfortunately, Virgin Galactic has been a loss-making business announcing job cuts and a pause in commercial flights in an effort to save cash.
  • Overstock: The e-commerce home decor firm selling bedding and furniture accepts cryptocurrency as a form of payment. This was one of the earliest major retailers to accept Bitcoin as a method of payment.

How to Shop with Cryptocurrency

To begin shopping with cryptocurrency involves a few basic steps to ensure you have the necessary tools and knowledge to make secure transactions.  Here’s a brief guide on how to get started:

First of all, choose a wallet. Before you can shop with cryptocurrency, you’ll need a digital wallet to store your crypto assets. Wallets come in various forms: you can either choose a software wallet which involves an application or software installed on your computer or mobile device. The other option is a hardware wallet.

This is a physical device that stores your cryptocurrency offline, offering increased security.  Online wallets are web-based services that store your crypto assets on the cloud. However, these are considered less secure than hardware or software wallets.

Acquiring Crypto

The next step is to acquire Cryptocurrency: To start shopping, you’ll need to acquire some cryptocurrency. This can be done by using exchanges. Platforms such as Coinbase, Binance, or Kraken allow you to buy cryptocurrencies using traditional currencies (like USD, EUR, etc.).

There is the Peer-to-Peer option. This allows you to buy from individuals through platforms like LocalBitcoins or through decentralized exchanges. There are also crypto ATMs: In some locations, cryptocurrency ATMs allow you to purchase crypto using cash.

Next, choose a retailer that accepts cryptocurrency as a form of payment.  Not all retailers accept cryptocurrency. Look for online platforms or physical stores that have integrated crypto payments. Some popular retailers or platforms include Overstock, Shopify merchants, and various independent online stores.

Making the Purchase

Once you’ve selected a product or service from a retailer that accepts cryptocurrency. Next comes the fun part: Choose the cryptocurrency payment option. Enter the necessary details, which usually include the amount in crypto and a receiving address. Confirm the transaction from your wallet.

It’s important to monitor and manage your account. Always keep an eye on your cryptocurrency transactions. Ensure you’re sending funds to the correct address and are aware of any associated fees.

Stay Informed 

The world of cryptocurrency is dynamic and fast-moving. Stay updated on the latest developments, security best practices, and changes in regulations.

Remember, while shopping with cryptocurrency can offer privacy, speed, and other benefits, it also comes with risks. Always prioritize security, ensure you’re dealing with reputable retailers, and be cautious of potential scams.

The post The Big List: Retail Revolution with Cryptocurrency – Retailers Embracing Digital Payments appeared first on Cryptonews.

Crypto scams over the years have involved pump and dump schemes, Ponzi schemes such as OneCoin project led by the notorious CryptoQueen Ruja Ignatova, as well as hacks such as Mt Gox, becoming more and more sophisticated.

This article wouldn’t be complete without the mention of Sam Bankman-Fried who was behind the collapse of the cryptocurrency exchange FTX.

Now the question arises: could any of these scams have been prevented? It seems crypto is still very much a nascent asset class that is known to be relatively high risk and volatile. There are many notable scams that have occurred throughout its history.

Being aware of crypto scams is critically important for protecting oneself. Over the years due to the scams there has been increased regulatory scrutiny and oversight of the digital assets sector, potentially impacting the broader cryptocurrency ecosystem. It is important for the crypto community to work together to maintain trust and credibility.

The Biggest Crypto Scams

In 2014, one of the earliest scams involved the cryptocurrency exchange Mt. Gox. This is one of the most infamous incidents. Tokyo-based exchange Mt. Gox filed for bankruptcy in 2014 after claiming to have lost 850,000 Bitcoins (worth over $450 million at that time). This incident significantly impacted the reputation of cryptocurrencies.

Next we have OneCoin – a project that was marketed as a revolutionary cryptocurrency, OneCoin was later revealed to be a Ponzi scheme. OneCoin first began operating in the US in or around 2015. Between the fourth quarter of 2014 and the fourth quarter of 2016. Its founders and promoters faced legal actions in various countries, and the scheme defrauded investors of billions of dollars. CryptoQueen Ruja Ignatova who was behind the project still remains a fugitive after disappearing six years ago. Ignatova is on the FBI’s most wanted list. 

In 2018, we saw Bitconnect operating as a high-yield investment program, it promised investors outsized returns. However, it was eventually exposed as a Ponzi scheme in 2018, leading to its collapse and significant losses for investors.

In the same year, PlusToken was launched – dubbed a multi-level marketing cryptocurrency wallet and exchange. It attracted millions of users and allegedly defrauded investors out of 14.8 billion yuan ($2.25 billion) worth of cryptocurrency in the eastern province of Jiangsu, China in 2020.

In 2019, QuadrigaCX which was Canada’s largest cryptocurrency exchange, collapsed following the sudden death of its founder, Gerald Cotten. It was later revealed that the exchange had lost access to its cold storage wallets containing significant amounts of cryptocurrency, leaving customers unable to access their funds.

Tether Controversy 

Next we have Bitfinex and Tether –  There have been controversies and allegations surrounding the relationship between the cryptocurrency exchange Bitfinex and the stablecoin Tether (USDT). Concerns have arisen regarding the backing of Tether’s reserves and its impact on the broader cryptocurrency market. In 2021, the Commodity Futures Trading Commission (CFTC) fined both of the firms more than $42 million on allegations the USDT stablecoin was not fully backed.

In 2022, the collapse of Terraform Labs’ algorithmic stablecoins wiped out $50 billion in valuation. This was the trigger that started the 2022 crypto winter. In May 2022, TerraUSD and Luna crashed, taking billions of dollars of investor equity with them. Most recently new details have come to the surface regarding the high-profile crypto fraud case between the United States Securities and Exchange Commission (SEC) and Terraform Labs. On December 20, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York approved a protective order that will keep material confidential leading up to the trial.

FTX Collapse 

In 2023, a high profile scam involving Sam Bankman-Fried who dominated mainstream media headlines. He is responsible for the FTX collapse. Bankman-Fried was charged with stealing as much as $10 billion from FTX customers in order to finance his spending activities which included political contributions.

These are just a handful examples, and the cryptocurrency space has seen numerous other scams and fraudulent activities over the years. Investors should exercise caution, conduct thorough research, and be aware of the potential risks associated with cryptocurrencies.

Recognizing Red Flags

Now the adage applies here – “if something sounds too good to be true, then it probably is.” So if you encounter any crypto promotion or offer that will make you rich overnight or seems so good it can’t possibly be true, your instincts will be spot on.

Investors should be aware of major red flags such as unrealistic promises, anonymous teams, lack of transparency, and pressure tactics. Here we talk through these red flags in more detail.

Question Complex Jargon

Crypto can be confusing for many but if a crypto project is throwing complex jargon at you – question it – by using overly complex language or technical jargon without clear explanations they may be trying to confuse or mislead potential investors. There is no such thing as stupid question so ask away and interrogate openly.

Next question to ask yourself before investing –  is there a clear use case for the project? If the project’s whitepaper lacks a clear use case, technical roadmap, or coherent business model, it may be cause for concern. Run for the hills.

Learn Super Sleuth Skills

Become a super sleuth and try to verify information – so any claims that cannot be verified, such as partnerships with reputable companies or endorsements from well-known individuals without evidence, should be approached with skepticism. Do your due diligence on the founders backing the project.

Question any security concerns –  projects with significant security vulnerabilities, past hacks, or a lack of robust security measures are high-risk.

There are still a number of ponzi or pyramid schemes out there in the market – any projects that rely on new investors’ funds to pay existing investors, rather than generating legitimate returns from a sustainable business model, are classic red flags.

Question the project  if it promises unrealistic token distribution – this is when projects allocate a disproportionate amount of tokens to the team or founders, or have unclear token distribution mechanisms, then you may be right to suspect.

When online look for reviews – any negative reviews, reports of suspicious activities, or warnings from trusted community members and experts can indicate potential issues with a project.

It’s essential to conduct thorough due diligence, research the project and team, seek independent opinions, and consult trusted sources or advisors before investing in any cryptocurrency or participating in a crypto project.

Make sure you “DYOR” which is another popular term and stands for Do Your Own Research. This is a  common phrase used by many cryptocurrency enthusiasts.

Protecting Yourself From Crypto Investments

Understanding common scams and fraudulent tactics can educate newcomers and seasoned investors alike, fostering a more informed and resilient community. Large-scale scams such as FTX collapse can have broader economic implications, affecting market dynamics, investor sentiment, and the overall growth and adoption of cryptocurrencies.

