Crypto Guides, Knowledge & Insights

Does the future of DeFi still belong to the Ethereum blockchain?

Ethereum is a decentralized finance giant that has seen significant growth over the past few years, spurred on by events like “DeFi Summer” and the rise of nonfungible tokens (NFTs).　　Ethereums popularity, however, may be leading to its downfall, as other protocols look to eat away at or completely consume its market position.　　Bitcoin and the birth of Ethereum　　Bitcoin (BTC) is the mother of all blockchains and was the first modern iteration of what is widely known today as cryptocurrency. Since then, there have been numerous attempts to provide users greater functionality, but most have not had the staying power. One that has risen to the challenge is Ethereum, with its native Ether (ETH) coin now the second-largest cryptocurrency by market capitalization.　　Cointelegraph Research has released a 74-page report that does a deep dive into Ethereum‘s rise to this position, starting off by examining Bitcoin alongside Ethereum’s history and where it is today. Ethereum provided users with a way to create smart contracts in a way Bitcoin could not, which helped propel Ethereum to its current status as the leading blockchain for DeFi. Its clear that Bitcoin is here to stay, and there have been advancements in its DeFi capabilities — mostly utilizing

2022-03-10Deep Dive

Kraken will donate fees generated from Russian transactions to Ukraine

Kraken has announced it will donate an amount equivalent to total trading fees generated from Russia-based clients during the first half of 2022 to Ukraine.　　The donation is part of an “aid package” worth more than $10 million that is being prepared by the exchange to support Ukraine in its efforts against Russias invasion. The aid package is essentially a Bitcoin airdrop organized by Kraken and is being funded via its Ukrainian revenues as well as the aforementioned fees generated from Russia-based accounts.Three Tranches　　Kraken will airdrop BTC worth $1000 to all Ukraine-based accounts that were created before March 9th in the first tranche. The accounts must be at an “intermediate” or “pro” level of verification to qualify. It is unclear how many Ukrainians use the platform as that information is not public.　　“The BTC amount distributed in Tranche 1 is roughly equivalent to the total fees paid to Kraken by Ukraine residents since 2013.”　　The airdrop will take place on March 10th and users will be able to immediately withdraw the amount through the exchange itself. Kraken said it will waive currency conversion fees up to $1000 to facilitate users in availing the donation. Users must log in by May 1st to claim

2022-03-10Deep Dive

Global Crypto Exchanges Rargeted by South African Regulator

Crypto exchanges in the world are being targeted by South African regulator　　Derivative products are not allowed to be offered by exchanges in the country　　An upcoming regulator regime is about to ring in several changes　　Brandon Topham, the head of implementation at South Africas monetary area controller, has demanded that his association has not given admonitions to a few worldwide trades since they bargain in crypto. Rather, the alerts have been made on the grounds that the trades are not enlisted to offer subsidiaries in the country.　　An authority with the South African monetary area controller, the Financial Sector Conduct Authority (FSCA), has said his association has been focusing on worldwide digital currency trades working in the country since they offer a subsidiary item with crypto as the basic or reference resource.　　As recently detailed by Bitcoin.com News, the South African controller has in the previous given public alerts against worldwide crypto trade stages like FTX, Binance, and Bybit. At times, the controllers alerts have constrained some crypto trades working in the country to end specific administrations.　　Crypto in Africa　　While the FSCA demands that its alerts are intended to safeguard people in general, some have hypothesized that worldwide trade stages are being focused on the

2022-03-10Deep Dive

EU says crypto included in sanctions against Russia and Belarus

The European Union (EU) said on Wednesday that crypto assets fall under the scope of “transferable securities” in its sanctions imposed on Russia and Belarus.　　Fast facts　　The EU is extending its sanctions to Belarus for its involvement in Russias invasion of Ukraine, including prohibitions on the SWIFT banking system similar to those imposed on Russia.　　Cryptocurrency is being identified as a possible method of circumventing economic and financial sanctions, while many major crypto exchanges said they wont block ordinary Russian users from their platforms unless there is a legal obligation to do so.　　Further sanctions on Belarus include limiting financial inflows from the EU, prohibiting transactions with the countrys central bank, and limiting services of shares of Belarus state-owned entities in the EU.　　Additional restrictions were introduced against 160 individuals, including 14 Russian oligarchs and 146 members of the Russian Federation Council.　　For more blockchain news, please download WikiBit- the Global Blockchain Regulatory Inquiry APP.

2022-03-10Deep Dive

"Responsible Development of Digital Assets": Biden's Executive Order Unpacked

Key Takeaways　　The Biden administration has issued and signed an executive order that will shape policies around cryptocurrency.　　The order means that various government agencies will file reports on crypto regulation over the coming months.　　The order extensively discusses the possibility of a central bank digital currency (CBDC), among other topics.　　The Biden administration has issued an executive order that will help determine the U.S. governments crypto policy in the months ahead.　　Order Will Create New Policies　　Early today, President Joe Biden signed a long-anticipated executive order on cryptocurrency regulatory strategy. Titled “Executive Order on Ensuring Responsible Development of Digital Assets,” the document primarily requests research and new policy proposals for cryptocurrencies, digital assets, and blockchain or digital ledger technology from various government agencies.　　It notes that crypto development largely exists “within the scope of existing domestic laws and regulations” but that “growing development and adoption as well inconsistent controls” require the creation of a coordinated government approach.　　Some plans discussed in the order could put restrictions on cryptocurrency. The order says that the government aims to protect consumers, investors, and businesses, maintain financial stability, restrict illegal financing, and reduce national security risks.　　Other policies appear to promote crypto development. The order says that the government intends to reinforce

