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  • Duck Liquidity Pool (DLP) by DuckDAO ($DUCK)

    Duck Liquidity Pool (DLP) by DuckDAO ($DUCK)

    Duck Liquidity Pool ($DUCK) is a DeFi Market Maker protocol, developed by DuckDAO, one of the biggest cryptocurrency community that provides funding and marketing support to early-stage crypto projects.

    The boom of decentralized finance (DeFi) in recent months has ushered in a new profit-making strategy for crypto traders, beginners and advanced alike. Decentralized exchanges (DEX) rely on liquidity pools to help power their market-makers. While the Duck Liquidity Pool is a new entrant in DeFi, it has already captured the attention of many users in the space thanks to its high APY and token burning model.

    https://youtu.be/8MNKafDgW0o

    What is the Duck Liquidity Pool?

    The Duck Liquidity Pool (DLP) is DuckDAO’s own market maker. The funds that supply its pool came from the sale of pre-mined tokens and can be accessible in many other protocols and exchanges. In the meantime, projects that are supported by DuckDAO will be the first to be able to tap the pool. The ticker for the pool is $DUCK.

    The unique feature that distinguishes DLP from others is its “unilateral burn” strategy, or the one-sided token burn model. It is designed to burn 50% of all earned rewards (more on this later).

    The APY level for DLP is high and its suppliers can receive as much as 50% of the profits from market making, airdrop of incubated project tokens, as well as non-fungible token (NFT) campaigns. Such a feature enables yield farmers the ability to earn profit by just providing liquidity to DuckDAO’s market maker.

    To participate in the DLP, users have to lock their cryptocurrency holdings by depositing their funds in the pool. In return, they receive DUCK tokens as a reward for supplying funds to the pool.

    DuckDAO’s Native Token ($DUCK)

    DUCK token is the DuckDAO’s native utility token, which also powers the incentive model for the Duck Liquidity Pool. The token has the following use cases:

    • Yield farming on Uniswap pools – Staking tokens help contribute liquidity to DUCK and DDIM pools. For this, they earn profit through DLP.
    • Reward token for market-making profit – Half of the profit from the market maker is returned to the community who belong to the liquidity pool. If the performance of DLP is good, the profit for the yield farmers grows in proportion as well.
    • Project token airdrops
    • Non-fungible token as reward

    Deflationary Farming: “One-Side-Burn”

    This is touted by the team as “Yield Farming 2.0,” which is designed to support a deflationary, unilateral burning of tokens. To understand how this works, we must first look at how the current yield farming mechanism works.

    The Usual Scenario for Most Liquidity Pools

    Commonly, yield farming pools in the DeFi space look very advanced for the average trader. Not only does this create a psychological barrier to entry, but it also makes profit-making a little more difficult for someone new to yield farming.

    Another issue that traders face is the inflationary structure of the incentive mechanism in most liquidity pools. This is because, in order to provide rewards to yield farmers, mined tokens have to be released into the market. This model isn’t designed for long-term effectiveness since with more reward tokens in supply over time, we can expect its value to depreciate as well.

    Duck’s Unilateral Burn

    $DUCK, on the other hand, is designed to support long-term yield farming strategies. Even beginners on liquidity pools can just stake and earn a part of the profit that DuckDAO’s market maker gets.

    $DUCK One-Side-Burn Deflationary Model (Source: DuckDAO website)

    One-Side-Burn is a deflationary model that is designed to burn 50% of the carry pair as soon as the liquidity provider decides to cash in a portion of his stake.

    What happens in such a situation is that users lose one side of their liquidity as the tokens are burned. And when someone decides to exit the pool completely, his entire liquidity is also burned and further lowers the DUCK tokens in supply.

    While this model may seem counterintuitive for profit-earning at first, over-time, the value of the tokens is going to be greater than what it was when a user has staked in the pool. That is why DLP’s design appears to be much better in the long run.

    Duck Liquidity Pool Market-Maker Models

    Project Token Purchase

    DLP purchases tokens in order to facilitate buy and sell liquidity.

    Duck Liquidity Pool Business Model – Project Token Purchase (Source: Duck Liquidity Pool (DLP) Blackpaper)

    Project Token Borrow

    DLP loans tokens against collateral in order to facilitate buy and sell liquidity.

    Duck Liquidity Pool Business Model – Project Token Borrow (Source: Duck Liquidity Pool (DLP) Blackpaper)

    Fixed Fee Model

    The protocol can charge a fixed service fee for listings that have decided to provide buy and sell liquidity on their own.

    Duck Liquidity Pool Business Model – Fixed Fee Model (Source: Duck Liquidity Pool (DLP) Blackpaper)

    Conclusion

    DeFi has enabled the birth of new profit-making strategies for traders in the space. However, whether existing liquidity pools can support long-term yield farming models is another question altogether. DLP’s model, which is powered by the ‘unilateral burn’ design, appears to be more promising.

