Crypto Guides, Knowledge & Insights

TVL: Why Total Value Locked Is Important in Crypto

Follow the money. It is not only a legendary phrase from the political drama “All the Presidents Men.” It is also a widely used saying among crypto investors.　　In a highly saturated cryptocurrency market, knowledge of where money is moving is among the main keys to success.　　Total value locked (TVL) is an important indicator to follow. It helps to identify which DeFi protocols have attracted investors attention and confidence.　　What Is the Meaning of TVL？　　Total Value Locked (TVL) is one of the most popular metrics used to measure how big and popular the decentralized finance (DeFi) market or certain DeFi protocols are.　　Basically, TVL is a figure that represents the dollar value of cryptocurrencies currently locked up on DeFi or on a single applications smart contracts. The digital assets are most often locked through staking, yield, and lending protocols or liquidity pools.　　The total value locked indicates how much capital is in custody on DeFi protocols, which is a highly important metric for them, simply because it may affect the yields and usability among DeFi application end users.　　Why Total Value Locked Is Important in Crypto　　The TVL shows how much money is locked in DeFi protocols and thus helps to get a clear view of

2022-01-24Deep Dive

Irish Advertising Authority Receives Growing Complaints on Crypto Ads

Crypto advertisements are now coming under the spotlight in Ireland, following the release of an advertising regulatory framework recently compiled by the U.K. Treasury.　　The Advertising Standards Authority of Ireland (ASAI) has a growing concern surrounding crypto ads. It has received four complaints regarding advertisements since 2019. Two Floki Inu adverts posted on the sides of Dublin Buses drew concern. The advertisements catchphrase is “Missed Doge？ Get Floki.” Similar ads appeared across London recently. “Doge” is a reference to “Dogecoin,” the first meme coin (no intrinsic value), created as a joke in 2013. Shiba Inu and then Floki Inu followed Doge. A spokesperson for the ASAI said the four adverts remain under review. “We are aware that there is increasing concern in other jurisdictions about the advertising for cryptocurrencies, and we are monitoring developments,” they said.　　These complaints have drawn Irish authorities attention at a time when U.K. regulators have set out guidelines to reduce misleading advertisements. All crypto ads in the U.K. will be subject to rules that apply to shares and insurance.　　Irish Central Bank Governor not concerned yet　　Digital assets in Ireland are unrecognized by the Central Bank, as they are not products of regulated financial firms. The central bank has

2022-01-24Deep Dive

Cryptocurrency prices collapse, wiping out billions of dollars

Cryptocurrency prices took a precipitous drop this past week, having their value as much as halved as investors lost billions of dollars. Analysts say theres more pain in the future as well. 　　Bitcoin, for instance, lost nearly 17 percent of its value and is having its worst-ever start of a year, now valued at around $35K, down from a high of $68K in November.　　Meanwhile, Etherium slid to $2,400, a full half of its November high.　　The downturn hit investors big and small. Thanks to the crash and a downturn in tech stocks, Elon Musk lost $25B, while Jeff Bezos lost $20B and Mark Zuckerberg lost $10B.　　Analysts link last weeks slide in both crypto values and tech stocks to the federal reserve hinting that it will raise interest rates in March.　　Crypto investors may have also been spooked by the Federal Reserve considering its own digital currency, along with Russias talk of banning digital assets.　　However, while investors with a strong risk tolerance may want to buy low right now, some experts say things may only get worse for crypto in the coming weeks, leading to a “crypto ice age.”

2022-01-24Deep Dive

Why and How Crypto Will Rule Metaverse

You may think the metaverse will be a bunch of interconnected virtual spaces – the world wide web but accessed through virtual reality. This is largely correct, but there is also a fundamental but slightly more cryptic side to the metaverse that will set it apart from today’s internet: the blockchain.　　In the beginning, Web 1 was the information superhighway of connected computers and servers that you could search, explore and inhabit, usually through a centralized company’s platform – for example, AOL, Yahoo, Microsoft, and Google. Around the turn of the millennium, Web 2 came to be characterized by social networking sites, blogging, and the monetization of user data for advertising by the centralized gatekeepers to “free” social media platforms, including Facebook, SnapChat, Twitter, and TikTok.　　Web 3 will be the foundation for the metaverse. It will consist of blockchain-enabled decentralized applications that support an economy of user-owned cryptoassets and data.　　Blockchain？ Decentralized？ Cryptoassets？ As researchers who study social media and media technology, we can explain the technology that will make the metaverse possible.Owning bits　　Blockchain is a technology that permanently records transactions, typically in a decentralized and public database called a ledger. Bitcoin is the most well-known blockchain-based cryptocurrency. Every time you buy

