Schottz Tech: agosto 2023

terça-feira, 8 de agosto de 2023

PayPal Launches Its Own Stablecoin, Dogecoin Creator Reacts to DOGE in New Futurama Season, SHIB Whales Buy 11 Trillion SHIB in 2 Days: Crypto News Digest by U.Today

Here are the top three news stories over the past day presented to you by U.Today.

As reported by Bloomberg, PayPal payments giant has gone live with its own stablecoin called PayPal USD (PYUSD), striving to boost broader adoption of digital tokens for payments. This marks a crucial turning point in the field of digital payments, as it is PayPal's most significant move in the crypto space since it first ventured into it in late 2020. PYUSD is pegged to the U.S. dollar and is issued by Paxos Trust. Soon the coin will become accessible to PayPal's vast customer base. PayPal's outgoing CEO Dan Schulman highlighted PYUSD's long-term objectives, saying that it is expected to play a significant role in the overall payments infrastructure.

All of the Dogecoin community's eyes are now on the newly revived Futurama series, as their beloved meme crypto made an appearance in one of its recently aired episodes. To mark this occasion, DOGE creator Billy Markus took to social media, sharing a screenshot of a scene that shows a tablet with "Doge City" written on it. "The silly thing I made ten years ago made it to a Futurama episode," Markus wrote. However, despite DOGE's unexpected appearance in the popular animated series and a social media boost from its creator, the coin's price has not really been affected. Yet, this does not necessarily represent how well the crypto is performing. In fact, in the last few months, DOGE has been on an upward trajectory; at the moment of writing, the meme coin is trading at $0.07, per CoinMarketCap.

Shiba Inu Lead Shytoshi Kusama Explains New Identity Tech's Impact on Shibarium

According to data provided by IntoTheBlock, Shiba Inu is experiencing a spectacular spike of on-chain activity, as prominent SHIB holders have purchased an astonishing 11.11 trillion SHIB within the past 48 hours. The move signals a strategic action by major players ahead of an anticipated event, Shibarium's impending launch during the Blockchain Futurist Conference in mid-August. On Saturday, Shiba Inu saw a dramatic shift in its ecosystem as the amount of SHIB tokens entering whale wallets increased by 3,148% compared to the previous day. This sudden increase in token inflows is the biggest one seen in almost two months. In addition to this, an equally sharp decline in outflows from the wallets of SHIB's elite investors appeared. The value of outflows dropped by 94.61%, from 7.21 trillion SHIB to 388.07 billion, in just the previous 24 hours.

Valeria is the community manager at U.Today. She is a crypto enthusiast and believes that cryptocurrency is the future of finance. Currently, Valeria covers the latest news in the world of crypto and blockchain.

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SHIB Eyes 300% Spike in up to $1 Million Shiba Inu Transactions as Shibarium Launch Nears

In a surprising turn of events, recent on-chain data analyzed by IntoTheBlock has unveiled a whirlwind of activity within the realm of the Shiba Inu token. The statistics reveal a jaw-dropping surge in transactions involving SHIB within the price bracket of $100,000 to $1 million, marking an astonishing 300% increase over the past month.

New 4.3 Trillion SHIB Whale Emerges Ahead of Biggest Coming SHIB Event

This surge, which now accounts for an impressive 1.64% of all Shiba Inu token transactions, has not gone unnoticed.

The data further underscores the extent of this surge, as transactions within the same price range have surged fourfold in terms of dollar equivalent during this identical period. It is worth noting that another intriguing trend has emerged within the $10,000 to $100,000 transaction range, which has witnessed an impressive 95.4% climb since its July inception.

The crux of this extraordinary upswing can be traced back to the impending debut of Shibarium on the token's main network. This event, anticipated with fervor, has cast a sweeping wave of enthusiasm over the SHIB community, and major holders in particular. For those in possession of considerable volumes of SHIB, this impending launch presents a golden opportunity to leverage the upcoming Layer 2 protocol premiere.

Shiba Inu Trillionaires Acquire 11 Trillion SHIB in Just 2 Days as Shibarium Nears

Amid the unfolding summer of Shibarium, the feverish narrative encompassing the Shiba Inu ecosystem is reaching unprecedented heights. Notably, the intricate landscape of SHIB's investor base, particularly the most notable stakeholders, is taking center stage.

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Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

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SHI Stablecoin Will Be Game-changer, While PayPal Stablecoin PYUSD Is Not: SHIB Team Member

The Discord and Telegram admin of the Shibarium channels, Shibarium1, has taken to Twitter to share their take that as soon as the Shiba Inu-based SHI stablecoin is rolled out, it will change the playing field for stablecoins, which PayPal is currently trying to enter with its PYUSD stablecoin.

As the news spread about PayPal giant rolling out its native stablecoin, many crypto community members on Twitter started to share a screenshot that demonstrates that the code of this coin allows company engineers to freeze PayPal's clients' crypto balances and then wipe them at will.

$SHI (not launched yet) will change the game. https://t.co/KmHyHtgWSo

IT engineer @0xCygaar has tweeted that PYUSD is written using a very old version of Solidity, and it allows the owner to increase the total supply of the stablecoin, aside from the two "opportunities" mentioned above.

Still, many in the community are welcoming this launch of PayPal stablecoin PYUSD since this marks a massive boost in the adoption of crypto.

Shibarium Beta Activity Halts, What's Happening?

SHI is a stablecoin that the Shiba Inu team is currently working on that has not been released yet.

From time to time, some scam accounts on Twitter write that it has already been launched. On Sunday, lead developer Shytoshi Kusama commented on such a scam post about SHI, stating that the stablecoin has not been launched yet.

Unlike PayPal's centralized stablecoin, the Shiba Inu team is focused on decentralization and protection of digital identity. Therefore, its stablecoin SHI may have a chance of wider adoption.

As for PYUSD, which has been issued on Ethereum, prominent XRP-themed account @RipplePandaXRP tweeted that they expect PayPal to stop this project soon as Ethereum fees are far too high.