    To be fair, like many other pools, the profit it can generate for stakers is also influenced by the number of users joining the pool. This is why it is important to look into that as well before deciding to lock your tokens and supply liquidity to the pool.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Litentry ($LIT): Decentralized Cross-chain Identity Aggregator

    Litentry ($LIT): Decentralized Cross-chain Identity Aggregator

    Litentry ($LIT) is a decentralized cross-chain identity aggregator, built on Substrate, that features an identity matching and identity staking mechanism.

    In today’s world, personal data and identity are everything. Some companies in the conventional world make millions by selling user data. In the decentralized world, blockchain-based firms make losses.

    For example, one user can create multiple accounts to take advantage of free airdropped tokens. Also, platforms powering decentralized finance (DeFi) have no way of tracking users’ credit history, making them charge higher collateral when issuing loans.

    Fortunately, there’s a new way to keep track of identities in the distributed ecosystem securely. Powered by Litentry, we can see blockchain-focused platforms do more than just power token swaps. It’s now possible to scan through user’s deposit and withdrawal actions on Uniswap. Furthermore, a user’s activity can also be assessed on a community-governed blockchain.

    Since the platform is so diverse, below, we look at the major highlights.

    Background

    Litentry is developed by a team of blockchain professionals based in Germany. Its founder was among the early contributors of Parity, a decentralized network. Notably, the project engineering team’s background is rooted in Ethereum.

    The protocol is funded through a Web3 Foundation grant. On its Github page, the project lists eight team members with organization permission.

    What is Litentry?

    The project focuses on decentralized identity (DID), allowing user identities to be linked to multiple distributed protocols. Litentry acts as a DID aggregator where it collects, indexes, and distributes DIDs to blockchains.

    More importantly, it performs all these activities in a decentralized and verifiable way. Notably, built on the Substrate network, the platform works towards the greater goal of eradicating identity redundancy in the Web3-powered application ecosystem.

    The problem

    In the current internet world, third parties take control of storing user passwords and data pertaining to their online activity. Unfortunately, internet users are coerced into accepting unfavorable terms and conditions, consequently lessening the grip on their personal data.

    Litentry brings the change by returning the control of user data to the users by powering a user-focused internet using blockchain technology. As such, the revenue emanating from using users’ data gets the users to share in the profits. Before Litentry, these profits went to third parties managing the user data.

    Key Features of the Litentry platform

    Apart from using decentralized ledger technology (DLT), the platform has other critical features that help it bring the much-needed revolution to the blockchain sector. Key among them include:

    1. Identity management – The platform is all about identities, and their management sits at the protocol’s core. This feature powers anonymous and independent identities emanating from applications and or services used by the user.
    2. Distributed storage – After collecting the data, the protocol stores them in a decentralized manner to enhance access from all corners of the distributed world.
    3. Identity staking – This is a unique feature. Just like staking tokens and earning rewards, Litentry enables users to stake their identities and be rewarded.
    4. Decentralized contributors – Instead of creating multiple accounts to use different platforms or services, the project allows users to use one identity to interact with various services anonymously. Interestingly, the user doesn’t have to provide passwords or any other registration details.

    Litentry Architecture

    Litentry Architecture (Source: Litentry Doc)

    To bring all the above features to life, the protocol uses a layered architecture. On the top layer is the Litentry Runtime, which sits on Substrate. The Runtime layer is a Parachain of Polkadot and employs offline workers when generating identities.

    The second layer is the User Side. Here, users flex their muscles when it comes to data under their control. Note that user data that comes from applications are anonymous, stored in a decentralized way, and cryptographically-separated.

    On the Litentry Authenticator layer, we have the mobile data hub. The hub can be used to manage a user’s different identities. Additionally, the hub can be connected to various IoT devices that the user wants.

    Next is the Litentry SDK enabling developers to fire up their creative juices to create completely decentralized applications and/or services. In addition, the Litentry IPFS data center offers users a chance to check the data attached to their identities.

    The middleware layer comprises services such as off-chain catching and query servers. It is also made up of a client-side SDK library that helps connect front-end apps with decentralized networks.

    Litentry Tokenomics

    The incentive mechanism on the Litentry platform takes into account different participants such as an identity staker, validator, external storage, node, and data buyer.

    1. Identity staker — This is the person who has an identity record and has a stake in the identities pool.
    2. Identity validator — An identity staker becomes a validator of new blocks when their identity has been confirmed.
    3. Storage — Stores all data about an identity in a decentralized manner.
    4. Node — The node is a critical component of the Litentry platform. Its work is to perform functions such as invoking off-chain workers to validate identity correctness and connecting with external decentralized storages.
    5. Data buyer — This is any entity on the blockchain that requests identity validation.
    6. Data generator — These are entities generating data and can include applications, users, or services offering migration services.
    Litentry Tokenomic (Source: Litentry Lightpaper)

    Litentry Native Token (LIT)

    Litentry’s base asset is called LIT. The network uses the asset to reward identity stakers in the identities pool. Two types of rewards the stakers get are the block reward and the matching fee.

