Crypto Guides, Knowledge & Insights

Amid Strong Regulatory Action, South Korean Exchanges Warn About ‘Kimchi Coins’

IN BRIEF　　Crypto exchanges in South Korea are suspending trading for “kimchi coins” fearing regulatory action.　　The South Korean regulators have asked exchanges and local crypto firms to submit reports by this September.　　Crypto exchanges in South Korea are having a tough time navigating through strong regulatory action initiated by authorities. As a resulted local crypto exchanges have started limiting services to some altcoins while classifying some as ‘kimchi coins’.　　Kimchi Premium is one of the most popular terms used in the South Korean crypto market. Being one of Asias largest crypto trading markets, cryptocurrencies at South Korea-based exchanges trade at a premium over the global prices, called Kimchi Premium.　　Earlier this month, popular crypto exchange Upbit flagged around 178 tokens as “coins to watch”. The crypto exchange noted that “their overall evaluation doesnt meet internal standards and measures” to protect investors. Besides, Upbit also suspended trading in Korean won for some of the cryptocurrencies, reports Nikkei Asia.　　The exchange said that the cryptocurrencies that could no longer be traded using Korean won were the “kimchi coins” like Paycoin. another popular Korean crypto exchange Coinbit also followed suit. It halted the trading in eight tokens while designating 28 others as tokens to be monitored.　　The exchange operators

2021-07-01Deep Dive

Will The Environmental Issues Surrounding Crypto Stop?

Bitcoin plunged to a record low of $28,000 last week from a record high of $65,000 in April. The cryptocurrency took a beating after China pulled the plug on miners, significantly reducing the BTC hash rate. Many crypto sceptics have since pointed to the ever-raging questions: how much energy does it take to produce Bitcoin？ What are the environmental implications？　　Crypto mining seems to be complicated. But it isn‘t. Mining Bitcoin requires using computers to solve complex mathematical problems. A BTC is created as a result of successfully solving a complex mathematical problem. The point of Bitcoin, according to Satoshi Nakamoto’s founding white paper, was to enable instantaneous, borderless transactions without the high fees or foreign exchange barriers that exist today.　　At first, average computers could solve the algorithms, but as the puzzles got harder – a consequence of greater mining – they could not keep up. Special computers with huge processing power are required and these need a lot of electricity – around 121 terawatts annually, equivalent to the annual carbon footprint of Argentina.　　Hence the attack on Bitcoin, NFTs, and other forms of crypto. How much does a monetary system hurt the environment？　　Carbon Footprint　　Although mining Bitcoin does not necessitate the use

2021-07-01Deep Dive

US Senator Cynthia Lummis says Bitcoin should be part of ‘retirement portfolio’

In a Tuesday interview with news outlet CNBC, US Senator Cynthia Lummis said Bitcoin and other cryptocurrencies should be a part of ones retirement portfolio alongside other assets as they are a good store-of-value.　　“Okay well, I would like to see cryptocurrency, like Bitcoin, become part of a diversified asset allocation that is used in retirement funds and other opportunities for people to save for the future,” Lummis said.　　She added, “So whether you‘re an employee that has a retirement fund – I’d like to see those retirement funds invested in bitcoin and other cryptocurrencies that are good stores of value.”　　The Wyoming senator is one of the few ‘crypto-friendly’ officials in the US. Back in November 2020, she shilled Bitcoin on national television, staring at the time that she intended to educate her colleagues on the asset and its store-of-value prowess.　　She even said the US dollar was “not a good long-term investment,” citing inflation as a major problem to plague the currencys prospects.　　More Bitcoin adoption　　It‘s not all words and no play from Lummis’ side either. She revealed holding over 5 Bitcoin in the Tuesday interview, a stash valued at over $176,000 at press time. Her first buy came back when Bitcoin traded

