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The “Second Birth” of ZCash and other key events of the outgoing week (10.29.2018 – 04.11.2018)

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In the traditional Sunday review – the new ICO format, hard forks ZCash, the next rating of cryptocurrencies from China and other important events of the week.

Grueling flet continues

A week ago, bitcoin was trading in a narrow range between $ 6,450 and $ 6,550, and the average weekly volatility fell to 0.86%.

On Monday, October 29, the price of the first cryptocurrency dropped to $ 6,300 and for seven days, not counting the sharp movement to $ 6,500 on November 1, did not leave the channel $ 6,300- $ 6,390. Nevertheless, on November 4, after 3:00 pm UTC, the bulls managed to break through to the area of ​​$ 6,470.

TradingView data

Meanwhile, the total trading volumes on the leading cryptocurrency exchanges for October showed a decline compared with September. Poloniex lost 56%, and Binance – 32%. In addition, the market capitalization of digital currencies reached an annual minimum of $ 203.4 billion.

It is noteworthy that in the rating of cryptocurrencies from the Center for the Development of the Information Technology Industry of China (CCID), Bitcoin took 19th place, and EOS – the first. At the same time, the top three were closed by Ethereum and Bitshares.

Note that in the study of the auditor of distributed networks, Whiteblock Inc. it is said that EOS cannot be called a blockchain, and failures in the consensus algorithm make the network vulnerable to Byzantine errors.

Coinmetrics.io analysts also reported this week that only one of the four bitcoins has moved between addresses and has been stored on them for the past six months. The last time Bitcoin reached such low levels of activity in 2015.

Some Reddit users have found that Bitmain-controlled mining pools Antpool and BTC.com reject all SegWit transactions on the Bitcoin network and pay higher commissions due to the clogged memory.

Wasabi Wallet 1.0 was released on October 31, and then the largest transaction was performed using the CoinJoin coin mixing technology in the amount of 34.30709811 BTC.

Hardfork ZCash

October 29 in the main network ZCash on block # 419200 took place hardfork Sapling, which the developers of the protocol have already dubbed the “second birth cryptocurrency”. The upgrade will reduce the amount of memory required for secure transactions, reduce transaction processing time by 90% and use lightweight clients for secure transactions.

The Sapling update also implemented a new address format, a full-scale transition to which will take place over the coming months, during which a monetary audit of the network will be conducted.

Coinbase capitalization exceeded $ 8 billion

The American cryptocurrency company Coinbase raised $ 300 million as part of a round of financing for the E-Series, which was led by the American hedge fund Tiger Global Management. According to the estimates of the company itself, its capitalization exceeded $ 8 billion, and the annual profit could be $ 1.3 billion.

However, according to Asiff Hirji, Co-Operating Director and President of Coinbase, the company does not intend to enter an IPO in the near future.

On November 2, Coinbase Pro expanded its listing by adding support for Basic Attention Token (BAT).

Another significant deal of the week was the purchase of the leading European stock exchange Bitstamp (founded seven years ago) by Belgium-based investment company NXMH, which is a subsidiary of NXC, owner of the South Korean crypto-bureau Korbit, and video game developer Nexon. The amount of the transaction remains unknown.

New ICO format

ERC-20 creator Fabian Vogelstellar, speaking at the Devcon4 conference in Prague, proposed the concept of a reversible ICO (RICO), during which a special smart contract will allow investors to return invested funds at any stage of the project development by returning tokens.

He said he feels responsible for the ICO boom and intends to propose a more efficient model. In his opinion, RICO can significantly reduce the number of scams and encourage project creators to keep their promises.

In Prague, the creator of Ethereum Vitaly Buterin also announced the future transition of the ecosystem to the Ethereum 2.0 stage called Serenity after the activation of Casper, sharding and migration to Proof-Of-Stake. At the same time, the creation of specialized equipment for the new generation network will be funded by the Ethereum Foundation and the developers of Filecoin.

In Tether Ltd. called a banking partner

Tether Limited has officially confirmed the cooperation with the Bahamian Deltec Bank. The company also submitted a letter, on the basis of which it has sufficient funds to ensure the total volume of issued USDT tokens.

Allegedly, Deltec checked information on shareholders, ultimate beneficiaries and managers, assessed the policy of reserve management and legal compliance.

According to a published letter from Deltec Bank, at the end of the business day on October 31, 2018, the Tether account had a cash value of $ 1,831,322,828.

It is noteworthy that in the above letter, contrary to accepted practice, there is no signature of any official of the bank.

Winklevoss vs. Charlie Shrem

The founders of the Bitcoin exchange Gemini Cameron and Tyler Winklevoss brothers filed a lawsuit against the founder of the already non-existent Bitcoin exchange BitInstant Charlie Schrem, demanding the return of 5000 BTC.

