Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September

Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September

The United States Court of Appeals for the Second Circuit on Thursday rejected Terraform Labs CEO Do Kwon’s dispute of a subpoena by the Securities and Exchange Commission (SEC). The federal agency was seeking documents and testimony in connection with its investigation of whether Terra used the Mirror Protocol to sell unregistered securities.

Kwon was served with the subpoena in September 2021 while he was attending a conference in New York City. Kwon claimed in an October filing that the SEC had violated its own rules, the Administrative Procedure Act and other regulations by serving the subpoena in person. He later also disputed the court’s jurisdiction over the case due to Terraform’s lack of contact with the United States. That court rejected those claims in February.

The appeals court ruled that the subpoena was properly served and that the SEC could serve Terraform as a corporate entity through Kwon. Furthermore, the appeals court found that the district court did have jurisdiction over Terraform Labs and Kwon.

Related: Luna Classic pricing error leads to Mirror Protocol exploit

The SEC began its interaction with Terraform and Kwon in this case in May 2021, according to the petition filed in October. The SEC emailed Kwon seeking his voluntary cooperation in its investigation and, acting on that request, Kwon and his legal representatives spoke to SEC attorneys in July. Terraform’s lawyers were actively negotiating with the SEC at the time the subpoena was served.

Besides the collapse of the $40 billion Terra ecosystem, Kwon and Terraform have faced charges of tax evasion and market manipulation in South Korea. A local media outlet al tied Terraform with money laundering in a May 30 report. A series of tweets a week earlier also leveled charges of malfeasance against Terraform.

Bloomberg reported Thursday, citing an unnamed source, that the SEC is also investigating whether Terraform violated investor protection regulations before the Terra collapse. Terraform told Bloomberg in a statement that it was unaware of that investigation.

Source link

Kraken Announces New AutoRFQ and OTC Portal for Instant Block Trading

Kraken Announces New AutoRFQ and OTC Portal for Instant Block Trading

Kraken is excited to announce our automated request-for-quote (AutoRFQ) tool, enabling over-the-counter (OTC) clients to instantly trade large orders ($100K+) for a variety of cryptocurrencies.

AutoRFQ empowers institutions and high-net-worth individuals to independently request and accept automated block trade quotes via the Kraken OTC desk. Execution and settlement are discreet and secure while offering competitive pricing.

The Kraken OTC desk offers deep liquidity and private, more personalized service to institutions and high-net-worth individuals, filling large orders that might be disruptive if placed on exchanges. With AutoRFQ, trading OTC is now just a few clicks away.

Log onto the new OTC Portal today to:

  • Request quotes and trade instantly via AutoRFQ
  • Generate a report of your entire OTC trade history

How to use AutoRFQ in four simple steps:

Navigate to the OTC Portal on  Click on the “Tiles” next to your profile in the top right corner then click on “OTC Desk.”

Follow these four simple steps to request and accept a buy quote using AutoRFQ. Note that other than choosing “sell” instead of “buy,” the steps to request and accept a sell quote are the same.

Step 1: Request a quote in the RFQ tab by entering an amount and select “Get quote for buying.”

Step 2: Within seconds, the OTC desk provides a quote price for the transaction, which you can choose to accept or reject within the displayed time frame.

Step 3: If the quoted transaction is accepted, a confirmation email will be sent.

Step 4: The accepted quote will now appear under “Your quote history” on the right side your dashboard screen:

Supported Assets

AutoRFQ currently supports trading on the 20 assets/100 asset pairings listed below (with many more to come). Some assets are subject to maximum trade size conditions.

Name Assets
Algorand ALGO
Avalanche AVAX
Bitcoin BTC
Bitcoin Cash BCH
Cardano ADA
Chainlink LINK
Cosmos ATOM
Dogecoin DOGE
Ethereum (“Ether”) ETH
Kusama KSM
Litecoin LTC
Monero XMR
Polkadot DOT
Polygon MATIC
Shiba Inu SHIB
Solana SOL
Stellar Lumen XLM
Tezos XTZ


Quote Currency

Already a Kraken OTC client? Try out the new AutoRFQ and OTC Portal today!

If you are new to Kraken OTC and would like to sign up for this service, please contact We’re always happy to help guide you through the onboarding process.

Thank you for choosing Kraken, the trusted and secure digital asset exchange.

The Kraken OTC Team

These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, or hold any digital asset or to engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your crypto assets and you should seek independent advice on your taxation position.


Source link

‘Education Is Power’— Jack Dorsey and Jay-Z Launch a Bitcoin Academy in Brooklyn – Bitcoin News

‘Education Is Power’— Jack Dorsey and Jay-Z Launch a Bitcoin Academy in Brooklyn – Bitcoin News

The founder of financial tech company Block Inc., Jack Dorsey announced he is collaborating with the rapper Jay-Z by launching a Bitcoin Academy in Brooklyn. The Bitcoin Academy’s mission aims to empower and provide education to the region. The project’s website further details that residents of Marcy House, located in Brooklyn, New York will be eligible for free courses and other benefits like internet data plans.

Marcy House Residents Welcome to Attend The Bitcoin Academy — ‘Making Powerful Tools More Available’

Jack Dorsey, the former CEO of and co-founder of Twitter and the founder of Block Inc., announced on Thursday that he has partnered with the popular rap artist Jay-Z (Shawn Carter) in order to launch a Bitcoin Academy.

“Mr. [Shawn Carter] and I are funding The Bitcoin Academy, a program for residents of Marcy Houses in Brooklyn New York where Jay grew up,” Dorsey tweeted. The Block founder further explained that the project was also bolstered by Crypto Blockchain Plug (Najah J. Roberts) and Black Bitcoin Billionaire (Lamar Wilson).

'Education Is Power'— Jack Dorsey and Jay-Z Launch a Bitcoin Academy in Brooklyn
The American rapper Jay-Z (Shawn Carter) is pictured on the left and the founder of the Block Jack Dorsey is pictured on the right. Jay-Z and Jack Dorsey have collaborated before as Dorsey holds a large stake in Tidal, the streaming music platform run by Jay-Z.

Marcy House or Marcy Projects is a public housing complex located in Brooklyn, New York. Jay-Z lived there on Marcy Avenue when he was a kid, and he attended Eli Whitney High School. “Bitcoin is becoming a critical tool for many in Africa and Central and South America,” Dorsey continued in his Twitter thread. “We believe the same potential exists within communities in the U.S. Our goal is to prove that making powerful tools more available to people enables them to build greater independence.” The Block executive added:

Education is where we start. This isn’t just about bitcoin…it’s about long-term thinking, local economies, and self-confidence. Courses are free to all Marcy residents, including kids. And to make it even easier we’re providing devices and data plans for all who need it.

