Crypto Guides, Knowledge & Insights

TIME Magazine to Hold ETH on Balance Sheet

TIME Magazine will hold Ethereum on its balance sheet under a partnership with Galaxy Digital focused on metaverse content. The deal comes with the launch of the TIME100 Companies category on the metaverse.　　 Galaxy Pays TIME Magazine in ETH for Metaverse Content　　According to a Thursday press release, Galaxy Digitals entertainment arm, Galaxy Interactive, has entered a content sponsorship deal with TIME Magazine. With the partnership, the magazine will be launching a new version of its TIME100 Companies, featuring the top global companies and entrepreneurs in the metaverse space.　　“Metaverse” is a term used to refer to new virtual worlds that leverage virtual reality and are hosted on public blockchains like Ethereum. There are different metaverse projects that incorporate elements from blockchain gaming, such as non-fungible tokens (NFTs) and other financial incentives, called GameFi.　　The partnership with TIME Magazine was financed in Ether (ETH), the native asset of Ethereum blockchain and the second-largest cryptocurrency. As part of the deal, the 98-year old magazine has agreed to accept and hold ETH on its balance sheet, making it the first major media organization to do so.　　The Galaxy-TIME partnership also includes a new weekly TIME newsletter, “Into The Metaverse,” as well as educational material designed to

2021-11-19Deep Dive

VeChain (VET) explains why its PoA 2.0 upgrade is a big deal

Leading enterprise blockchain platform VeChain has upgraded its consensus mechanism in view of sustainable mass adoption. The firm states its PoA 2.0 protocol upgrade is a significant step in making “it the preeminent smart contract platform for enterprises, governments and community alike.”　　A consensus mechanism is a way for decentralized blockchain systems to reach their true state. The challenge faced by all mechanisms is to balance scalability, decentralization, and security.　　While most people have heard of Proof-of-Work (PoW) and Proof-of-Stake (PoS), VeChain operates the lesser-known Proof-of-Authority (PoA). And with this upgrade, tweaks the concept to bring added advantages.What is VeChain PoA 2.0？　　VeChains PoA 2.0 is the culmination of research and development led by Dr. Peter Zhou, the Chief Scientist at VeChain. His whitepaper describes PoA 2.0 as the next iteration of PoA consensus mechanisms.　　“The new consensus algorithm PoA 2.0-SURFACE, is characterized as a Secure, Use-case adaptive, and Relatively Fork-free Approach of Chain Extension.”　　It combines the Byzantine Fault Tolerance and Nakamoto Consensus types to, as they say, “eliminate the weaknesses of each.”　　Byzantine Fault Tolerance refers to a mechanism where distributed networks agree and execute based on what the majority of the nodes say. This leaves the system susceptible if the majority of the

2021-11-19Deep Dive

Binance Smart Chain sets record after 14.7 million daily transactions in one day

In previous times, Bitcoin and Ethereum blockchains dominated the landscape as most of the transactions on the space occurred through either of them; however, data from BscScan, an analytical tool used to measure the numbers of transactions alongside other metrics on Binance Smart Chain (BSC) has shown that its daily transaction almost hit 15 million, making it the first blockchain network to do so.Binance Smart Chain daily transaction is more than that of BTC and ETH combined　　The Binance-backed platform saw transactions that were well above 14.7 million on November 16, surpassing the previous record of 13.1 million it had set on July 29.　　Apart from that, the numbers of new addresses that were created on November 16 also beat that of the former record. Per the data, 276,446 addresses were created on Tuesday whereas the former record stands at 111,244 new addresses.　　A cursory look at the transactions on other networks shows that they pale significantly against that of BSC. Ethereum for instance recorded 1.3 million transactions on November 16 and its ATH stands at 1.7 million, plus around 135,000 new addresses were created on the day. Bitcoin, on the other hand, saw more new addresses, 740,829, but the number of transactions

