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Category: Crypto Trends

Make sense of the news and how it affects the blockchain space as a whole. Crypto trends is a collection of relevant news and insights to help you make an informed decision.

  • Buying Cryptocurrency Using Ledger Live: A Step-by-Step Guide

    Buying Cryptocurrency Using Ledger Live: A Step-by-Step Guide

    Ledger, the makers of the Ledger Nano S and Ledger Nano X has announced that their application, Ledger Live now supports buying cryptocurrencies with credit card or bank transfer. This feature is operated with their partners, Coinify, MoonPay, BTC Direct and Wyre, and now users can directly go onto Ledger Live to buy their cryptocurrencies and have them sent to the safety of their Ledger device. No more having to go through extra steps such as buying cryptocurrencies on exchanges and then sending it to your hardware wallet for safekeeping! In this guide, we give you step-by-step instructions on how to buy cryptocurrencies using Ledger Live on your Nano S and Nano X.

    Available Cryptocurrencies

    Thanks to several crypto platform partners, Ledger Live now offers for purchase more than 40 different cryptocurrencies from the top 50 market cap projects.

    Although the available range of cryptocurrencies is quite wide, users who would like to buy other cryptos supported by their Nano S will have to buy them elsewhere, such as cryptocurrency exchanges.

    To see which cryptocurrency exchanges we think are the best, check out our article on the Top Best Cryptocurrency Exchanges of 2020.

    How to Buy Cryptocurrencies Using Ledger Live

    If you are a new Nano X or Nano S user, you would need to set up your device first and install the Ledger Live software. See here for our Ledger Nano S setup guide and Ledger Nano X setup guide.

    To get started with buying cryptocurrencies using your Nano S or Nano X, open up the Ledger Live application on your PC and go to “Buy crypto” on the sidebar. Choose which cryptocurrency you wish to buy. You can choose from 40+ different coins, including BTC (Bitcoin) and ETH (Ethereum). For the purpose of this guide, we will be demonstrating buying Bitcoin through one of Ledger Live’s partners, Coinify, but purchases using other partner platforms should work in the same way. Choose Bitcoin as the crypto asset we wish to buy. Then choose which account you want your cryptocurrency to be deposited to. Alternatively, you can add a new account for your cryptocurrency purchases- see our section titled “How to add new account for cryptocurrency purchases“.

    On Ledger Live, you would be asked to either sign up or log in to your Coinify account. For a tutorial on how to set up a Coinify account, see our section titled “How to register a Coinify account on Ledger Live“.

    You will then be asked to select the amount of cryptocurrency you wish to buy, the payment currency and payment method. Ledger allows you to pay in the following currencies: AUD, BGN, CAD, CHF, DKK, EUR, GBP, HKD, HRK, HUF, INR, JPY, NOK, NZD, PLN, SEK, TRY, USD and VND. You can pay for your cryptocurrency using credit card (Visa or Mastercard) or for European locations, bank transfer via. SEPA.

    Because cryptocurrency prices do fluctuate, Ledger will lock in your purchase price and give you 15 minutes to complete the purchase. Enter your credit card details, double check your purchase details and click “Pay”. Your purchased cryptocurrency will be automatically deposited into your designated account on your Ledger device.

    How to Register a Coinify Account on Ledger Live

    For those who don’t have a Coinify account or are buying cryptocurrencies for the first time on Ledger Live, you will need to go through Coinify’s Know Your Customer (KYC) process and set up an account. On Ledger Live, enter your email and choose a password, then click “Create account”. You will then be asked to answer a few KYC questions.

    Create a Coinify account
    Create a Coinify account

    Confirm your email (Coinify will send you a confirmation email) and location.

    Provide information on your residential address and how you plan to use your account.

    You will also be asked to verify your identity by providing a photograph of your ID Card/ passport and to scan your face similar to setting up FaceID on your iPhone.

    Afterwards Coinify will automatically process your registration which takes around 2 minutes. Then you are all set!

    How to Add a New Account for Cryptocurrency Purchases

    To add an account, click “+ Add account” as shown in the above image. Then choose which crypto asset account you wish to add. For the purpose of this guide, I will be showing you how to add a Bitcoin account, so I choose Bitcoin as the asset and clicked “Continue”. (Xanax) When asked, connect your Ledger device to your PC and unlock it. Then go to the corresponding app for the cryptocurrency you want to buy on the device, your device will say “Application is ready” whilst it synchronises with Ledger Live on your PC.

    Once synchronised, you will be given options on which new account you wish to add. Choose the account(s) to add then click “Add account”. Your new account will then be added and you can then choose to either add more accounts or close the window to finish.

    How to Purchase Cryptocurrencies on Ledger Live with Other Partners

    In addition to Coinify, Ledger Live now also supports buying crypto through partners like Wyre (available only in the US), MoonPay, and BTC Direct. All of these alternative purchasing platforms are KYC (Know Your Customer) compliant, which means for anyone wanting to purchase crypto through them, they will have to provide personal information such as email, full name, address, phone number, and personal ID (driver’s license or passport). However, once that is done and an account has been created for any of these platforms, the purchase and selling of cryptocurrencies within your Ledger Live app should be quick and seamless in very much the same way as the purchase of coins through Coinify.

    User Experience and Conclusion

    We’ve tried out a lot of cryptocurrency hardware wallets and Ledger’s devices are definitely our preferred choice. This preference is definitely solidified by the fact that we can now purchase cryptocurrencies on Ledger Live because it means we no longer have to buy cryptocurrencies on exchanges, especially when most exchanges require you to go through KYC procedures if purchasing crypto for the first time.

    So whilst you do also have to go through KYC procedures when buying with Ledger Live for the first time which is a bit trouble, the whole process only took around 5 minutes to complete. And at the end of the day it is worthwhile to buy cryptocurrencies using Ledger Live in the long run because your cryptocurrency is sent directly to your device which is a relatively safer storage device.

    Many may use multiple exchanges and even skip from one exchange to another but at the end of the day your hardware wallet is where most of your cryptocurrency should be stored anyway. Therefore we highly recommend trying this feature out and whilst there are only 4 cryptocurrencies available to purchase, it is generally sufficient as a start to trading on exchanges and we hope and expect that Ledger may add more coins in the future.

    Note: Until 8th Aug 2022, Ledger is offering 10% off the Ledger Nano X and Ledger Nano S Plus when entering the code MOVESOL2LEDGER at checkout.

    Click below to BUY NOW!

  • Will Tether Stablecoin (USDT) Depeg Again? Reserve FUD Continues

    Will Tether Stablecoin (USDT) Depeg Again? Reserve FUD Continues

    USDT has reclaimed its peg after UST collapse. But will this happen again amidst FUD rumors surrounding Tether?

    What is USDT?

    Tether (USDT) is the world’s largest stablecoin by market cap with more than $65 billion in circulation at the time of writing. Stablecoins have long been the anchor of cryptocurrency trading because they are pegged to the U.S. Dollar, allowing investors to “cash out” of risky investments instead of swapping to another crypto coin that would fluctuate in value.