It is important to do your research especially when it comes to any exchange before you buy crypto and look into cryptocurrencies before investing. Understand the level of risk you can take.

Please remain vigilant, share this guide with your network, and actively contribute to fostering a safer cryptocurrency community.

The post Navigating the Crypto Space: A Guide to Recognizing and Avoiding Common Crypto Scams appeared first on Cryptonews.

What do Kim Kardashian, Lindsay Lohan, Floyd Mayweather, Jake Paul and Matt Damon all have in common? They are just a handful of celebrities who have promoted cryptocurrency projects and faced the wrath of the regulators in the United States.

There are many reasons why an increasing number of celebrities have been getting involved in the cryptocurrency space and the most obvious is due to the lucrative financial opportunities.

Another popular reason is publicity and branding which play a crucial role in a celebrity being relevant in today’s society. Over the years, crypto and non-fungible tokens have experienced growth and just by associating themselves with cryptocurrencies can increase a celebrity’s visibility and appeal to a younger audience interested in digital assets.

Celebrity Cryptocurrency Scandals

This year, the US Securities and Exchange Commission (SEC) filed civil charges against eight celebrities, alleging they illegally promoted two cryptocurrencies without disclosing that they were paid to do so, in a news release, the SEC unveiled charges against celebrities who promoted cryptocurrencies Tronix (TRX) and BitTorrent (BTT), which were sold by crypto entrepreneur Justin Sun. The celebrities involved in this scandal included Lindsay Lohan, internet personality Jake Paul, musician Soulja Boy, singer Austin Mahone, porn actress Kendra Lust, rapper Lil Yachty, musician Ne-Yo, and Senegalese-American singer Akon. The celebrities involved in this scheme, apart from Soulja Boy and Mahone, paid a combined total of more than $400,000 to settle the charges without admitting or denying the SEC’s findings.

Celebrities Who Own Bitcoin

Despite the lack of regulation around the space and the risk involved in holding crypto many notable people are dabbling. Well-known celebrities who have publicly disclosed their ownership of Bitcoin and this list includes: Elon Musk the CEO of Tesla and SpaceX, Mike Tyson, the former heavyweight boxing champion, Snoop Dogg, a rapper and entertainer, Paris Hilton, a well known Hollywood socialite and businesswoman, Ashton Kutcher, an actor and entrepreneur as well as Gwyneth Paltrow, an actress and founder of Goop.

Over the years, Musk who has been in trouble with the SEC numerous times – admitted that he owns bitcoin, ethereum and dogecoin, and has previously added the dogecoin Ð symbol to his X account. Musk will also openly engage with dogecoin developers.

Kim Kardashian Charged by the SEC 

One high profile case involves the socialite and celebrity Kim Kardashian who paid over $1.2 million to the SEC for unlawfully touting a crypto security offered and sold by EthereumMax without disclosing the payment she received for the promotion on social media.

Kim Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation, they said. “This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors,” SEC Char Gary Gensler tweeted.

Scandals and Controversies Continue 

When celebrities are fined by the SEC for involvement in crypto scams, it can have a huge impact on the crypto community and this includes the loss of trust. Incidents such as those involving Kim Kardashian and Jake Paul can erode trust in the broader crypto market. Investors might become more skeptical about endorsements and celebrity involvement in crypto projects.

The increase in the number of fines issued by the SEC can lead to more stringent regulations for the cryptocurrency industry, impacting how exchanges, projects, and even retail investors operate.

The negative publicity can sway public opinion, potentially deterring newcomers from entering the crypto space due to fears of scams or fraudulent activities. But  on the positive side, these incidents can raise awareness about the risks associated with crypto investments, prompting individuals to be more cautious and conduct thorough research before investing.

Overall, while the immediate impact might be negative in terms of trust and regulatory scrutiny, it can also lead to a more informed and cautious crypto community in the long run.

Celebrity-Backed Crypto Projects

Over the years, there have been several celebrity-backed crypto projects and endorsements. Some notable examples include “Akoin: which is a project founded by singer Akon. The intentions behind this project were good – aiming to be a cryptocurrency for Africa, particularly for its underbanked population.

Other projects include “Centra” which was endorsed by celebrities like Floyd Mayweather and DJ Khaled, this project aimed to offer a crypto debit card. However, the founders faced legal troubles. Stellar Lumens (XLM) is another project which again was not exclusively celebrity-backed, but gained attention when Ashton Kutcher donated XLM to Ellen DeGeneres’ wildlife fund on her show.

Dogecoin is another project – although it is not founded by a celebrity, it gained significant attention and value due to endorsements from personalities like Elon Musk and Mark Cuban.

Legal Implications and Regulations

Some might argue Kim Kardashian being forced to pay $1.26 million in penalties is nothing to her. Kim, who is a billionaire is worth an estimated $1.8billion, according to Forbes – she can afford to take the hit as can Elon Musk.

But the legal implications and regulatory challenges involved in cryptocurrency activities cannot be ignored. Many jurisdictions have specific regulations governing the promotion and sale of securities, including cryptocurrencies. If celebrities don’t comply with these regulations, they can face penalties from regulatory bodies like the SEC or equivalent agencies in other countries such as the Financial Conduct Authority in the UK.

In many cases, celebrities have failed to disclose that they are being compensated for their endorsements, which is a violation of advertising standards and can lead to legal consequences. If a celebrity makes false or misleading statements about a cryptocurrency or related product, they can be held liable for deceptive advertising practices.

Given these risks, celebrities should be more cautious and consult with legal advisors before getting involved in any cryptocurrency-related activities or endorsements.

Impact on Cryptocurrency Popularity

There is no doubt that associating with a cryptocurrency or platform that turns out to be fraudulent or involved in illegal activities can damage a celebrity’s reputation.

Any interest and involvement of celebrities in Bitcoin can influence its perception and adoption by the general public. It’s essential to approach celebrity-backed projects with caution, as endorsements do not guarantee a project’s legitimacy or success. Always do thorough research before investing in any cryptocurrency or project.

It’s also important for today’s tech savvy investors and consumers to conduct thorough due diligence and be skeptical of endorsements that seem too good to be true.

The post Crypto and the Stars: Unveiling the Celebrity Connection to Bitcoin, Scandals, and Fortunes appeared first on Cryptonews.

It’s never too late in life to dabble in cryptocurrency investing –  For seniors unfamiliar with the sector cryptocurrency is a type of digital or virtual currency that uses cryptography for virtual transactions.

Unlike traditional currencies issued by governments (like the US dollar or the Euro), cryptocurrencies operate on decentralized networks based on blockchain technology. This means there’s no central authority, like a bank, overseeing transactions.  Instead, the network relies on a distributed ledger that records all transactions across a vast number of computers.

Understanding Blockchain Technology

For those looking to understand the technology further – Imagine a blockchain as a digital ledger or record book that keeps track of all your transactions. Instead of one person or organization holding this book, copies are held by many people all over the world. So, when a new transaction takes place, it is added to this book or ledger in a way that everyone agrees on.

Once a transaction is added, it’s very hard to change it because doing so would mean changing copies held by many people. This decentralized and secure way of recording transactions is what makes blockchain special and trusted for things like cryptocurrencies.

While individual transactions might be pseudonymous (with addresses instead of personal names), the entire history of transactions is open for everyone to view. This openness allows participants to verify the integrity of the system.

Once a transaction is added to the blockchain, it becomes extremely difficult to alter. This immutability ensures that once data is recorded, it remains unchanged and trustworthy. Overall, these features combine to create a system where data is both secure from unauthorized changes and transparently available for verification.

Benefits and Risks

There are a number of benefits and risks to take into account before investing in cryptocurrencies. Here we present both potential benefits and risks:

Let’s start with the benefits first of all.  Investing in cryptocurrencies does have the potential of high returns. Cryptocurrencies, especially in their early stages, have witnessed substantial growth, leading to significant returns for early investors.

Another factor to take into account is the diversification play – Cryptocurrencies offer an alternative asset class, allowing investors to diversify their portfolios beyond traditional stocks, bonds, and real estate.

For some, decentralization is an important factor when it comes to investing. Cryptocurrencies operate independently of central banks and governments, providing a hedge against traditional financial systems.
It’s a 24/7 market so unlike stock markets that operate during specific hours, cryptocurrency markets are open around the clock, offering flexibility to trade anytime.

When it comes to risks –  the downside is that cryptocurrency prices can be highly volatile, with sharp price fluctuations in short periods. This volatility can lead to significant gains but also substantial losses. Then there is regulatory uncertainty. The regulatory landscape for cryptocurrencies is evolving. Changes in regulations or crackdowns by governments can impact prices and trading.