    Apart from stakers, validators are motivated to truthfully verify the correctness of data. On the other hand, data generators enjoy benefits from the Litentry Foundation in the form of grants.

    External storage operators earn a section of the fee paid by users interfacing with the service. Others who are incentivized using LIT tokens are nodes.

    Those who pay using LIT tokens include identity buyers. Observe that these entities only have access to the winning identity or identities during an identity matching process.

    Conclusion

    The identity problem is two-pronged; users can create multiple entities to defraud a company. On the other hand, malicious actors aggregate user data and sell it to the highest bidder without profiting the real data owners.

    Fortunately, Litentry uses a layered approach to comprehensively tackle the problem to the benefit of both identity owners and decentralized platforms. Here’s to another promising project with a unique approach to solving some of the most crucial problems that often go overlooked.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Union Finance ($UNN): tailored protection from DeFi risks?

    Union Finance ($UNN): tailored protection from DeFi risks?

    Union Finance is providing a tailored solution which will provide protection from risks and reduce costs in decentralised finance (DeFi).

    What is Union Finance?

    Union Finance is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. The Union platform guarantees full-stack DeFi protection to all users as it seeks to reduce the risks and cost within DeFi ranging from Layer-1, smart contract, transaction completion risks, and exposure.

    Since its introduction, Union finance has had a considerable impact in the cryptocurrency space and is composed of experts with years of experience in their respective sectors. Union’s protocol offers a unique combination of traditional insurance and the blockchain’s tremendous efficiency through its broad coverage and costs-savings model specific to the DeFi sector’s needs.

    Similarities With Traditional Insurance

    Furthermore, Union’s algorithm addresses the apparent break between DeFi and CeFi unlike any other blockchain-based solutions as it provides protection to various layers of coverage and segregated underwriter exposure, with a multi-token protocol that cleanly separates governance from the market dynamics of protection buying and writing.

    Similar to traditional insurance companies, the Union Protocol prides itself on total protection and coverage under their blockchain-based bundled insurance packages. However, the platform takes it further, by utilizing the blockchain concept of decentralization, freeing the platform from “members only” models and KYC requirements. Furthermore, Union offers an effective governance process to safeguard the validity of claims and the solvency of pools to meet coverage applications.

    DeFi-Related Risks

    Union’s team also offers a secondary market enabling the management of DeFi-related risks which facilitates the protection of traders and protection writers within the DeFi ecosystem. Additionally, this frees up capital and distributes risk, allowing the DeFi sector to scale more efficiently while reflecting the current market trends.

    The blockchain solution has a distinct economic model that has sustainably grown the decentralized ecosystem, along with a capital and pricing model that balances the supply and demand curves while adapting dynamically to economical conditions set by the market and keeping transparent reporting of financial and risk key performance indicators (KPIs) to create trust and increase adoption of the protocol.

    Three-Token Model

    Overall, Union Finance’s DeFi protection platform is managed through a three-token system comprised of the UNN, uUNN, and pUNN tokens.

    UNN Token

    UNN is the core token of the financing platform as it is used for governance purposes. UNN users are granted voting rights within the company, giving them influence on protection claims and related conflict resolution protocols, adjusting risk parameters, and adjusting incentive programs, etc.

    uUNN and pUNN Tokens

    As for the uUNN token, it is used by clients of the platform and protection buyers enabling them to impact the platform’s protection policies. The pUNN token on the other hand is given to writers of the protection, representing a percent share of the protection pool that the writer is powering.

    uUNN and pUNN tokens are only available on Union’s secondary market, which guarantees the separation of governance tokens from protection tokens, preventing a conflict of interest within the platform.

    Additionally, through the three-token based system, Union finance enables users to benefit from a dynamic and unique pricing model for the protection premium that provides an efficient and real-time price discovery mechanism, as well as a capital model that adjusts leverage, which maximizes solvency of protection pools while providing returns through surplus capital. Furthermore, a multi-layer governance, claim, and challenge mechanism ensures all operations are handled fairly and transparently.

    Key Components of Union Finance

    Buyer Protection

    A protection contract is automatically generated as a buyer purchases a protection product(s) on the platform. Upon purchase, each contract specifies the:

    • type of protection – this identifies which protection pool writes the protection and in return, earns the premium;
    • the cover amount;
    • the term of the insurance (start date/end date); and
    • the premium level.

    The purchase of the protection contract is confirmed when buyers receive uUNN tokens which demonstrate their right to the token protection policy. Then, the protection protocol will begin later after the premium is deposited or the start date of the protection contract. Buyers who stake UNN tokens through reliable decentralized exchanges (DEX) like Uniswap will receive a discount in the protection premium.

    Capital Model

    The capital model is a fundamental component that optimizes the leverage of protection writers, locking capital to meet solvency based on stringent standards used in insurance and finance while providing economic incentives that attract protection writers and help fund ecosystem development. Additionally, protection writers can use their pUNN tokens and stake for more UNN, enabling them to share in a small portion of UNN that accrues every block.