Jay-Z Says ‘Hopefully The Bitcoin Academy in Brooklyn Is the First of Many’

The Bitcoin Academy website notes that “education is power,” and classes will be online or in-person starting June 22 through September 7. “All Marcy residents are welcome,” the website details. “In-person classes will take place two evenings per week and dinner will be served.”

If needed Marcy residents will get access to MiFi devices, a year-long data plan, and they can keep the devices. Bitcoin Academy is also focusing on the youth and a “Crypto Kids Camp” will happen on Saturday for children ages 5-17. The website also reveals that Jay-Z’s non-profit the Shawn Carter Foundation has pitched in as well.

“Shout out to Jack,” Jay-Z tweeted on Thursday. “Bitcoin Academy, starting in Marcy, a place that taught me so much, is hopefully the first of many. The simple goal is to provide people tools to build independence for themselves and then the community around them.”

Tags in this story
American rapper, Bitcoin, Bitcoin (BTC), Bitcoin Academy, Black Bitcoin Billionaire, Brooklyn, BTC, Crypto, Crypto Blockchain Plug, Data Plans, education is power, Housing Complex, Jack Dorsey, Jay Z, Lamar Wilson, Marcy House, Marcy Projects, MiFi devices, Najah J. Roberts, new york, New York City, Shawn Carter, Shawn Carter Jay-Z, The Bitcoin Academy, TIDAL

What do you think about Jack Dorsey and Jay-Z starting a Bitcoin Academy in Brooklyn? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); = id;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Source link

The future of the EU’s cryptoeconomy is entering a critical phase: Here’s what policymakers need to get right. | by Coinbase | Jun, 2022

The future of the EU’s cryptoeconomy is entering a critical phase: Here’s what policymakers need to get right. | by Coinbase | Jun, 2022

By Faryar Shirzad, Chief Policy Officer

Tl;dr: As negotiations on the EU’s crypto rules enter a critical phase, we’re sharing four key pillars that should be taken into consideration. The potential for the EU is enormous and Coinbase is working to inform the process and drive towards positive policy outcomes.

Leading the charge for a tailored crypto regime

The Markets in Crypto-Assets Regulation (MiCA) and Transfer of Funds Regulation (TFR), which are in the final stages of negotiation, aim to facilitate the safe and responsible use of crypto across the EU. MiCA, in particular, will be one of the first comprehensive regulatory frameworks for crypto assets globally, and will provide important legal and regulatory certainty to the market, which is so important in order for firms to invest and innovate in Europe. MiCA includes a number of important elements. The authorisation and supervisory regime, as well as the prudential, risk management, market integrity and governance requirements for CASPs, will signal to consumers which operators meet certain minimum standards. Regulation of this kind will encourage the growth of a legitimate and trusted industry of DASPs.

We believe that if well-designed and appropriately implemented, MiCA could put the EU at the forefront of the digital finance revolution and the advent of web3. However, if there are systemic flaws in the execution of the framework, it could push this uniquely innovative and empowering financial ecosystem outside the region, and deny EU regulators the ability to provide appropriate oversight over how their citizens engage with these transformational products and services.

Here are four pillars that EU policymakers should be thinking about as they debate and discuss the implementation of MiCA and TFR across the region.

1. Create common sense liability standards

There are three key provisions under consideration which will significantly raise the liability placed on Crypto Asset Service Providers (CASPs). The liability is disproportionately applied to CASPs to such an extent that they will need to decide whether they can reasonably accept such liability in order to do business in the EU. These provisions undermine the important steps the EU is taking to create a competitive, pro-innovation and tech-neutral regulatory framework for crypto assets.

Custodial liability

MiCA should ensure that CASPs are only liable for events that are in their control. Current texts imply much broader liability for events that are outside the CASP’s control, such as cyber attacks. Moreover, the burden of proof should not fall on the CASP to show the event occurred independently of their operations. Legal clarification is needed to enable CASPs to offer investors the best protection available, with appropriate liability.

Liability for the accuracy of Whitepapers

CASPs should have a responsibility for implementing a sound and proper asset listing process. Moreover, it is important that, going forward, issuers produce whitepapers for assets, so that investors understand the risks. However, making CASPs liable for the accuracy of whitepapers they do not themselves publish and creating a mandatory requirement to publish a whitepaper where one does not exist, is impractical. This is particularly true for assets that are already listed, which is why grandfathering provisions are so important. The inevitable effect of such a provision would be CASPs limiting their service offering in the EU to reduce their liability. These whitepaper liability requirements could kill competitiveness for smaller players, dramatically reduce consumer protection (as the trading of crypto assets would shift from regulated EU platforms to unregulated third country platforms), and position the EU as unwelcoming to web3 entrepreneurs.

Liability for the redemption of E-Money Tokens

Third parties, including CASPs, should not be liable for the redemption of e-money tokens where the issuer fails to redeem. This would be like making banks liable for volatility in global currency markets. The inclusion of any provision stating otherwise would essentially constitute an indirect trading ban on e-money tokens. Exchanges will not be willing to offer EMTs unless they are certain of the issuer’s ability to honor redemption obligations.

2. Create common sense privacy solutions for crypto

Obligating exchanges to collect, verify and report information on non-customers using self-hosted wallets (SHWs) is prohibitive to business and damaging to consumers. The requirement on exchanges to not only collect this data, but to also verify its accuracy before allowing a transfer to or from one of their customers, is a near impossible task. In fiat terms, it would basically mean you cannot receive or take money out of your bank account to send to someone else until you share personal data with your financial institution about that person and verify their identity. Not only is this collection and verification requirement a hugely burdensome measure, it runs counter to the EU’s core data protection principles of data minimization and proportionality.

3. Create clear definitions regarding NFTs

MiCA should not apply to “non-fungible tokens” (NFTs) and utility tokens. By including these assets within MiCA, many of which take the form of art and creative content, policymakers would be extending the scope of regulated “financial” assets far beyond the norm.

4. Address sustainability issues separately and thoughtfully

The EU is currently bringing forward a range of environmental and sustainability initiatives. These issues are extremely important and should be addressed through bespoke and appropriately tailored legislation — not MiCA. They require their own process, consultation, and industry engagement.

Path ahead

We urge EU policymakers finalizing the MiCA and TFR proposals to take the above considerations into account and to take their time developing these highly technical and complex frameworks. This is a pivotal moment for the EU to provide global leadership and to set the standard that will enable a safe, accessible, and innovative cryptoeconomy in Europe. Let’s get it right.

Source link

Why This Hacker Sent 1M Optimism Tokens To Vitalik Buterin

Why This Hacker Sent 1M Optimism Tokens To Vitalik Buterin

The inventor of Ethereum Vitalik Buterin was the unintended recipient of 1 million OP tokens from this network’s scalability solution Optimism. The team behind this project addressed concerns about a potential exploit related to the launch of their governance token.