In 2012, the brothers allegedly gave Shrem a total of $ 1 million for the purchase of bitcoins, when the exchange rate was around $ 12.5. Only later, according to Winklevoss, did they realize that they did not receive coins for the full amount. Requests to return the missing bitcoins, they said, were not satisfied.

In the meantime, Shrem’s lawyer denies all charges and warned that his client intends to defend his reputation.

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Robert Kiyosaki: Bitcoin will be the future of finance, unlike real estate and gold

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Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, said real estate and gold investments cannot be the future of finance, as cryptocurrency has come into the spotlight. The entrepreneur, who several times this year called the ideal investment portfolio to invest in gold, real estate and bitcoin, now believes that only cryptocurrency will strategically win.

In an interview with Anthony Pompliano, managing partner of cryptocurrency investment company Morgan Creek Capital, Kiyosaki said that you really need to look “beyond the horizon” of the current financial situation. He admitted that it was not easy for him to understand the phenomenon of cryptocurrencies, but nevertheless he made an effort, conducted an analysis and made certain conclusions.

According to Kiyosaki, bitcoin will reach the level of 75 thousand dollars within three years.

“It is very important to understand how cryptocurrencies work, as the financial world is already starting to change. Those investors who will continue to rely on gold and real estate will find themselves outside the main changes in the sphere of global finance. ”

The entrepreneur made his forecast while on July 9 a troy ounce of gold reached almost a 9-year high (about $ 1800), if we do not take into account the accumulated inflation in the US dollar.

Meanwhile, the precious metal has not reached the historical maximum of 2011, since for this formally a troy ounce it is necessary to rise above $ 1900, but in fact – it is sure to overcome the mark of $ 2050, given the accumulated devaluation in the US currency.

Recall that entrepreneur Kim Dotkom and billionaire Mike Novogratz declared their investment preferences in the form of gold and cryptocurrencies .

Date of publication 07.15.2020
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Staking and cryptocrediting – which is more profitable than stablecoins or PoS cryptocurrencies?

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In this article, we will consider the prospects of cryptocurrency staking as a new way of passive earnings, about the differences between staking and cryptocrediting, as well as about the main platforms designed for this.

If you have not been interested in staking before, then a variety of coins and platforms that support this type of passive income can make you dizzy. And with the advent of stablecoins, the choice has become even wider. What type of coins is better in terms of profit and risk?

Cryptocurrency Staking in 2020

A year ago, cryptocurrency staking was much simpler than now. The cryptocurrency market was attended by only a few specialized platforms, a pair of popular cryptocurrencies and approximately the same rate of return.

But these times have passed: in 2020, staking has grown into a serious segment of the crypto industry for several reasons.

  • Firstly, the market now has more than 30 PoS coins that support the possibility of staking.
  • Secondly, many kriptobirzh now there own PoS-nodes – an interesting alternative to special steykingovym platforms.

Moreover, now investors are provided with staking and deposit accounts in stablecoins, which allow minimizing risk and getting profitability at the level of PoS-coins or even higher. What to choose?

To find out, you need to compare the two main options on the market (PoS coins and stablecoins), according to a number of clear criteria. However, an important reservation must first be made about the nature of staking.

Staking and cryptocrediting are not the same thing

Coins that use the Proof-of-Stake (PoS) consensus algorithm – Tezos, Cosmos, BIP, and LOOM – initially support staking. While the value of stablecoins is tied to a specific asset – for example, to the US dollar.

Stablecoins are not available for styling, but loans – coins are issued as a loan to another user who pays a deposit in response. However, for investors there is no particular practical difference between staking and lending. That is why one can hear on the cryptocurrency market, for example, about “USDC staking”.

Real ROI and Volatility

Let us compare the return on investment in PoS coins and stablecoins and how this indicator is affected by the volatility inherent in the crypto market.

  • PoS coins . Each coin has its own nominal rate of return built into the algorithm. For example, for Cosmos (ATOM) it is 8.35%. However, a really important value is the real profitability, which is calculated on the basis of price changes for any period. For example, if you invested $ 10,000 in the stake of ATOM coins on January 1 of this year, then by June 1 you would have received a nominal income of about 3.5%. Instead of 2309 coins, you would have 2390. However, over the same period of five months, the price of a coin fell by more than 30%: from $ 4.33 to $ 2.96. The cost of the steak, along with interest, would be only $ 7075, and the real ROI would drop to -30%.
  • Stablecoins . Everything is simple with them: what rate is declared, the investor receives such ROI, minus the platform commissions. On cryptocrediting platforms, the rates are quite stable and allow you to predict income: for example, if you pay 1.94% per annum for USDC deposits on Fulcrum platform, then your profit in dollar terms will also be 1.94%, unless something out of the ordinary happens the USDC coin will not lose its peg to the US dollar.