There are also security concerns. While blockchain itself is secure, platforms and wallets storing cryptocurrencies can be vulnerable to hacks or cyberattacks. Some would argue there is a lack of fundamental value as unlike stocks that represent ownership in a company or bonds backed by assets, cryptocurrencies don’t have inherent value. Their value is based on market demand and sentiment.

Be warned there is the risk of market manipulation given the relatively small size of the cryptocurrency market compared to traditional financial markets, it can be susceptible to price manipulation schemes and rug pulls. Before investing in cryptocurrencies, it’s essential to do thorough research, understand the risks involved, and consider consulting with financial professionals.

Getting Started with Cryptocurrency

Now here’s a simplified step-by-step guide on how to buy cryptocurrencies:

First of all, do your research and choose a cryptocurrency – options include Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). Then comes the important part which is to select a cryptocurrency exchange preferably one which is regulated. There are many cryptocurrency exchanges available, such as Coinbase and Kraken. Choose one that operates in your country and supports the cryptocurrency you want to buy.

Sign up for an account on the chosen exchange. You’ll typically need to provide an email address, set a password, and verify your identity by uploading a government-issued ID. Then enable two-factor authentication (2FA) for added security. This usually involves linking your account to a mobile device or authenticator app.

Remember, investing in cryptocurrencies carries risks, so only invest what you can afford to lose and always do your research beforehand. If you’re planning to hold the cryptocurrency for the long term, consider transferring it to a personal wallet for better security. There are various types of wallets, including hardware wallets like Ledger or Trezor, and software wallets like Exodus or MyEtherWallet.

Safety and Security

Safety and security are an issue in the cryptocurrency space as cybercriminals often use phishing scams, fake websites, or deceptive tactics to trick individuals into revealing their private keys or passwords. Robust cybersecurity practices, including user education, can mitigate these risks.

As the cryptocurrency space evolves, regulatory requirements around data protection, privacy, and cybersecurity are becoming more stringent. Adhering to these regulations is essential for crypto businesses to avoid legal repercussions.

Any security breach or hack can severely damage the reputation of a cryptocurrency or platform. Trust is fundamental in the crypto space, and maintaining high cybersecurity standards is crucial for building and retaining trust among users and investors.

In summary, cybersecurity in the crypto space isn’t just about protecting digital assets; it’s about ensuring the integrity, trustworthiness, and continued growth of the entire ecosystem.

Tax Implications

Be warned there are tax implications for cryptocurrency transactions that can vary significantly depending on your country or jurisdiction. But in many places, the following general principles apply: Capital gains tax – this is when you sell or dispose of cryptocurrency, any profit or loss is typically treated as a capital gain or loss. The tax rate and how the gain or loss is calculated can vary based on how long you held the cryptocurrency.

Then there is income tax to consider too – so if you receive cryptocurrency as payment for goods or services, it may be considered taxable income based on its fair market value at the time of receipt. There are reporting requirements – many tax authorities require individuals to report cryptocurrency transactions on their tax returns, often through specific forms or disclosures.

Given the complexities and potential tax implications of cryptocurrency transactions, it’s advisable to consult with a tax professional or accountant familiar with cryptocurrency tax laws in your jurisdiction. They can provide guidance tailored to your specific situation and help ensure compliance with applicable tax laws.

Disclaimer: This article is for informational purposes only – before investing seek advice from a qualified financial advisor who can help you with your investment goals.

The post Crypto Guide for Seniors appeared first on Cryptonews.

Data mining plays a crucial role in the cryptocurrency space as it is integral in providing market analysis, risk management, and ensuring security and integrity of transactions is in place.

Traders and investors use data mining techniques to analyze market trends and identify new patterns in cryptocurrency investing which helps them make decisions. Just by analyzing historical data, data mining can help in predicting future price movements or market behavior which is a technique known as “predictive modeling.”

By detecting suspicious activities through transaction data this can help in prevent fraud or unauthorized transactions.

Sustainable Mining

There are several cryptocurrency projects and platforms that have recognized the environmental concerns associated with traditional proof-of-work (PoW) mining and have adopted more eco-friendly technologies.

For those unfamiliar with PoW mining – this is a method used to achieve consensus in a decentralized system through computational work. The downside is PoW requires massive amounts of energy because miners use powerful computers running 24/7 to solve puzzles. This has led to environmental concerns, especially when mining operations rely on non-renewable energy sources.

Crypto Projects Recognizing Environmental Concerns

• Ethereum 2.0: Ethereum, is one of the largest blockchain platforms in the cryptocurrency space, it went through the process of transitioning from PoW to a proof-of-stake (PoS) consensus mechanism with Ethereum 2.0. This transition was expected to significantly reduce the energy consumption of the network.
• Cardano (ADA): Cardano uses a PoS consensus mechanism called Ouroboros. It claims to be more energy-efficient than PoW-based systems and aims to provide scalability and sustainability.
• Tezos (XTZ): Tezos is another project utilizing a PoS consensus mechanism. It allows token holders to participate in the consensus process, reducing the need for intensive computational mining.
• Algorand (ALGO): Algorand employs a PoS protocol that is designed to be energy-efficient and scalable. It aims to provide fast and secure transactions without the need for intensive computational power.
• NEAR Protocol: NEAR uses a consensus mechanism dubbed Nightshade sharding, which is a variation of PoS. It is designed to be more energy-efficient and scalable while maintaining security.
• Chia (XCH): Chia is a cryptocurrency that utilizes a “proof of space and time” consensus mechanism. Instead of relying on computational power, it leverages unused storage space on hard drives, making it more energy-efficient compared to traditional PoW systems.

PoW, PoS and Nightshade 

Above are all cryptocurrency projects that represent a growing trend in the space towards more sustainable and eco-friendly technologies. However, it’s essential to note that while these alternatives may be more energy-efficient than PoW, they still have their own set of challenges.

In summary, while cryptocurrency mining, especially using PoW, is energy-intensive, there is ongoing research and development to explore more energy-efficient alternatives. This includes Nightshade, which is a variation of PoS. It is designed to be more energy-efficient and scalable while maintaining security.

Data Mining and User Privacy

Another issue which is a concern with data mining in the context of cryptocurrency is the potential loss of user privacy.

Even though addresses on a blockchain are pseudonymous, if linked with other external data sources or if certain patterns are identified, it might be possible to figure out users identity. Although other data sources, like publicly available data or data leaks, can be combined with transaction data to infer more about users.

Many people believe cryptocurrencies offer anonymity, but the reality is more nuanced because transactions on a blockchain are transparent and immutable. If someone knows which address belongs to an individual, they can track that person’s entire transaction history.

Then there are privacy coins, like Monero or Zcash, which have been developed to address privacy concerns by implementing technologies that obscure transaction details, offering more privacy compared to transparent blockchains like Bitcoin.

Although data mining provides valuable insights from cryptocurrency transaction data, it also poses significant risks to user privacy. As the adoption and use of cryptocurrencies continue to grow, finding a balance between transparency (necessary for trust in the system) and user privacy will be crucial.

Regulatory Developments

Regulators worldwide are increasingly focusing on the environmental and privacy concerns linked with cryptocurrency and data mining.

One concern is the energy consumption in cryptocurrency mining, particularly for Bitcoin, consumes significant energy. Some estimates suggest it uses as much energy as entire countries. Regulators are seeking ways to encourage more energy-efficient mining methods or transitioning to proof-of-stake systems.

Then there is “e-waste” which is the rapid turnover of mining hardware that contributes to electronic waste. Regulations may target recycling and responsible disposal of these components.

As companies mine data for insights, concerns arise over user privacy. Regulations like General Data Protection Regulation (GDPR) in the European Union aim to give users more control over their data.

Then there is financial privacy as cryptocurrencies offer certain anonymity features, they also pose risks like money laundering. Regulators are keen on striking a balance between privacy and preventing illegal activities.

Eco-friendly Policies

There are a number of eco-friendly policies such as the “Hydroelectric Power in Quebec, Canada.” Quebec is attracting numerous cryptocurrency miners due to its abundant and cheap hydroelectric power, which is more environmentally friendly compared to coal or fossil fuels.

There has been discussion in the region by Hydro-Quebec, which asked Canada’s energy regulator in 2022 to suspend the allocation of 270 megawatts that had previously been planned for blockchain industry in Quebec, reports CoinDesk. Miners that were operating in Quebec back then included Bitfarms, Hive Blockchain and Argo Blockchain.