Related Reading | TA: Bitcoin Stuck In Key Range, Why A Major Breakout Is Possible

As clarified by Optimism, they entered a deal with liquidity provider Wintermute to “facilitate a smoother experience for users” looking to buy OP and participate in the project’s governance model. As part of the agreement, Optimism sent 20 million OP tokens to a multi-signature address.

However, the liquidity provider was unable to access the funds as it discovered the address was designed as an Ethereum layer-1 multi-sig without an Optimism, which operates as a second layer solution, smart contract deployment. About this, the liquidity provider said:

As we communicated the wallet address to the Optimism team, we made a serious error.

The Optimism partnered began a “recovery operation” to gain access to the funds, as they concluded with Wintermute that the funds “were potentially retrievable and that nobody other than Wintermute could recover those funds”, the liquidity provider said in a statement.

The recovery operation was scheduled, the liquidity provider clarified, for June 7th, 2022, but a hacker beat them to it. The team behind the Ethereum second layer solution explained:

Unfortunately, an attacker was able to deploy the multisig to L2 with different initialization parameters before these efforts were completed, assuming ownership of the 20m OP.

Furthermore, Optimism claims the attacker began selling the stolen funds. As much as 1 million OP tokens have been “dumped” into the market from the hacker’s address: 0x4f3a120E72C76c22ae802D129F599BFDbc31cb81.

At the time of writing, this address still holds 18 million OP tokens or $14 million with an additional $3 in USD Coin (USDC). However, new developments made the whole incident weirder.

Why Sent Part Of The Funds To Vitalik Buterin?

Developer Yoav Weiss, Security Fellow at the Ethereum Foundation, provided other details about the recent events. He believes the attacker could be a Whitehat hacker.

He based this presumption on the fact that the attacker waited four days before taking ownership of the OP funds. During that time, there was a risk that Wintermute might have deployed the solution to recover the funds.

In addition, the attacker hasn’t moved the funds, as Optimism believed. In step, the inventor of Ethereum Vitalik Buterin received 1 million tokens and Weiss himself received another 1 million OP.

Projects often send Vitalik Buterin tokens to celebrate the launch of their platforms, or to “burn them”, as the inventor of Ethereum rarely uses them. The fact that Weiss is a security fellow seems to be part of a message from the attacker.

The team behind Optimism claims the hacker has not used the funds for any activity related to its governance model. If this situation changes, they claim additional measures will be taken alongside the OP community.

Other measures are available, but the Optimism team refuses to enforce them and jeopardizes the project’s vision of a permissionless network. They concluded:

(…) incidents like this are the growing pains of an evolving industry. This is a reminder to everyone dealing with contracts across different chains that the security assumptions of one chain do not necessarily carry over to another.

Related Reading | Chainlink Price Surges As The Team Releases New Staking Roadmap

At the time of writing, OP’s price trades at $0.8 with a 16% loss in the last 24-hours.

OP’s price trends to the downside on the 1-hour chart. Source: OPUSDT Tradingview

Source link

Polygon taps Airbnb’s director of HR to spearhead its decentralized workforce

Polygon taps Airbnb’s director of HR to spearhead its decentralized workforce

Ethereum layer-2 scaling solution Polygon has announced the hiring of Bhumika Srivastava in a bid to consolidate its strategy and cultural ambitions for the company’s 500-employee global workforce.

Serving as the head of human resources and director for employee experience at Airbnb for the past five years, Srivastava arrives with an illustrious portfolio and plethora of experience from her work in Web2, having occupied senior roles at Adobe, Yahoo, Tesco PLC and Snapdeal.

Srivastava’s appointment marks a consistent trend in Polygon’s hiring strategy of prominent figures within the Web2 space, such as the former head of gaming at YouTube, Ryan Wyatt, being hired as CEO of Polygon Studios in January and, more recently, Tyler Sellhorn being brought on to promote Polygon’s decentralized working model as head of remote. 

In an interview with Cointelegraph, Srivastava spoke candidly about the necessities of leadership, Polygon’s parabolic employee growth over the past year, and her ambitions to cultivate a thriving decentralized culture that operates with sustainable high-performance. 

Cointelegraph: Albeit only being in the role for two days, how do you expect your position with Polygon to differ from that of Airbnb? And what are your anticipations in transitioning into the Web3 space? 

Bhumika Srivastava: I would say that Web2 to Web3 is very redefining for HR. […] The teams are distributed, remote-first, working in a hybrid space, and everyone is responsible for their own piece of work.

What will be different is creating an employee experience for distributed teams, a sense of engagement belonging to the teams which are working in silos, and also empowering teams to take decisions to work in an agile fashion, and not just, you know, ingrained in a very structured way of processes.

CT: What do you believe are your best qualities as a leader, and what’s your timeline of achievement? 

BS: I think short-term results and motivation [are] definitely required, especially in a startup. We have a line of sight for about two to three months. How do you create clarity on the priority-setting for your employees? You pay for their performance — rewarding them in the short term is going to be critical. 

As for the long term, how do you engage the workforce to retain [them]? How do they get a sense of purpose in defining and achieving the vision for the organization in the long run?

So, it’s going to be a combination of both. How do we achieve both short term in terms of attraction and retention, and long term in terms of belonging and engagement?

CT: Are you planning to interact and engage your employees in the Metaverse space, or will it be solely via video conferencing platforms such as Zoom? 

BS: I don’t have to have that experience. It’s new for me, and a transition, but I’m really excited to try out new things in the Web3 space.

CT: Polygon has recorded an employee increase of 400% over the past year to 500 team members. Do you believe that’s a sustainable strategy moving forward bearing in mind the current crypto bear market, and increase in layoffs we’re seeing at companies such as Coinbase and Gemini? 

BS: We are very conscious of the way we are operating. We want to scale the organization, and not just the number of people that we want to hire, [but] to create high-performing, lean teams. For now, I won’t say that we are going to continue with a 400% growth rate, but whatever makes sense for us to create a sustainable Web3 platform, we will definitely do that.

Related: Polygon launches ‘Supernet’ chains, pledges $100M to Web3 developers

CT: What do you believe will be your biggest challenges in the role, and what are your biggest ambitions? 

BS: I would say in terms of the biggest challenge, […] how do we create an ecosystem where we are able to employ people, keeping in mind the legality and regulations of a particular country?

The second one is bringing together all the teams who are based across the world in a remote-first environment and create a sense of teamwork, cohesiveness, engagement and a sense of purpose.

So, these are two top-of-mind things at the moment. And then later on, how do we re-look at HR technology for a Web3 organization, especially given how distributed platforms are working?

Source link

How to Buy Kava | Where, How and Why

How to Buy Kava | Where, How and Why

Decentralized Finance (DeFi) is one of the biggest trends in the blockchain industry and holds a value of over $80 billion, locked in the top 125 DeFi apps.