    For more information on stablecoins, check out “The Pros and Cons of Stablecoins: Why You Need To Know How They Work.”

    What Happened to USDT?

    However, stablecoins are not exactly 100% “stable”. This is shown by the sudden vaporization of $18 billion in the collapse of Terra’s algorithmic stable terraUSD (UST), which caused a dangerous domino effect across the market.

    This catastrophic event spurred panic selling in other stablecoins, and Tether Ltd., the company behind USDT, honored billions of dollars’ worth of redemptions following UST’s bank run. As a result, USDT’s peg broke and fell to as low as 95 cents. It is a huge red flag if a stablecoin drops below 99 cents, especially for stablecoin heavyweights such as USDT itself.

    Fortunately, USDT has passed the market’s stress test. They were able to withstand redemptions in extremely volatile conditions, eventually reclaiming the peg. However, Tether is still facing criticisms for the lack of transparency about the nature of assets backing the stablecoin.

    Tether fights back: calls short-selling hedge funds “flat out wrong”

    Many hedge funds saw the collapse of Terra as a reason to short USDT. According to a Wall Street Journal podcast, the reason for this is twofold. Firstly is the fact that institutional investors are withdrawing from risky investments (such as crypto) since the Federal Reserve is aggressively raising interest rates. Secondly, they are worried about the quality of the assets backing Tether.

    In Tether’s blog post on 28th July 2022, Tether hit back at these hedge funds, saying that, “…the underlying thesis of this trade is incredibly misinformed and flat-out wrong. It is further supported by a blind belief in what borders on outright conspiracy theories about Tether.”

    Tether also added in a blog post on 27th July 2022 that its portfolio does not contain any Chinese commercial paper. Furthermore, as of the date of the post, its total commercial paper exposure has been reduced to around 3.7 billion (from 30 billion a year ago). Tether also states that it has plans to further reduce its total commercial paper exposure to 0 by October/early November 2022.

    What is Exactly Backing USDT Value?

    Tether has claimed that all USDT tokens are backed 100% by the company’s reserves. According to their latest reserves attestation report audited by MHA Cayman, an independent accounting firm, the company’s total assets exceed its total liabilities, suggesting that USDT is fully backed. Its holdings include U.S. Treasury bills, money market funds, cash, and commercial paper.

    Great, this finally puts an end to what is in their reserves and we can all sleep peacefully without worrying about a USDT collapse, right? Not quite. In fact, there are namely two big issues surrounding Tether’s backing.

    • Nearly Half of USDT’s Reserves Were in Commercial Paper

    According to the report, Tether has more than $20 billion worth of commercial paper in their total assets. Commercial paper is a short-term unsecured debt issued by companies. This poses a problem to backing stablecoins because they are generally seen as less secure and illiquid, unlike cash and U.S. Treasury bills.

    There have also been rumors that most Tether’s commercial paper holdings are backed by debt-ridden property developers in China, albeit Tether denies the rumors. As mentioned previously, Tether has denied rumours that its portfolio contains Chinese commercial paper.

    On the positive side, Tether has taken an initiative in reducing its commercial paper holdings to zero in favor for U.S. Treasuries to back USDT reserves. Tether currently has around 3.7 billion in commercial paper exposure (as of July 2022) but plans to eliminate this completely by October/early November 2022.

    Does this mean that Tether is taking on a leadership role in support of greater transparency for the stablecoin industry? Or is this just a facade, given that Tether continues to avoid a comprehensive audit? This brings us to the next issue. Ambien

    • Tether Has Yet to Undergo an Impartial and Comprehensive Audit

    Though Tether was open about the state of their reserves, the problem lies with the firm that audited it. MHA Cayman is a small-time independent accounting firm based in Cayman Islands. So it is understandable that critics believe that it is more of a validation of information based on management claims than an audit.

    John Reed Stark, an SEC attorney leading cyber-related projects for 15 years, tweeted that the best way for Tether to end the allegations against them would be to “engage a big-four accounting firm to conduct an audit which finds a rock-solid balance sheet. He also added, that, “without a proper audit, everything else Tether’s CFO says is just noise.”

    The big-four refers to the four largest professional services networks in the world, consisting of the global accounting networks Deloitte, Ernst & Young, KPMG, and PwC. They have recently been getting involved in the blockchain industry, working with many crypto companies for regulation purposes.

    A big-four audit carries a lot of weight with the SEC, and many larger companies want to be a part of it because it would make their enterprise more attractive and trustworthy to investors.

    What Would Happen if USDT Collapses?

    If USDT were to collapse, it would deliver catastrophic results in the industry, sparing nothing. It would mean the end of Ethereum DeFi which is a predominantly USDT-based market. This would trigger a chain reaction across all smart-contract networks.

    Bitcoin will also be severely impacted as more than half of bitcoin is traded for USDT since 2019, according to data cited by JPMorgan analysts. As a result, history would repeat itself, triggering another bank run, destabilizing exchanges and causing a panic drop in Bitcoin’s price.

    But we should not forget that USDT was able to maintain its stability through multiple black swan events and extremely volatile conditions, and has managed to stick to its values and honor all redemption requests during the UST collapse in May.

    After all, USDT has long been the king of stablecoins and is critical for maintaining any confidence in the industry. All the big players in crypto will simply not let a collapse happen.

  • How to Fix Stuck Transactions on Ethereum

    How to Fix Stuck Transactions on Ethereum

    Ethereum is one of the world’s most versatile blockchains, with functionality that supports innumerable decentralized applications and blockchain assets. Although conceived in 2013 by Vitalik Buterin, Ethereum did not launch until 2015, it has since been at the forefront of blockchain utility, especially with the recent popularity of non-fungible tokens (NFTs).

    An NFT is an asset on a blockchain that is completely verifiably unique and therefore irreplaceable. Today, many people use NFTs to digitize real-world assets and expose these assets to a global audience. NFTs are very popular in art and photography, as they allow creators to access a wide pool of potential fans and buyers. Currently, most NFTs are on the Ethereum blockchain.

    Ethereum is also the most popular network for decentralized applications (DApps). These apps are powered by smart contracts that drive several functions on the blockchain using specified agreements and conditions. Since the NFT and DApp markets exploded, the Ethereum network has become very busy, and sometimes leaves some transactions stuck for long periods.

    Check out our video on how to fix stuck transactions on Ethereum:

    FIX stuck transactions on Ethereum

    Why Do Some Transactions Get Stuck?

    A delay in processing simply means that no miner has picked up the transaction yet. All Ethereum transactions require a gas fee (gwei), a processing fee set to incentivize miners to pick up and process the transaction. This fee is never static, as it depends on the network congestion at transaction time. Sometimes, gas fees may be very high if there are a lot of people transacting simultaneously.