2022-01-24Deep Dive

How to pick or analyze altcoins?

What are altcoins？　　The word “altcoin” is derived from “alternative” and “coin.” Altcoins refer to all alternatives to Bitcoin. Altcoins are cryptocurrencies that share characteristics with Bitcoin (BTC). For example, Bitcoin and altcoins have a similar basic framework. Altcoins also function like peer-to-peer (P2P) systems and share code, much like Bitcoin.　　Of course, there are also marked differences between Bitcoin and altcoins. One such difference is the consensus mechanism used by these altcoins to validate transactions or produce blocks. While Bitcoin uses the proof-of-work (PoW) consensus mechanism, altcoins typically use proof-of-stake (PoS). There are different altcoin categories, and they can best be defined by their consensus mechanisms and unique functionalities.　　Here are the most common types of altcoins:Mining-based　　Mining-based altcoins use the proof-of-work method, most commonly known as PoW, which allows systems to generate new coins by way of mining. Mining entails solving complex problems to create blocks. Monero (XMR), Litecoin (LTC) and ZCash (ZEC) are all examples of mining-based altcoins.Stablecoins　　Stablecoins aim to reduce the volatility that has marked crypto trading and use since the beginning. The value of stablecoins is, therefore, pegged to the value of a basket of goods, like precious metals, fiat currencies or other cryptocurrencies. The basket serves as a

2022-01-24Deep Dive

Ad restrictions won’t impact crypto demand, Binance CEO says

Binance CEO Changpeng Zhao, also known as “CZ,” claimed that the growing restrictions on crypto advertisement wont impact the demand.　　During his interview with CNBC, CZ stressed that physical crypto advertisements and crypto ads, in general, have not had much impact on user growth, and it has only become common over the past few years. He said that the majority of crypto adoption comes from “word of mouth” marketing. 　　He also added that primary advertising services such as Google and Facebook had not allowed crypto ads for the longest time. Thus, it‘s clear advertisement doesn’t play a significant role in crypto adoption or demand. He went on to add that the series of regulatory clampdowns on crypto ads only shows the growing demand. CZ said:“The reason why regulators have to limit advertising is probably because of such high demand. Most of our users come from word of mouth anyway. [...] So, I dont think its going to have a huge impact.”　　The CEOs comments come amid the growing restrictions and slew of actions taken by various countries over the past few weeks. Singapore recently issued new guidelines for crypto companies, prohibiting crypto advertising in public spaces. The Monetary Authority of Singapore also

2022-01-24Deep Dive

Zimbabwe Signs Agreement Enabling Collection of Taxes From Crypto and E-Commerce Entities

The Government of Zimbabwe has confirmed signing an agreement with Daedalus World Limited which enables the latter to collect taxes from crypto and other content providers.　　Zimbabwes Stance on Crypto　　The Zimbabwean government recently said it had entered into an agreement with the British Virgin Islands-based Daedalus World Limited wherein the latter is expected to collect taxes from companies that offer “betting, gaming and cryptocurrency services to persons and organisations within the territory of the Republic of Zimbabwe.”　　According to a News24 report, the inclusion of crypto assets in the tax list is the latest signal from the Zimbabwean government suggesting the country is gradually changing its stance on cryptocurrencies. As reported by Bitcoin.com News, the countrys monetary authorities have previously said Zimbabwe is not planning to adopt cryptocurrencies.　　Public-Private Partnership　　Despite these past pronouncements by the central bank and others, a general notice published by the information technology minister Jenfan Muswere may suggest the government has had a change of heart. The November 19 general notice states:　　“The Republic of Zimbabwe entered into a public-private partnership agreement with Daedalus World Limited of Tortola, British Virgin Islands, in terms of which Daedalus World Limited will assist the Republic of Zimbabwe by providing a revenue collection service