    UNN Staking

    UNN holders can stake their holdings to earn additional UNN through liquidity mining, which is split into two distinct categories; liquidity providers and locked tokens for governance purposes. Union will soon allow UNN holders to provide liquidity on different DeFI ecosystems such as Uniswap. As for the second category, UNN users will have control over decisions regarding the future of the UNN token through the decentralized governance process. 

    Conclusion

    Union Finance’s arrival to the DeFi sector came at a time when the potential risks and problems DeFi users have been facing on a daily basis have become too overwhelming. Thankfully, the platform simultaneously manages to resolve those risks through its distinct ecosystem and protection products.

    Union Finance protocol has the potential to elevate the DeFi sector by further impacting and empowering investors within the blockchain, as it decreases the barriers to entry for retail users and lays the foundation for institutional investors, thereby creating a trustworthy DeFi ecosystem.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Derivatives Trading with FTX Exchange: Ultimate Guide

    Derivatives Trading with FTX Exchange: Ultimate Guide

    FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) ARE NO LONGER IN OPERATION

    Both exchanges have filed for bankruptcy. Subsequently, the exchange was “hacked” and more than US$600 million worth of cryptocurrencies drained. The hacker is strongly rumoured to be a former FTX employee. For more about how this story unfolded and the latest news, check out these articles:

    Derivatives Trading is a lucrative market, it is estimated to be worth more than $1 quadrillion all over the world according to Investopedia. This insane valuation is possible because derivatives are available for every type of asset in the world, you have derivatives for stocks, commodities, physical assets, and even cryptocurrency. 

    According to Investopedia, the size is almost 10 times that of the gross domestic product of the entire world. It is important to understand that the notional value and the actual value of the derivatives market are two different things, which can explain such a high valuation.  

    What is Derivatives Trading?

    Diving into the cryptocurrency world can be overwhelming. You are immediately faced with an insurmountable wall of options and information on different types of trades. Each trade may or may not eventually make you money, however, each type of trade has its learning curve, complexities, and barriers to entry. 

    Newcomers may have heard about derivatives trading as a very good way of making money, and they might be curious about derivatives trading as an option to do this. However, as with anything, it is important to make sure you understand the basics first and ensure you have appropriate risk mitigation strategies in place if you do decide to invest.

    This article aims to set out how to learn about derivatives trading, and provides derivatives on FTX Exchange as an example.

    What are Derivatives?

    Derivatives, simply put, is a contract between two parties, the contract is based on an underlying asset which can be anything but. In the traditional sense, it is either a stock or a commodity. Derivatives are popular in the crypto market as well, as more and more traders emerge themselves in all that the flourishing market has to offer. 

    A derivative is not a type of trade rather it is a collection of a few trades. For example future contracts, swaps, options, and warrants, all of which are based upon a contract of an underlying asset. In derivatives trading, the contract is really important, and it is widely used by traders all around the world to hedge risk and commensurate rewards.

    Further details about derivatives

    You can think of derivatives as a secondary asset that represents a contract on the primary asset, so it is directly linked to the value of the primary asset which is called the underlying asset. 

    This may sound jumbled up and complex, however, derivatives are an advanced investing option usually used by experienced traders. 

    Derivatives have two main classes, namely: lock and options. The lock class is made up of swaps, futures, and forward contracts, these contracts are called lock contracts because the parties are locked in the contract up until the life of the contract expires. 

    For example, if a person specifies they will buy or sell a futures contract they have to buy it or sell it at the end of the expiration period. In the options class the holder has the right to buy or sell the asset as specified in the contract, but he is not obligated to do so. Meaning the buyer can hold off on buying the asset and only give the money that he is owed and the seller can also opt to not sell the underlying asset.

    Futures contracts

    Futures contracts are a type of derivatives trade in which the price of the underlying asset affects the contract. It is a contract, as the name suggests, in which the seller and the buyer sign a contract to exchange the asset at a predetermined date with a predetermined price that is set somewhere in the future. 

    Future contracts are based on the expiration date generally, for example, in stocks, future contracts are known based on the month they expire in. Futures contracts are also available for stocks, cryptos, and commodities.

    Equity options

    Equity options derive their value from the underlying stock, the equity options work on two types of trades: calls and puts. Call options are the type of trade in which the holder of the option has the right to buy the asset at a strike price (preset price) and also a time both of which are preset in the contract. In the Put option, the seller has the right to sell the asset on a price and date that is specified in the contract.

    Example of equity options

    It is really easy to understand how options work. For example, a trader anticipates a fall in the price of bitcoin so what he does is that he sells ‘put’ options for the asset to be sold at a certain price, which may be the price before the fall.

    The trader now has a hedge against the fall of the price, if at the time of expiration of the contract the price of the asset has dwindled further he does not lose money, thus creating a very comfortable space for him.