I love the fact that @PayPal has launched their stablecoin on #eth because of the massive fees incurred.
Can’t wait for the news stated that they stop the project due to fees, usability and scalability. 😎#XRPTheStandard

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets.

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.

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Peer App, 3D Social Network, Launches to Public

A novel digital application unlocks amazing opportunities for socialization, conversations and self-expression. Its users will be able to collect stories, memories, moments and experiences within detailed 3D copies of real cities.

According to the official announcement shared by the team of Peer metaverse, its eponymous social media application launches for iOS devices. The application is already available in Apple's App Store, while its version for Android-based devices will be released on Google Play in the coming months.

hello, is it peer you're looking for?🥹https://t.co/RbsGk2Ka75

The application employs world-class location-sharing mechanisms with adaptive 3D maps and various applications of blockchain technology. Its proprietary functionality gives new and existing users a dynamic gamelike experience of the real world in different regions across the globe.

Primarily, the application is created for discovery, community building and other real-life activities. Tony Tran, CEO and founder of Peer Inc., is excited by the range of opportunities it unlocks for users regardless of their background:

All the world's a game and Peer makes everyone a player. Get ready for a new kind of social network that's all about fun, joy, and gamification.

While using Peer, metaverse enthusiasts will be able to create, customize and publish maps of their unique social worlds. These maps are set to display memorable moments of users' social lives.

Tran also indicated some crucial milestones his application is planning to accomplish in the coming months. Besides the release of an Android-based version of application, the team is going to enrich its tooling with AI instruments:

This launch marks a major milestone for Peer Inc. and we're just getting started. In the coming months, AI integration and other unique features in our roadmap are sure to spark a new era of global interconnectedness. Peer will be the only social network that truly puts the world in your hands.

The team of Peer Inc. leverages the synergy between cutting-edge technologies like blockchain, artificial intelligence (AI) and augmented reality (AR) to allow people to interact with each other in exciting new ways.

A planet-scale AR environment that will enable AI mass adoption is positioned as an endgame goal for Peer Inc. technical and marketing roadmaps.

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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WorldCoin Appears in German Regulator's Crosshairs

Germany's financial regulator, BaFin, has initiated an investigation into Worldcoin, a digital currency project co-founded by OpenAI CEO Sam Altman.

The probe comes after the digital currency's launch on July 24, raising concerns about the company's licensing on the German market.

A BaFin spokeswoman informed Handelsblatt about the ongoing investigation but refrained from delving into specific details. "If a company approaches the German market without the necessary permit, such as offering a website or app in German, we will pursue it," she remarked. It remains ambiguous, however, whether Worldcoin needed a license before its launch.

Worldcoin's innovative yet controversial approach involves using metallic orbs to scan users' irises. The overarching goal, according to Altman and co-founder Alex Blania, is to offer a definitive solution for online identity verification amid an internet brimming with scams, bots and potential AI imposters.

Shibarium Beta Activity Halts, What's Happening?

By distinguishing between humans and AI, the project envisions a safer digital landscape. However, concerns have risen, especially from privacy experts, regarding Worldcoin's collection and protection of biometric data.

In addition to Germany, Worldcoin has faced scrutiny from the French data protection agency, the Commission Nationale Informatique & Libertés (CNIL). The CNIL is questioning the legality of Worldcoin's data collection methods and storage conditions for biometric data.

Moreover, Worldcoin might also face inquiries from data regulators in the United Kingdom, increasing international pressure on the cryptocurrency project.

Worldcoin, while marred in controversy, has garnered a vast user base with over two million people registered for World IDs. Motivation ranges from curiosity to financial incentives, with the company offering its own crypto token, WLD, as an enticement for those willing to partake in iris scanning.

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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Algorand (ALGO) up 10%, Bull Sets New Target

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Algorand (ALGO) is on a bullish rampage today after soaring as high as $0.1185 upon gaining a total of 6.83% over the past 24 hours. Algorand has managed to sustain its growth trend in the trailing seven-day period after printing a total gain of 10.2%.

Algorand (ALGO) Records 15% Growth Following Major DeFi Milestone

The volatility of Algorand is high at this time, but the obvious actions of market bulls have largely helped the proof-of-stake (PoS) protocol maintain impressive growth metrics across the board. The trading volume is up by 124.4% with a total of $88,851,349 traded overnight. While Algorand has been a low flier compared to other PoS protocols with smart contract capabilities, its appeal is still very much appreciated across the board.

Algorand has had a mix of ups and down thus far this year, similarly to other high-growth protocols, which involve active developer activity. While this developer activity has been steady, it has also been marred by a bout of exploits that rocked the protocol earlier in the year.

With transparent handling of the exploit by the Algorand team, ALGO buyers appear to have gained a whole new motivation to go on an accumulation spree. Per the current outlook, the token is looking to retest its 30-day high of $0.123.

Algorand Now on Cardano, Says Charles Hoskinson, As Layer 2 Solution Launches

Algorand has its own community and ecosystem, both of which have been very proactive in championing the growth strides of ALGO over the past years. However, with most PoS protocols now creating an Ethereum Virtual Machine (EVM) in order to gain unhindered accessibility between each other, a new trigger for growth has been ushered in, with Algorand notably tagging along.

Despite the many distractions that have been recorded, including the invitation from Cardano founder Charles Hoskinson asking Algorand to come become a sidechain of Cardano, the developers remain focused, driving innovation in a steady manner to drive growth.

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on Blockchain.news, Cryptonews and Coingape, among others.

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Shiba Inu Exciting News Ahead? SHIB Ecosystem Official Offers Epic Prediction

Shiba Inu team member Lucie teases exciting news on the horizon for Shiba Inu. "Exciting news ahead," Lucie stated on Twitter.

The Shiba Inu community eagerly awaits the big news regarding Shibarium's mainnet launch amid several innovations as the summer of Shibarium unfolds gradually.

Hey #Shibarmy, exciting news ahead! 🚀

🌟 My gut feeling tells me that the Shiba Ecosystem is gearing up to kickstart the bull run! 🐕💨

Let's stay positive and supportive during this #SummerofShibarium, and witness some incredible moments together! 🌞💫 $BONE $SHIB $LEASH… pic.twitter.com/CYQ7vo7cds

Given these expectations, Lucie makes a big prediction for the Shiba Inu ecosystem: "My gut feeling tells me that the Shiba Ecosystem is gearing up to kickstart the bull run."