Then there is the “El Salvador’s Geothermal Energy” – El Salvador, after adopting Bitcoin as legal tender, announced plans to use geothermal energy from its volcanoes for Bitcoin mining, aiming for a more sustainable approach. El Salvador’s Geothermal Energy is used to mine Bitcoin and it was agreed to allocate 23% of profit to the Salvadoran government.

The “Proof-of-Stake Transition” when Ethereum, the second-largest cryptocurrency, transitioned from a proof-of-work to a proof-of-stake mechanism, significantly reduced its environmental footprint.

Striking the Balance

Today regulators around the world are working to strike a balance that promotes innovation while safeguarding the environment and user privacy.

It seems the global impact and the cumulative energy consumption of cryptocurrency mining is substantial and has been compared to the energy consumption of entire countries. This has raised concerns about its environmental impact, particularly in terms of carbon emissions.

The post Balancing Act: Cryptocurrency, Data Mining, and Sustainability – Navigating the Right Path appeared first on Cryptonews.

Paying taxes is considered a civic duty – it is important for cryptocurrency investors to note they cannot hide their gains from  “Uncle Sam” – also known as the US Internal Revenue Service (IRS). This is the US authority responsible for collecting federal taxes. 

Over the years the IRS has intensified its focus on cryptocurrency investors and any failure to report gains will result in being charged as a criminal — it is not worth the risk. The IRS has made it very clear that digital assets or virtual currency are taxed as property although the tax authority does not recognise it as real currency also known as “fiat.” 

The relevance of cryptocurrency in the financial landscape is changing with digital assets becoming more acceptable and mainstream. Remember every time cryptocurrency is sold for profit it is seen as a gain – this is a “taxable event” which means capital gains will be taxed as they would with any other asset class. 

Tax Basics for Cryptocurrency

Tax can be an extremely complicated arena which requires advice from an accountant – To start you off here is a clear and up-to-date guide on crypto taxes in the US for the upcoming tax season (2023-2024).

This guide aims to help individuals understand their tax obligations related to cryptocurrency transactions, investments, and income. This guide is for information purposes only —  please seek advice from a professional tax advisor.

Many cryptocurrency exchanges such as Coinbase, Kraken, Gemini, Robinhood, Bitstamp and eToro require users to share their identification and upload a video when signing up – these exchanges are subject to the laws and regulations of the country they operate in. The exchanges will also conduct know-your-customer (KYC) checks that require a thorough background check on clients using the platform.

Understanding key tax terms relevant to cryptocurrency investing is crucial. Here is a general overview of how the IRS categorizes cryptocurrencies for tax purposes. 

Taxable Events

Let’s start with breaking down what is a taxable event. It is important to understand that a taxable event can involve crypto-to-fiat transactions, trading, and the mining of digital assets. In the context of cryptocurrency, a taxable event refers to any transaction or action that results in a tax consequence. 

This can include the selling or exchange cryptocurrency for fiat currency (like USD), trading one cryptocurrency for another, receiving cryptocurrency as a form of payment for services rendered or goods sold and the mining of cryptocurrency, which can be considered income.

The specific tax implications can also vary depending on the jurisdiction and individual circumstances, so it is important to consult with a tax professional familiar with crypto taxes.

Reporting taxable events related to cryptocurrency to the IRS in the U.S. involves several steps.
Here’s a simplified overview:

• Keep Detailed Records: It is important to maintain comprehensive records of all cryptocurrency transactions. This includes dates of acquisition and sale of cryptocurrency. The value at the time of the transaction, and any associated costs or fees.
• Determine Gains or Losses: Calculate the capital gains or losses for each transaction. This is typically done by subtracting the cost basis (what you paid for the cryptocurrency) from the sale proceeds (what you received when you sold or exchanged the cryptocurrency).
• Complete Form 8949: Use Form 8949 to report capital gains and losses from cryptocurrency transactions. List each transaction on this form, detailing the date acquired, date sold or exchanged, proceeds, cost basis, and gain or loss.
• Transfer Information to Schedule D:  After completing the Form 8949, transfer the total gain or loss to Schedule D (Capital Gains and Losses). This form summarizes your net capital gain or loss from all transactions, including those from cryptocurrency.
• Include in Tax Return: Include the information from Schedule D in your overall tax return (typically Form 1040). 
• Pay Taxes Owed: Now comes the difficult part – it’s time to part with your gains. If you have a net capital gain from your cryptocurrency transactions, you may owe taxes on that gain. The rate at which you’re taxed depends on how long you held the cryptocurrency before selling (short-term versus long-term capital gains).
• Use Form 1040: If you’ve realized gains from cryptocurrency trading as a business or as a self-employed individual, you may also need to complete additional forms, such as Schedule C, to report the income or loss.

It’s important to note that tax laws and reporting requirements can be complex and may change over time. So it’s advisable to consult with a tax professional or accountant who is knowledgeable about cryptocurrency taxation or crypto taxes to ensure accurate reporting and compliance with current regulations..

How to Stay Informed on Crypto Taxes

There are a number of ways to stay informed about IRS rule changes related to cryptocurrency investing. 

• Official IRS Website: The IRS website often publishes updates, guidance, and rulings related to cryptocurrency taxation. The “Virtual Currencies” section is particularly relevant. There are also IRS Publications so it is worth keeping an eye on publications such as Publication 544 (Sales and Other Dispositions of Assets), Publication 550 (Investment Income and Expenses), and Publication 525 (Taxable and Nontaxable Income) for any updates or guidance related to cryptocurrency. The IRS regularly releases notices, announcements, and rulings that provide guidance on various tax topics, including cryptocurrency. Monitoring these can help you stay updated.
• Get Advice From a Tax Professional: It is important to get professional advice from a qualifies tax professional who specializes in crypto taxes and can provide personalized guidance and ensure you’re adhering to the latest rules and regulations.
• Industry News and Publications:  Online news sites such as Cryptonews.com and CoinDesk and other cryptocurrency-focused media outlets offer up to date news on any tax rule changes and developments.
• Cryptocurrency Exchanges and Platforms: Some exchanges and trading platforms such as Coinbase may provide resources, webinars, or guides on tax implications related to their services.
• Online Forums and Communities: Platforms like Reddit, dedicated cryptocurrency forums, or other online communities can be valuable sources of information. However, always verify information from these sources with official IRS guidance or a tax professional.
• Attend Seminars and Webinars: By attending seminars, webinars, or workshops hosted by tax professionals, financial institutions, or industry organizations focusing on crypto taxes.

Stay One Step Ahead!

Given the evolving nature of cryptocurrency and its taxation, it’s crucial to regularly check multiple sources and prepare early for your tax return — Start by organizing cryptocurrency-related documents, seek professional advice if necessary, and stay informed about any updates in tax regulations. When in any doubt, always consult with a tax professional or advisor familiar with cryptocurrency rules and regulations.

Happy investing! 

The post Navigating Crypto and Taxes: A Comprehensive Guide for the USA (2023-2024 Tax Season) appeared first on Cryptonews.

The United Nations estimates that approximately 385,000 babies are born each day – now imagine if a handful of these newborns were educated and raised to become the next Bitcoin billionaire? There is no age restriction for mining and learning therefore there is nothing stopping parents from educating their kids about crypto from a very early stage.

Having children is an extremely expensive business. But if parents could justify having children with the potential return on investment things could work out. Despite the slump it is still possible to get rich from Bitcoin, seeing significant gains over the long run. It is important to be aware that in the U.S., you must be at least 18 years old to invest in cryptocurrencies.

According to T. Rowe Price’s 14th annual Parents, Kids & Money Survey, which sampled more than 2,000 parents and their 8- to 14-year-old kids, the report revealed interesting insights about parents’ and kids’ knowledge and interest in cryptocurrency. Many kids believe that cryptocurrency is the future of investing: 40% of kids agree with the statement “cryptocurrency is the future of investing.”

“Findings showed that cryptocurrency is generating money conversations with kids: 42% of parents who are familiar with cryptocurrency agree with the statement, “My kids and I have regular conversations about finances because of cryptocurrency.” And 48% of parents familiar with cryptocurrency say they are excited to talk to their kids about cryptocurrency/ digital assets.” – T. Rowe Price’s 14th annual Parents, Kids & Money Survey.

What is Cryptocurrency?

Let’s start with the basics. When teaching toddlers the alphabet — integrate crypto terminology into their everyday speech. So for example: A is for Altcoins, B is for Bitcoin, C is for Crypto and D is for Diamond Hands and so forth. Teaching children at an early age phrases such as “FOMO’ and “HODL” is a win-win.

