Crypto Guides, Knowledge & Insights

DeFi and traditional finance could converge thanks to tokenization

It won‘t be easy to bring DeFi to be on par with traditional finance, but tokenization can help it along, says Liquefy’s CEO.　　Nonfungible tokens could become a bridge to connect the legacy financial system to the emerging fintech world in the near future. During a recent interview, Adrian Lai, CEO of Liquefy — an investment firm and an incubator for decentralized finance platforms — told Cointelegraph China that synthetic assets, NFTs and digital securities are redefining the way capital markets operate.　　Lai especially believes that the value of synthetic assets could give each individual in decentralized finance access to essentially any asset, as long as there is a reliable data feed. This emerging trend between traditional finance and DeFi is inevitable.　　Lai also pointed out that as the convergence between security tokens and digital currencies grows greater, we will see increased activity between traditional finance and cryptocurrencies. He added that:　　“We are seeing a merger of security tokens, utility tokens and NFTs. NFTs can also now represent real assets, which was not considered several years ago. The convergence of traditional finance and the crypto space is increasing more and more.”　　Lai gave centralized exchanges as an example, saying that some of them have been

2021-05-27Deep Dive

The Fate of Coins after the Chinese Crypto Ban – NEO, THETA, VeChain, and Tron

China rattled the cryptocurrency ecosystem with the latest announcement to preclude banks and financial institutions from offering cryptocurrency services.　　The aftermath of this declaration led to the massive tumbling down of prices as several coins shed a substantial part of their market value.　　Coins that have ties to China like NEO, Theta, VeChain and, TRON were part of the cryptos that were hardest hit after the announcement.　　The fate of these cryptos is looking optimistic following the recent turnaround of the prices and the perception of China‘s recent declaration as more ’bark‘, less ’bite.　　The last seven days have been eventful for cryptocurrencies as the market felt the tremors of Chinas announcement that it would be stopping banks and financial institutions from participating in cryptocurrency transactions. This announcement triggered a massive sell-off, leading to the wiping off of over $500 billion of the global cryptocurrency market capitalization.　　Most profoundly, the fate of coins tracing their origin to China hung in the balance following the recent announcement as their values plummeted sharply. However, a reversal in price trends and the market perception from retail traders and some firms have shown that there is light at the end of the tunnel for these projects.　　NEO, THETA, VeChain, and

2021-05-27Deep Dive

NFTs for Charities — How Tokens Are Raising Money for Non-Profits

Non-fungible tokens (NFTs) continue to trend, but they arent just a way to claim ownership over digital art. People are finding ways to use NFTs to give back.　　NFTs have been grabbing headlines all year. From massive digital art sales to critics claiming they serve no purpose, there is no shortage of interest in these tokens.　　At the moment, the NFT boom is focused on its unique ownership model for digital objects. However, there are impressive use cases beyond artists and musicians.　　While some wonder whether NFTs have any purpose beyond the hype, charitable organizations find them a valuable tool for fundraising.　　Charities and the blockchain 　　Some charities have already familiarised themselves with alternate donations, especially cryptocurrency.　　Interest, or at least, consideration of donations in cryptocurrency increased following the lockdowns due to the COVID-19 pandemic.　　This was because in-person charity events were no longer possible, so this version of “fringe” financing became more appealing. In addition, they are permissionless and borderless, making donations from across the world more accessible.　　Significant organizations have been accepting cryptocurrency donations for a while. The American Red Cross has been accepting bitcoin since 2014. UNICEF launched its CryptoFund in 2019 to allow it to accept cryptocurrencies.　　In addition, crypto start-ups like The Giving

2021-05-27Deep Dive

Will This Be A Cardano Summer?