SHIB's price started moving once again and was up 4.22% in the last 24 hours to $0.0000093 at the time of writing. Shiba Inu was a top gainer of late, given a rally that saw Shiba Inu ecosystem token (SHIB, LEASH and BONE) prices jump.

Shiba Inu (SHIB) Inflows See Jaw-dropping 2,200% Spike, Here's Why

Per on-chain analytics firm IntoTheBlock, Shiba Inu's large transaction volume was up 174.87% in the last 24 hours. IntoTheBlock classifies large transactions as those that exceed $100,000, and a spike in volume might suggest a significant amount of buying or selling by whales.

While there is no official date for the Shibarium mainnet launch, the community speculates the Layer 2 blockchain could make its debut during the upcoming Blockchain Futurist Conference 2023, scheduled for Aug. 15 and 16.

That said, fresh speculations surrounding Shibarium mainnet's release have been sparked following a dramatic pause in Shibarium beta testing since Aug. 5.

According to the most recent indication from PuppyScan Explorer, the Shibarium testnet has experienced a total transaction standstill for the last three days, which has piqued the Shiba Inu community's curiosity.

Shibarium Hits New Milestone as Builder Unification Shares Update

At the time of writing, Shibarium beta "Puppynet" has seen a transaction count of 35,044,841. The network had processed a total of 1,989,675 blocks, while the number of wallets was 17,063,911.

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.

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Bitcoin (BTC) Price Analysis for August 8

Buyers have seized the initiative as all of the top 10 coins are in the green zone.

Top coins by CoinMarketCap

The rate of Bitcoin (BTC) has risen by 1.48% over the last 24 hours.

BTC/USD chart by TradingView

Image by TradingView

On the hourly chart, the rate of Bitcoin (BTC) is in the middle of the local channel, between the support at $29,135 and the resistance at $29,585. There are low chances of seeing any sharp moves today as the coin has passed most of its ATR. In this case, sideways trading around $29,400 is the more likely scenario until tomorrow.

BTC/USD chart by TradingView

Image by TradingView

Despite today's rise, the rate of Bitcoin (BTC) is not ready yet for a sharp move as the price is far from the main levels. One can think about a bullish trend reversal only if BTC gets back to the $30,000 zone and fixes above it.

BTC/USD chart by TradingView

Image by TradingView

From the midterm point of view, one should pay attention to the support at $28,830, formed by a false breakout. If bulls can hold the rate above $29,000, there is a possibility of seeing a local rise to the $30,000 range soon.

Bitcoin is trading at $29,470 at press time.

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.

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Shiba Inu (SHIB) Paints Candle of Hope

Recent market data paints a somewhat optimistic picture for Shiba Inu (SHIB) enthusiasts. The token saw a 14% reversal, managing to stay buoyed above the $0.000009 mark. For investors closely tracking SHIB's performance, this offers a glimmer of hope, especially as the digital currency grappled to maintain its position above $0.00001 recently.

This hopeful rally comes after a somewhat tumultuous period for Shiba Inu. It was only recently that the token experienced a sharp setback upon failing to sustain its position above the 200 EMA. This significant resistance level, once breached, was expected to act as a robust support, but instead, SHIB encountered heightened selling pressure. This downward pressure led not only to a price decline but also invalidated the token's recent positive rally and breakthrough.

One of the primary culprits behind this precarious performance seems to be the notable profit-taking activity from cryptocurrency whales. Analyzing the on-chain data reveals a surge in large transactions on the Shiba Inu network. This spike, which indicates massive sales by prominent holders, can substantially sway market sentiment and the coin's price trajectory.

Furthermore, despite the release of the much-anticipated Shibarium, there have not been sufficient fundamental growth drivers to propel SHIB upward. This, coupled with the evident whale activity, has made the digital currency's journey above the $0.00001 threshold a challenging endeavor.

Cryptocurrency enthusiasts and traders are accustomed to the unpredictable nature of the market, but sometimes even expected patterns throw curveballs. Such is the case with Ethereum (ETH) recently. Despite showcasing a "doji" pattern, which typically heralds a possible reversal, Ethereum's price seemed to forget its next move and continued to hover sideways.

"Doji" is a classic candlestick pattern often used by traders as an indicator of a potential price direction change. It represents a session in which the opening and closing prices are virtually identical, signifying indecision on the market. When a "doji" appears after a pronounced downtrend or uptrend, it often suggests that the momentum is waning and a price reversal might be on the horizon.

Odds of Ethereum ETF Approval Surge: Analysts

However, Ethereum's chart told a slightly different story. After the "doji" pattern's appearance, market participants braced for an upward trajectory, considering ETH had been trading under pressure. Instead, Ethereum kept a steady course, trading at around $1,830.

This lack of decisive movement could well be attributed to the low trading volume that Ethereum is currently experiencing. A robust trading volume often acts as the driving force behind significant price shifts. It is the lifeblood that provides liquidity, and without it, substantial price movements, either up or down, become less likely. The almost nonexistent trading volume for Ethereum may be the primary factor preventing it from capitalizing on the potential reversal indicated by the "doji."

Pepe (PEPE) recently found itself in the spotlight when a whale decided to offload a staggering 2.26T PEPE, equivalent to $2.53 million, at an average price of $0.000001121. This sale resulted in a considerable loss of $707,000 for the whale.

Ethereum (ETH): Update on Status of Upcoming Deneb Upgrade

The large sell-off is not the whale's only misadventure. In an earlier transaction, this particular entity spent a whopping 1,102 ETH (equivalent to $2 million) to purchase BALD, another crypto asset. However, when offloading BALD, the whale only received a return of 189 ETH, approximately $346,000. The difference amounts to a staggering loss of 912 ETH, or $1.6 million.