During bedtime – stories play an important part in a child’s upbringing – so why not get the kiddy-winks dreaming about digital money. So instead of fairy tales about Prince Charmin saving Cinderella from her evil stepmother and Jack and the Beanstalk  – it’s time to tell children the tale of “Jake and the Bitcoin”  – a tale about a little boy who is offered a USB drive instead of money or magic beans. Teach them financial independence.

Read the full take here by The TalesWorld Team. 

Gift your Child a Digital Piggy Bank?

Make learning about crypto more relatable – explain to children that cryptocurrency is like a treasure chest stored in a computer. Instead of holding physical coins you can touch, magic internet money is stored virtually. Picture a digital piggy bank where you keep your digital coins. Just like your piggy bank at home, it’s a safe place to keep your special money.

One idea is to gift your child crypto by purchasing a cold wallet which allows for crypto to be sent to a specific address. Hold onto this until they reach adulthood. When purchasing crypto on behalf of your child there is no bank involved. So, if it’s lost or stolen it wil be gone forever. Hold onto that address and password. If you forget the  wallet’s password or lose access to your private keys – you will typically lose access to the funds stored on that wallet.

Explaining the mining process of Bitcoin and other cryptocurrencies can be simplified – think of it like a computer system which is being used to generate new coins. This process involves lots of power from decentralized networks of computers around the world that verify and secure blockchains – the virtual ledgers that document cryptocurrency transactions.

Another idea is to reward a child with treats when Bitcoin goes up – Imagine your computer is a secret clubhouse. Only you and your friends who know the secret codes can go inside. Cryptocurrency works the same way, keeping your special digital coins safe and happy.

Inform children about the importance of security and get them reciting seed phrases before bed. In the digital world, there are smart computer helpers called “miners.” They work together to make sure everyone’s digital coins are safe and sound.

Funny Crypto Meme Names such as Dogecoin 

There is no doubt crypto is a fun digital asset class which has been designed for the online gaming industry. There are a number of fun and entertaining cryptocurrencies such as the Dogecoin, Shiba Inu, Pepe Coin, Floki and BoneShiba Swap – this makes crypto way more entertaining than hard money.  Dogecoin also known as the first “dog coin” or  “meme coin”  is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a “joke”, making fun of the wild speculation in cryptocurrencies at the time.

Cryptocurrencies an be spent to purchase real-world goods and services in various ways although their acceptance is still not as widespread as hard cash. Currently there aren’t any age limitations for playing with bitcoin, although opening an account would require the guardian handling this side of busines as most big exchanges meet Know Your Customer (KYC) regulations to ensure that customers are at least 18 years old. Therefore KYC regulations require customers to confirm their identity when opening an account.

Play-to-Earn, Gaming and Earning Crypto

Play-to-earning gaming is a new trend which is popular in emerging markets and developing countries like Brazil and the Philippines. – Play-to-Earn gaming is where player are able to earn cryptocurrency through gaming by completing online activities. The trend is also known as P2E games, giving players cruptocurrecy or non-fungible tokens rewards even allowing gamers to buy virtual land. Games will engage children to learn about cryptocurrencies and blockchain technology.

Those looking to buy a present for their teenagers – Popular games include Axie Infinity, Decentraland, Illuvium, Splinterlands, The Sandbox, and Gods Unchained. How does gaming and earning crypto work? For example Axie Infinity involves skills and can be competitive which means finding an “Axie” pet which is able to destroy its opponents virtually.  So the more opponents defeated the more a players wallet grows. Please beaware that most games such as Axie Infinitywill be rated 18+, however, there is no age-verification process

Anotehr important warning around play-to-earn games in the past have raised concerns with some parents parents and health experts as they do introduce children to digital assets – it is important to monitor children’s activity and in like with everything in life moderation is key. This is a brilliant way to intrdocuce investing but age restriction do apply with most games.

Let’s Explore Together!

Remember that cryptocurrency is like a digital adventure – it’s considered a special kind of money that lives in your computer and makes the digital world a fun and exciting place to explore!

The post Crypto for Kids: A Playful Guide to Understanding Digital Money appeared first on Cryptonews.

Taipei Blockchain Week kicked off this week with around 2,000 people from the crypto community gathering on Thursday to hear industry players discuss blockchain trends ranging from Llayer 1’s role in Web3’s in 2024 to the future of decentralized finance (DeFi).

The event opened with a keynote speech from the Mayor of Taipei, Chiang Wan-an who welcomed innovation to the city. High-profile guest speakers included Ethereum creator Vitalik Buterin, and Binance’s new CEO Richard Teng who spoke about the importance of regulation in the crypto space.

From a live stream Teng, a former Abu Dhabi regulator who was recently appointed CEO of Binance succeeding Changpeng Zhao (aka CZ),  said he felt “humbled and honoured” to be leading the exchange adding he has seen the user base continue to grow – currently standing at 167 million users.

Speaking about his past role as a regulator he stressed that it is important to support growth as well as manage risk – just focusing on managing risk means the growth dynamic will be overlooked.

“Traditional media still associate crypto and blockchain with scams and illicit funds – but if you look at data issued by the US financial crime office Chainalysis and many other research pieces — the amount of illicit funds going into crypto is 0.02%,” said Teng.

Teng went on to add he remains bullish regarding crypto and with the Bitcoin Halving coming up and “hopefully” with an ETF being approved in the US more institutions will be entering the space.

Special Guest Buterin Holds Taiwan Employment Gold Card

Buterin spoke at the conference enthusiastically talking through Ethereuam’s pipeline. Ethereum co-founder Buterin has a special relationship with Taiwan having been granted a Taiwan Employment Gold Card – a permit that will allow him to legally reside and work in the country.

Most recently Buterin, who introduced a conceptual architecture called the enshrined Zero-Knowledge Ethereum Virtual Machine (ZK-EVM) to enhance the main chain’s efficiency has blogged, that the proposal of the enshrined ZK-EVM is aimed at integrating advanced cryptographic techniques directly into Ethereum’s main chain. By doing so, it seeks to provide a more secure and efficient verification process for Ethereum transactions. Specifically, it intends to improve and optimize the operation of Layer-2 applications.

What Bear Market?

With stands full of cakes and freebies, and human sized neon yellow Pikachu’s roaming around the conference centre in Taiwan – it certainly didn’t feel like a bear market. The price of Bitcoin has soared to $42,777, marking a significant 4% increase on Thursday. This rally is buoyed by a wave of optimism following the Federal Reserve’s latest FOMC meeting, which indicated a dovish stance on future rate hikes, and sparked lively discussions on the approval of Bitcoin Spot ETFs, with investment giant BlackRock interpreting the minutes as a ‘green light for investors.’

David Tng, managing director of TZ APAC, which is Asia’s leading Tezos blockchain Incubator told Cryptonews there is an excellent turnout ths year. He said:

“I’ve been very impressed at how Taipei Blockchain Week has grown. The event has gathered leaders and innovators from all walks of the industry, from Layer 1 blockchain entities to startups making a real-world impact”.

Tng who is based in Singapore and flew to Taipie for the event – and sees Taipei Blockchain Week as an excellent opportunity to network explaining that the Taiwanese artists and projects he has met are great symbols of the innovation he is seeing in the region.

“The akaSwap team was one of the startups that really caught my eye with their unique gamification approach they take when building their products,” said Tng.

Day 2 of the event continues tomorrow.

The post Taipei Blockchain Week Opens with Vitalik Buterin, Binance’s Richard Teng appeared first on Cryptonews.

In an exclusive insight, Wael Makarem, Financial Markets Strategist Lead at Exness, offers his expert opinion on the evolving landscape of the cryptocurrency market, particularly in the wake of Binance CEO Changpeng “CZ” Zhao’s recent resignation.

This significant development in the crypto world has prompted a reevaluation of market dynamics, investor behavior, and future trends.

Makarem delves into the complexities of Bitcoin and Ethereum’s price movements, institutional influences, and the regulatory shifts shaping the industry.

Exclusive Insights from Wael Makarem

In an exclusive interview, Wael Makarem, the Lead Financial Markets Strategist at Exness, provided CryptoNews with detailed insights, illuminating the current trends in the cryptocurrency market in the wake of the resignation of Binance CEO.

Here are the salient points from their interaction:

1. Influencing Factors in Crypto Price Movements

Wael Makarem, the Financial Markets Strategist Lead at Exness, offers a comprehensive analysis of the diverse factors impacting the price movements of Bitcoin and Ethereum. He explains that these leading cryptocurrencies respond to a myriad of influences both within and outside the crypto market.

This includes the growing demand from various investor groups and the fluctuating risk sentiment and monetary policies, underscoring the inherently risky and sensitive nature of these digital assets.