2021-07-01Deep Dive

George Soros's Family Office Starts Trading Bitcoin

Hedge fund titan George Soros has reportedly become the latest billionaire to join the Bitcoin gold rush.　　According to State Street, which cites people familiar with the matter, Soros Fund Management has received internal approval from CIO Dawn Fitzpatrick to start trading cryptocurrencies this June.　　As per the financial outlets report, the family office is not just kicking the tires on digital assets, which implies a big bet.　　In January 2018, the legendary investor called Bitcoin “a typical bubble.” His words coincidentally came right when the market reached the top of its previous bull run.　　One of Soross most daring investing principles is putting money into bubbles during their early stages, which he believes is not irrational:　　“When I see a bubble forming I rush in to buy, adding fuel to the fire.”　　Soros famous bought into gold in early 2010 when it was in the middle of a massive rally and then walked away before the bubble burst.

2021-07-01Deep Dive

Ethereum Hashrate Drops 25% on China Mining Exodus

Ethereum‘s hashrate has plummeted more than 25% since its peak level in mid-May. This is the direct result of China’s crackdown on cryptocurrency mining and the resultant exodus of mining operations.　　According to Bitinfocharts, the Ethereum network hashrate hit an all-time high of 585.5 TH/s (terahashes per second) on May 20. In the weeks that followed it slumped to a three-month low of 434.3 TH/s.　　The 26% decline over just six weeks has been the one of the sharpest falls in Ethereum‘s history. Just 40 days after the hashrate hit its peak, it had plunged 17% in just 10 days. This is the worst drop in a 10-day span in Ethereum’s history according to data from Glassnode.　　During the 2018 crypto winter, Ethereum hashrates fell 57% but they did so over several months.　　Kicking Out The Ethereum Miners　　Hashrate, which is a measure of network computing power, is loosely correlated with ETH price. As the asset gains value, mining becomes more profitable, attracting mining resources to the network and boosting the hashrate.　　William Foxley, editorial director at Bitcoin mining firm Compass Mining, believes that GPU-based Ethereum mining is harder to suppress than large-scale ASIC (application-specific integrated circuits) mining for BTC. Speaking to the Defiant, he stated

2021-06-30Deep Dive

Will Viral Pi Worldwide End Up with Mess?

Stories of Bitcoin making the rich out of the poor have acted as a catalyst for the birth of various cryptocurrencies that may finally fall into a mess. Global smash hit as it is, Pi is no exception.　　Pi Network claims that traders can mine on their phones and praises itself for its simple operation compared to its counterparts in the industry. Only downloading Pi Network APP and clicking it once a day can provide you with a free chance for mining. According to the project, the worth of a Pi is US 100 dollars, and the Pi-related prices in the future will be the same as Bitcoin. The hash rate can be increased by inviting more friends to this project.　　It can be said that the basic algorithm of Pi is relatively simplistic as it allows traders to mine on the phone, which means that it wont boast a well-designed algorithm as Bitcoin does. In addition, when cell phones can be a tool for mining without the consumption of their storage, both the costs of this operation and its market value must be low, according to researchers from the Chinese University of Hong Kong (CUHK).　　What‘s more, the project of Pi Network

2021-06-30Deep Dive

China crackdown shows industrial Bitcoin mining a problem for decentralization

Bitcoin‘s reliance on large-scale mining infrastructure and geographic concentration has been thrown into sharp relief by China’s recent mining crackdown. In May, China announced that it would be getting tough on crypto mining and trading as a response to financial risks. The nations crackdown on crypto is not new, rather its a reiteration of previous standings on the risks of digital currency to economic stability, in response to recent price fluctuations.　　For the first time, cryptocurrency miners are being targeted to enforce the existing guidelines. Mining hardware still presents a potential risk, even if mining moves to other locations. This could prove that the Ethereum blockchains switch to proof-of-stake (PoS), which can run on consumer-grade equipment, is a more reliable path to decentralization and offers greater resilience against such risks.　　Bitcoin (BTC) mining is reliant on large-scale, industrial cryptocurrency mining farms and has been largely concentrated in China, which accounts for 65% of the global hash rate. The manufacture of custom hardware in China has supported this trend, with one in two ASIC miners produced being distributed to Chinese miners. The crackdown has caused significant turmoil in Bitcoin markets.　　The Bitcoin networks hash rate has dropped to a 12-month low, with more provinces