Cardano is booming. Only two weeks ago ADA, the Cardano blockchain token, hit a new all-time-high of $2.50. A huge shake-out due to the Bitcoin price plunge took ADA back to a dollar. However, a strong rally has seen the price rise to $1.80, and with smart contracts potentially only weeks away with the Alonso hard fork upgrade, there is bound to be a lot of interest and investment coming Cardanos way.　　Smart Contracts　　Anticipation continues to build as the much-awaited launch of the Cardano ecosystem looms into view. Smart contracts on the main net are getting close, and according to Charles Hoskinson, Founder of Cardano, the Alonso hard fork will be where everything gets turned on.　　He states that Cardano will soon launch its Pioneer Test net. This will run for around four to six weeks, followed by a “feature freeze” at the end of June. During this freeze period the hard fork will take place and as a consequence smart contracts can be turned on for the main net.　　Hoskinson also let it be known that Cardano has begun the Plutus Pioneer Program, which will train more than 1,000 developers to write decentralised applications (dApps) using the Plutus coding language.　　ERC-20 Converter　　The Cardano

2021-05-27Deep Dive

Spanish Crypto Investors Set to Be Taxed on ‘Overseas’ Holdings

The Spanish parliament has voted in favor of a controversial new law that will require citizens to report overseas crypto holdings, as the government appears ready to take “more control” over the crypto sector.　　Per an official government release, the new law will oblige Spaniards “to report on holdings and operations with cryptocurrencies,” on tokens “both located in Spain and abroad” if the transactions “affect Spanish taxpayers.”　　The government added that “information will be required on the balances and holders of the coins, as well as on all types of operations that have been carried out with them.”　　“Due to their proliferation and popularity among investors and savers, it is necessary to take greater control over cryptocurrencies,” they said.　　The new measures will make it “mandatory to inform” the tax body on annual declarations of assets and property – meaning individuals will have to complete forms detailing their “ownership of cryptocurrencies abroad.”　　The bill, named the Law on Fighting Tax Fraud, also contains other provisions intended to fight tax avoidance, and will give tax bodies the power to conduct spot checks on “homes and businesses,” El Economista reported.　　The bill still needs to be ratified after the senate voted in favor in a majority vote, but

2021-05-27Deep Dive

How ABEYCHAIN Has Resolved The Blockchain Trilemma

Since its inception, the technology that powers cryptocurrencies and their use cases have faced a complex problem. For a public blockchain to be scalable, decentralized, and secure, sacrifices must be made. However, the technology has matured and there are projects that offer a solution to the classic blockchain trilemma. Amongst the most prominent is ABEYCHAIN.　　Launched in March 2021, ABEYCHAIN 2.0 (ABEY) is a public blockchain that operates with a double consensus mechanism Proof-of-Work (PoW) and Delegated Proof-of-Stake (DPoS). This hybrid model allows it to offer more advantages and efficiency, in governance and incentives, than conventional blockchains without their trade-offs; it processes transactions fast without compromising its decentralization.　　ABEYCHAIN 2.0 is ideal for developers seeking to build dApps on an ecosystem with cross-chain interoperability. The rapid expansion of decentralized finances (DeFi), Non-Fungible Tokens (NFTs), and cryptocurrencies in general as a medium of exchanges into the mainstream has proven that projects require flexibility and interoperability to be sustainable.　　Developers with projects and dApps in other blockchains can quickly migrate into ABEYCHAIN 2.0. Thus, this blockchain has gained the attention of a vast community of developers. They seek to leverage its features, its stable gas fees and enter the interconnected ecosystem which offers more opportunities

2021-05-27Deep Dive

Crypto in a Post-Covid World: How the Pandemic Influenced the Market

In the grand scheme of things, the global pandemic reignited confidence in cryptocurrencies. Access to the internet, free time, and the emergence of digital natives as an emerging population enabled cryptocurrencies to surface into the market. Gen Z and millennials, through their DIY mentality, gained an understanding of the perks of cryptocurrencies going into the Web 3.0 period.　　Cryptocurrencies have fallen off the mainstream radar following the ICO mania in 2017 after Bitcoin reached $20,000. As altcoins and Bitcoin suffered significant losses as the market feared a growing bubble, the cryptocurrency market experienced a standstill period without substantial price movements between 2018 and 2020.　　A Pandemic Overview　　According to Forbes, the global pandemic brought the economy to a pause, as many people found refuge behind locked doors. Social media and other digital media have been known for playing a role in cryptocurrency price activity. However, Google search data shows no correlation between the start of the global pandemic and requests for Bitcoin. It indicates that Bitcoin and cryptocurrencies had gained prominence at the end of 2020, when the price of a Bitcoin started to progress towards its previous all-time high.　　As highlighted in a Bloomberg article, the pandemic has driven the “monetary evolution” because