Kava (KAVA) is one such DeFi project driving the industry’s growth and expansion.

Kava is a DeFi software that enables users to lend and borrow various cryptocurrencies without the need for third-party intermediaries like financial institutions. Because of its innovative technology and straightforward use case, Kava is an essential project amidst the growing demand for DeFi services and products.

Read on to learn more about the Kava Project and how to buy Kava (KAVA) in a few simple steps.

Let’s get started!

What Is Kava (KAVA)

what is kava
What is Kava

Kava is a cross-chain DeFi lending platform that allows users to borrow Kava’s crypto-backed USDX stablecoin by depositing cryptocurrencies to start earning rewards.

The Kava DeFi hub acts as a decentralized bank for digital assets, giving users access to a wide range of decentralized financial services, including its native USD-pegged stablecoin USDX, as well as synthetics and derivatives. Users can borrow USDX tokens via Kava by submitting collateral, thereby leveraging their exposure to crypto-assets.

Kava is built on the Cosmos blockchain. It uses a collateralized debt position (CDP) method to ensure that stablecoin loans are always adequately collateralized. If borrowers fail to keep their collateral above a certain level, the Kava liquidator module will seize collateral from failing CDPs and sell it through the auction module.

How Does Kava Work

Kava Network

The Kava Network’s Co-Chains combine Ethereum smart contract development’s flexibility and speed with the Cosmos SDK’s interoperability in a single network. Kava also has access to the all-powerful, ultra-fast Tendermint consensus engine.

Kava aims to build the finest network for Web3 developers, with flexible deployment, seamless interoperability, and fantastic on-chain incentives. Moreover, it seeks to establish a network as outstanding as the products developed on it. 

KavaDAO, a decentralized autonomous organization (DAO), governs the Kava Network.

Kava Attributes

Keeping its dedication to providing the crypto ecosystem with a platform that delivers as good a network as are the projects, KAVA continues to deliver the three key features outlined below:

Flexible Deployment: Build and deploy on any of the world’s two most popular permissionless execution environments, the EVM-compatible Ethereum Co-Chain or the Cosmos Co-Chain. The choice is yours.

On-Chain Incentives: A groundbreaking, decentralized on-chain incentive scheme will ensure that the best developers and projects in every Web3 sector, including DeFi, GameFi, and NFTs, are rewarded.

Seamless Interoperability: Deploy Solidity smart contracts on the same network that seamlessly interoperates with Cosmos SDK protocols, connecting your project to every important asset and millions of users.

Kava Lend

Kava Lend is a decentralized money market based on the Kava platform. It allows you to lend and borrow cross-chain assets, including BTC, BNB, XRP, and Binance USD (BUSD), as well as Kava’s USDX, KAVA, HARD, and SWP.

The HARD token is Kava Lend’s native governance token. All HARD tokens are distributed as rewards and safeguarded by a smart contract. Investing in the HARD token over time will yield higher returns.

Kava Swap

Another key component of the Kava project is Kava Swap. The protocol makes use of the Kava infrastructure, cross-chain bridges, and security. The goal of Kava Swap is to enable quick, simple, and low-cost asset swapping without requiring users to leave the Kava ecosystem.

Here are Kava Swap’s two main functions:

  • Swap assets: You can trade offered cross-chain assets.
  • Supply liquidity: Kava Swap, like all AMMs, requires liquidity suppliers.

Every application on the Kava platform interacts with one another. You can build a CDP to mint USDX, which you can then use to earn HARD in Kava Lend or purchase other assets on the Kava Swap.

Kava Swap was a significant step forward since it eliminated the need for users to leave the ecosystem to handle their minting or borrowing properly.

Kava Founders

Brian Kerr, Ruaridh O’Donnell, and Scott Stuart founded Kava Labs, Inc., the parent corporation of Kava.

Brian Kerr is the platform’s current CEO and has previously served as an advisor for various blockchains and crypto platforms, including Snowball and DMarket. Kerr has a diverse and successful background and a degree in business administration.

Ruaridh O’Donnell has an MSc degree in Physics. He was previously an engineer and data analyst at Level Works.

Scott Stuart is a former professional poker player who currently works as a product manager at Kava Labs.

What Makes Kava Unique

Kava distinguishes itself from other similar decentralized lending platforms by enabling cross-chain assets.

Kava users will be able to deposit several native assets, including Bitcoin (BTC), Binance Coin (BNB), XRP, and Binance USD (BUSD), due to Cosmos’ zones technology. However, for the time being, cross-chain assets must be bundled as Binance Chain (BEP2) assets.

Similarly, Kava allows users to profit by minting USDX stablecoins. Once created, USDX tokens may be given to Kava’s money market, known as the HARD Protocol, where they will earn a variable APY while Kava will cover their collateral.

Kava users can set up their own staking node to obtain KAVA rewards straight from the protocol. However, these advantages are limited to the top 100 Kava nodes (also known as validators). KAVA holders can also stake their tokens on a range of compatible exchange platforms, including Binance and Huobi Pool.

How Is the Kava Network Secured

Kava is built on Cosmos and uses a Tendermint-based Proof-of-Stake (PoS) consensus mechanism to ensure network integrity.

A network of validator nodes is used for transaction confirmation. These validator nodes must deposit collateral to take on the responsibility of validating transactions. Validators’ stakes will be penalized if they misbehave or fail to meet rigorous minimum requirements, incentivizing them to remain honest and efficient.

Multiple independent blockchain and crypto security organizations, including CertiK, B-Harvest, and Quantstamp, have audited Kava’s smart contracts, and no vulnerabilities have been identified.

Kava (KAVA) Tokenomics

Check the KAVA Price, 24-hour trading volume, market cap, circulating supply, total supply, max. supply, historical statistics, etc., on CoinStats, and get updates on KAVA price live data.

The KAVA token was first released in 2019 after multiple private sales and a Binance Launchpad Initial exchange offering (IEO). 40% of the KAVA token supply was sold to private sale investors, while 6.52% was sold on Binance Launchpad, raising $3 million. Of the remaining KAVA token supply, 25% was allocated to Kava Labs shareholders, and 28.48% was assigned to the Kava Treasury to expand the Kava ecosystem.

kava ecosystemkava ecosystem
Kava ecosystem

Now, let’s look into why, where, and how to buy Kava (KAVA)

Why Buy KAVA

You can earn weekly incentives in the form of KAVA, Kava’s native cryptocurrency, by collateralizing cryptocurrencies and minting USDX.

For example, minters who use BNB as collateral get a portion of the 74,000 KAVA released weekly by the platform.