    Ethereum wallets usually recommend a gas fee based on current network specifics but would let the user increase or reduce it as preferred. If a transaction is delayed for too long, it’s likely that the gas fees for other transactions on the network are considerably higher, and miners are ignoring the lower prices.

    What is a Nonce?

    Used in cryptography as an acronym for “Number Only Used Once,” a nonce is a number that functions as an identifier for a transaction. This number is sequential and follows an order such that transactions with lower nonces get processed before others. Since one Ethereum wallet can initiate any number of transactions, nonces represent a (sometimes chronological) sequence that transaction processing follows.

    How to Fix a Stuck Transaction

    There are three main ways to fix a stuck transaction: cancelling the transaction, increasing the gas fee, or introducing a new transaction with a custom nonce. Before fixing a stuck transaction, it is important to verify the transaction in a block explorer like Etherscan to confirm that it is pending. An ETH wallet may provide users with a cancel or reset button that helps to delete the transaction. After cancelling, it might be necessary to close the wallet application or browser and then reopen it.

    If it is a hardware wallet, turning off and disconnecting the device is also required. Although this is a simple and quick way to solve stuck transactions, users should note that this method may not always work. It is also possible to fix a transaction by increasing the set gas fee. If a user initiates a transaction with a low gas fee but later increases it to match the market’s current price, miners will pick up and process the transaction.

    Another way is to use a new transaction to clear the old one by setting a custom nonce. For instance, a wallet might have three pending transactions, each with nonces 3, 4, and 5, respectively. The network would process nonce 3 first before the others. However, if the gas fee for that transaction is low and miners aren’t picking it, all three transactions could remain stuck.

    The solution here is to initiate a new 0 ETH transaction with a high gas price and send the transaction to the user’s own address. To clear out the transaction, the user must ensure that the nonce specified in the new transaction is the same as the old one. Although this will cost some gas, it immediately clears out the clog and resolves all the other transactions.

    How to Prevent a Stuck Transaction

    The simplest way to prevent a stuck transaction is to ensure the gas fee you are setting agrees with current market prices. If the gas fee is high enough, miners pick it up almost immediately and process the transaction without delay. Users can confirm current gas prices from the wallet or from other online sources. If you are looking to save on gas fees, there are gas tracking websites and applications that will help you optimize this process.

    Conclusion

    Fixing a stuck Ethereum transaction is easy and usually takes a few minutes. When the transaction is still “pending” on the block explorer, these methods can help solve any problems concerning transaction delay. However, users should note that it is mostly impossible to fix any transactions where the status has moved from “pending” to “completed.”

  • EtherDrops Review and Tutorial

    EtherDrops Review and Tutorial

    EtherDrops is a Telegram based bot designed to track major crypto markets and NFTs. Many crypto enthusiasts would use data tracking sites such as CoinMarketCap and CoinGecko, and these tools are excellent as ‘wikipedias’ for all the altcoins out there. However, for those with more advanced needs, there are much better resources available that can make your life easier.

    If you’ve been in crypto for several years, you’ll probably have a Telegram account. Most of the crypto projects in existence have official Telegram channels to keep their communities informed and up to date on developments, so the chances are you also use the messaging platform.

    This is just as well, because one thing that makes Telegram very useful is its ability to add bots that serve different purposes to the end-user. This is where EtherDrops comes in, so you can be part of the various crypto communities and track your tokens all on the Telegram app.

    What is EtherDrops?

    Originally created in 2018 as a tool to monitor Ethereum wallets, EtherDrops was mainly used to track the transactions of Ether ‘whales’ as well as one’s own wallets on the first smart-contract blockchain. 

    Four years later, EtherDrops has evolved into something much bigger than wallet monitoring. It is now integrated with Ethereum, Polygon, Fantom, Avalanche and BNB Smart Chain, providing a convenient place to track all your crypto activities within one Telegram bot.

    Users are equipped with simple-to-use tools to follow coin prices, as well as track and receive real-time notifications on wallet transactions, DEX and CEX swaps, NFTs, liquidity pools, Binance funding, gas prices, and more.

    By shaping settings according to your own personalized needs using a unique combination of advanced tools and instruments, EtherDrops becomes a simple yet essential bot that notifies you about anything you want, or alerts you to certain conditions. Thousands of investors, traders, and holders use it to navigate their crypto journeys.

    The bot already has more than 400,000 users on board and keeps growing steadily. With the product sending over 5,000,000 notifications daily, it’s no surprise that each day they welcome hundreds of new users onboard.

    EtherDrops Features

    Major features of EtherDrops include:

    • Price tracking; 
    • Wallet tracking;
    • Liquidity pools;
    • OpenSea integration;
    • Gas price notifications;
    • Integration with Telegram groups and channels; and 
    • Token distribution alerts. 

    Price Tracking

    Tracking the prices of various cryptocurrencies is a basic need for long-term investors or traders. Add coins by name, ticker or contract address. Apply your personalized settings to receive instant notifications about price changes and swaps.

    • Price Change Notifications – Set % Price Change to generate an alert.
    • Swap Alerts – Set $ Value to track Swaps on Uniswap, Sushiswap, Balancer and other supported DEXs.

    Wallet Tracking

    Add a wallet by its address to monitor incoming and outgoing transactions, airdrops, NFT transactions, and created contracts.

    • Transaction Notifications – Choose between different event types and set $ alerts to be notified about transactions.
    • Wallet Balance – Check Balances of assets and NFTs.

    Liquidity Pools

    Add a liquidity pool by its contract address and receive % pool changes should it increase or decrease within the specified range.

    • LP Changes – Set the % change value to stay on top of your added pool.

    OpenSea Integration

    Track the floor price and metrics of NFTs and arts on the Ethereum network. To follow your collection, add it by the name or address and set a % price change or generate a $ price target.

    Gas Price Notifications

    At times ETH gas prices can be really high and leave you with an eye-watering bill in fees to pay if you make a transaction. Set gas price notifications and save yourself a fortune!

    • Set Gas Alerts – Set Gwei amount to generate an alert. As soon as it hits the target or lower, you’ll be immediately notified.

    Check out our Advanced Tips and Tricks to Save on Ethereum Gas Fees:

    Integration with Groups & Channels

    If you are an admin or a community manager of a project using Telegram, or you run a trading group, your channel could benefit from integration with the EtherDrops bot.

    • All Bot Features in your Groups and Channels – The same alerts and notifications you set in your individual account can be applied to groups and channels.

    Token Distribution Alerts

    Token distributions often create market price pressure and increase capitalization. Be the first to obtain such info and assess market conditions to make a play in your favor (if you use Margin or Futures trading). 

    • Token Distribution – Receive distribution alerts from seed, private and other events for tokens that you’ve added to monitoring.

    Tutorial: How to use EtherDrops

    1. How to install EtherDrops bot

    To install EtherDrops, simply follow this link to open the bot in Telegram. It will automatically link the bot to your account. Here is an official list of the available EtherDrops install links. If you experience any delays with bot updates, you can switch to any other official link.