    Differences between options and futures contracts

    For people who are new to futures, it is important to understand there is a difference between futures and options. An options contract does not put an obligation on the buyer or the seller. In the American way of doing business, it gives them the right to execute the trade before the expiration time, while in Europe the right is given after the expiration time. 

    In a futures contract, the buyer has to take possession of the underlying asset, and subsequently, the seller has to sell him that asset, they can settle for the cash equivalent. However, the trade has to take place. 

    The buyer also has the option of loading off their position any time before the trade expires to get rid of their obligation. This is one thing that is common in options as well as futures trading giving an advantage to the buyer to benefit from the leverage holder’s position before expiration.

    FTX Exchange

    There are more than 1,000 crypto exchanges globally, each trying hard to break in and flip the market over its head and acquire a lot of customers. Yet only a select few have succeeded in the endeavor. 

    FTX has been one of the most promising exchanges, the exchange has in a very short time become the ‘go-to’ for professional traders, as it offers options other exchanges cannot. 

    As a result, it is one of the biggest derivative trading platforms for crypto in the world. It is highly recommended by crypto traders that have been working for a long time in the field. 

    FTX was founded by Sam Bankman-Fried in 2019. He is also the founder of Alameda Research, a cryptocurrency, and blockchain research company that creates specialized algorithms for trading cryptocurrency. 

    Learn how to get started with our FTX Exchange Guide.

    How to trade Derivatives on FTX Exchange

    As have previously published guides on how to add cryptocurrency in your wallet on FTX exchange, you can check it out over here. You would need cryptocurrency in your wallet to post collateral for futures so make sure you add some cryptocurrency to your wallet. 

    To trade futures on FTX you would first need to go to the markets tab at the top of the platform’s home page. 

    Once you have reached there you would be able to see the futures section, where several contracts would already be listed.

    In the section, you would be able to see almost all kinds of details about the futures, their expiration, price, trading volume, and the change in their value over the day as well. Along with crypto, you can also deal in futures contracts of US-based stocks and also some commodities as well.

    Once you choose the type of future you want to trade, you are taken to the console which has almost all the information one needs to trade the future.

    In the middle of the console, you can look at the trading window which has the graphs displayed. 

    The top right corner shows you the index details as well as the price of the futures contract, along with its expiration. The bottom right shows you details of the collateral you have available, and the leverage can also be set from there as well. 

    Coming down from the console you can come to the order book as well as the order execution tab and the market trades tab:

    Futures are a type of trade that is very complex thus requiring a lot of information on the console screen for traders to make a decision. Thus while the console may look clustered it is functional. 

    At the bottom of the console is the history book, where you can take a look at different positions you have had and the ones currently you are in. The data gives you a summary of the performance over time.

    The futures trades can be made through the console easily by keeping the collateral in your wallets. Once you have the collateral you can start trading futures through the exchange easily. 

    Trading options

    Options are traded just like futures on the exchange, a topic that has already been covered on the website. You can either go long or short on a particular contract and the settlement is made at the end equal to the expiration price.

    Expiration of Contract

    FTX’s options are usually settled in USD, it is important to note that on FTX the price of a particular cryptocurrency is based on the FTX crypto index’s average at any time one hour before expiration. This is a common practice to beat volatility in the market. 

    Let’s just assume you short sell two options of BTC each priced at around $300, now the BTC expiration price according to the contract is $35,200. That means that your option is worth $200. 

    Your option gives you the right to buy BTC at $35,000. Now, if the contract expires as such, after expiration you will have essentially a profit of $400 based on your holdings, which means that the $200 above the price of the BTC translates to the $400 profit that you will get at the end.  

    Buying and selling options on FTX

    To trade options on FTX exchange you first need to go to the Options section of the platform. The options can be curated based on the requirements you set.

    You can create an option based on your requirements and request a quote on the platform which is the most common way of buying options. 

    There are many people on the platform checking the requests and within 10 seconds you might find a responder to your bid. Then it is up to you to accept, as soon as you accept the quote the contract starts. 

    You can look at the requests you have opened in the ‘My Requests’ section. 

    Quoting Options on FTX

    Quoting is also really simple, you can look at the requests for quotes posted by people on the platform, you can take a look at the requirements set by them and give them a quote. Whichever quote is a better deal would be shown to the person who makes the request. 

    It is important to note that you have no idea if the person posting the request is buying or selling, you have to provide a quotation for both scenarios.

    You can see the requests for quotes in the ‘All Requests’ section.

    Conclusion

    As discussed, FTX was founded as a tool for crypto traders who didn’t have a lot of options to start trading with. Over time the exchange has developed a curated set of options for its customers. 

    The platform is very stable with a  focus on simplicity and minimalism, nothing on the platform is without a purpose. The simplicity makes it very easier for people to start trading on FTX. 

    However, it should be pointed out that futures and options trading are advanced levels of investing and require lots of research, reading, and learning before starting to invest. 