Where to Buy KAVA

KAVA tokens are currently traded on more than a dozen exchange platforms. Several KAVA trading pairs are available, the most popular of which are: KAVA/BTC, KAVA/USDT, and KAVA/BNB. Some of the top exchanges to buy KAVA are listed below:

1. eToro

eToro crypto trading platform

eToro is the best cryptocurrency trading platform to buy KAVA since it allows users to trade in stocks, ETFs, indices, commodities, and various other assets. Furthermore, this platform is ideal for beginners due to its simplicity, intuitive nature, and social and educational aspects.

Beginners can invest in several major cryptocurrencies. There are presently over 59 currencies to select from, and new cryptocurrencies are added regularly.

2. homepage is one of our top recommendations to buy KAVA due to its ease of use, security, and no-commission policy. provides CFD crypto trading services and an all-in-one trading platform, among other instruments. It offers an “example account,” allowing you to trade in virtual equity without depositing a single penny. You can practice trading your favorite cryptocurrencies for investment or any trading approach that interests you using the demo account.

To purchase KAVA or other digital assets on, you must make a $20 deposit. This deposit can be made by various methods such as credit or debit cards and bank transfers.

3. Binance

Binance homepage 1Binance homepage 1
Binance homepage screenshot

Binance, a cryptocurrency trading platform with over 500 cryptocurrencies and virtual tokens, including KAVA, is one of the best platforms to day trade and invest in new cryptocurrencies. Furthermore, platform members stay updated with current trends and upcoming currencies. Traders and investors can use this platform to leverage vast sums.

A minimum deposit of $20 is required when using a credit or debit card. Also, you’ll be required to pay a minimum of $10 for each trade.

4. Kraken

Kraken homepageKraken homepage
Kraken homepage screenshot

Kraken is one of the earliest (since 2013) cryptocurrency trading platforms, offering over 50 cryptocurrencies, including KAVA. It has since grown to become one of the largest and most popular exchanges worldwide.

With Kraken, you can invest in several cryptocurrencies and crypto pairs while also earning interest from staking. The minimum deposit at Kraken is only $10, and customer service is available 24/7.

5. homepage homepage has been in operation since 2013 and is currently one of the fastest and most secure exchanges. The firm has a great marketing and development staff, which helps it expand swiftly. Furthermore, offers clients several services other than storing and buying cryptos through the app and a DeFi wallet.

You can trade KAVA and other cryptocurrencies with low crypto trading fees on the platform. Customers can purchase KAVA for as little as $1.

Payment Methods

Scroll down to learn how to buy Kava with cryptocurrencies or fiat currencies.

Buy Kava With Crypto

KAVA can be traded for another cryptocurrency, such as Bitcoin or a stablecoin. Because this varies between exchanges, you’ll need to look for KAVA trading pairs on the spot market to see which cryptocurrencies it can be swapped for.

Buy Kava With Fiat

Linking your credit/debit card to your cryptocurrency account is beneficial since it allows you to make instant or regular purchases, but be aware that it attracts an additional fee. It’s usually free to make a bank transfer from your local bank accounts, but you should still double-check with your exchange.

How to Buy KAVA

Follow these easy steps to buy KAVA tokens:

Step #1: Choose the Best Exchange to Buy KAVA

KAVA is available on many cryptocurrency exchanges. You’ll need to compare them to choose one that supports KAVA and has the features you’re looking for, such as an easy-to-use platform, low transaction fees, 24-hour customer service, etc. When you invest with some crypto brokers, you won’t have to pay any commissions, which is a significant advantage over other options. When purchasing KAVA, consider if the cryptocurrency exchange accepts your preferred payment methods, such as a credit or debit card, another cryptocurrency, or a bank transfer.

Step #2: Create an Account

After choosing a reliable exchange, the next step is to open a trading account to buy or sell KAVA. The requirements differ depending on the platform. Most transactions will require personal information such as your name, contact number, email address, home address, social security number, and a copy of your driver’s license, passport, or government-issued ID to comply with KYC (know your customer) standards and ensure the security of your account. You must provide this information to be authenticated and start trading.

After verifying your ID, we recommend setting up the two-factor authentication system (2FA) to provide an extra degree of security to your account.

Step #3: Fund Your Account

The next step is to fund your account. Several exchanges will let you fund your account with fiat currency like USD or EUR.

Simply select your preferred method, such as credit/debit cards, bank transfers, e-wallets, etc. The payment method you use to buy KAVA tokens will be determined by the platform, location, and preferences.

Most exchanges support Credit or Debit Card, Bank Account & Cryptocurrency.

Step #4: Purchase KAVA

Now you’re all set to buy your cryptocurrency. Buying KAVA is similar to buying other cryptocurrencies, and the process is almost the same across all platforms. Use the search box, select Kava, and click on “Buy KAVA.”

You need to enter the amount of KAVA to be purchased or the amount of fiat available for spending. Most exchanges will instantly convert the amount, so investors know how much they’ll pay and how many KAVA tokens they’ll get.

Before making a final decision to buy KAVA, it’s vital to double-check the data to ensure that there are no inaccuracies.

Step #5: Setup a Wallet (Optional)

Once you’ve completed your KAVA purchase, the next step is to select a crypto wallet to store KAVA securely. Your tokens can be held in your brokerage exchange wallet; however, exchanges are vulnerable to hacking. We highly recommend creating a private wallet with your own set of keys. Depending on your investment preferences, you can pick software or hardware wallets, with the latter being a more secure option.

CoinStats Wallet is one of the best software wallets for managing all of your DeFi and crypto in one place – a single crypto wallet for buying, selling, swapping, tracking, and earning on your crypto!

Hardware wallets, also known as cold wallets, such as Ledger or Trezor, are the most secure solutions since they include secure offline storage and backup functionality. These are better suited for experienced users with a large number of tokens.

How to Sell KAVA

You can cash out your KAVA with the same exchange you bought it from by following the same steps.

1. Sign in to the exchange account where you have KAVA.

If you have kept your Kava (KAVA) in a digital wallet, compare crypto exchanges to choose where to sell it.

2. Place a sell order.

Choose how much KAVA you wish to sell.

3. Complete your transaction.

Complete the sale of KAVA by confirming the selling price and fees.

Closing Thoughts

Kava provides simple and smooth lending and borrowing for a wide range of cryptocurrencies. Users can benefit from cross-chain lending and staking due to the simple and user-friendly collateralization scheme. They can earn an APY on their holdings and profit on the funds they stake for loans.

You can also visit our CoinStats blog to learn more about wallets, cryptocurrency exchanges, portfolio trackers, tokens, etc., and explore our in-depth buying guides on how to buy various cryptocurrencies, such as How to Buy SushiSwap, What Is DeFi, How to Buy cryptocurrency, etc.

Investment Advice Disclaimer: The information contained on this website is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any securities, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.

Cryptocurrency is a highly volatile market and sensitive to secondary activity, do your independent research, obtain your own advice, and only invest what you can afford to lose. There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider your circumstances and obtain your advice before making any investment. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant regulators’ websites before making any decision.