    2. How to add a wallet

    In the Main Menu, select “+Add wallet”. Tick ✅ which networks you wish to add to monitoring for your wallet and press ✔ Done (for example ETH and Polygon). Then type in your wallet address and name it. You’ll now be immediately notified whenever there are any transactions happening within the wallet, including NFT activity, in/out transactions, airdrops, etc.

    3. How to edit wallets

    In the Main Menu, select “Edit Wallets”. Choose the wallet you wish to edit. The menu with available options will open up. You can Delete, Rename, make it your Favourite (if ON, notifications with this wallet will be illuminated for better visibility), follow only IN, OUT or ALL transactions, check Balances, add/remove Networks for this wallet, set Alert Transactions filter (you’ll only be notified about transactions that are bigger than the specified threshold).

    4. How to add a liquidity pool

    In the Main Menu, select “+Add pool”. Choose the network. Next, enter the address of the liquidity pool. Enter the % liquidity change to create a notification. When the liquidity of a pool changes within your specified range, you’ll be instantly notified.

    5. How to edit liquidity pools

    In the Main Menu, proceed to “Edit pools”. Choose the liquidity pool to add additional settings. You can Delete, Rename, turn your Notifications ON or OFF for this specific pool, or change the % notification alert.

    6. How to add a new coin

    In the Main Menu, select “+Add coin”. Next, enter the contract address, symbol, or name of the coin. Choose the coin from the list and select network (ETH, BSC, ERC-20, Polygon, or CEX). Finally, enter the % price change and $ value for swaps (in case the coin is traded on a DEX) to create a notification. Now you are following this coin. Whenever there is a swap or price change within the range you specified, you’ll receive an instant notification.

    7. How to edit coins

    In the Main Menu, proceed to “Edit coins”. Choose the coin. You can Delete, turn your Notifications ON or OFF for this specific coin, change Price Denomination (in USD, BNB, ETH, BTC), change the price % notification alert, create a price alert (if a coin is x USD, you’ll receive a notification), or change swap alerts.

    8. How to add an NFT

    In the Main Menu, select “+Add NFT”. Enter the contract address or name of the NFT. Select the right one and type in the % price change alert to receive notifications.

    9. How to edit NFTs

    In the Main Menu, select “Edit NFT”. Choose the NFT. You can Delete, change % alert or price, set a new price alert, or turn notifications ON/OFF.

    10. How to set gas price alerts

    In the Main Menu, select “Set gas alert”. Type in the desired fast gas price to create an alert.

    Conclusion

    EtherDrops is a simple yet comprehensive one-stop tool for all your crypto tracking needs and continues to add new networks, coins, and exchanges as the market expands so you’ll never be short of what you need. It just takes one click and a few easy-to-follow steps within Telegram to get set up, and that short initial setup time proves to be well worth it.

    For a comprehensive tutorial on the more advanced features of EtherDrops such as quick shortcuts, special commands, managing profiles, how to set up the bot for groups and channels, and subscription options, read to the end of this quide. If TL;DR you can also watch a video tutorial here.

    Follow DropsTab / EtherDrops for more information:

    Website | Telegram | Twitter | Medium

  • 10 Best Smart Contract Security Auditing Firms in 2022

    10 Best Smart Contract Security Auditing Firms in 2022

    We have compiled an updated list of the top performing blockchain security and smart contract auditing companies in 2022, giving you comprehensive data and history of these firms for you to make the best informed decision possible.

    Why Do Smart Contract Auditors Matter?

    A lot has happened since 2020 when we last ranked the best smart contract auditors at the time. As the crypto space is evolving, so are hackers and scammers around the world. Web3 attacks are becoming increasingly frequent, and each day malicious players have found creative ways to exploit smart contract vulnerabilities for quick profit.

    One of the largest crypto hacks in history happened earlier this year when Wormhole, Solana’s cross-chain bridge, was hacked on February 2nd. The attack exploited a signature verification vulnerability in the network that allowed the hacker to freely mint 120,000 wETH, worth $325 million at the time. As a result, security audits are extremely important. According to an article by Hacken, though Solana may be blamed for providing the instrument with security flaws to its projects, Wormhole might have “prevented the incident by auditing the instruments it used.”

    Quality smart contract assurance helps identify potential issues, and ensure that the protocol is ready at all times to address any threat that could put its users’ funds at risk. However, there are no guarantees that a protocol will be 100% secure after an audit, but a good smart contract auditor can still perform thorough reviews to potentially prevent major vulnerabilities after launch. To keep up with the increasing demand in blockchain security, certain auditing firms have also branched out to offer other cybersecurity services such as penetration testing, running bug bounty programs, vulnerability assessments, and threat modelling.

    What Makes a Good Smart Contract Auditor?

    We have compiled our list of the top smart contract auditors this year based on a set of criteria. One of the first steps in finding a reliable smart contract auditor is to check the portfolios of projects they have audited. Doing so allows you to see the size and popularity of the projects they have audited, and more importantly if any of the projects they have worked on have been compromised. Larger projects tend to attract more attention from hackers, and if they have not been exploited for a long period of time, then it is a good sign that their security is up to date thanks to their auditor(s).

    The next factor to consider is the auditor’s expertise in certain blockchains. As of now, most auditors offer only Ethereum contract audits. Only some are specialized in auditing projects on altchains such as BNB, Solana or Polygon. This is because EVM-compatible chains have different architectures, and certain altchains use a completely different programming language, e.g. Rust for Solana. Different firms have different areas of expertise in auditing protocols built on different blockchains, so it is best to assess their level of competency before engaging them for an audit. For example, if you are looking for a Polygon-based contract audit, check the firm’s past audits for Polygon-based projects.

    Finally, it goes without saying but the quality of audit reports is an important consideration to look for in a reliable auditor. Different auditing firms have their own methodology and approach. In many instances, the scope of an audit varies according to the scale and complexity of the project as well as the auditor’s agreement with their clients. It is important to note that a good report should include a comprehensive description of all the problems that were found during the test and inspection, and the findings of the audit have been addressed by the project.

    Hacken

    Website: https://hacken.io/

    Projects Audited: 700+

    Major Clients: FTX, Avalanche, VeChain, Huobi, Kyber, Air Asia

    Chains Supported: Ethereum, EVM Chains, BNB Chain, Solana, Polygon, Avalanche, NEAR, Fantom

    Hacken is a leading cybersecurity consulting company focused on blockchain security. Since its inception in 2017, Hacken has been educating and growing the ethical white hat hacker community to continually nurture and build the blockchain security ecosystem. Who better to identify and address cybersecurity threats than a hacker? (https://www.kambioeyewear.com/)

    Hacken provides a wide range of security services including blockchain security consulting, web/mobile penetration testing, vulnerability assessments, coordination of bug bounty programs and more. The company also encompasses security products such as HackenAI Security Platform, hVPN, and hPass etc. Beyond just blockchain security ecosystem, Hacken has also partnered with non-blockchain giants like Air Asia.