2021-05-27Deep Dive

Apple is Headhunting a Business Development Manager With Experience in Cryptocurrencies

In a recent job post, the company is now looking for a Business Development Manager for “Alternative Payments” —with experience in several fields, including cryptocurrencies.　　The key qualifications require at least five years of experience working in alternative payment providers, such as digital wallets and crypto-assets. Candidates will be responsible for the end-to-end business development and launching of new programs related to FinTech products.　　Apple Seeking Fintech Experts　　The job post was published this Wednesday by the WPC (Apple Wallets, Payments, and Commerce) team, which is looking for professionals for emerging and alternative payment solutions.　　The publication has caught the crypto communitys attention, which is now eager to know how this will turn out for mainstream adoption —considering Apple Pay is one of the largest payment processors with a growing user base of over 65 million people. If cryptocurrencies are implemented to Apple Pay, this could push the average person to experiment with crypto via Apple devices, wallets, and credit cards.　　Apple Entering the Crypto Space　　Apple has been taunting the crypto space for some time now. As reported by CryptoPotato, Apple Pay users can directly buy Cardano (ADA) thanks to a successful integration by Simplex, an Israeli-based provider of fiat to crypto.　　Apple has not clarified

2021-05-27Deep Dive

Polygon (MATIC) SDK Arrives: Developers Can Now Deploy Chains to Ethereum

Polygon, the Ethereum layer-2 solution formerly known as Matic Network, has released the first version of its network enabling developers to deploy ETH-compatible chains using the Ethereum Virtual Machine. Dubbed Polygon SDK, it marks the start of Ethereums transition into a multi-chain ecosystem.　　Polygon SDK Arrives　　Ever since the protocols rebranding from Matic Network to Polygon, announced earlier this year, the team has strived to turn Ethereum into an Internet of Blockchains project, similar to Polkadot.　　It has come a step closer after the release of the Polygon SDK network. The press release shared with CryptoPotato signified the launch of the first version. It marks the “official beginning of Ethereum‘s natural transition into a multi-chain ecosystem, often referred to as an ’Internet of Blockchains.”　　Polygon SDK will initially enable developers to create stand-alone chains fully in charge of their own security, which is typically used by sidechains and enterprise chains. Through Polygon SDK, they will be fully interoperable with Ethereum due to a dedicated bridge.　　Future updates include allowing users to deploy secured chains as well, and their security will be entirely dependent on that of the Ethereum layer 1. Each SDK developer will be able to choose between a stand-alone and secured chain.　　“With advanced

2021-05-27Deep Dive

Elon Musk reminds followers he really isn’t Dogecoin’s master

Tesla CEO Elon Musk reminded Twitter followers on Tuesday that despite the recent interest hes taken in Dogecoin (DOGE) he still has no formal authority over the project.　　Musk was replying to a comment from a Doge-themed account which opined that he had taken to operating Dogecoin like one of his own companies, and that he‘d effectively become the project’s CEO.　　The comment framed Musk‘s influence as something to be celebrated, but the self-proclaimed “Dogefather” issued a reminder that he actually isn’t the boss, and that no one really answers to him.　　“Please note Dogecoin has no formal organization & no one reports to me, so my ability to take action is limited,” wrote Musk.　　The results of a recent survey conducted in Australia revealed that more than 50% of respondents believed Elon Musk to be the inventor of Bitcoin (BTC), suggesting that his recent Dogecoin reminder might be well judged.　　Dogecoin is a meme in the form of a cryptocurrency that was created for purely humorous reasons. After being launched in 2013, the joke eventually faded, and the coin disappeared into relative obscurity until Elon Musk stumbled across it in 2020. Hopping on the bandwagon of a joke the best part of a decade

2021-05-26Deep Dive

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