Such transactions, especially when they involve huge sums, often send ripples through the cryptocurrency market. They either lead to panic selling, fearing a downward spiral, or attract opportunistic buyers waiting for a price drop to make their entry.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

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Bitcoin Bull Mike Novogratz Says There's No Risk of Run on Tether

Mike Novogratz, founder and CEO of Galaxy Digital Holdings Ltd., has expressed optimism regarding the return of traditional institutional investors to the cryptocurrency market, especially in the aftermath of last year's upheaval in the digital-asset world.

During the company's second-quarter earnings conference call on Tuesday, Novogratz highlighted the institutional resurgence in various sectors of the crypto market, noting that their interest isn't limited to futures or specific stocks but extends to more foundational levels of the market.

Shiba Inu (SHIB) Paints Candle of Hope

On the topic of Tether, the largest stablecoin with a market value of $84 billion, Novogratz conveyed a reassuring tone. He firmly believes that the risk of a major run on Tether is minimal, a sentiment sometimes challenged due to fears emerging from the market.

While expressing high confidence in Tether's ability to cover its liabilities, Novogratz did acknowledge potential "skirmishes around the sidelines" owing to the stablecoin's less transparent offshore operations.

In his recent Bloomberg interview, Mike Novogratz, CEO of Galaxy Digital, shared insights on Bitcoin's standing as the premier cryptocurrency.

He highlighted Larry Fink's 'Orange Pill Moment', a term signifying a skeptic's conversion into a believer in Bitcoin. Larry Fink, previously a non-believer, now advocates for Bitcoin as a global currency, emphasizing its trustworthiness.

BlackRock, under Fink's leadership, is exploring a Bitcoin ETF, marking a paradigm shift for the cryptocurrency industry.

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Backed Introduces RWAs to Six New Blockchains

As Backed’s tokenization technology is chain-agnostic, it can introduce Web2-native classes of assets to all mainstream blockchain ecosystem in a frictionless, resource-optimized manner. Such opportunities are already leveraged by popular DeFi protocols of various types.

Tokenization pioneer Backed brings real-world assets to six major blockchains, including the likes of BNB Smart Chain (BSC), Arbitrum (ARB), Fantom (FTM), Avalanche (AVAX), Gnosis (GNO), Polygon (MATIC) and Ethereum (ETH). This release became possible thanks to the recent integration of Chainlink's (LINK) decentralized price feeds, Backed's statement states.

These price feeds fuel independent price indicators for DeFi protocols that leverage the underlying assets of Backed's bIB01, bIBTA and bCSPX, unique tokenized indexes available to retail and institutional clients.

Launching on major EVM-compatible blockchains unlocks new opportunities for developers, businesses, investors, asset managers and cryptocurrency enthusiasts. Also, traders can rebalance their portfolios by including previously unavailable eccentric assets.

Giorgio Giuliani, head of product at Backed, highlights the importance of this release for the technical progress of his platform and the entire segment of RWA tokenization on programmable blockchains:

By expanding to new networks such as BNB Chain, Avalanche, Fantom, and Arbitum, there are new options for our clients, which is vital for supporting a diverse range of applications. Natively issuing on these new chains brings our products to large and active user bases, saves costs, and provides better market access for tokenized real-world assets.

As covered by U.Today previously, Backed launched a blockchain-based version of Coinbase's stock, COIN.

Sophisticated decentralized finance (DeFi) protocols have already started using Backed's instruments. Angle Protocol, for instance, allows the collateralization of bC3M and bHIGH assets for its agEur coin and lending platform.

Another DeFi protocol, Ribbon Finance, is also using the bIB01 asset to generate yield for its own structured products that target corporate and private clients.

In the coming months, the protocol is also going to expand on new blockchain networks, as stressed in its official statement.

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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XRP Price Analysis for August 8

The correction might have ended as coins are back to the green area.

Top coins by CoinMarketCap

The rate of XRP has risen by 2.11% over the last 24 hours.

XRP/USD chart by TradingView

Image by TradingView

Despite today's rise, the rate of XRP remains looking bullish as the price is again testing the resistance at $0.6288. If a breakout happens, the upward move may continue to the $0.64 zone soon.

XRP/USD chart by TradingView

Image by TradingView

On the daily time frame, the rate of XRP keeps rising after a false breakout of the support at $0.61. If today's candle closes with no long wick, there is a chance of seeing a local rise to the $0.64-$0.65 area until mid-August.

XRP/USD chart by TradingView

Image by TradingView

A similar picture can be seen on the weekly chart; however, traders should focus on the bar's closure. If it happens far from $0.61, one can expect a bounce back to the $0.68 mark by the end of the month.

XRP is trading at $0.6277 at press time.

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XRP and LTC Futures Gain Momentum on Coinbase

Since their debut on August 1, perpetual futures contracts for XRP and Litecoin (LTC) have seen a staggering $43.7 million in trading volume on Coinbase International, according to recent data shared by the exchanges.

In the meantime, major U.S. exchanges, including Coinbase and Kraken, have recently relisted XRP. This move followed a crucial ruling in favor of Ripple, which saw XRP's value skyrocket by 70%, even surpassing BNB at one point.

Perpetual crypto futures, commonly known as "perpetuals," are a type of derivative contract in the cryptocurrency market. They allow traders to buy or sell the value of a specific cryptocurrency at a later date. Unlike traditional futures contracts, perpetual futures can be held indefinitely. This characteristic distinguishes them from regular futures contracts.

WorldCoin Appears in German Regulator's Crosshairs

Coinbase's international exchange for cryptocurrency derivatives was introduced earlier this year, allowing institutional users outside the U.S. to engage in perpetual futures trading.

This move comes as the digital assets industry seeks recovery from past disruptions and Coinbase is busy battling the U.S. Securities and Exchange Commission (SEC).

The Bermuda-based overseas branch of Coinbase will primarily serve institutional clients and market makers, according to a Fortune report.

Despite recent speculation following Coinbase's acquisition of a license in Bermuda, CEO Brian Armstrong has refuted the idea of relocating the company outside the U.S. due to regulatory concerns. Instead, he stressed that Coinbase remains committed to its U.S. base, with international licenses aiding global expansion.