2022-01-24Deep Dive

Russia May Allow Crypto Mining and Gold-Backed Stablecoins, Lawmaker Says

Russia can legalize cryptocurrency mining and stablecoins backed by gold under government control, a high-ranking member of the Russian parliament has suggested. The statement comes after Bank of Russia proposed a wide-ranging ban on the use of cryptocurrencies, and their trading and mining.　　Mining and Some Stablecoins Can Be Legalized in Russia, Duma Deputy Insists　　The free circulation of cryptocurrencies must not be allowed as they carry risks for unqualified investors, but Russia may permit the use of gold-backed stablecoins and the mining of cryptocurrencies under government control, the Chairman of the State Duma Committee on Industry and Trade, Vladimir Gutenev, told the RIA Novosti news agency.　　On Thursday, The Central Bank of Russia (CBR) published a consultation paper in which it presented its comprehensive view on cryptocurrencies. The monetary authority proposed to prohibit coin operations through the Russian financial system, crypto investments, exchange, and mining in the country. Meanwhile, the bank has launched the pilot phase of its own digital ruble project.　　Cryptocurrencies should be banned, Gutenev agreed, but Russia could make use of a stablecoin denominated in gold and under state control. Such a financial product would be an interesting proposition for both private investors and companies. It can also be used

2022-01-24Deep Dive

WHY JANUARY IS A HISTORIC MONTH FOR BITCOIN

It‘s almost difficult to believe that later in 2022, Bitcoin will celebrate its 14th “birthday.” Over the last 14 years, Bitcoin has made great strides, growing ridiculously and setting itself up to usurp the U.S. Dollar as the world’s reserve currency.　　Although Bitcoin has been around for what seems to be forever, the month of January has been important over the years with several historic events and milestones in Bitcoins past.2009: THE DAWN OF BITCOIN　　On January 3, 2009, months after publishing the Bitcoin white paper, Satoshi Nakamoto made history when he mined the Bitcoin genesis block, signing it with the message, “The Times Jan/03/2009 Chancellor on brink of second bailout for banks,” officially launching the Bitcoin network and highlighting some of the financial turmoil that inspired his invention of Bitcoin.　　A mere six days later, on January 9, the first Bitcoin (0.1) client was released, enabling users to perform Bitcoin transactions and paving way for the first Bitcoin transaction to take place on January 12, when Satoshi Nakamoto sent Hal Finney 10 BTC on block number 170.2010: THE TRUE FIRST BITCOIN PURCHASE？　　Nearly everyone knows the story of Laszlo Hanyecz who famously paid 10,000 BTC for two large pizzas in May 2010, and

2022-01-24Deep Dive

SO YOU JUST BOUGHT SOME BITCOIN, NOW WHAT?

Congratulations and welcome to the Bitcoin network! This is the beginning of an exciting adventure full of countless resources, lots of helpful mentors and online friends who can become in-person friends if you go to local meetups or conferences. Not to mention ample hope for the future, as the magnitude of Bitcoins effect on the world is realized.　　The Bitcoin journey can have a noticeable impact on every aspect of life and the rabbit hole is as wide as it is deep. There are an overwhelming number of topics to learn about in myriad disciplines: economics, technology, philosophy, finance, personal responsibility, computer science, energy production, electrical engineering — the list goes on. Even narrowing the list down to matters specifically related to using Bitcoin can be overwhelming.　　This piece is meant to support those who have taken the orange pill, but dont know what to do next.　　Using Bitcoin responsibly means being one‘s own bank. While there are many topics to traverse about Bitcoin, the first necessary step is taking self custody over any bitcoin bought on an exchange. If you’re reading this, you‘ve hopefully set up an account with Swan Bitcoin, Cash App, Strike, River Financial or even Coinbase. Maybe you’ve heard

2022-01-23Deep Dive

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