Verdict: on average, the real ROI of stablecoins is higher and more predictable, as there is almost no volatility. A PoS coin can suddenly increase in price and bring profitability of 20% or more, but it can also lose half its value.

Number of platforms available and conditions

Next, we compare the number of available platforms for staking PoS coins and stablecoins and the conditions that they offer to holders.

PoS Coins

Dozens of platforms offer staking popular coins like Tezos and Cosmos. These sites can be divided into two categories:

  • Specialized sites are Staked, Staking Lab and Dokia Capital, among others.
  • Crypto exchanges – Bitfinex, Kraken, and KuCoin are among the smaller platforms.

Of course, platform competition is good for investors, but such a wide choice also means that you have to spend more time searching for information.

Having chosen a coin, it will be necessary to study the rates of return taking into account the commission at different sites, as well as assess the risks of each of them. Moreover, commission rates on different platforms can vary greatly, which affects the investor’s income. For example, for the ATOM coin, the Binance exchange promises a yield of 6–9% per annum, while on Stakin this figure will be 9.1%, and on Gate.io – only 6.1%.

Stablecoins

This type of digital asset can be deposited on various lending platforms:

  • Centralized – BlockFi, CoinLoan, Nexo, as well as a number of exchanges – Binance , Bitfinex, Poloniex.
  • Decentralized – Compound, Nuo, dYdX, Aave and others.

It should be borne in mind that different lending platforms can offer completely different rates for the same coin. For example, deposit income in USDC ranges from 1.25% to 8.6%.

Verdict: by the number of platforms, ordinary staking coins win. However, in the case of staking or lending in stablecoins, choosing a platform is easier: you do not have to compare so many options.

Risks: interest in the project

We have already mentioned volatility as a key risk factor. When staking stablecoins, the investor receives a reward in cryptocurrency , which can often be exchanged for fiat. But staking PoS-coins can lead to losses due to volatility. Another factor by which it is worth evaluating the profitability of investing in a PoS coin is the level of interest in a particular coin.

Stablecoins have a significant advantage: they were originally created as a reliable way to store and transfer funds between participants in a transaction. In the current crisis, investor interest in stablecoins can only grow. On the other hand, each PoS coin is a cryptocurrency of some kind of blockchain project , which can both succeed and fail. If the founders do not launch the product, then the price of the token may fall.

Another risk factor is the platform on which staking takes place. Both for stablecoins and for PoS-coins, both centralized (custodial) and decentralized (non-custodian) platforms are available. A cryptocurrency exchange like Binance is a classic example of a custodial solution: you transfer coins to the exchange for storage. If she is attacked by hackers, your steak may disappear.

In the case of non-custodian platforms, the risk of theft or fraud is quite low. It doesn’t matter which asset to use when staking or depositing and where: USDC – on Compound, USDN – on Waves․Exchange, XTZ – on P2PValidator.

And vice versa: on custodian platforms, the risks are higher, both in the case of providing stablecoins on credit, and in the case of PoS-coins staking. And since the bulk of PoS staking passes through exchanges such as Bitfinex and Binance, we can conclude that, on average, the risks of owners of PoS assets are more serious.

Verdict: PoS coins are more risky, because their price is highly dependent on both interest in the blockchain project itself and market sentiment. It is safer to choose non-custodian platforms for both types of coins.

Output

Nominal rates of return for PoS coins are often very attractive, but price fluctuations can lead to negative profitability. In the case of stablecoins, a positive result is almost guaranteed. At the same time, you should not expect earnings on stablecoin more than 15-17%, although it is possible with a PoS asset.

Ultimately, the choice should depend on your personal attitude to risk. Investors who are willing to take risks in the hope of earning super-high returns should invest in a classic PoS coin – for example, Tezos .

If it is important for you to keep the investment (especially in the case of large amounts), then stablecoins are definitely preferable due to the better risk-to-ROI ratio.

As the global economic crisis deepens, more and more investors will acquire crypto assets. This will undoubtedly change the market balance in the segments of staking and cryptocredit. How exactly? We will find out soon.

Date of publication 09.07.2020
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard

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This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at https://www.binance.com/ , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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Name Price24H (%)
Bitcoin (BTC)
$12,899.01
8.19%
Ethereum (ETH)
$394.89
6.95%
XRP (XRP)
$0.252382
3.60%
Bitcoin Cash (BCH)
$260.00
7.99%
EOS (EOS)
$2.63
4.43%
Stellar (XLM)
$0.085041
3.65%
Litecoin (LTC)
$53.07
13.11%
Cardano (ADA)
$0.107585
4.75%
Tether (USDT)
$1.00
0.08%
Monero (XMR)
$124.35
4.63%
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