2021-11-19Deep Dive

A metaverse project is creating a new category of NFTs: Functional NFTs

HODL Valley was built as a decentralized financial network that combines gaming, leveraging NFTs in an entirely new way.　　Among its many other financial features, HODL Valley includes a cross-chain DEX for decentralized swaps, asset insurance, lending and borrowing, farming and so much more, there is also a marketplace for buying and selling NFTs.　　HODL Valley features more than two dozen unique properties that each have a different utility and function. Some of these properties are NFTs which can be purchased by users via auction, allowing the owner of the NFT to earn revenue from the fees generated by that property in the ecosystem. These NFT properties have a protocol or DApp attached and are similar to real-world franchises. 　　Think about how any real-world franchise works and youll begin to see the value of the franchise properties in HODL Valley. When other users leverage the services of these franchise properties, like borrowing and lending, they become an income stream for the franchise owner. This franchise concept developed by HODL Valley is an entirely new category in the blockchain industry and is labeled by the team as Functional NFTs.　　One example of the use of a functional NFT includes a bank property that provides

2021-11-19Deep Dive

Ethereum (ETH) outflows spike to ATHs after dip to $4,000

On-chain data shows that Ethereum exchange outflows reached their all-time highs yesterday as ETH lost almost 15% of its value, dipping as low as $4,000.　　This shows that the majority of Ethereum holders retained their confidence in the token and have been buying the dip en masse.　　Ethereum holders were quick to buy yesterdays dip　　While this weeks market correction might have looked scary to some, experienced traders seem to have jumped at the opportunity to buy the newly presented dip.　　According to data from crypto analytics platform Glassnode, Ethereums outflow volume from exchanges reached its all-time high yesterday, topping $100 million in a day. This means that traders and investors are withdrawing their funds from exchanges, actively removing the selling pressure on ETH.　　Graph showing the 7-day moving average for Ethereums exchange outflow volume (Source: Glassnode)　　Further analysis of exchange data showed that there has also been a significant increase in derivative exchange outflow. Data from CryptoQuant showed that there has been an almost tenfold increase in the number of ETH withdrawn from derivative exchanges between November 14th and November 15th.　　Graph showing Ethereums derivative exchange outflows from January 1st, 2021 to November 16th, 2021 (Source: CryptoQuant)　　As most increases in exchange outflow correlate with price increases,

2021-11-18Deep Dive

BITCOIN TECHNICAL ANALYSIS

Looking at the universe above and the universe below, the price of Bitcoin is still in an uptrend. Prices are still high up and a bounce off $62,000 may signal a new all-time high.　　As reported by Cointelegraph, Bitcoins bullish sentiment received a minor setback on Nov. 12 after the Securities and Exchange Commission (SEC) rejected VanEcks Bitcoin exchange-traded product that planned to track Bitcoins spot price.　　However, this negative development was followed by the successful activation of the Taproot soft fork on November 13. Bitcoin developer Hampus Sjöberg, who runs a Taproot dedicated website, said the “greatest win” was that Taproot showed that Bitcoin could do network upgrades and that was important for the longevity of the network.　　Analysts from Decentrader also pointed out that Bitcoins last major upgrade was the implementation of Segwit in August 2017 and this was followed by a sharp rally from $4,000 to $20,000 in four months.　　Could Bitcoin repeat its previous bullish performance following the Taproot upgrade？ Lets take a look at the chart.　　The price of Bitcoin reached $69,000, its all-time high, on Nov. 10, according to data received from TradingView. Price fell afterward to $63,000 S s run, the next rally will likely get to $71,000

2021-11-18Deep Dive

Global crypto regulation: What’s on the horizon?

While an increasing number of governments intensified their efforts to develop a regulatory framework for the steamrolling industry, certain countries surfaced as safe havens for crypto service providers.　　CryptoSlate talked to Adam Berker, Senior Legal Counsel at the global payment network Mercuryo, who dived deep into crypto regulation in 22 countries.Inconsistency between jurisdictions　　Berker divided the jurisdictions in three main categories, based on the level of regulatory scrutiny surrounding licensing requirements, customer onboarding procedures, reporting obligations, and other duties of crypto companies.　　Jurisdictions that fall in the first and most crypto-friendly category, Berker describes as “business-oriented,” since they prefer to “ease the process of incorporation, obtainment of licenses, and ongoing operation so that crypto businesses would be more interested in them.”　　“Control-oriented” jurisdictions are on the opposite side of the spectrum, imposing “strict requirements for the crypto entities” regarding licensing, corporate structure, minimum share capital, and KYC obligations.　　Finally, there are also those “gray” and developing jurisdictions, lacking any specific crypto regulation, and, as Berker pointed out, “neither AML nor financial services laws formally apply to crypto in these countries.”　　“Some countries, like Canada, Lithuania, create favourable conditions for crypto companies by establishing easy to follow incorporation and license obtainment rules, Customer Due Diligence requirements and