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PayPal Launches PYUSD Stablecoin: Guide to What We Know So Far

On Aug. 7, 2023, American multinational heavyweight PayPal announced the launch of native stablecoin PayPal USD (PYUSD). This is the first time a Web2 major issues digital assets on a public blockchain.

Here is what we know about PayPal USD's (PYUSD) design and the opportunities it unlocks for digital money users.

The release of PayPal's PYUSD stablecoin changes the narrative in the cryptocurrencies segment: amid a regulatory crackdown, it can reestablish trust in blockchain assets as an economic class.

The launch of PayPal USD (PYUSD) token will be a landmark achievement for the stablecoin segment: hundreds of millions of PayPal users will be able to transact ERC-20 USD-pegged stablecoins and pay for it seamlessly.

Stablecoins, or stable cryptocurrencies, are digital assets (blockchain-based tokens) that have their prices pegged to the rates of some fiat assets. Typically, stablecoins are pegged to the U.S. Dollar or Euro. However, there are coins pegged to Offshore Yuan (RMB), Mexican Peso (MXN) and even to Gold (XAU) and Silver (XAG).

Stablecoins gained popularity thanks to their role as "Digital Dollars"; with them, traders do not need to exchange their crypto to fiat USD to protect it from volatility. Also, stablecoins are used in cross-border remittances, as a payment method and in savings accounts.

There are two main categories of stablecoins: centralized and decentralized ones. These assets are issued and backed by their fiat equivalents in different ways.

All of the largest stablecoins by market capitalization are centralized ones.

NASDAQ-listed PayPal Holdings, Inc. is an American multinational corporation operating a feature-rich online payments system. Initially, it was launched by Max Levchin, Peter Thiel and Luke Nosek in December 1998 as Confinity.

From 2002 to 2014, PayPal was a fully-owned subsidiary of eBay marketplace. Technically, it is a conglomerate of payments solutions for individuals and companies. Starting from 2021, it allows account owners to pay with Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and Bitcoin Cash (BCH).

U.S. Dollar Tether (USDT) is the largest stablecoin by market capitalization. It is issued by Tether Limited and is 1:1 pegged to the U.S. Dollar.

By August 2023, Tether (USDT) has launched on 15 blockchains; meanwhile, over 95% of its whopping $83+ billion supply is issued on Ethereum (ETH) and Tron (TRX).

Tether (USDT) is backed by U.S. Treasury bills, cash, money market funds, Bitcoin (BTC) and so on.

In August 2023, PayPal stole all the headlines with its stablecoin release: it may be a watershed moment for global crypto adoption, fintech and online commerce as a whole.

As announced in a company press release, PayPal USD (PYUSD) is a U.S.-regulated, fully backed, U.S. Dollar-pegged stablecoin on Ethereum (ETH) blockchain issued by PayPal Holdings, Inc., and Paxos Trust Company.

Breaking: PayPal Launches Its Own Stablecoin

Dan Schulman, president and CEO of PayPal, stressed the paramount importance of PYUSD's launch for the digital economics segment:

The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.

PYUSD's full-stack release will be finalized in a couple of weeks: the first users are already able to purchase it in the app.

Basically, PYUSD will be able to perform all operations that previously required either Bitcoin (BTC) or fiat U.S. Dollar. PYUSD users can transfer it between the accounts of PayPal and all compatible wallets integrated with its tech.

Also, users now have an opportunity to send person-to-person payments using PYUSD. On some e-commerce marketplaces, when choosing PayPal as a payment method, users can pay using their PYUSD balances.

Last but not least, all cryptocurrencies that PayPal supports so far can be seamlessly converted to and from PayPal USD (PYUSD). Thus, PayPal customers are able to move liquidity from their crypto portfolio to stablecoins without leaving the application.

PayPal USD (PYUSD) stablecoin is an ERC-20 token. This means that it technically represents a smart contract (short software program) on the Ethereum (ETH) network. As Ethereum (ETH) is a transparent permissionless blockchain, PYUSD transfers will be trackable through blockchain explorers.

Per Etherscan data, Paxos-issued PYUSD will have a relatively small supply of $26.9 million in equivalent.

As an ERC-20 token, PYUSD can be easily transferred outside PayPal; any third-party Ethereum-based DEX will be able to add it to the trading engine.

However, as PayPal is a U.S.-regulated business entity, it is highly unlikely that PYUSD will be sold without KYC/AML checks. Due to recent regulatory attacks, this will make PYUSD the dominant stablecoin for the domestic U.S. market.

In the first 24 hours after launch, the first listing announcements regarding PayPal USD (PYUSD) arrived. Justin Sun's Huobi, a global cryptocurrency exchange ecosystem, is going to be the first exchange to list PYUSD.

According to the official team's statement, Huobi will list PYUSD in a pair with the largest stablecoin, U.S. Dollar Tether (USDT), very soon. More details of the listing are yet to be disclosed.

All operations in PYUSD/USDT pairs will be charged with a "permanent" zero commission, the Huobi team added.

Also, BitMart, a top 25 exchange by trading volume, announces the listing of the PYUSD/USDT pair: the trading is expected to start on Aug. 8.

The launch of PYUSD was welcomed by cryptocurrency industry heavyweights. Jeremy Allaire, CEO of Circle Inc., congratulated PayPal on the release and highlighted the importance of regulatory clarity for the adoption of stablecoins.

I'd also like to congratulate @PayPal and @Paxos for the launch of $PYUSD. It's incredibly exciting to see such a significant internet and payments company entering the stablecoin space.

This is what happens when we start to get regulatory clarity, and with the Payment…

In the coming months, PayPal is going to add the support for PYUSD in its Venmo app for retail payments. Also, starting from September 2023, PYUSD issuer Paxos will publish proof-of-reserves reports for maximum transparency.

Ripple CTO Defends PayPal's New Stablecoin Security Feature

Instead of security audits, PYUSD will leverage an attestations model (like USDT); the attestation will be performed by a third-party accounting firm and conducted pursuant to the attestation standards of the American Institute of Certified Public Accountants (AICPA).

