Daily Archives: April 20, 2022

MakerDAO, a decentralized autonomous organization serving the popular DeFi lending protocol Maker, has announced an upcoming deployment schedule on the decentralized zero-knowledge (ZK) Ethereum rollup, StarkNet.

Expected to become fully operational in the third quarter of this year as identified in the protocol’s roadmap, the integration will seek to enhance the multichain capabilities of their dollar-pegged stablecoin DAI, and associated Maker Vaults function, by striving to reduce transactional cost and throughput speed on the network.

The move is largely consistent with their overarching multichain strategy first witnessed via the launch of DAI token bridges on both Optimism and Arbitrum One in March and September 2021, respectively.

Core Unit Facilitator at StarkNet Engineering, Louis Baudoin noted that “as we see unsustainable gas fees drive more activity and users to a wider variety of blockchains, security challenges that come with bridging will continue to grow”, before stating that:

“Projects must move on to Layer-2 to continue to serve users, and MakerDAO is partnering with StarkNet to do exactly that. With this strategy, we are positioned to cement the Maker’s Protocol’s position as the leading decentralized lending protocol in the industry, and also the status of DAI as the most decentralized, secure stablecoin.”

Related: MakerDAO community proposal to replace MKR governance token

Bullish for our first Twitter Space! ️ @prose011 will be the host of this first edition in which we’ll talk with @KryptoKiril from @Nexo.

Main topic: $MKR, $DAI, @Nexo and CeFi & DeFi integrations.

When?: April 21 4 PM UTC

Where?: Here, in this Twitter account! pic.twitter.com/3HmlgyCNlV

— MakerDAO Growth (@MakerGrowth) April 19, 2022

In February this year, StarkWare co-founders Uri Kolodny and Eli Ben-Sasson spoke to Cointelegraph about the scalability requirements for the cryptocurrency’s mainstream adoption. This followed the launch of their inaugural decentralized applications (dApps) on the StarkNet platform.

According to analytical data from DeFi Llama, MakerDAO is currently placed fourth in the leaderboard for total-value-locked with $14.24 billion, only behind Curve, Lido and Anchor.

By Sanchan Saxena, VP of Product, Ecosystem Products

gm NFT Community,

Last year we announced Coinbase NFT, a Web3 social marketplace for NFTs. Since then, we’ve been building in the open and getting input from the NFT community. We shared previews of our progress with collectors and creators and received amazing feedback. We learned that people don’t just want better tools to buy and sell NFTs: they want better ways to discover them, better ways to find the right communities, and better spaces in which they can feel connected with each other. That’s why we’re building a product that’s much more than a transaction. We’re looking to empower people to create, collect, and connect.

Our beta is live today!

We’re taking the first step on that journey by releasing our beta. Starting today, anyone can check out the first version of Coinbase NFT at nft.coinbase.com and explore the vast collection of NFTs on the Ethereum blockchain.

Beta testers will be able to create a Coinbase NFT profile to buy and sell NFTs using any self-custody wallet, whether that’s Coinbase Wallet or something else. For a limited time, there’ll be no Coinbase transaction fees. We’ll eventually add fees, which will be in-line with Web3 industry standards, and we’ll provide notice before anything changes.

We’re starting with a small set of beta testers who’ll be invited based on their position on our waitlist. We’ll start at the top of the waitlist and open access to more people over time. Stay tuned as we gradually make access to create profiles, buy, and sell on Coinbase NFT available to everyone.

Here’s what else you’ll find in the product

Curate your profile and connect

You can create a profile that represents you by curating it with the NFTs that tell your story. Connect any self-custody wallet to select the NFTs you want to highlight, or hide, on your profile.

Build and engage your community

The rise of NFT communities have shown us that online conversation extends far beyond the moments around transactions. We’re building a place that’s for more than just buying and selling. We want Coinbase NFT to be a place that helps creators and collectors build and engage their communities.

Follow other profiles and start the conversation with comments. Once signed in, you can post comments directly on NFTs, and can up/downvote comments as conversations unfold.

Discover the best NFTs

Effortlessly browse NFTs for sale with the Discover feed. We’ll make personalized NFT recommendations to save you time searching for them. As you engage with the marketplace, recommendations will improve based on what you buy, what’s trending, who you follow, and more.