A significant driver for both Bitcoin and Ethereum is the increasing involvement of institutional investors. Major financial institutions are actively engaging with Bitcoin through ETFs and custody services, lending greater legitimacy to the entire cryptocurrency market.

Regulatory decisions also play a crucial role, as evidenced by Grayscale’s legal victories against the SEC over its crypto ETF applications, which have markedly bolstered market confidence.

Looking ahead, the anticipated 2024 halving event for Bitcoin, set to slash the production of new coins by 50%, is expected to lend substantial support to its value.

Moreover, a shift in risk sentiment, fueled by the expectation that the Federal Reserve may have reached the end of its interest rate hikes, and the potential for reduced borrowing costs next year, could further bolster the appeal of Bitcoin, Ethereum, and similar risk-prone assets.

Makarem’s insights highlight the intricate web of factors that investors must navigate in the dynamic and complex world of cryptocurrency trading.

2. Outlook on Cryptocurrencies

Wael Makarem provides an insightful outlook on the cryptocurrency market, noting its significant rally in recent weeks. This surge has seen a broad increase in prices across various cryptocurrencies, with Bitcoin continuing to lead as the dominant force. Its market capitalization, exceeding an impressive 730 billion dollars, underscores its substantial influence in the crypto sphere.

Makarem points out that while current trends indicate a positive outlook, buoyed by a risk-on sentiment among investors, potential challenges lie ahead. He emphasizes that the cryptocurrency market could face risks stemming from regulatory and economic changes.

Notably, shifts in monetary policy and projections for economic growth are critical factors that could alter the market’s risk appetite. These aspects are poised to have a significant impact on the cryptocurrency market, reflecting the interconnectedness of global financial policies and digital asset valuations.

3. Reflections on Binance’s Recent Developments

In his analysis of the latest developments with Binance, Wael Makarem, underscores the complexities and risks inherent in the cryptocurrency market, particularly in terms of regulation and operations. The recent settlement between Binance and U.S. authorities has thrown a spotlight on these challenges, demonstrating the precarious nature of the regulatory landscape in the crypto industry.

Binance Executives Preemptively Disclosed $4.3 Billion Settlement

Executives from Binance, a prominent cryptocurrency exchange, are reported to have informed their top market makers about a potential $4.3 billion settlement with U.S. authorities before it was made public,… pic.twitter.com/AfAg9CR0Sg

— YAMI (@yami10101092) December 3, 2023

Makarem points out that the ever-evolving regulatory environment poses significant risks not only for companies operating within the crypto sphere but also for investors whose assets might be impacted by legal actions.

This scenario is further complicated by the presence of illegal activities and operations within some of the largest market players, potentially leading to disruptions and uncertainties for investors.

However, Makarem also suggests a silver lining in this situation. The increased oversight and regulatory actions, while initially posing challenges, could eventually lead to a safer trading environment.

As more companies in the crypto industry begin to comply with rules and regulations, the overall market stability and investor confidence could improve. This shift towards a regulated environment, according to Makarem, might be essential for the long-term health and legitimacy of the cryptocurrency market.

4. Market Dynamics and Investor Behavior

Wael Makarem discusses how current market dynamics are influencing investor behavior and decision-making in the cryptocurrency market. He observes that recent legal and regulatory developments are prompting caution among investors, significantly affecting the market’s trajectory.

This cautious approach is further compounded by global economic conditions, including high inflation, stringent monetary policies, and slowing economic growth in major economies.

Despite the general risk-on sentiment that has benefitted cryptocurrencies, Makarem warns that the market might continue to experience risks and volatility.

5. Investment Advice and Risk Management

Regarding advice for investors and traders, Makarem emphasizes the importance of risk management in the current cryptocurrency market.

He advises investors to prioritize diversification as a strategy to spread and mitigate risk, focusing on long-term potential rather than short-term gains. Keeping abreast of market trends and regulatory changes is crucial in this rapidly evolving sector.

Makarem also stresses the importance of assessing personal risk tolerance and investing within those limits. Active risk and loss management are key to navigating the cryptocurrency market successfully.

He particularly cautions against leveraged trading, highlighting its potential to amplify losses. His advice underscores the need for a measured and well-informed approach to investing in cryptocurrencies, balancing the prospects of high returns with the inherent risks of this volatile market.

Conclusion

In conclusion, Wael Makarem’s analysis provides a multi-dimensional view of the cryptocurrency market, emphasizing the influence of institutional interests, regulatory changes, and macroeconomic factors.

His insights into Binance’s recent developments highlight the complex interplay between regulatory risks and market stability.

Makarem advises investors to focus on risk management and informed decision-making in this dynamic financial landscape. His expert perspective not only captures the current state of cryptocurrencies but also offers a roadmap for navigating future market trends.

The post Exclusive: Wael Makarem’s Expert Opinion on Crypto Market Trends Following Binance CEO’s Resignation appeared first on Cryptonews.

Ron Stoner is the Head of Security at US-based crypto security specialist Casa.
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Operational security, or OPSEC, is the process of performing risk management by defining what information you are trying to secure, what is required to achieve that goal, and then taking the practical steps required. 

The philosophy behind OPSEC primarily focuses on thinking like your attacker, understanding who that attacker may be, and what steps they may take to exploit you.

Performing good OPSEC is especially essential for cryptocurrency key-signing devices, such as hardware wallets. Hardware wallets are considered “cold wallets” because they have no direct internet functionality and must be attached to another device, such as a smartphone or PC, to bridge to the internet and perform a transaction. 

These hardware devices and the bridge they connect via are the most crucial points of failure when performing cryptocurrency transactions. 

With 2022 becoming the worst year on record for cryptocurrency hacks, with $3.8 billion stolen, OPSEC has never been more critical. As the digital asset space becomes more mainstream, attackers seek new ways to exploit users and platforms. 

While the stakes and risk profile for every entity using digital assets will vary, all users should obey best practices for protecting their value.

Securing The Signing Environment

Before signing transactions, look at your environment to identify anything that could serve as an attack vector. 

Assuming you are in an otherwise private setting, such as your home, this includes things like cameras or microphones, which are present on almost all modern laptops and mobile devices.

Don’t forget about various Internet of Things (IoT) products such as smart TVs, Alexa, etc. Any of these can be potentially used to spy on you while you perform a transaction. 

As such, it’s essential to “clean” your working space of anything that could be potentially tapped into — powering down or even removing these devices from the area of operation altogether. 

While this may come across as a little paranoid, if large, critical amounts of money are on the line, it is one important aspect of protecting you from attackers.

Signing transactions from any public space, such as an office, library, or cafe, is generally not recommended, but you may sometimes have no other alternative. If this is the case, several steps can be taken to maximize security. 

Once again, you’ll want to account for any security cameras in the area. These days, CCTV, especially HD and 4K resolution cameras, can easily read what is displayed on a computer or mobile phone screen within the field of view.

Of course — and hopefully, this goes without saying — there shouldn’t be any other people in direct proximity. It is best to find the most secluded space possible, an empty workroom, for example.

Update All Involved Devices

Perhaps most importantly, you’ll want to update all software and firmware on any devices involved in the signing process. 

If you aren’t using a computer or mobile device directly, then your hardware wallet will need to connect to one to transmit a transaction. 

Theoretically, hardware wallets are designed so that it shouldn’t matter if the unit they connect to is compromised. All processes happen on the wallet itself; PCs or smartphones are only used to broadcast the transaction. 

However, some forms of malware can alter various aspects of a transaction, including the amount and the recipient address. Even the change address — an address where the change from a transaction goes after the chosen amount has been sent to the recipient — can be manipulated, a field that is easy to overlook.

If you are using a phone or computer, you will want to update your operating system with the latest security patch. Your wallet’s firmware, too, should be regulatory updated. 

Though unless the update involves a specific urgent security threat, it is often better to wait a few days after a new release to upgrade. This is because it’s common for there to be bugs present in the latest patches, which tend to be resolved quickly but can cause headaches. For this reason, giving non-critical updates a bit of room to be tested is a good idea. 

One last thing to remember is to continually update all software and firmware only from official sources, like a website or repository. 

Try to learn to use tools like GPG to check the file signatures against the officially documented ones to confirm all data matches what is supposed to be there. 

Never trust any links, even those coming from within a given piece of software itself, as there are far too many ways they can be used as a means of attack.

As an example, the popular Bitcoin wallet Electrum suffered an attack in 2020 that allowed malicious actors to push a message to all users through the app itself, claiming the need for an update with a link provided. 