PayPal USD (PYUSD), a USD-pegged stablecoin by U.S. fintech giant PayPal, went live on Aug. 7, 2023. PayPal became the first payments heavyweight to issue native digital assets.

PayPal USD (PYUSD) is an Ethereum-based ERC-20 cryptocurrency token. At launch, about 26,900,000 are issued by Paxos, which is a tech partner of the launch.

PYUSD token will be available on the PayPal app as well as on third-party services; Huobi is the first crypto CEX major to announce its listing in a USDT pair.

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Once a day we send:

Mastering PYUSD: Ultimate Guide to PayPal's Game-changing Stablecoin

PayPal's foray into the world of cryptocurrencies with the launch of its stablecoin, PYUSD, is a major step toward bridging traditional finance with innovative blockchain technology. As one of the first Web2 giants to issue a digital asset on a public blockchain, PayPal's PYUSD is poised to reshape how millions globally perceive and interact with digital money.

Unlike the myriad of stablecoins on the market, PYUSD comes with the unique backing of an established industry behemoth. Pegged 1:1 with the U.S. Dollar and guaranteed by a mix of cash, U.S. Treasuries and cash equivalents, it offers users a sense of security in the often tumultuous crypto sphere.

Integration into the PayPal app ensures seamless transactions, from buying PYUSD to using it for online shopping. This user-friendly approach could very well make it the stablecoin of choice for those venturing into crypto for the first time. The fact that it operates on the Ethereum blockchain as an ERC-20 token only adds to its potential, ensuring transparency in every transaction.

PayPal Launches PYUSD Stablecoin: Guide to What We Know So Far

Initial adoption by significant players like Huobi emphasizes PYUSD's industry potential. With offerings like "zero commission," it seems primed for broad adoption. Furthermore, PayPal's upcoming integrations and transparency initiatives with Paxos highlight a commitment to making PYUSD a trusted and widely used stablecoin.

In essence, PYUSD is not just a new cryptocurrency. It is a symbol of the evolving landscape of finance. As it melds the credibility of PayPal with the innovation of the crypto world, users across the spectrum stand to benefit. For a more detailed exploration into PYUSD and its ramifications for the digital economy, check out our comprehensive guide.

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Once a day we send:

Crypto Hedge Funds Will Shake Up the Industry: Crypto Long & Short

(Chenyu Guan/Unsplash)

It appears there are several hundred crypto hedge funds. PricewaterhouseCoopers counted more than 300 in 2022. And I expect the tally will rise amid an influx of institutional money. That growth will represent the industry’s next catalyzing event.

Each of those hedge funds will have its own unique story. What follows is just one of them.

You’re reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday.

A perk of my CoinDesk job is being able to speak with capital allocators – enjoying some access to the tip of the spear, so to speak, of institutional investment within the crypto landscape. Last week, I met with Jonathan Man, chief investment officer at Valmar Capital, an emerging U.S. cryptocurrency hedge fund. The company focuses on uncorrelated returns while implementing a multi-strategy, absolute-return approach.

The total breadth of our conversation can’t be captured in one article, nor will the depth of crypto-fund mechanics. But I thought this was a good place to start, and what can I say? I like hedge funds. Here’s some of what I learned:

It’s probably hyperbole to say that retail investors are only focused on specific tokens. But you’re more likely to overhear a discussion about bitcoin (BTC), ether (ETH) or maybe uniswap (UNI) on a given day than talk of arbitrage, market making and/or trend-following strategies within crypto.

Who doesn’t want to be the person who finds the next token that zooms up 10-fold in six months (or six hours, for that matter)? It’s what headlines, fortunes (and lost fortunes) are often made of. But it’s not the type of risk that I expect institutional capital to take.

I realized this when simply inquiring about Valmar’s approach to asset selection and whether it began with the asset itself or the sector from which the asset belongs. Man’s response provided context.

“I want to make the distinction that for us, our job is making allocations and determining our portfolio mix across strategies,” he said.

Here’s how I take that: It’s not about putting 45% of their money in BTC, 45% in ETH and the rest in altcoins. For institutions, it’s about allocating, say, 20% to market-making strategies, 30% to DeFi yield and 50% split between arbitrage and trend following.

This isn’t to imply that individual assets are an afterthought. Those tokens are primarily the means to deploy certain broader strategies.

Allocating capital with a focus on strategies rather than assets can work to provide diversified returns while limiting exposure to general market swings. It also means that monitoring the correlations of those strategies and the assurance of strategic discipline is paramount.

Our conversation touched on monetary policy, crypto liquidity and regulations. He voiced concern the Federal Open Market Committee has raised rates too much.

“There continues to be a risk that, ultimately, if the Fed really wants to get back down to 2% inflation and they see that the markets are back to pretty much all-time highs, that just gives them more credibility to hike,” Man said. He acknowledged the Federal Reserve’s recent progress slowing inflation, but said the central bank has historically “never really nailed it.”

On an individual asset level, some of the issues prone to nascent markets like crypto stood out. He mentioned “low liquidity” and the “lack of the ability to borrow” as factors that need to evolve for crypto to move meaningfully higher.

On regulation, Man offered a note of optimism, expecting clarity eventually, while acknowledging the potential for a slow pace on the way there.

One of the more interesting aspects of our conversation revolved around the growth and approach of the fund itself. Again, Valmar’s story is just one of many, but I imagine that the challenges of starting, scaling and running a fund are felt by all who attempt to do so.

One, in particular, involves the amount of time and effort needed for things outside of market analysis – things that would rank third for many traders if the other two choices were wearing a heavy coat in Florida and wearing no coat in Antarctica.

This includes raising capital, pitching ideas operations and on and on. The best traders on the planet still need assets to trade. In a competitive landscape, it requires skills beyond analysis and market timing.

Institutional funds with Valmar’s model often serve multiple client bases as well: the first being investors where performance is highlighted and the second being traders themselves.

While firms like Valmar implement and execute their own ideas, they also serve as a potential landing pad for independent traders, looking for a home to execute their own strategies. In that regard, the offering may include operational efficiencies, investor relations and data provision.