Source link

Yellen Downplays Stimulus Contributing to Inflation, Republicans Grill US Treasury Secretary’s Decisions – Economics Bitcoin News

Yellen Downplays Stimulus Contributing to Inflation, Republicans Grill US Treasury Secretary’s Decisions – Economics Bitcoin News

U.S. Treasury secretary Janet Yellen doesn’t think inflationary pressures stem from the stimulus policies enacted after the Covid-19 outbreak. While speaking to lawmakers on Wednesday, during the House Ways and Means Committee, Republicans criticized Yellen for not knowing about the risks of inflation. A U.S. senator from Wyoming questioned the Treasury secretary’s “pronouncements and decisions” concerning the record gas prices and rising inflation.

Yellen Claims Stimulus ‘Produced Excellent Rewards for Americans’ — Republican Senator Says American Rescue Plan ‘Overheated the Economy’

On Wednesday, Treasury secretary Janet Yellen downplayed the theory that the stimulus from the American Rescue Plan and other monetary expansion policies contributed significantly to the current rising inflation. “The success of the policy adopted is that we have an economy with the strongest labor market, arguably in the entire post-war period,” Yellen remarked during her House Ways and Means Committee statements. She added that the spending “produced excellent rewards for Americans and, at most, it contributed modestly to inflation.”

Yellen Downplays Stimulus Contributing to Inflation, Republicans Grill US Treasury Secretary's Decisions
Speaking about the American Rescue Plan stimulus bill, Yellen said: “I hate to think about what the situation — especially for low-income families — would be without the help provided by that plan.”

Americans are more concerned these days with the hot inflation plaguing the U.S. economy than banning “assault weapons,” according to a poll by Quinnipiac University on June 3-6. Despite the Treasury secretary’s commentary, Republicans such as Wyoming senator John Barrasso do not seem convinced with Yellen’s opinion. “Is there a risk of inflation? You responded, ‘I think there’s a small risk,’” Barrasso said to Yellen on Wednesday. Barrasso added:

Given that, it makes me wonder why Americans should put any confidence in your pronouncements and decisions and recommendations today.

John Thune, a Republican senator from South Dakota, believes the trillions spent toward the stimulus plans created the inflation issues America is facing. “I think that there’s no question that the $2 trillion bill last year overheated the economy, and it’s why we have the mess that we have today,” Thune explained during the House Ways and Means Committee. The Republican senator from Illinois, Darin LaHood, said he was confused by the Biden administration’s lack of remedies. LaHood stated:

As I listened to you here today, and I look at what’s not been done by this administration, it’s really perplexing in a lot of ways on whether the administration is tone deaf or unaware or becoming aware right now.

Biden Declares Americans ‘Feel Financially Comfortable,’ While His Administration Is Accused of Fueling Power-Hungry Politicians

Just recently, American president Joe Biden told the U.S. public that “families are carrying less debt” and “their average savings are up” since he became president. However, U.S. Bureau of Economic Analysis (BEA) statistics show that American savings have plummeted to levels not seen since 2008. Biden’s speech further noted that his administration feels more Americans “feel financially comfortable” since 2013.

The American television host Tucker Carlson opined after Yellen’s first day of testimony on Tuesday, that the U.S. Treasury secretary’s “reckless, loose money policies caused inflation.” The Fox News anchor said that Yellen’s monetary policy is typical of bureaucrats seeking more power.

“Within a year, Yellen had all but abandoned the traditional constraints of monetary policy,” Carlson said. “Instead, there she was yammering on in public about things like racial equity and environmental justice. Now, those are issues that, unlike economics, cannot be quantified or even specifically defined. They are therefore perfect vehicles for power-hungry politicians hoping to become more powerful.”

Yellen stressed during her testimony that the White House is focused on curbing inflation back to pre-pandemic levels, and that addressing inflationary pressure is “the administration’s highest priority.” An official from the Treasury backed Yellen’s comments by noting “the unparalleled strength of America’s recovery enables our country to address global challenges like inflation and Russia’s attack on Ukraine from a position of strength.”

Tags in this story
Bureau of Economic Analysis, Darin LaHood, hot inflation, House Ways and Means Committee, inflation, Inflationary pressures, Janet Yellen, Joe Biden, John Barrasso, John Thune, South Dakota, Tucker Carlson, U.S. Treasury Secretary, US economy, US Inflation, Yellen

What do you think about Janet Yellen’s commentary on Wednesday at her House Ways and Means Committee testimony? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); = id;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Source link

The crypto market downturn explained | by Coinbase | Jun, 2022

The crypto market downturn explained | by Coinbase | Jun, 2022

Around the Block from Coinbase Ventures sheds light on key trends in crypto. Written by Connor Dempsey. Data by Mike Cohen.


  • Central Banks and governments responded to the March 2020 COVID market shock with unprecedented interest rate cuts, money printing, and stimulus
  • These easy money policies kicked off a multi-year bull run for equities and crypto, before eventually causing inflation that was further exacerbated by COVID supply shocks
  • BTC, ETH, the NASDAQ, and S&P each peaked at the tail end of 2021, when it became clear that inflation was not under control and that Central Banks would have to unwind the same policies that propelled stocks and crypto to new heights in the first place
  • This cycle crypto has been broadly correlated with tech stocks, and has traded like risk assets
  • While not immune to Central Bank policy in the short run, the prospects of crypto and Web 3 in the long run remain stronger than they’ve ever been

Financial markets are, in essence, one giant information processing machine. A machine that responds to new information not directly, but as it affects the decisions of millions of individual buyers and sellers. Or as Benjamin Graham famously put it, “in the short run, the market is a voting machine.”

With the S&P 500, NASDAQ, BTC, ETH, and most crypto assets significantly off of their all-time-highs, that begs the question: what information has market participants predominantly voting to sell?

In this edition of Around The Block, we take a look at the overall macro downturn with an eye towards the crypto markets.

As of June 2022, US equities have shed roughly 20%, or $10 Trillion in value. For US stocks, the selloff has not yet approached the severity of other historically noteworthy downturns, but it’s certainly in the conversation.

Crypto meanwhile, has shed nearly 60%, or $1.7 Trillion. For comparison, it shed 87% of its total market cap after the peak of the 2017 bull run.

BTC, ETH, and the NASDAQ all peaked in November, with the S&P 500 peaking at the end of December. So what changed during the last two months of the year? To understand this market downturn, it’s helpful to start at the beginning of a historic bull run that both stocks and crypto experienced in 2020.

Entering 2020, Bitcoin was rallying from the depths of the 2018/19 crypto winter, from $7,500 to nearly $10,000. Meanwhile the S&P and NASDAQ each stood at all-time highs. Then COVID hit.