2021-06-30Deep Dive

HSBC becomes first foreign entity onboarded to Dubai’s KYC blockchain

HSBC plans to improve the KYC process for local investors and corporate clients by leveraging blockchain technology.　　Global banking giant HSBC has announced that it has been successfully onboarded to the regional Know-Your-Customer (KYC)-focused private blockchain backed by Dubais government.　　HSBC is the first overseas, and fourth founding member, to go live on the “UAE KYC Blockchain Platform,” which was developed by the Dubai-based Department of Economic Development, dubbed “Dubai Economy.”　　The UAE KYC Blockchain Platform is a national ecosystem for the exchange of verified know-your-customer data between licensing authorities and financial institutions in the United Arab Emirates.　　According to the Gulf News, HSBCs addition to the platform provides investors with the option of digitally opening an account with the international bank using data that has already been verified by another bank via the blockchain.　　Dubai Economys director of development, Omar Al Mehairi, praised the platform for offering efficiency savings and improving the overall business climate in the UAE, stating:　　“The UAE KYC Blockchain Platform has transformed the investor bank account journey by significantly reducing the time it takes to establish relationships with banks. This will positively improve UAEs ranking in the global Ease of Doing Business index.”　　The platform was founded in February 2020 and allows

2021-06-30Deep Dive

Aada: Unlocking Access to Financial Freedom on the Cardano Blockchain

Decentralized finance is here to stay, but it is also the future of finance. Since the launch of the first dApp on the Ethereum blockchain, we have witnessed the rise of an open economy.　　With DeFi, the worlds unbanked can have access to financial tools and services previously unavailable to them. However, theres a little downside to the DeFi revolution; scalability.　　You see, the Ethereum blockchain isnt adequate to provide DeFi services to everyone who needs it. For one, the DeFi powerhouse has been plagued with scalability challenges over the last few years.　　High gas fees remain a major reason why the Ethereum blockchain isnt scalable. Transactions fees often go through the roof when the network is congested — or in some cases, as high as the transaction amount itself.　　Other blockchains with faster transaction speed and lower fees have been designed to work around this problem, and some have succeeded to some extent. However, since the launch of the Cardano blockchain, theres been an increasing number of blockchain solutions addressing problems in the finance industry.　　The Cardano blockchain is cheaper and more efficient; just the right blend for building a truly scalable DeFi ecosystem. This is why AADA is considered the DeFi platform that

2021-06-30Deep Dive

Coinbase Launches High Yield USDC Accounts With 4% APY

Coinbase, the largest exchange in terms of crypto reserves held, has announced the introduction of a savings program tied to usd coin. The companys high yield USDC savings program allows customers to gain 4% APY interest on stablecoin accounts.　　Coinbase Reveals USDC Savings Program With Interest Rates Eight-Times Higher the national average　　The cryptocurrency exchange Coinbase announced pre-enrollment for its usd coin (USDC) savings program that allows clients to earn a 4% APY interest rate on USDC held on the platform.　　Coinbase joins firms like Blockfi and Crypto.com that already offer interest on USDC stablecoin holdings. Still, Coinbase highlights in its announcement on Tuesday, that 4% APY on USDC is “more than 8x the national average of high-yield savings accounts.”　　“Everyone wants to get the best interest rate available for the assets they hold,” Coinbase explained in a statement. “But interest rates have decreased steadily over the past few decades, making it difficult to earn meaningful passive income on your assets,” the company said. Coinbase added:　　The national average for a traditional savings account hovers around 0.07%, with high-yield savings accounts still falling well short of even 1%.　　Coinbase‘s entry into the stablecoin savings products also follows Circle’s USDC business product, which was launched in November

2021-06-30Deep Dive

...

547549

...

737