All told, the evolution of digital asset investment management appears to be running in concert with the evolution of the assets themselves. While much of the framework behind crypto hedge funds appears to have been derived from traditional finance, it also bears a lot of the nascency emblematic of cryptocurrencies themselves.

What comes next in crypto hedge funds will be as interesting to watch as market prices themselves.

From CoinDesk Deputy Editor-in-Chief Nick Baker, here is some news worth reading:

Edited by Nick Baker.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Glenn C Williams Jr, CMT is a Crypto Markets Analyst with an initial background in traditional finance. His experience includes research and analysis of individual cryptocurrencies, defi protocols, and crypto-based funds. He owns BTC, ETH, UNI, DOT, MATIC, and AVAX

Solana-Based Tokens Could Power 'DeFi 2.0' Revival, Says Cypher Founder

Cypher founder and mtnDAO emcee Barrett (Danny Nelson)

SALT LAKE CITY — The way Barrett from Cypher Protocol sees it, Solana’s comeback depends on one thing: tokens.

Specifically, new tokens from teams on the Solana blockchain that haven’t issued them before. They’re the key to driving liquidity, trading activity and most important, new users into a decentralized finance ecosystem that sorely needs all three.

Barrett, the founder of crypto trading platform Cypher, sat down with CoinDesk on day two of this summer’s mtnDAO, the biannual “hacker house” now in its fourth edition. He’s the event’s emcee and chief organizer, and via Cypher its main sponsor, alongside MarginFi, an on-chain lending platform.

The two have charged up Solana’s growth leaderboard in recent weeks partly because of loyalty programs that give “points” to crypto traders who participate in their respective markets. These points aren’t themselves tokens, but nearly everyone amassing them is convinced they’ll transmogrify into a token payday—possibly soon.

Barrett, who has gone by his mononym first name at least since Cypher launched in 2021, won’t confirm whether the crypto lending startup is on the cusp of launching a token or will ever hold an airdrop. It hardly matters; all those askers of “wen Cypher airdrop” are plowing their points-earning capital through Cypher's markets for trading crypto assets like SOL, ETH and BTC anyway.

This excitement is giving Cypher its first taste of success after three years and just as many pivots. On Wednesday Cypher v3 (Barrett describes it as a “generalized decentralized exchange”) crossed $2 million in total deposits for the first time ever.

“We’re consistently ranking top five in growth across one-, seven- and 30-day periods in the Solana ecosystem on both users and TVL,” said Barrett, referring to DeFi's total vale locked metric. The protocol has grown 1,384% since launching a liquidity incentives program and more than doubled since debuting points, he added. Trading “volume is picking up on spot and perps” markets, referring to perpetual futures contracts.

Cypher is part of what Barrett calls “Solana DeFi 2.0,” a loose confederation of protocols that are hitting their stride deep in the super fast blockchain’s bear market. Many of the teams were around during Solana’s heyday in summer and fall 2021 when token-linked protocols like Mango Markets, Saber and Serum commanded the ecosystem’s attention.

Blowups, scandals and the specter of FTX’s Sam Bankman-Fried have, respectively, deleveraged that trio’s influence over the Solana ecosystem almost as much as they’ve nuked their token prices. Other erstwhile leaders have followed similar descents, albeit under less spectacular circumstances.

If Barrett is to be believed, a new breed of Solana protocols that never launched tokens are getting ready to take control.

When it comes to launching tokens in the new paradigm, “you get to observe those mistakes and stand on the shoulders” of those past teams, Barrett said. Among other things, that means designing better tokenomics, how a team divides up its allocations. It also remains to be seen how the Internal Revenue Service's new guidance on taxing airdrops will impact Solana DeFi's rebirth.

Getting it right could help determine whether Solana DeFi returns to its multibillion-dollar heights or instead trudges down the long road to irrelevance. The Solana ecosystem’s recent pump in TVL growth has stalled around $310 million even as Cypher and others continue up. This indicates new capital isn’t flowing in; now, it's old money sloshing about.

Barrett has a pragmatic if cynically-tinged vision of the crypto markets that the author of this column most certainly shares. Degenerate traders only want one thing, and it's disgusting (err, I mean money). Free tokens are money. Therefore, the degens want free tokens. They’ll go where the tokens are and they’ll do what they must to get them. If that means trading, they’ll do so on leverage; if that means staking, they’ll loop for more.

Solana DeFi 2.0 will be there, incentivizing them all the way. That could make a feedback loop of crypto’s downward spiral.

“They’re creating a lot of excitement that was missing from the Solana narrative for the last 18 months,” Barrett said of the incentive protocols.

Edited by Rosie Perper and Daniel Kuhn.

DISCLOSURE

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.

Crypto Investment Options: Accessing the Asset Class with Professional Help

Meet James. In 2013, this Welsh IT worker threw away a hard drive holding a digital wallet containing 7,500 bitcoin, which today would have a market value of nearly USD 217 million. Since then, he has been on a campaign to get access to the local garbage dump to find this lost fortune, to no avail. This case is not unique, and James, like many of us, has learned that not realizing the tenuous nature of digital records comes with a penalty. Digital currencies are a growing storage and retrieval concern, and advisors must understand the safety mechanisms available.

The adoption of digital assets requires the ability for investors to securely store their investments and recover them if keys are lost. Depending on where you live, regulatory frameworks for crypto custody exist and follow the same rules as holding money and other investments.

As advisors, how can you support your client in making informed investment and custody decisions?

In today's discussion, Jason Hall and John McNiff from Methodic Capital Management introduce crypto custody solutions from self-storage to “custody as a service.” They discuss how the transparency of the blockchain can help support your custody considerations and help advisors start to navigate the services and options available to them..

Over the coming months, we will continue to dive deeper into topics like custody to help build your knowledge in this ever-changing space and demonstrate how technology and regulatory pieces come together for your clients. Stay tuned.

Happy reading.

– S.M.

You're reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday.

Digital asset custody – having direct access to the assets’ cryptographic keys – is an important and often required component of crypto investment management. However, there is greater complexity in digital asset custody due to technological and regulatory challenges that necessitate greater due diligence by the advisor. By utilizing a robust framework, custodial solutions can be objectively and thoroughly assessed, enabling an advisor to unlock the unique benefits of digital asset custody. Here we review the basics of our framework which can be expanded to fit individual needs.