COVID shock of March 2020

On March 12, 2020, the World Health Organization declared the Coronavirus a pandemic and governments around the world placed entire countries on lockdown.

As the magnitude of COVID-19 set in, it became clear that our global economy was not adequately prepared to handle the shock, sending all markets into a panic. The S&P and NASDAQ each declined around 30%, with crypto markets getting hit harder (in absolute terms). When the dust settled, BTC briefly dropped below $4,000, shedding over 60% of its value.

In short, COVID sent panicked investors to rush for the safety of cash, sending all liquid markets down sharply. Then the US Federal Reserve stepped in.

The Fed response

As the Central Bank behind the world’s largest economy, the US Federal Reserve plays a unique role in financial markets. Mainly, it controls the supply of the US dollar, which is the world’s reserve currency.

The money printer and interest rates are the Fed’s main tools for supporting the economy in times of extreme turmoil. By digitally printing money and buying financial assets like bonds from financial institutions, they can introduce new money into the economy. By lowering interest rates, they can make it cheaper for other banks to borrow money from the Fed, which also introduces new money (in the form of credit) into the economy.

After COVID, the Fed dropped the cost that banks pay to borrow money from the Central Bank, known as the Federal Funds Rate, to essentially zero. This allowed banks to, in turn, lower the cost at which their customers borrow money. These cheap loans could then be used to finance homes, businesses, spending and other investments.

By digitally printing new money and using it to buy treasury bills and other securities from financial institutions (this is known as quantitative easing), an unprecedented amount of US dollars was introduced into the economy. Over the next two years, almost 6 trillion in new money was printed, increasing the broad supply of USD nearly 40%. Awash with cash, financial institutions compete to lend this fresh capital out, forcing them to lower interest rates to remain competitive. Again, availability of cheap credit encourages borrowing, which ultimately supports the economy.

The US wasn’t alone, as the European Central Bank, Bank of Japan, and Bank of England all lowered interest rates to near (or even below zero) and printed money at historic levels. All told, the world’s four major central banks printed $11.3 trillion, which is a 73% expansion since the beginning of 2020.

On top of all that, the US Government injected over $5 trillion of “stimulus” into the economy by taking on debt from public, private, and foreign entities. Similarly, China pumped another $5 trillion into its economy through the same methods. Basically, the world became awash with fresh cash.

Don’t fight the Fed

“Don’t Fight the Fed” is an old investor mantra which implies that given the Fed’s outsized influence, one should invest in lockstep with whatever direction the Fed is moving financial markets. This mantra rang true after COVID struck in 2020.

When new money is being printed at record levels, and interest rates are near zero, all of this money and credit needs a place to go. On top of that, when rates are low, conservative instruments like bonds are less profitable, pushing money into higher yield assets. In the aftermath of COVID, these forces caused massive inflows into stocks, crypto, and even NFTs, helping push asset prices to new heights.

From their COVID panic induced bottoms, the S&P500, NASDAQ, BTC, and ETH would soar 107%, 133%, 1,600%, and 4,200% respectively.

Enter inflation

When the system is awash with money, and assets are going up, everyone feels richer. People can spend more and companies can pay their employees more. When spending and incomes increase faster than the production of goods, you have “too much money chasing too few goods,” and the price of goods rise, or inflate.

With supply chain shocks stemming from COVID lockdowns, there were even fewer goods in the economy. More money chasing even fewer goods led to even more inflation. This started to become apparent in May 2021.

The consumer price index (CPI) measures the change in prices paid by consumers for goods like gas, utilities, and food. From March to May 2021, it shot up from a healthy 2.6% to 5%. By March 2022 it hit 8% — levels of inflation not seen in over 40 years.

Inflation makes everyone poorer, because people’s money no longer buys as much as it once did, so the Fed had to step in once again. To combat rising inflation, they turn to the same tools they used to support financial assets in the first place.

Reversing course

As we explained, low interest rates and newly printed money support both the economy and asset prices. When overdone, they can also lead to inflation. When that happens, the Fed flips the switch, raises rates and removes money from the market, setting the process in reverse.

Raising interest rates ripples throughout the economy. Since it makes it more expensive for banks to borrow from the Central Bank, they in turn charge customers more to borrow money. On top of it becoming more expensive for everyone to borrow money, the price to pay for money already borrowed also goes up (think if your credit card rate jumped from 5 to 10%).

Where quantitative easing involves injecting money into the economy by buying securities from financial institutions, quantitative tightening is the opposite. First, the Fed stops buying securities while letting existing securities expire, and eventually, begins selling them on the open market. This ultimately leads to less money in the economy. Less money to lend out causes interest rates to rise due to simple supply and demand.

With the cost of borrowing and paying existing debts more expensive, everyone slows down on the spending that caused inflation in the first place. With less money being pumped into the economy via asset purchases, there’s less money chasing inflated goods, and prices in theory should normalize. There’s also less money chasing investments, which brings the price of assets down along with it — something sophisticated market participants know all too well.

The machine reacts

When inflation was hanging around 5% over the summer, the line out of the Fed was that it was “transitory,” or non-permanent. On November 3rd, 2021, the Fed said that it would start to slow asset purchases, but would be patient with any interest rate hikes as it continued to monitor inflation.

When October’s CPI of 6.2% was announced on November 10th, it became clear that inflation was not under control and that the Fed would have to intervene. While the first interest rate hike wouldn’t come until March, the great information processing machine that is the market, seemed to react at first sign that they’d likely be coming.

Don’t fight the Fed rang true once again, as BTC and ETH each peaked on November 8th, the NASDAQ on November 19th, and the S&P at the end of December.

Even the CryptoPunks floor price (a proxy for NFT sentiment) and DeFi TVL peaked during this same period.

In a nutshell

Basically, in response to COVID, Central Bank and government intervention helped keep markets afloat with record low interest rates, money printing and stimulus. These easy money policies ultimately helped propel stocks and crypto to all-time highs before leading to inflation — inflation that was exacerbated by supply chain stocks stemming from COVID lock downs in China (and later on in 2022, Russia’s invasion of Ukraine).

When it became clear that inflation was persistent and that Central Banks would have to reverse course and bring an end to the policies that propelled many assets to new heights, the macro downturn began.

The great re-rating

While we started our story at the beginning of 2020, the era of easy Central Bank monetary policies started in the wake of the 2008 Great Financial Crisis. An era that saw the birth of crypto as well as a historic run in equities.

In the face of inflation not seen in 40 years, Central Banks have signaled that the easy money era has come to an end. Previous frameworks for valuing companies and assets are no longer relevant in lieu of this shift. The value of everything has been “re-rated”, which is the downturn we’ve all experienced over the course of the last six months.