2021-11-18Deep Dive

26% of Australians will buy crypto as Christmas gift for partners

With Christmas only a matter of weeks away, a survey carried out by Crypto.com, a leading crypto wallet service provider, in October has revealed that Australians are willing to buy digital assets as Christmas presents for their loved ones.A crypto-themed Christmas in the offing　　The survey, featuring 2,020 Australians between the ages 18-59 revealed that 26% of them were considering a crypto-related gift as a Christmas present. 　　The greater part, or 53% of those wanting to purchase crypto presents, said they would consider buying cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) for their friends and family this Christmas.　　Apart from a direct purchase of these crypto assets, some of those willing to purchase crypto-related presents also hinted that they could be willing to purchase crypto merchandise as gifts. Some of them revealed that they are already searching for crypto themed socks and hoodies that they can purchase as gifts.　　Interestingly, a third of those surveyed said that they were thinking of gifting their partners with NFTs —a nod towards the growing popularity of the space. Other crypto-related gifts the respondents mentioned include coin vouchers and crypto books.　　Speaking on the findings of the survey, Karl Mohan, the General Manager for Asia-Pacific at Crypto.com noted

2021-11-18Deep Dive

Crypto.com snaps up naming rights for the Staples Center in $700 million deal

On December 25, Los Angeles iconic Staples Center will be renamed into Crypto.com Arena.　　To claim naming rights, crypto exchange Crypto.com signed a 20-year contract worth $700 million, reported CNBC, citing a person familiar with the deal.Crypto.com Arena　　Staples Center will be renamed to Crypto.com Arena this December, as the LA Lakers host the Brooklyn Nets in the National Basketball Associations annual Christmas Day games.　　The deal made between Crypto.com and AEG, the owner and operator of the arena, ties Singapore cryptocurrency exchange in a partnership with the legendary basketball and hockey teams, LA Lakers and LA Kings.　　According to the report, Staples paid $116 million over 20 years for the naming rights to the arena, starting in 1999.　　“In the next few years, people will look back at this moment as the moment when crypto crossed the chasm into the mainstream,” Crypto.coms chief executive, Kris Marszalek told Los Angeles Times.　　Beyond sports events, the venue hosted major events such as the Grammys and claimed an important place in the citys cultural landscape.Crypto mainstream adoption 　　“Its a bit of a match made in heaven, when we think about the type of brands that we like to partner with,” AEG president and CEO Dan Beckerman told LA

2021-11-18Deep Dive

Liquidity Premium a Driver of NFT Prices and Value

A “liquidity premium” is driving up non-fungible token (NFT) prices – as these tokens “can meet more demand” than physical goods in the “real world,” according to Alex Svanevik, the CEO of the blockchain analytics platform Nansen.　　Today, he was speaking at a CoinGecko-run conference named “NFTs Gone Wild,” on a panel named “NFT Valuation: How to Value NFTs.”　　Svanevik stated that “one of the reasons” why NFTs have become “so valuable” of late is that “physical goods cant easily be traded across the world” in the same manner as NFTs, where trades can be conducted in seconds – and ownership can be transferred in the blink of an eye.　　Kyle Samani, the Co-Founder and Managing Partner at the investment firm Multicoin Capital, concurred. He explained that people “can only show off physical things” such as cars or designer clothes to people they know and have direct contact with in the physical realm. But “putting up a punk” [a reference to CryptoPunks, one of the first and most popular NFT collections] is an action that “can be expressed to people all over the world,” he said.　　Samani added that the prevailing sentiment that digital online items should naturally “be cheaper” than real-world goods was

2021-11-18Deep Dive