Unlike traditional assets, custody of digital assets introduces unique operational challenges and opportunities. On the blockchain, anyone can view wallet balances and transactions, but only private key holders can transfer assets. This immutable transparency applies universally, without the possibility of administrative overrides. This inflexibility means that everyone, including institutions, is governed by the same rules.

Categories of digital asset custody

Digital asset custody typically falls into two categories: self-custody and custody services.

Self-custody, an important and often lauded aspect of crypto, enables individuals to manage their digital assets independently. While third party providers can facilitate this process through wallet services and hardware solutions, the inherent risks and control lie with the individual.

In contrast, custody services offer an experience akin to traditional asset custodians. For asset managers and advisors, custody services are the likelier choice given regulatory interpretations, risk management, technical capabilities, and best practices. These custody service providers oversee asset movements, settlement times, and security. However, lack of standardization due to insufficient regulation presents a challenge to advisors.

Choosing a custody solution: A recommended framework

While by no means comprehensive, below is a high-level overview of our assessment framework.

Regulatory considerations

Digital asset custody brings its own legal obligations. For instance, in jurisdictions like the United States, registered investment advisors must use "qualified custodians." While the specific parameters of this designation are not yet clearly defined for digital assets, this prerequisite favors more regulated entities. Globally, licensing and regulatory mandates can vary widely with some countries not requiring licensing at all.

Given the pending status of digital-asset legislation in the U.S. and throughout the world, working with custodians that have clear regulatory requirements and robust internal frameworks helps protect against fraud and ensures business integrity.

Transparency measures

Custodians should offer a certain level of transparency. Do they conduct comprehensive audits not only on their financials but their IT, risk management, and infosecurity procedures? Blockchain-based custody can offer high transparency through technologies like proof of reserves, with the potential to reduce fraud and irresponsible financial behavior. Proof of reserves enables companies to demonstrate to all participants that customer-pledged assets are held securely.

We spoke at length on this issue with Henrik Gebbing, COO of Finoa who said, “Qualified custodians [in Germany] must comply with the same IT regulation as other financial institutions, [and] regulators don’t distinguish between crypto and traditional assets. (...) Do you follow the latest standards of information security? This is where you’ll find a lot of players that are not fully audited.”

While on-chain commitments can be transparently verified, off-chain commitments require additional scrutiny. Therefore, further steps (like an audit) are necessary to ensure companies are not engaging in unauthorized rehypothecation, commingling or off-chain pledging of assets.

Compatibility with investment strategy

Sometimes it’s unclear whether the custodian can actually custody the assets required to support the investment strategy. Depending on technological limitations and regulatory restraints, custodians often support different asset mixes. Getting specific assurances of all relevant assets will prevent the need for multiple custodians.

Oftentimes, high velocity trading strategies and permissionless DeFi are not supported by many of the more regulated custodians. The fit with a custodian is a two-way street, the custodian must be able to support the execution of the advisor’s strategy “Supporting institutional relationships requires alignment of strategy, market access [execution/trade settlement], custody, and associated reporting,” says Kevin Hall, COO of Etana Custody.

Be deliberate in due diligence

Digital asset custody is complex and must be seriously considered. We have provided a basic framework but the actual process must include a number of technical considerations like structure and private key management. Choosing the right custodian requires careful analysis of regulatory rules, security measures and transparency. However, with the appropriate diligence and resources, digital asset custody can offer more safety, transparency, and cost efficiency than traditional models of custody.

–Jason Hall and John McNiff of Methodic Capital Management

I help clients include crypto in their retirement accounts.

– Bryan Courchesne, CEO Daim

Q: Can my client move their existing crypto to an IRA?

IRS rules dictate that contributions to IRAs can only be done in fiat. Digital assets can not be placed into an IRA. They must be sold to cash first.

Q: What type of retirement accounts can my client hold crypto in?

As far as the types of accounts that can be serviced, you will have plenty of options including Traditional, Roth, SIMPLE, and SEP IRAs as well Individual 401(k)s and Profit Sharing Plans (PSP). If you have an old 401(k) from a previous employer, you can roll that into a Digital Asset IRA. If you have an active 401(k) you most likely cannot withdraw assets to invest in an IRA. This would necessitate an in-service withdrawal that most plans do not allow. DAIM can help on this front. They are currently a 3(38) fiduciary for employer sponsored 401(k) plans with direct bitcoin exposure.

NASDAQ announced it was no longer going to offer crypto custody solutions, choosing to work with existing custody providers, citing challenging and changing regulatory conditions in the U.S.A. How long will this uncertainty last in the U.S.?

The SEC's proposed custody rule would mandate that investment advisors maintain custody accounts for crypto similar to those for other client assets, such as stocks, bonds or mutual funds

Is U.S. regulatory certainty on the horizon? A crypto bill passes congressional committee, with many hoping this is a big step toward clarity.

Edited by Pete Pachal.

DISCLOSURE

Sarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.

Jason Hall is the CEO of Methodic Capital Management.

John McNiff is the COO of Methodic Capital Management and CEO of Theia Blockchain Capital.

Cypher Protocol Experiences Hack, Freezes Smart Contract

Cypher Protocol suffers exploit (Clint Patterson/Unsplash)

Solana-based decentralized exchange Cypher lost close to $1 million in crypto Monday due to an exploit or security incident.

The protocol’s contracts are now frozen as contributors attempt to make contact with hackers to negotiate a return of funds.

Cypher is one of the fastest-growing protocols on the solana blockchain in part because of its loyalty program, which rewards depositors and traders with points that many users expect is the setup for an airdrop.

The exploit comes during Cypher’s biannual hacker house mtnDAO which it hosts in Salt Lake City alongside fellow Solana trading protocol marginfi. In its discord channel, marginfi said it was not impacted by the hack.

UPDATE (Aug. 7, 2023, 21:48 UTC): Updates figure lost.

Edited by Stephen Alpher.

DISCLOSURE

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.