When interest rates rise, bonds become more attractive investments. Meanwhile, “growth” stocks, or companies that aren’t expected to produce dividends until many years in the future get hit the hardest. With money tighter, investors preferences shift to investments that produce cash flows today, rather than far out in the future. Thus the tech sell-off.

Crypto selloff

But wasn’t crypto supposed to be an inflation hedge? It depends. If you bought Bitcoin in May 2020 after macro investor Paul Tudor Jones famously dubbed it “the fastest horse” in a post COVID environment, you’re still up over 200% and well ahead of inflation. If you bought after inflation started to rear its head, much less so.

Even with the correction, Bitcoin and ETH are each still up 500% and 1,000% respectively from their pandemic lows. Longer tail assets have not fared as well, however, and it’s hard to deny that this time around crypto more broadly has been highly correlated with stocks — particularly tech.

Tech stocks are considered risk assets. Given the correlation, it’s fair to say that most individuals are still treating crypto similarly. Risk assets carry high upside, as well as high downside risk. When money gets tight, which is what happens when Central Banks tighten up, risk assets are often the first to get sold. That, in a nutshell, explains the recent crypto market downturn.

The Fed giveth

Have you ever wondered why market participants hang on every word of the Fed Chair? It’s because they know that the direction in which the Fed turns its dials can significantly influence markets and the economy. It can make businesses succeed or fail, and home values rise or fall.

It’s not done with malice, but with the noble aim of keeping prices stable and people employed. However, the Fed’s tools are somewhat crude, and in the hands of well meaning, but inherently fallible groups of people. It isn’t unreasonable to think it strange that the unilateral decisions of a very small group of people remain so consequential for the average person.

While crypto prices are clearly not immune to Fed policy, it should also come as no surprise that it was among the best performing asset classes over this last market cycle. Easy money policies encourage speculation, and speculation has always accompanied paradigm shifting technologies: personal computers, the internet, smartphones, and even the railroads of the 1800’s.

Additionally, Bitcoin and its hard supply of 21 million that can’t be debased by a central authority continue to stand in stark contrast to Central Bank money printers. History tells us that all centrally managed currencies fail eventually, typically from mass inflation via economic mismanagement. While this cycle has also shown that crypto is still far from without its risks and shortcomings, it also further validated the need for decentralized systems free from the risks of single-party control to co-exist with centralized counterparts. While crypto prices will remain influenced by Fed policy in the short run, in the long run, crypto and Web3 remain more alluring than ever.

Looking ahead

If this is your first crypto market downturn, it can certainly be scary. It is however, not without precedent. This market has been pronounced dead in 2018, 2015, and 2013, only to come back stronger each time.

Like the internet before it, crypto innovation marches on regardless of market cycles.

h/t Chris Dixon

From our seat, crypto feels more inevitable than it’s ever been. Bitcoin has global adoption, now held by institutions, corporations, countries, and millions of individuals alike. DeFi has created the underpinnings of an internet based financial system with no single party in control. The foundations for Web3 and a user-owned internet have been laid. NFTs have birthed billion dollar industries across art and gaming with a diverse array of use cases on the way. DAO treasuries manage nearly $10B+ and are just getting started. Crypto’s real world utility has been showcased on the world stage, raising millions in aid for Ukraine following a Russian invasion.

Even the biggest detractors have come around. 9 out of 10 Central Banks are exploring digital currencies and analysts at JP Morgan have dubbed crypto a “preferred alternative asset class.” Facebook rebranded to Meta, Twitter, Spotify, TikTok and Instagram are integrating NFTs, while Google and Microsoft are each dipping their toes into Web3.

In the long run, it appears that the proliferation of the financial internet is a function of time, rather than Central Bank policy.

The weighing machine

As we mentioned, Benjamin Graham said that in the short run, the market is a voting machine. But he also said that in the long run it is a weighing machine. In the short run it’s a giant information processing machine subject to emotional swings when presented with distressing information. In the long run, it has a knack for weighing assets based on their true value.

Bitcoin and Ethereum have maintained their weight over past downturns. Many other crypto assets will be weighed accordingly over the current downturn. The job of the individual is to vote in the short run for whatever they think the market will weigh as valuable in the long run.

At Coinbase, our votes are cast on crypto, Web3, and the financial internet eventually being weighed as one of the most valuable innovations of our time.

Source link

Chainlink Price Surges As The Team Releases New Staking Roadmap

Chainlink Price Surges As The Team Releases New Staking Roadmap

Following the release of its staking roadmap, Chainlink’s LINK native token performed quite impressively. First, it released its long-awaited roadmap revealing various phases it will go through. Recently via blog post on its official website, Chainlink cited “Chainlink Economics 2.0.”

The blog highlighted the aim to implement crypto staking to scale the network. While doing so, the post emphasized that the data oracle is planning to collaborate and accept other blockchains to offer “growth and security.”

New Staking Roadmap Dubbed Chainlink Economics 2.0

Staking the LINK token has been a high-demand feature for some years now. This is due to Chainlink being the biggest data oracle provider in the deFi ecosystem.

Chainlink even Tweeted about its preparations for implementing the ‘Chainlink Economics,’ referenced in its official blog post.

The announcement on its blog explained that the main vision of providing staking is to enable both community members and node operators to boost the platform’s user assurances and security guarantees of the oracle services. They will do so by staking their LINK tokens.

Related Reading | Bullish: Bitcoin Marks First Green Weekly Close After Two Months In The Red

Furthermore, nodes stand higher chances of receiving jobs and better payments by staking their coins on the network. All the same, the ecosystem will flourish as the user assurances and crypto-economic security increase.

Besides that, staking rewards users for providing valuable data. It also enables the platform to introduce a penalty mechanism designed for underperforming nodes which don’t provide accurate oracle reports or deliver them to their destinations at the right time.

Image Source: Chainlink Staking

Then, the platform can generate long-lasting rewards from consistent and long-term use by staking the LINK tokens. Chainlink anticipates sustainable growth from a large portion of the staking returns from “non-emissions-based sources.”

Related Reading | A Look Inside MicroStrategy’s $2.4 Billion Loan Used To Buy Bitcoin

Howbeit, the full implementation of the development will be slow, the same way its data oracle grew from a single feed to the thousands it has now. Nevertheless, Chainlink hopes to deploy the v0.1 later this year before it transitions to v1 and v2, providing more challenging security and advanced features.

LINK Token Appreciates

In response to the release of the staking roadmap, the LINK token leaped by over 18% during the day before correcting back by 12%. The LINK token is trading at $8.78, a gain of around 9.96% on CoinMarketCap.

Regardless of the price rally, the token appears to be on a longer-term downtrend trend. Currently, the LINK token records an 84% decline from its All-Time High (ATH) price of $52.70 in May 2021.

Chainlink Price Surges As The Team Releases New Staking Roadmap
LINK token surges following the recent development | Source: LINKUSD on

Source link