    It is a good way of hedging your risks in the market, however, you should only trade at the start with the money you can afford to lose, reckless investing is not the way to go about it. Hopefully, this guide will help you get started on your crypto trading journey. 

    Check out our other FTX guides

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • BitMart Exchange Review (2023): Complete Beginners Guide

    BitMart Exchange Review (2023): Complete Beginners Guide

    BitMart has users from over 180 countries can access a wide range of digital assets. This includes more than 1,000 cryptocurrencies and tokens. It is through their secure and reliable global cryptocurrency exchange platform. In this review, we will expand on how BitMart works, it’s features, advantages and disadvantages.

    Get up to $3,000 welcome bonus for signing up below!

    Sign-upsign-up

    What is BitMart?

    BitMart is a leading cryptocurrency exchange platform that was established in 2017 and began public operations in 2018. It is one of the top-20 cryptocurrency exchanges in the world. It offers users a secure and reliable platform to buy, sell, and trade digital assets. BitMart provides a wide range of services, including spot trading, margin trading, futures trading, and OTC trading. The platform also offers a variety of features such as 24/7 customer support, advanced security measures, and a user-friendly interface. With competitive fees, low latency, and high liquidity, BitMart is a good choice for traders looking to buy, sell, and trade cryptocurrencies.

    It is a cryptocurrency exchange platform that is gaining popularity among users. It also offers a variety of payment methods, including credit cards, bank transfers, and digital wallets. Additionally, BitMart offers a comprehensive customer service system. It has 24/7 customer support, and a variety of educational resources to help users learn more about cryptocurrency trading.

    Key Features and Advantages of BitMart

    Here are the key features of BitMart:

    Supports a Very Wide Assortment of Cryptocurrencies. BitMart is a top-rated cryptocurrency exchange that allows users to trade over 170 different cryptocurrencies in various trading pairs.

    Quite Decent Fees. BitMart is a cryptocurrency exchange that offers a flat fee model of 0.25% for both market makers and takers. With an additional 25% discount available for holders of BMX tokens or those trading higher amounts of cryptocurrency.

    Broad Selection of Payment Methods. BitMart offers a wide range of payment methods, including bank transfers, credit & debit cards, and PayPal.

    Perfect for Both Beginner and Expert Traders. BitMart is offering users features such as cold wallet storage, referral rewards, lending programs, and up to 100x leverage trading. All these are perfect for both beginners and expert traders.

    Key Disadvantages of BitMart

    At this point in our BitMart exchange review, we can conclude that the platform offers some great features to users. However, is it a reliable option for long-term cryptocurrency trading? To answer this question, let’s take a look at some of the less-positive user reviews of BitMart.

    Higher Fees When Buying Cryptocurrency with Fiat Money

    BitMart is a cryptocurrency exchange that offers a range of services, including crypto-to-crypto trading, fiat-to-crypto purchases, and more. The exchange is known for its low fees, fast transactions, and a wide range of supported coins. Fiat-crypto purchases on BitMart can be expensive, with fees depending on the payment method. BitMart has some minor issues, such as limited customer support and coin selection. But, these are outweighed by its overall benefits.

    All in all, BitMart is a great choice for those looking to buy, sell, and trade cryptocurrencies.

    BitMart is a cryptocurrency exchange that allows users to purchase cryptocurrencies with PayPal, credit & debit cards, or bank transfers. Fiat-crypto purchases on BitMart have higher fees but offer a secure, fast, and simple way to buy cryptocurrencies. The choice is up to the user.

    Not That Many User Reviews Found Online Yet

    When it comes to user reviews, there is a lack of them for BitMart exchange. However, most of the reviews that are available are overwhelmingly positive. This could lead one to believe that BitMart is an underground, shady trading platform, but this is not the case. BitMart is a legitimate and reliable cryptocurrency trading option that is worth considering.

    BitMart is a legitimate cryptocurrency exchange that is slowly gaining recognition among traders for its positive features. Despite its relatively young age, the platform is quickly becoming a popular choice for those looking to trade digital assets.

    BitMart Hacked for $200 million in December 2021

    In December 2021, BitMart suffered a security breach in which hackers stole about $200 million worth of tokens. BitMart suspended customer withdrawals and conducted a thorough security review following the hack. In an official statement, BitMart vowed to use its own money to reimburse victims of the hack. Some users complained several weeks later they still have not been repaid. However, there has not been any further news on this.

    How to Use BitMart Cryptocurrency Exchange?

    How to Register on BitMart?

    1. Visit the BitMart official website and click the “Get Started” button located in the top-right corner to begin.

    2. Create an account by entering your email address, setting a password, and confirming you are 18 or older.

    3. Verify your email address by clicking the link in the confirmation email BitMart sent to you.

    4. Log in to your account to complete the process – it’s that simple!

    Registering on the BitMart exchange is a breeze and can be done in a matter of minutes. With no need for KYC verification, users can quickly explore and use the exchange after signing up. This makes the process incredibly simple.