Easily buy and sell NFTs

We‘ve made buying and selling NFTs simple and easy. Get inspired by the NFTs in your feed, on collection pages, and on profiles. Check out everything that’s for sale on the Shop Tab and find one that you love.

As you explore these features, you’ll notice a wide range of projects from featured creators like Doodles, Boss Beauties, and Azuki. Creators are the lifeblood of our community and an essential component of our vision. Look out for more updates from us in the coming months on how we’ll continue to invest in creators to help more people break into the creator economy, including an update about how we’ll be honoring creator royalties.

What’s next for Coinbase NFT?

In the coming weeks and months, we’ll add more features that will gradually bring our vision for a web3 social marketplace to life. We’re planning to add drops, minting, token-gated communities, and the option to buy NFTs with your Coinbase account or a credit card. We’ll also add support for NFTs on multiple chains. And over time, we intend to decentralize more features by moving them from Coinbase tech to decentralized solutions.

We’re just getting started and can’t wait to explore new ways to bring people together around NFTs and the creators behind them. We’ll continue to listen, learn, and build based on feedback. To stay updated and tell us what you think, and follow us on Twitter.

Russia’s Federal Tax Service (FTS) has joined the debate around crypto regulation in Russia with an unexpectedly blunt proposition — to let Russian companies use digital currencies as a payment method when transacting internationally.

On April 20, local newspaper Izvestia reported that the FTS left its official feedback on the draft of the crypto bill prepared by the Ministry of Finance. In its remarks, the fiscal agency proposed to let Russian companies use crypto for certain operations:

“To let corporate entities pay for goods and services according to foreign trade contracts and to receive revenue from foreign entities in digital currency.”

The initiative could fundamentally alter the spirit of the proposed framework, which previously excluded any other role for digital currencies than that of investment assets. As Izvestia noted, the current draft contains a clause according to which the ban on using crypto as a payment method is in effect “in all cases where this law does not specify otherwise.”

The FTS proposed to act on this reservation to diversify payment options available to Russian companies engaged in international trade amid severe financial sanctions imposed on the country.

The FTS also reportedly specified that companies would be required to buy and sell digital currencies via regulated crypto wallets and exchange platforms.

Related: Russia’s central bank goes to war: Is cryptocurrency a friend or foe?

In response to the FTS’ feedback note, the Ministry of Finance left the “partially support” mark, elaborating that the issue requires further consideration and discussion.

On April 8, the Russian Ministry of Finance finalized the draft bill titled “On Digital Currency” (also known as the “crypto bill”) and sent it to the government for approval. A week later, the president of Russia’s Chamber of commerce and industry called for collaborating with African countries to enable cross-border settlements in crypto and central bank digital currencies (CBDCs).

Bitcoin managed to recover from the $38K price zone and is now trading over the $40K mark, indicating that the bulls have made a rally against the bears.

Though the largest cryptocurrency in terms of market capitalization has lost 10% in the last two weeks, BTC is gradually recovering.

Bitcoin is currently trading at $41,431, according to price data website CoinGecko, after falling to roughly $38,779 on Monday.

Bitcoin increased about 7% from the current month’s lows. The majority of the token’s profits come from large traders amassing more crypto at lower prices.

Additionally, the token’s erratic movements resulted in significant liquidations in the futures market, particularly in long holdings.

Bitcoin Recovers – For Now

However, the massive liquidations revealed another factor affecting BTC positioning — a sizable fraction of traders looked to be abandoning the world’s largest cryptocurrency.

Along with Bitcoin’s rebound, the broader cryptocurrency market has increased by 3.3 percent during the last 24 hours.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently trading at $3,097, following a Tuesday low of $2,897.

Crypto total market cap at $1.88 trillion on the daily chart | Source: TradingView.com

Based on data by CoinMarketCap, Bitcoin’s trading volume increased 19.60 percent in the last 24 hours, followed by a 1.04 percent decline in its market capitalization.

The volume/market cap ratio has increased to 0.02647, while market dominance has increased to 40.87 percent.

Marcus Sotiriou, an analyst at the UK-based digital asset trader GlobalBlock, stated in a newsletter:

“In my judgment, the macro landscape is favorable… I am unconcerned about whether or not there will be a 50-basis-point rate hike. What matters is the consumer’s strength.”