    Over the years, Hacken has built a commendable reputation as a security risk assessment for companies requiring a digital environment to create or enable services for their consumers, which is why Hacken is certified as Web 3.0 security standard by two of the world’s largest cryptocurrency data aggregator Coingecko and Coinmarketcap.

    Quantstamp

    Website: https://quantstamp.com/

    Projects Audited: 200+

    Major Clients: Ethereum 2.0, Solana, BNB Chain, Cardano, Maker, Curve, OpenSea

    Chains Supported: All chains

    Quantstamp is a security validation protocol for smart contracts and is one of the most recognized auditing companies in the blockchain sector. Their security team consists of PhDs and security professionals with experience in top IT companies such as Google, Facebook, Apple, and Ethereum Foundation.

    Quantstamp specializes in auditing services of all programming languages designed for use in blockchain applications. Since its launch in 2017, Quantstamp has audited over 200 projects and helped secure over $200 billion in value. Its services include auditing layer-1 blockchains, smart contract-powered NFT and DeFi protocols, and developing financial frameworks for layer-1 blockchain ecosystems.

    Trail of Bits

    Website: https://www.trailofbits.com/

    Projects Audited: 500+

    Major Clients: 0x Protocol, Compound, MakerDAO, Acala, Balancer, yearn.finance

    Chains Supported: Ethereum, Polkadot, Polygon, Tezos, Arbitrum

    Trail of Bits is a cybersecurity industry giant with a long list of big-name clients such as Microsoft, Adobe, Reddit, Zoom, Airbnb, and Reddit etc. Founded in 2012, before smart contracts were even invented, the company prides itself as a network of developers with the capabilities of identifying and fixing loopholes in software, devices, and code. They have long developed tools that help developers find and fix critical vulnerabilities. Manticore is one of their signature tools, a multi-contract and multi-transaction emulator. Other tools include Cryptic, Slither and Echidna which are also blockchain-focused solutions.

    ConsenSys Diligence

    Website: https://consensys.net/

    Projects Audited: 100+

    Major Clients: 0x Exchange, Aave, Balancer, Uniswap

    Chains Supported: Ethereum

    Consenys is a US-based blockchain technology solutions company and is one of the biggest and prominent blockchain incubators in the industry. Unlike other security firms mentioned on this list, ConsenSys dedicates its resources and technological expertise solely to the development of Ethereum blockchain applications and software, especially financial infrastructures.

    Its signature product, MythX, is one of the most powerful automated scanners for Ethereum smart contracts, providing a solid API which developers can use to access security analytics tools. Over the years, ConsenSys has successfully protected over 100 Ethereum-based projects and uncovered over 200 issues. Apart from security auditing, the company also provides two other services known as Fuzzing, a bug-finding tool for first specifications, and Scribble, a runtime verification tool that translates high-level specifications into Solidity code.

    CertiK

    Website: https://www.certik.com/

    Projects Audited: 1800+

    Major Clients: BNB Chain, Polygon, The Sandbox

    Chains Supported: All chains

    CertiK is a blockchain security company specialized in formal verification and AI technology in collaboration with some of the world’s best cybersecurity experts to create end-to-end audit services. The company has developed “CertiK Chain”, a public blockchain focused on mathematically validating the safety of smart contracts through formal and manual verification. Other services of CertiK include Skynet, Skytrace and Penetration Testing.

    CertiK is an official partner company of Binance, and is also backed by numerous big-name firms such as Golden Sachs, Coinbase, Lightspeed, Matrix Partners, and DHVC.

    LeastAuthority

    Website: https://leastauthority.com/

    Projects Audited: 80+

    Major Clients: Ethereum Foundation, Chia Network, O(1) Labs, Protocol Labs, cLabs, Tezos Foundation

    Chains Supported: Ethereum, Chia Network, Tezos

    LeastAuthority is a cybersecurity consulting firm with its main focus on privacy. Using privacy-enhancing technologies, it classifies itself as an enabler of private and disruptive storage solutions. The platform offers two major products which are essentially storage architectures. The first, Privatestorage (formerly S4), is a centralized system that provides storage infrastructure to end-users and offers them the autonomy over the collection, processing and distribution of their private data. The second product, Tahoe LAFS, enables a decentralized, distributed and fault-tolerant storage facility.

    Apart from security audits, other services also include penetration testing, network and traffic analysis, and mechanism and incentive design. The company’s consultants work with developers throughout their development cycles to ensure that their projects are not susceptible to security threats.

    ChainSecurity

    Website: https://chainsecurity.com/

    Projects Audited: 85+

    Major Clients: yearn.finance, Maker, Compound, Curve, Rarible, Kyber Network

    Chains Supported: Ethereum

    ChainSecurity is a blockchain security firm led by security experts from the renowned university ETH Zurich. Similar to ConsenSys, the company specializes in Ethereum contract auditing. They have developed an automated audit platform that allows projects to thoroughly analyze smart contract designs, test their viability, and monitor metrics detailing their performances after launch. The company has worked with more than 85 Ethereum-based projects and helped secure more than $17 billion worth of assets.

    OpenZeppelin

    Website: https://openzeppelin.com/

    Projects Audited: 150+

    Major Clients: Ethereum Foundation, Coinbase, Compound, Aave, The Graph

    Chains Supported: Ethereum

    OpenZeppelin is a cybersecurity technology and services company known for its development of Solidity libraries known as “OpenZeppelin Contracts.” These libraries are used in most Solidity projects as a tested and standard template for contracts deployable on DApps. Developers can easily integrate these solutions into their applications through OpenZeppelin’s native SDK.

    OpenZeppelin was the first cybersecurity company to reinvent blockchain security by introducing elements of gamification to identify security vulnerabilities in smart contracts. “Ethernaut” is a web3/Solidity war game which challenges gamers to find and exploit loopholes in smart contracts to progress to the next level. The company also provides free services such as “Defender”, which helps clients automate their smart contract administration, offering a more secure and private transaction infrastructure.

    SlowMist

    Website: https://www.slowmist.com/en/

    Projects Audited: 1000+

    Major Clients: Binance, OKX, Huobi, Pancakeswap, Crypto.com

    Chains Supported: Ethereum, EVM Chains, EOS, Fabric, Solana, VeChain, ONT

    SlowMist is China’s leading blockchain security company founded in 2018. The team at SlowMust has over 10 years of experience in network security, specializing in smart contract audits, blockchain security, wallet security testing, and more. The company constantly tracks and publishes data about security situation on crypto exchanges through their Blockchain Threat Intelligence (BTI) service. Their most notable product MistTrack is a system that tracks the movement of stolen funds. Since its launch, it has helped recover nearly $1 billion in stolen funds.