As it turned out, the link was a phishing attack that installed a corrupt version of Electrum on the victim’s machine. This gave the attackers full control of the wallets of those who installed the malicious software, resulting in the loss of millions of dollars in user funds.

Easily Overlooked OPSEC Procedures

One of the most obvious attack vectors to address is human error. Even if you think you have good security, humans tend to develop a false sense of security when nothing goes wrong, leading to lax practices. 

The worst failures happen when you let your guard down. Never rush a signing event; ensure you have plenty of uninterrupted time.

Hurrying or being distracted are great ways to overlook something like double-checking your transaction data before confirming a signature. 

While we’ve mentioned several lines of defense, the latter should never be taken for granted. Double and triple-check the amounts and addresses involved in any transaction because it could save you from making a major mistake.

Also, be extremely wary of using public charging stations or even unknown, third-party USB cables. There are seemingly innocuous USB cables circulating with tiny chips inside the head that can intercept and inject data — hijacking a cryptocurrency transaction and wreaking havoc. 

Combined with some issues around compatibility and device wear, it is always best to use the USB cables that are packaged with any external signing device.

Health Checks Can Provide Quick Confidence In Your Keys

Lastly, there’s a technique that some signing devices offer that can be invaluable in boosting security. Known as a “health check,” this technique provides an easy way to verify that your keys are available for signing transactions.

If you were to run a health check on a mobile phone, the check would first confirm that your key is available locally and that the device is working correctly. It will also ensure that the same valid key is backed up securely on the cloud. 

This can all be automated with a simple click, and the user will be alerted if anything is wrong.

The same basic steps apply for hardware wallets, but the external device will need to be connected to a computer or mobile phone. Health checks can be done for multiple keys on multi-signature wallets as well. 

Importantly, If these keys are stored across different devices, the health check should be run on every relevant unit.

While the world of OPSEC is complex and ever-changing, securing the environment, keeping all devices updated, and ensuring they’ve accounted for easily overlooked issues, are essential steps to staying ahead of attackers. 

By combining these strategies with regular health checks every six months, users can significantly improve the security that protects their cryptocurrency funds.

____

Learn more: 

– Trezor Issues a Security Warning
– This Popular Hardware Wallet was Hacked by a Cybersecurity Firm – Should You Be Concerned?

– Crypto Hackers & Fraudsters Stole $1.62 Billion in Q4 Alone
– Web3 Lost Nearly $4 Billion To Fraudsters Last Year – Will Things Improve in 2023

– Crypto Scammer Gets Away with $1.2M in ARB Tokens Through ‘Address Poisoning’ Attack – Here’s What Happened
– Crypto Wallet Maker Ledger Raises $109 Million in Latest Funding Round – Is the Bull Market Back?

– MetaMask Introduces More Payment Options for Buying Cryptocurrencies – Crypto Adoption on the Rise?
– Apple Approves Decentralized Exchange Uniswap iOS Wallet App – Here’s How it Works

– How to Choose a Bitcoin Wallet?
– 3 Ways to Set Up an Ethereum Wallet

The post Think Like a Hacker: OPSEC Tips To Ensure Crypto Security appeared first on Cryptonews.

Ken Timsit, is Head of blockchain startup accelerator Cronos Labs and Cronos Chain.
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Non-fungible tokens (NFTs) were perhaps the most publicly followed hype cycle, with celebrities from Justin Bieber to Madonna dropping NFT collections for their fans over the past couple of years.

Without an understanding of the potential benefits of NFTs as powered by the underlying blockchain technology, the average person may risk writing them off as merely ‘million-dollar JPEGs’.

This mischaracterization of NFTs serves as a major stumbling block to the mainstream adoption of Web3. Enter utility NFTs.

Designed to provide tangible utility to holders by way of rewards and other perks, utility NFTs may, in fact, be the key to the widespread adoption of Web3. By offering real-world benefits, this may convince non-crypto natives to test the waters of Web3.

Below are six use cases of NFTs, all of which illustrate how utility NFTs can benefit holders while at the same time, insulating the space against future hype cycles to create a stronger Web3 and drive greater mainstream use.    

1. NFT Memberships

Imagine the exclusivity of Soho House, but instead of memberships by way of referrals and direct debits, people are granted access by purchasing a Soho House NFT.

Companies such as Mandala Club have already begun to leverage the potential of NFT memberships, selling at price tags as high as S$15,000. Benefits offered through NFT memberships include access to exclusive newsletters, Discord channels, interviews, and events.

Not only do NFT memberships provide a streamlined means to verify members, but they also allow for peer-to-peer sales and trading enabling the value of a given membership to appreciate with demand through secondary trading and sales.

Examples in the cryptosphere include the Loaded Lions and Bored Ape Yacht Club (BAYC) memberships. The Loaded Lions offers members VIP experiences, giveaways, and priority access to selected Crypto.com NFT drops.

The BAYC membership, on the other hand, offers owners access to member-only areas, real-world events, and special merchandise. Just as event organizers would now turn to Eventbrite for ticket sales, NFTs can be used as a conduit for membership sales, acting as a means to onboard more mainstream users to Web3.

2. Driving Phygital Experiences

Alongside virtual asset ownership, the concept coined ‘phygital’ ties physical goods and services into the digital world by way of NFT sales. This may take place when a buyer receives a physical item through the purchase of an NFT.

Beyond merely digital art, NFTs are being used as a medium for real-world real estate sales.

Another iteration of ‘phygital’ takes place when the purchase of a certain item offers buyers a digital version in the metaverse. Adidas’ Into the Metaverse collection demonstrates how this can be brought to life in real time.

With an 84% loyalty rate among US customers, companies like Adidas can leverage their influence to entice customers into Web3 through phygital NFT offerings.

3. Metaverse Branding

Hand in hand with the allure of phygital NFT offerings, NFTs in the metaverse enable companies to corner a new addressable market on the frontier of branding and advertising.

With increasing recognition and momentum, the metaverse offers companies a world of new real estate to consider for marketing efforts.

Major brands such as Nike and Gucci have dropped NFT collections for owners to claim digital editions of their products. As a result, users are able to wear their favorite brands in the metaverse through new forms of digital expression enabled by augmented and virtual reality.

In turn, loyal customers may find themselves more likely to onboard into Web3, with a metaverse full of brands that they already know and trust.

4. NFTs in Gaming

NFTs enable gamers to buy assets and features within blockchain games, effectively allowing them to buy into communities they are passionate about.

In contrast to traditional in-game purchases, NFTs allow assets to be ported from one game to another and controlled by the owner rather than the game.

This extends the lifespan and value of in-game assets, handing the power back to players. The autonomy granted by NFT asset ownership offers an incentive for traditional gamers to transition to blockchain gaming, providing a means to onboard an additional user pool into Web3.

5. NFTs to Rewire DeFi

Similar to the unique benefits that NFTs can offer holders in a membership setting, the unique non-fungible nature of NFTs can provide holder-specific positions and benefits within the decentralized finance (DeFi) landscape.

At present, DeFi users often face periods of illiquidity when staking cryptocurrency to earn rewards. NFTs, however, offer an easily-tradable alternative, removing issues of illiquidity when users would otherwise have to lock up protocol tokens for fixed periods of time.

In addition, DeFi protocols can also add gamification elements, offering users benefits such as NFT staking boosters, exclusive allowlist access, and fee rebates to name a few. VVSGotchi does this by offering tangible utility to its VVS Miner Mole NFT collection through experience points which can be used to earn higher rewards on staked NFTs.

DeFi protocols can also define the scarcity of their NFTs, allowing the value to match the demand.

The given examples illustrate how NFTs can further enrich the DeFi ecosystem with added functionality while reducing the risk of volatility. In doing so, NFTs will help build a more robust DeFi landscape, creating a greater appeal for new and existing users alike.

6. Gamification of Health and Social Media

Through the use of NFTs, the gamification of traditional industries hands the power back to the users through greater data ownership and monetization opportunities.

For instance, one can mint their health history into an NFT and sell it to third parties interested in the data. Alongside, health-oriented feature-to-earn projects are already entering the fray, such as Stepn, which allows users to earn rewards for the steps they have taken.

With royalties automatically accrued to the creator, the use of NFTs in conjunction with the wellness industry offers users innovative new revenue streams.

While social media giants such as Instagram are working to provide users with NFT offerings, launching features to allow users to mint and sell on existing platforms, a new generation of decentralized social media has entered the mix.

New projects such as DeSo and Lens Protocol are poised to offer users a fully Web3-native social media experience with features such as creator coins, micro tipping, and gas-free NFT minting.