Breaching Above $40K A Challenge

Bitcoin may struggle to maintain a price above $40,000, after the US Dollar Currency Index (DXY) touched a 52-week high of 101.02 on Wednesday.

The dollar’s adverse relationship with Bitcoin has remained stable throughout the previous decade, according to experts at cryptocurrency research firm Delphi Digital in an April 14 analysis.

Data from blockchain analytics firm Kaiko shows that there was no bullish demand for BTC positions in perpetual futures markets.

The analytics firm reported in a tweet that funding rates for both Bitcoin (BTC) and Ethereum (ETH) had continued to drop since late-2021.

Massive Outflows

Meanwhile, crypto funds had their second consecutive week of withdrawals as Bitcoin grew more interest rate sensitive and investors adjusted to the Federal Reserve’s hawkish stance, CoinShares reported Wednesday.

According to CoinShares, crypto funds saw a net outflow of $97 million in the seven days ending April 15.

This is a significant change from the previous week, when the majority of the $134 million in outflows came from US funds.

The outflows of $134 million were the most since January.

Featured image from old.iranintl.com, chart from TradingView.com

Keeping cryptocurrencies in non-custodial wallets may be criminalized in Russia, if authorities accept a proposal from the trade association representing Russian banks. While financial regulators think the idea deserves attention, lawmakers and experts doubt it’s possible to implement such a measure.

Russian Banks Move to Curb Use of Private Cryptocurrency Wallets

Challenges with foreclosure and seizure of crypto assets held by debtors and criminals have motivated the Association of Banks of Russia (ABR) to suggest introducing criminal liability for storing coins in non-custodial wallets, the organization’s Vice President Anatoly Kozlachkov told Izvestia this week.

ABR’s initial proposal, made with the advisory assistance of the Russian Ministry of Internal Affairs, was to criminalize the undeclared storing of cryptocurrency in such wallets. The association is now leaning towards targeting refusals to provide the wallet keys when requested by authorized bodies, Kozlachkov said.

The ABR remarks that it is not referring to digital assets in wallets provided by crypto exchanges, which are de facto controlled by these platforms similar to bank deposits, but wallets controlled directly by the users.

When the relevant authorities establish a connection between a debtor and a cryptocurrency wallet, for example, the person may be given a choice — to either share their keys or risk penalties for hiding property in the form of digital assets.

Besides preventing capital outflow through crypto, the bankers say their approach would help to create “a closed circuit for the circulation of cryptocurrencies” in Russia. According to the ABR, this would be impossible without an effective foreclosure mechanism for non-custodial cryptocurrencies.

In mid-April, the ABR sent its regulatory concept to the Central Bank of Russia, the Ministry of Finance, and Rosfinmonitoring, Russia’s financial watchdog. Rosfinmonitoring told Izvestia that it deserves attention and the finance ministry was ready to consider it. Bank of Russia declined to comment.

Meanwhile, the idea has been met with criticism from lawmakers and representatives of the crypto industry in the expert council at the parliamentary working group tasked to develop comprehensive crypto regulations. Andrey Lugovoy, the group’s deputy chairman, said he understood ABR’s concerns but warned the move would hinder the legalization of the crypto market.

Experts interviewed by Izvestia were also skeptical. According to Roman Yankovsky, deputy dean of the Faculty of Law at the Higher School of Economics, a leading Russian university, it’s unrealistic to identify the non-custodial wallets of ordinary citizens and seizing them would be difficult, if not impossible.

Andrey Gusev, managing partner of the Nordic Star law firm, considers the introduction of criminal liability for owning such wallets unnecessary and says that tax incentives and administrative fines should be enough to dissuade Russian crypto holders from using or hiding them.

Criminalizing non-custodial wallets is “fundamentally wrong,” thinks Maxim Bashkatov, head of the Legal Development Department of the Center for Strategic Research. He points out that right now it’s unsafe for Russians to store cryptocurrency on exchanges because of the risk of asset freezes as a result of western sanctions imposed over the war in Ukraine.

Do you think Russia will criminalize holding crypto assets in non-custodial wallets? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.