2022-03-10Deep Dive

Key takeaways from Biden's executive order on cryptocurrencies

U.S. President Joe Biden signed an executive order on Wednesday requiring the government to assess the risks and benefits of creating a central bank digital currency - the electronic equivalent of cash in your pocket - as well as other cryptocurrency issues.　　Here are a few key takeaways:　　Central bank digital currency (CBDC)　　The Biden administration directed the Treasury Department, along with other key agencies including the Justice and State Departments, to submit a report by September to the White House analyzing the potential costs and benefits of a digital dollar.　　The executive order specifically requested that the report focus on how a digital dollar could improve financial inclusion, what implications it could have on economic growth and how foreign digital dollars could impact the greenbacks status as the worlds reserve currency.　　It also encouraged the Federal Reserve to continue its ongoing research into the possibility of a digital dollar and to “develop a strategic plan” for how a U.S. CBDC could be implemented.　　As part of the order, the attorney general will be required to assess whether legislation would be needed to execute a digital dollar, and to draft a legislative proposal taking into account ongoing research from both the Fed and Treasury on the

2022-03-10Deep Dive

Ukrainian deputy minister praises role of crypto in his country’s plight, explains canceled airdrop

As the Ukrainian people endures the ongoing Russian invasion, support has been coming from all over the world, including in the form of crypto donations. Ukraines Deputy Minister of Digital Transformation Alex Bornyakov has praised the role that cryptocurrencies played in helping his country.　　Mr. Bornyakov discussed cryptocurrency donations and other crypto-related topics during a conversation at Yahoo Finance Live on March 7.　　Emphasizing the importance of quick response times in moments such as these, he argued that the traditional banking systems were too slow to provide the required financing for the military and humanitarian aid.　　Crypto, Bornyakov said, provided the necessary flexibility to quickly deliver the required supplies. To make this happen on the ground, the ministry partnered with a private exchange and created infrastructure that connects the Defense Ministry, banking systems, and companies that deliver the goods.　　He also commented on the failed airdrop that the Ukrainian government had promised as a form of reward for its crypto donors. Mr. Bornyakov explained that:　　“There were a lot of people that donated a very small amount and they just wanted to get rewarded. But I dont think this is the time to make profits and use the airdrop as a means of profit, so

2022-03-09Deep Dive

VanEck Launches Crypto Mining ETF

VanEcks Digital Assets Mining ETF (DAM) opened for business Wednesday, offering targeted exposure to those companies in the crypto asset mining industry.　　The exchange-traded fund will invest at least 80% of its total assets in securities of crypto miners that generate or have the potential to earn at least 50% of their revenue from mining activities or related technologies. The fund will track the MVIS Digital Assets Mining Index and will a have net expense ratio of 0.5%　　“Blockchains introduce transparency, efficiency and lower costs compared to traditional centralized databases and processes, but without miners, blockchain transactions cannot be verified and audited, making their role absolutely essential,” VanEck Head of Product Management Ed Lopez said in a statement on Wednesday.　　The ETF launch comes just a month after asset manager Valkyrie launched its Bitcoin Miners ETF (WGMI), focusing on miners that primarily rely on renewable energy. That fund fell more than 10% since its inception on Feb. 8, roughly in line with declines in other miners and the price of bitcoin (BTC).　　Its a “compelling time” for VanEck to launch the fund, said Lopez, as the crypto mining sector is still in the early stages of growth, and he expects high levels of demand

2022-03-09Deep Dive

Canada Shuts Down Numerous Crypto Scams

The Royal Canadian Mounted Police has clamped down on cryptocurrency scams, according to a report by The Vancouver Sun.　　The Canadian authorities have blocked several fraudulent crypto platforms that have been luring unsuspecting into parting ways with their money.　　The crackdown, which has been in the works for several years, is the result of a slew of complaints received from victims.　　The fraudulent websites in question would entice users with flashy ads promising exorbitant returns. Some of the victims who were leery of the legitimacy of such offering eventually ended up falling into the trap after being repeatedly targeted with aggressive ads.　　The police urged investors to be cautious when dealing with cryptocurrencies due to the proliferation of such scams.　　The Alberta Securities Commission (ASC) issued a cryptocurrency-related alert last month, urging investors to ignore any unsolicited recommendations to invest in cryptocurrencies.　　The Canadian Anti-Fraud Centre has estimated that the number of cryptocurrency-related scams has grown more than 5,600% since 2015.　　Earlier this month, local media outlets reported that an Ontario man had lost his entire life savings after falling victim to a crypto scam.　　For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.

2022-03-09Deep Dive

Bipartisan bill: Lock down Russia’s gold reserves, U.S. may stop oil imports

Sanctions against the Russian Federation are hitting hard on the Russian nation and its businesses, financial- and payment systems, and citizens alike. More and more nations and institutions are lining up to impose sanctions, and it seems as if deeper and wider sanctions are coming.　　Russia has been on a mission to de-risk its dependence on the U.S. dollar used in the countrys foreign trade, decreasing its holdings of dollars and looking to Chinese yuan, euro, and gold. However, there are no signs Russia might be using cryptocurrencies.　　As a result, Russia has one of the largest gold reserves in the world, and most of it is deposited inside Russia. It may be the last straw for the Russian economy to cling to. Russia holds around $132 billion in gold reserves.Bill would apply secondary sanctions to any American　　As a measure to cut this last significant straw, a bipartisan bill is being introduced to Congress, as reported by Axios. The bill introduced by Senators Angus King (I-Maine), John Cornyn (R-Texas), Bill Hagerty (R-Tenn.), and Maggie Hassan (D-N.H) would target Russia‘s ability to sell its gold reserves. The bill would apply secondary sanctions to any American entities knowingly transacting with or transporting gold from

2022-03-09Deep Dive

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