The unique revenue streams offered by the gamification of both health and social media through NFTs offer users the means to monetize things they are already doing for free.

The result? Two vast addressable user bases able to champion the use of NFTs into the mainstream.

NFTs: Catalyzing the Mainstream Adoption of Web3 with Utility

Rather than having to rely on status value or quick trades, NFTs will be able to add a more meaningful, long-term value proposition for countless industries worldwide.

By thinking in terms of the functions that the underlying technology offers, everyday users can reap the benefits offered by NFTs without concern for market volatility or the price fluctuations of specific assets.

In doing so, NFTs will act as the catalyst to propel the mainstream adoption of Web3 by supporting, streamlining, and strengthening existing verticals rather than dismantling and rewiring them altogether.

____

Learn more:

– Luxury Brand Gucci Collaborates with Bored Ape Creator Yuga Labs for Metaverse Project – Crypto Adoption on the Rise?
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The post How Utility NFTs Will Drive Mainstream Web3 Adoption appeared first on Cryptonews.

Sergey Vasylchuk is the Co-founder & CEO of the staking provider Everstake.
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Our company, Everstake, has been in the validation business for almost five years. And while our revenue model heavily relies on incentivizing people to stake their crypto, seeing that some of them don’t really understand what staking is has always been quite disheartening for me. 

Failing to comprehend what you’re doing inevitably leads to trouble. And in this case, it might be trouble for the entire community.

Being responsible is one of the core requirements for any validator on any proof-of-stake (PoS) blockchain. It’s absolutely fair and reasonable. Otherwise, those blockchains would stop working quite soon. 

But what we often tend to ignore is that the community has its own share of responsibility, too. In this piece, I’ll explain what it’s all about.

Start with the Basics

For starters, sometimes we need to explain how a PoS-based economy is different from a proof-of-work (PoW) one.

PoW blockchains depend on the computational power of miners. The more powerful your equipment, the more likely you are to mine a new block and get new coins as a reward. In this case, the coins represent nothing but value imposed on them by the community.

In PoS blockchains and their variations like DPoS, a coin represents more than just value: it’s also a governance right. Put simply, owning a coin on a PoS blockchain grants you the right to influence its further development and progress through voting. 

But quite often, you don’t have enough funds (and coins) to run and maintain your own node, which would allow you to make decisions affecting the entire network. That’s where validators come into play.

Running your own node is quite an expensive endeavor. Not only do you need the equipment, but you also need to service it 24/7, which requires some profound DevOps expertise. It’s simply cheaper and less troublesome to have someone else do that for a fee that is incomparably lower than your own potential expenses on running a node.

A validator is very much like your representative in a parliament. While you may wield the source of power in your country as its citizen, you actually have only a fraction thereof, much like most of your compatriots. Instead, you delegate your governance rights to someone you trust. That’s the gist of representative democracy. And also, that’s the gist of PoS blockchains.

We don’t need to go very far to see what happens when people delegate their power to delinquents. Just like an incompetent government might rule their country into oblivion, irresponsible validators could put a blockchain on the brink of extinction solely by failing to do their job right. 

This very fact alone means that the community must feel responsible for the fate of the blockchain whose tokens they hold. This directly impacts the profitability of their purchase, at the very least.

But instead, we often see that the only thing people are interested in is the Annual Percentage Rate (APR). Moreover, the typical way of thought suggests that the higher the APR is, the better for the delegator. And, believe it or not, it is just as big a problem.

How High APR Can Be Evil

While the crypto economy is often hailed as superior to the fiat one, it primarily concerns the technological aspect, leaving behind the fact that they’re not so very different from the economic standpoint.

When the US Federal Reserve System (FRS) starts printing new dollars, it’s pretty apparent to everyone that a surge of inflation is afoot. But when you get your staking rewards, you actually do the same: you validate transactions of existing coins and, for doing so, get similar coins out of thin air. It is the very same inflation model that we see in the fiat economy. For good or for bad, it’s just how things work in our world in this day and age.

APR, the most popular metric for most people who weigh on whether they should start staking, is, in fact, the inflation rate of the blockchain in question. 

And inflation means that the asset’s value is gradually diluted, and so is the user’s share in the blockchain’s governance. The core problem here, however, is that people tend to disagree on what this value actually means.

To many people, I have to admit, the value is measured in the exchange rate of the coin to USD. This kind of user is mainly after the quick buck, and they don’t give much thought to what sort of blockchain they’re investing in by staking their coins. 

The real value of a coin, however, is in the power it grants its holder to influence the direction the blockchain takes and, therefore, its success. The more successful a blockchain is, the higher its tokens are valued in USD. So, in a way, ignoring this aspect actually harms their plans to make money.

The same logic suggests that there are better ideas than seeking blockchains with higher APRs. An APR of 20% means that the inflation rate is through the roof. You would start panicking about your well-being if it were US dollars, pounds, or euros. Why are you happy when it’s crypto? It’s just as bad for you.

When a PoS blockchain has an APR of 20%, it means that its model is flawed and seeks to attract more users rather than create a sustainable model. It becomes apparent later when it turns out that their customer base growth seriously lags behind the APR, leading to accelerated value dilution and, eventually, to the devaluing of the blockchain itself. I can compare it to a country whose currency becomes a bunch of worthless paper due to unreasonable economic policy.

Moreover, some blockchains don’t even need staking for their functioning, and they add it artificially to attract more users. Just take a moment and think about it: if a blockchain doesn’t need staking to produce new coins, it might be just a machine for creating coins without any intrinsic value. 

This evokes particular words in my mind. One of them starts with a “P” and ends with an “onzi.”

But even if staking is required for a blockchain’s effective functioning, people should still look out for its operation’s fundamentals. A healthy model often sees the yearly growth of the customer base overtaking the inflation rate (or APR, if you like). This makes the system more balanced and more likely to survive. Caring about things like that is what makes a delegator just as responsible as a validator.

That said, not all validators are equally responsible. But even among the most irresponsible ones, nothing and no one can compare to cryptocurrency exchanges.

Exchanges Can Ruin Everything

At the dawn of PoS blockchains, the most common question in the community was: are those “validators”  trustworthy? Can’t they collude to overtake the blockchain?

In my practice, it’s a rare stroke of luck if you happen to agree with many people on where to go for lunch, let alone conspire to hijack a complex distributed ecosystem. All validators have their skin in the game, and that’s exactly how the ecosystem ensures that none of them would do things to harm it intentionally. And, to my knowledge, no validator has ever done that.

That’s not the case for exchanges. Unlike validators, they don’t have any skin in the game.

They’re more like an institutionalized version of those irresponsible users who just want to get rich quickly and don’t care about long-term ramifications. Exchanges pursue their own interests, and providing staking opportunities is just one more revenue stream for them. Unsurprisingly, they treat it as such.

While holding immense user assets in custody, they effectively control them and prevent users from exercising their voting rights through a representative. An exchange can vote if it pleases. Or it can ignore all voting altogether. 

They can just neglect their nodes for days, as we saw in the case of Kraken last year. In theory, an exchange can destroy a blockchain by voting or not voting on behalf of many people who would have wanted otherwise. In the real world, we call it usurpation. In the crypto world, we often act as if it’s just the way things must be.

The instances of Kraken or FTX prove beyond the shadow of the doubt that exchanges cannot be trusted with holding your assets, let alone staking them on your behalf. And if an exchange faces problems with regulators, liquidity, or literally anything, the last thing it would care about is user interests. And it’s the users who will pay for the exchange’s screw-ups.

Final Thoughts

If I were to sum up everything I said, it would be this simple thought: greed is bad. 

You can track down every problem that I mentioned here to human avarice. It may be the avarice of someone who doesn’t care about the future value of their holdings and seeks only to make a quick buck. It may be the avarice of an exchange that puts its own interests ahead of those of blockchains.

We must truly understand the true nature of staking, with its pros and cons, if we want this Web3 concept to move forward and bring about a better world. If we don’t, human greed will corrupt our best efforts.

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Learn more: 

– Ethereum Core Developers Announce Date for Long-Awaited Shapella Upgrade – Here’s What You Need to Know
– South Korean Regulator Is Probing Crypto Staking Services

– Our Company Survived a Crypto Winter and Will Do It Again: Here’s Our Survival Guide for Crypto Businesses
– One Misconception and Severe Design Flaw of the Ethereum Merge

– What is Proof-of-Stake?
– How to Stake ETH for Ethereum 2.0?

The post Everstake CEO: Many Delegators Fail to Understand What Staking Is – And It May Lead to Trouble appeared first on Cryptonews.