    After registering successfully on BitMart, it will redirect you to the main trading page. BitMart is simple and user-friendly, even for beginner crypto traders. Navigating the exchange is easy and doesn’t require any complex interfaces or leverage trading features.

    How to Purchase Cryptocurrency on the BitMart Exchange?

    1. Navigate to the upper-left corner of the trading dashboard after registering and click the “Buy Coins” button to start trading.

    2. On the screen that appears, you can select the preferred crypto purchasing method that best suits your needs. You will also be able to view the different crypto options available for each method.

    3. Choose the cryptocurrency and fiat currency you wish to buy, and enter the amount. You will then be able to view your wallet address.

    4. Once you have confirmed your details, you will be given the option to purchase cryptocurrency. You can pay with either a credit/debit card or via bank transfer. To complete the purchase, you will need to verify your identity (KYC) – a standard procedure for most crypto exchanges.

    Buying cryptocurrency on BitMart is a simple process. You can easily buy the cryptocurrency of your choice and have it delivered to your BitMart wallet in minutes. The platform provides clear instructions at each step of the way, so no special knowledge of crypto trading is required.

    Buying cryptocurrencies with PayPal or via a bank transfer is easy. If you don’t have any cryptos to transfer to BitMart, you can buy them on the platform easily.

    Conclusion

    BitMart is a good choice for people who want to trade cryptocurrencies. It has many coins to choose from, is easy to use, and has security measures and an insurance fund. It also has other features like leverage trading and referral programs. BitMart is becoming popular and has fair fees, but buying cryptocurrencies with regular money can be a bit expensive. Still, many people like using BitMart.

    Sign up now to get $3,000 welcome bonus!

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    BitMart Exchange Review

    When reviewing a cryptocurrency exchange, it is important to consider several key factors to ensure that the exchange meets the needs and expectations of its users. In our reviews, we have evaluated a crypto exchange based on the services it offers, the cryptocurrencies it supports, its trading fees, and its security measures. These criteria were chosen because they are essential for providing a comprehensive and reliable trading experience for users. So by examining these aspects of an exchange, we can provide an informed and objective assessment of its overall performance and value to users.

    Services offered: BitMart offers a secure and reliable platform for buying, selling, and trading digital assets, with services including spot, margin, futures, and OTC trading. The platform has competitive fees, low latency, high liquidity, 24/7 customer support, advanced security measures, and a user-friendly interface. It also accepts various payment methods.

    Cryptocurrency support: BitMart supports a very wide assortment of cryptocurrencies, allowing users to trade over 170 different cryptocurrencies in various trading pairs. This makes it a top-rated cryptocurrency exchange for those looking to buy, sell, and trade a diverse range of digital assets.

    Trading fees: BitMart offers quite decent fees for trading on its platform. It uses a flat fee model of 0.25% for both market makers and takers. Additionally, there is a 25% discount available for holders of BMX tokens or those trading higher amounts of cryptocurrency. (https://daveseminara.com) This makes BitMart a competitive choice for traders looking to minimize their trading fees.

    Security: BitMart takes the security of its platform very seriously and offers advanced security measures to protect its users’ assets. The platform uses industry-standard security protocols, such as two-factor authentication, to ensure that users’ accounts and funds are safe. Additionally, BitMart offers 24/7 customer support to assist users with any security concerns they may have.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Plus Token (PLUS) Scam – Anatomy of a Ponzi

    Plus Token (PLUS) Scam – Anatomy of a Ponzi

    What is Plus Token?

    “Plus Token” was a cryptocurrency Ponzi scheme disguised as a high-yield investment program. Platform administrators closed down the operation in June of 2019. Fraudsters abandoned the scheme by withdrawing over $3 Billion dollars in Cryptocurrencies (Bitcoin, Ethereum, and EOS) and leaving the message “sorry we have run“. This has led to an international manhunt for the platform administrators and creators of Plus Token. Plus token has been blamed for causing Bitcoin prices to fall in 2019 as stolen funds were sold via Bitcoin OTCs.

    PlusToken had a major following in Korea and China – especially among investors not familiar with cryptocurrencies. Plus token was a High Yield investment program that offered massive rewards on “investment” to unsuspecting victims in China and Korea. The scheme offered 9% to 18% monthly returns on investment – with larger investments getting more rewards. This type is similar to other High Yield investment programs like “Bitconnect” which collapsed in January of 2018.

    [wp-compear id=”5217″]

    How did the Plus Token Ponzi Scheme Work?

    Plus Token is a classic Ponzi scheme it lures unsuspecting victims to invest with promises of high returns and low investments. Plus Token maintained an illusion of sustainable business by pretending the funds are used to develop cryptocurrency-related products such as the Plus Token Wallet and Exchange. However, returns are generated by dividing more recent investments to pay off older members. The illusion of a sustainable business is what classifies this as a Ponzi Scheme, as victims actually believe that they are investing in a business that generates high returns.