    The company also offers security-related products such as anti-money laundering software, DarkHandBook (crypto safeguarding handbook), SlowMist Hacked (crypto hack archives), and FireWall.X (firewall for EOS smart contracts).

    Runtime Verification

    Website: https://runtimeverification.com/

    Projects Audited: 100+

    Major Clients: Algorand, Polkadot, Tezos Foundation, Ethereum Community Fund, NASA

    Chains Supported: All Chains

    Runtime Verification is a research and development company focused on verification-based techniques to perform security audits on virtual machines and smart contracts on public blockchains. The platform is a dynamic software analysis approach that analyzes programs as they execute, observing the results of the execution and using those results to find bugs. This solution designs standard models for high-value applications and uses them as templates to develop security-sensitive products.

    Runtime Verification has developed two main smart contract security products. The first, K Semantic Framework, offers smart contract correctness proofs to validate the viability of Ethereum and Cardano’s smart contracts. The second, Firefly, is a test coverage analysis tool for Ethereum smart contracts. The company has also worked with Ethereum Foundation on building a formal framework for Ethereum 2.0 testing.

  • BAYC sued? Class action against Yuga Labs for “inappropriately inducing” investors

    BAYC sued? Class action against Yuga Labs for “inappropriately inducing” investors

    Yuga Labs, the company behind the widly popular NFT collection Bored Ape Yacht Club (BAYC) is being sued in a proposed class action.

    On 21st July 2022, law firm Scott + Scott issued a publication stating that Yuga Labs investors were inappropriately induced to buy their BAYC NFTs. In particular, Yuga Labs is accused of using celebrities to inflate the price of their NFTs and ApeCoin ($APE) token. Also, Yuga Labs had promoted that the NFT had growth prospects and opportunities for huge returns to unsuspecting investors.

    The publication then goes on to state that after millions of dollars of BAYC NFTs were sold, Yuga Labs launched their Ape Coin ($APE) in order to further fleece investors. Finally, once it was discovered that value of the NFTs was solely based on celebrity promotion (and not actual utility), retail investors were left holding $APE tokens that had lost over 87% of their value since its peak on 28th April 2022.

    The publication concludes with an invitation for any other investors of Yuga Labs to contact Scott + Scott to join in the class action. The class action intends to claim restitution for losses suffered as a result of purchasing Yuga Labs’ tokens and NFTs.

    What is Bored Ape Yacht Club (BAYC)?

    Bored Ape Yacht Club (BAYC) is a collection of unique non-fungible tokens (NFTs) depicting a cartoon ape. It is a limited collection of 10,000 bored ape NFTs on the Ethereum blockchain. (https://stratnewsglobal.com/) The BAYC NFT doubles as a Yacht Club membership card which according to their website grants exclusive members-only benefits. There are currently 6,457 BAYC owners and the most expensive BAYC ever sold was Bored Ape Yacht Club #8817 which was sold for US$3.4 million at the Sotheby’s Metaverse marketplace.

    What is the ApeCoin $APE?

    ApeCoin ($APE) is the ecosystem token for the BAYC project and BAYC owners are allocated 10,094 APE tokens per NFT. At its peak on 28th April 2022, each ApeCoin $APE was worth US$26.70. Currently, the price of $APE is down approximately 76% from this peak.

  • Ethereum Merge is Coming, Is This the End of Ethereum Killers?

    Ethereum Merge is Coming, Is This the End of Ethereum Killers?

    The Ethereum network is said to be the fastest and most scalable blockchain after the Merge in September, effectively cementing its position as the front-runner of smart-contract networks. What will this mean for other popular competing layer-1 blockchains known as “Ethereum Killers?” If you are holding any of these coins, you might want to consider its future prospects.

    The Ethereum Merge in September

    Ethereum founder Vitalik Buterin addressed at the Ethereum Community Conference in Paris that the Ethereum network will hit the 55% roadmap completion level after its much-anticipated “Merge” in September. The Merge will mark the beginning of Ethereum’s proof-of-stake upgrade, potentially enabling the network to process 100,000 transactions per second (tps), according to Buterin, which is significantly higher than even centralized financial services like Visa and Mastercard.

    For the longest time, the biggest problem that has been plaguing Ethereum is scalability. In its current state, Ethereum can only process 12 to 25 tps with an average confirmation time of around six minutes. As a result, the network gets congested, leading to extremely high gas fees. To address that problem, the Merge involves many protocol changes that would allow users to enjoy fast transactions and low gas fees. Buterin has even given each of these planned upgrades rhyming names which he calls the “merge”, “surge”, “verge” and “purge.“

    • Merge
      • Refers to combining the Ethereum mainnet with the proof-of-stake beacon chain, also known as EIP-3675.
    • Surge
      • Refers to the addition of Ethereum sharding, a scaling solution which will further enable cheap layer-2 blockchains and lower the cost of rollups or bundled transactions, making it easier for users to operate nodes that secure the Ethereum network. This reduces congestion on the main chain by distributing traffic to 64 shard chains.
    • Verge
      • Refers to the implementaion of “Verkle trees” (a kind of mathematical proof) and “stateless clients”, aimed at making the network more decentralized. These features will allow users to become network validators without having to store large amounts of data on their nodes.
    • Purge
      • Refers to the removal of historical data in a bid to streamline the network, also known as EIP-4444, a proposal focused on storing said historical data in execution clients such as The Graph, BitTorrent and block explorers, since relying to store everything on existing nodes can hamper scalability.

    What are “Ethereum Killer” Blockchains?

    “Ethereum Killers” refer to Ethereum’s competing layer-1 blockchains, namely Solana, Avalanche, Polkadot, Algorand, and Cardano. They inherited the killer name because they offer similar features to Ethereum but at significantly lower costs and faster speed.

    Ethereum Killer coins have been a very popular asset to investors looking for an alternative network to Ethereum. Smart-contract platforms have been dominating the market cap in the crypto space. According to Coingecko, it is the second highest crypto category by market cap, just behind the Ethereum ecosystem.

    What will happen to “Ethereum Killers” after Merge in September?

    If Buterin is able to deliver what he promised, then Ethereum will most certainly be the front-runner of smart-contract networks. People will look to Ethereum to being the primary platform for DApp development, DeFi activities, NFT minting and marketplace and more.

    Although Ethereum Killer coins have been pumping recently due to bullish sentiment surrounding Ethereum and its long-awaited Merge, communities are speculating whether this is just hype as competing blockchains of Ethereum will no longer have competitive advantage in terms of speed and scalability. Even until now, none of them have been able to dethrone Ethereum from its number two spot by market cap. The upcoming merge will only propel Ethereum upward, but that is if Buterin delivers what he promised. He stated that they will soon test the merge on Ropsten (Ethereum’s testnet).

    The largest future problem for Ethereum will most likely remain to be scalability. Although the new system will be faster, it is unlikely to solve the issue of high gas fees immediately since network demand is likely to rise as efficiency increases. But that is not to say that gas fees will forever be expensive on the Ethereum blockchain. But until Ethereum is able to achieve high scalability, Ethereum Killer blockchains remain to be viable alternatives for fast transactions and low gas fees. We will just have to wait and see in September.

  • Top Cryptocurrency News Today (22 July 2022)

    Top Cryptocurrency News Today (22 July 2022)

    Ethereum Massively Scales to 100K Transactions Per Second Post-Merge, What Will Happen to “ETH Killers?”

    Ethereum founder Vitalik Buterin addressed at the Ethereum Community Conference in Paris that the network will hit the 55% roadmap completion level after its much-anticipated “Merge” in September. The biggest problem that has been plaguing Ethereum is scalability. In its current state, Ethereum can only process 12 to 25 transactions per second with an average confirmation time of around six minutes. As a result, the network gets congested, leading to extremely high gas fees.

    The shift from proof-of-work to proof-of-stake post-merge will enable Ethereum to process 100,000 transactions per second, according to Buterin, which is significantly higher than even centralized financial services like Visa and Mastercard. This will greatly benefit the ecosystem as users can enjoy instant transactions and low gas fees. So the question is, “What will happen to Ethereum Killer coins such as Solana or Avalanche?” If Buterin is able to deliver what he promised, then Ethereum will most certainly be the front-runner of all smart-contract platforms. The whole purpose of Ethereum Killers is to have a competitive advantage over Ethereum in terms of scalability. Will we see the end of Ethereum Killers after September?

    Zipmex Suspends Withdrawals, Joins Growing List of Struggling Crypto Exchanges

    Zipmex, a cryptocurrency exchange based in Southeast Asia, has frozen withdrawals until further notice due to “volatile market conditions” and the “resulting financial difficulties of key business partners.” Much like the rest of the crypto fallout, the insolvency of Zipmex’s counterparty has caused the company to face liquidity issues. According to their official statement, Zipmex’s current exposure to crypto lender Babel Finance is $48 million, with an additional $5 million to Celsius Network, which filed for bankruptcy last week.

    With the series of defaults continuing to haunt the industry, investors should be cautious when dealing with any crypto exchange at the moment. Consider holding your funds in hardware wallets like Ledger Nano X, Ledger Nano S or Trezor Model T.

    Coinbase Urges SEC to Begin Regulating Digital Asset Securities after Inside Trading Bust, Desperate Move?

    Coinbase has called on the Securities and Exchange Commission (SEC) to develop a viable regulatory framework for digital asset securities following the arrest of a Coinbase ex-manager involved in inside-trading earlier today. With rumours of Coinbase’s insolvency growing, communities are speculating whether this initiative is an attempt to revive the crypto exchange. Coinbase has yet to comment on that matter but explained that the existing rules for traditional securities being inapplicable to crypto assets calls for new rulemaking. However, they also added that the procedure should involve the public’s input rather than behind closed doors. Will we be seeing Coinbase making a comeback or are they just delaying the inevitable?

    Binance Unveils Scholarship Program! Future of Crypto Looking Good?

    Binance is sponsoring a scholarship program that focuses on improving education that will empower the next generation of blockchain experts. Scholarships will be available for vocational education (currently for 1,000 Ukrainian students), for undergraduate studies and for master’s degrees, providing opportunities for scholars to acquire experience in the blockchain ecosystem.

    This is a huge step forward as education in blockchain and cryptocurrency is still limited and inaccessible to most people, not to mention a growing pandemic of student loan debts worldwide. Fostering an environment for new talent means faster development in the space, especially when the future of crypto is at stake.

  • What is Bifrost Finance ($BNC)?

    What is Bifrost Finance ($BNC)?

    Bifrost Finance ($BNC) is a Polkadot-based parachain designed to enhance cross-chain liquidity and provide users with staking service. Bifrost pays vTokens (Staking Derivatives Voucher Tokens) to users who help with liquidity by depositing PoS tokens on the platform. Users can convert a Proof-of-Stake (PoS) token into a vToken (such as ETH to vETH) for cross-chain functionality. 

    Many blockchain networks in the crypto space offer various DeFi services supported by unique native tokens. Although the global DeFi and blockchain sectors are growing, most operate individually and have little to no interoperability with each other. This lack of cohesion between chains created a void that only cross-chain projects could fill.

    Cross-chain infrastructure solutions are slowly gaining popularity. However, these projects still face problems with liquidity across networks and cross-chain reward mechanisms for staked assets. Bifrost Finance aims to address these blockchain limitations, allowing the easy flow of assets and user incentives between blockchain networks. 

    Ecosystem, Technology, and Utility

    The Bifrost project lets users earn incentives for staking assets and providing cross-chain liquidity. The project functions as an intermediary protocol between decentralized applications, and supports these applications via PoS services and liquidity staking.

    Usually, staking crypto assets require users to lock their tokens in smart contracts for a specified period. Staked tokens are generally not accessible until the lock duration expires. However, Bifrost uses its native vTokens to solve this problem through liquid staking. Liquid staking on the Bifrost platform lets users stake crypto assets and receive vTokens in exchange instead of waiting for the specified staking period to expire. Stakers can then use the vTokens to access and fund Bifrost-compatible networks like Kusama and Polkadot. Bifrost Finance uses Polkadot’s GRANDPA consensus algorithm for staking and other functions.

    Components of the Bifrost Finance Network 

    The Bifrost Finance network includes the following components:

    • Cross-chain users, including vToken holders, and BNC miners
    • Voters, who are BNC holders, capable of voting for the governance and management of the Bifrost platform. Voters receive rewards for their service.
    • Node validators who vote on valid transactions. Validators also receive a percentage of the total platform’s rewards.
    • Stake proxy nodes nominated to support PoS chains of other networks associated with Bifrost. These nodes connect with various mining pools, liquidity pools, DApps, and wallets, making it easier for the staking node to interact with other DeFi services and protocols.
    • A vToken DEX that provides liquidity for vToken. Users can also stake or unstake their tokens on this exchange.
    • Community Developers who build applications like wallets and DApps, developing new features on the Bifrost platform.

    Is the Bifrost Finance Network Safe?

    The Bifrost network is a Polkadot parachain project. The network provides security by leveraging Polkadot’s existing infrastructure instead of providing its own. Polkadot also helps provide secure communication between networks with the help of its relay chain, without any additional trust mechanisms through a concept known as “shared security.”

    Bifrost Native Coin ($BNC) Utility

    The BNC token is essential for the governance and operation of the Bifrost network. Some of its main use cases include:

    Trading Fees

    Users performing Bifrost network transactions, including transfers and staking, must pay transaction fees. Bifrost has a flexible fee model that supports multiple asset payment fees such as BNC, DOT, vDOT, KSM, and vKSM. The platform converts these fees into BNC before storing them in the treasury to promote network growth and maintenance.

    Collateral

    Participating nodes have to stake BNC to guarantee good conduct on the Bifrost network. Based on node performance, required collateral may increase or reduce.

    Administration

    To build and establish community governance, BNC holders can recommend and vote on network enhancements, with each vote corresponding to the amount of BNC tokens held.

    Bifrost ($BNC) Unique Features?

    • Bifrost provides PoS networks with much-need liquidity by letting users convert assets to vTokens with the option to receive passive income from staked tokens.
    • vTokens can help optimize transaction speed and improve transaction efficiency across various protocols and platforms, including decentralized applications (DApps), decentralized exchanges, and centralized exchanges.
    • Bifrost Finance guarantees genuine democratic governance by ensuring all processes on its parachain are transparent.

    Conclusion

    Cross-chain liquidity allows users to use and enjoy various blockchain protocols and maximize the many opportunities in the DeFi space. By providing quick and cost-effective cross-chain liquidity, Bifrost Finance has made a significant leap in DeFi advancement.

    Official Channels

    Website — https://bifrost.finance/ 
    Twitter — https://twitter.com/bifrost_finance  
    Telegram — https://t.me/bifrost_finance 
    Medium — https://medium.com/bifrost-finance 
    Github — https://github.com/bifrost-finance

  • Top Common Myths About NFTs Debunked

    Top Common Myths About NFTs Debunked

    NFTs have become one of the most exciting trends in the blockchain and cryptocurrency space. With many existing projects and more in the works, crypto enthusiasts now consider NFTs as potentially rewarding and an attractive asset. These specialized assets have generated a lot of media hype, speculation, and commendable value for the greater crypto and blockchain ecosystem. 

    However, many people are still unaware of the specifics which make NFTs work such as minting, applications, and their general significance towards the crypto and traditional sectors. People also don’t know what to make of the trend, and whether or not they should participate in the hype. As popular as they are, NFTs suffer from the effects of many widespread myths and misconceptions, making these assets some of the most misunderstood in the finance and blockchain sector.  

    What are NFTs?

    NFTs (non-fungible tokens) are digital assets with uniquely verifiable qualities contained in their metadata. These tokens function as a popular and effective way to represent traditional or blockchain assets because they are non-fungible, meaning they cannot be freely interchanged in a one-to-one manner, duplicated, or forged. Once created, NFTs are permanently etched on the blockchain’s public ledger and are visible by all nodes on the blockchain. The unique nature of NFTs affords them significant utility across various sectors.  

    While the principle behind NFTs has real-world applications, these assets are still in their infancy. Many people, including crypto enthusiasts, are still only aware of the myths and misconceptions created by mainstream media and do not fully understand these assets which can have huge potential. Here are some of the most widespread myths about NFTs and the truths behind them.

    Click here for our in-depth explainer on what are NFTs.

    Myth #1 – NFTs Are a Kind of Cryptocurrency

    The biggest misconception is that NFTs are a kind of cryptocurrency. Although they are both developed on blockchains, the critical difference is their fungibility. Cryptocurrencies are fungible assets traded only by an asset with the same value. For example, Ethereum’s Ether (ETH) token is only tradable if exchanged for other ETH or another cryptocurrency with the same exact value. On the other hand, each NFT has a unique value and cannot be replaced with another. One Ether is always worth the same as any other Ether, but the same cannot be said about NFTs, making them a digital asset, not a currency.

    Myth #2 – NFTs Are Harmful to the Environment

    Since creators mint NFTs on energy-intensive blockchains, many people think they are harmful to the environment. However, this is not the case. People are now using the more energy-efficient Proof-of-Stake (PoS) blockchain protocol instead of the Proof-of-Work (PoW) protocol, which is more energy-intensive.   

    Click here to learn more about Proof of Work vs Proof of Stake.

    Myth #3 – NFTs Don’t Have Value

    Another common misconception about NFTs is that they do not have any value. On the contrary, am NFT derives true and inherent value from the underlying blockchain technology that enables the ownership, transparency, and security of digital assets.

    The utility of NFTs transcends digital artwork, avatars, and collectibles. For example, certain NFTs offer holders various uses and benefits ranging from VIP concert passes to private dinner reservations. Additionally, NFTs are applicable in the real estate sector to transfer land deeds or verify ownership.

    Myth #4 – NFTs Are Easily Copied and Forged 

    A common issue with digital collectibles is validating their authenticity and rarity, mainly to prevent the sale of counterfeit or pirated items. This is a problem that blockchain technology quickly solves. 

    A blockchain maintains a series of public transactions across different computers or nodes. Each node “witnesses” all transactions to ensure that they are all 100% authentic. With NFTs, the blockchain creates a clear chain of ownership making collectors confident that their NFT is the one-and-only “original,” also ensuring that buyers can verify authenticity before exchanging money.

    Myth #5 – NFTs Encourage Scams and Money Laundering

    Many still commonly believe that blockchain assets are for criminals and tax defaulters. However, cash is still much more utilized for nefarious purposes and crime-driven than cryptocurrencies and NFTs. All transactions on the blockchain are completely transparent and easily trackable if there is a need to detect fraudulent activity. Furthermore, in some cases, it is also possible to recover stolen funds from scams or money laundering. 

    Myth #6 – Buying an NFT Means Owning the Intellectual Property

    This myth is more of a technical misconception. Owning an NFT does not automatically give ownership of the underlying asset or its intellectual property rights. Unless otherwise stated, ownership of the intellectual property stays with the creator of the NFT. Even after the purchase, buyers or collectors do not have the right to use the NFT outside the scope outlined by the creator. Think of it as a collectable book or movie; just because you purchase it doesn’t mean you have the right to reproduce or monetize the intellectual property.

    Myth #7 – NFTs Are Just a Fad

    Like the internet, many people thought NFTs would not catch on or only find applications for illicit activity. Some also believe that these tokens are just hype and will suddenly disappear, leaving many people holding worthless assets. However, given the many possible use cases, NFTs are unlikely to disappear.  

    We can see that NFTs are not dead or just a fad from the launch of video game retailer GameStop’s NFT marketplace. GameStop launched its NFT marketplace on 12th July 2022, ahead of its initial anticipated release after hinting at this for over a year. GameStop has in May 2022 already released its digital asset wallet for users to store, send and receive cryptocurrencies and NFTs in anticipation for this marketplace launch.

    The launch of GameStop’s NFT marketplace also appears to be a success, with trade volumes exceeding US$1mil (over 1,028 ETH) in 24 hours. Commentators on Twitter also suggest that GameStop’s launch was even more successful than that of the Coinbase NFT marketplace, since GameStop’s trade volume in 24 hours was equivalent to 60% of Coinbase NFT marketplace’s entire lifetime sales.

    Conclusion: NFT Myths?

    NFTs are here to stay and are slowly gaining massive traction across the crypto space. Although popularity is on the rise as creators are continuously minting new ones every day, crypto enthusiasts worldwide still need to stay informed about utility to better understand the technology, how it works, and how creators can sustain the NFT market well into the future.