    Plus Token also had a strong referral element, which gave huge bonuses to any member who referred friends and family into the scheme. Investors were divided into 4 “tiers”, according to how much they invested and how many other referrals they can make. This meant the more a member referred, the exponentially higher the return. Members started to refer their friends and family to invest in large sums of cryptocurrencies including Bitcoin, Ethereum, EOS, and Litecoin.

    Plus Token relied heavily in conferences and meetups to promote the token. The following video is taken at a Plus token gathering.

    Payments stopped 30th June 2019

    Early signs of trouble started surfacing in June of 2019 as users started reporting delays in fund withdraws. Some took to complain on the Chinese social media site “Weibo” citing that they were unable to receive funds despite writing for 35 hours after submitting withdrawal requests (Source Blocktempo).

    Initially, Plus token blamed on “higher miner fees” for the withdrawal delays. They claimed the sent transactions with 1 sat /byte, leading to long delays on the Bitcoin Blockchain. Plus token supporters avidly as their followers to “believe” in the system and disregard the “false information”.

    Ring Leaders tried to convince the community that Plus Token will come back.

    Scammers: “Sorry We have run”

    As funds began moving, one of the transactions carried the note “Sorry, we have run” as a comment to the transaction. This really needs no explanation – organisers of the scam have initiated their exit strategy and fled the country.

    109 members of Plus Token scam have been arrested

    Reports from Chinese news outlet CLS on 30th July 2020 reported that 109 individuals have been arrested in connection with the PlusToken scheme by the Ministry of Public Security. These include all 27 primary suspects thought to be responsible for the scam and another 82 core members.

    Is Plus Token still scamming users?

    On 29th April 2020, there were screenshots of the PlusToken app circulating on Chinese social media of a supposed notice announcing that version 3.0 beta of the app is now online. Subsequently, on 4th May 2020, a further notice was issued by the PlusToken team saying that version 3.0 beta will undergo compatibility synchronization and will stop all transaction functions. The notice further added that once this version is live, some eligible users will receive a reward. However, it seems more like an effort by PlusToken’s ringleaders to placate those who have invested by giving them hope that the project may return.

    Tip of the Iceberg

    PlusToken can be seen as the tip of the Iceberg as there are many other very similar crypto Ponzi schemes and scams. These include Cloud Token, S Block, and other cloud “mining” tokens. At the end of the day, tokens that ‘guarantee’ high returns without a clear and audit-able business plan should generate red flags.

    Laundering stolen funds into exchanges

    Luckily research is being down to track wallets known to be associated with Plus Token (8btc.com, @doveywan, @PeckShield). Work done by @PeckShield has shown funds moving from large wallets (~5000+ Bitcoin) to smaller wallets, and eventually into cryptocurrency exchanges. Due to the large sums of cryptocurrencies moved and actively being sold off – Plus Token played a role in dropping the price of Bitcoin.

    Known amounts scammed – List sum of BTC from identified and tracked addresses. Reports have been circulating that up to ~1% of the entire Bitcoin supply is involved in the scam. Currently more wallets are being added to this list.

    • 70000 BTC ($700,840,000 USD)
    • 789511 ETH ($142,111,980 USD)
    • 26299109 EOS ($92,046,881 USD)

    Known Bitcoin Wallet addresses (Source 1):

    • 1MFgcyJ7ZNSknbTBRaih6zWDE6V1A64tRY (1865 BTC)
    • 3ETAVt2scYBFkBFksuNDk1i5tDLQ2c4zWR (4922 BTC)
    • 3EYsru4LUcN258sENYPu5Py3S5WnqxEcnE (3657 BTC)
    • 3HKs1g7u5a1uU4pC5HaNooYMbL1Lao4mv4 (3928 BTC)
    • 3ESakThMrdVVrbhhcpf9spicyjCg1Uk8Jm (3289 BTC)
    • 33LNws16Wfs12usWBNfa1MSX3YKY6Hdayf (3270 BTC)
    • 3HwY536CxznDxMjiRCFkpx5ykwJbJMZY4w (1725 BTC)
    • 35bCzX3RQEWdquqCPQkmdJdu2K4ut1roUZ (3676.86 BTC)
    • 31owhyALzzPEqUFwRbU5yQR4wNhYEjCiE5 (749.66 BTC)
    • 3PBN3MCpDcZKr7WdyY1ULq1NeGwLNjpkj7 (12000 BTC)
    • 14bwh6gmvol5ntwbvxqjkjdtzv4y5ebtvm (95228 BTC)
    • 33FKcwFhFBKWHh46Ksmxs3QBu8HV7h8QdF (37922 BTC)

    Known EOS Addresses of Plus Token

    • eospstotoken
    • jnhgvbkkfdjf

    Known Ethereum Addresses of Plus Token

    • 0xF4a2eFf88a408ff4c4550148151c33c93442619e
    • 0x997114ca0830e9bee7443368fa27f4af2d4e55a6
    • 0x0f953ef137ee0894cc06383ccb1ef77e76660b5a

    Plus Token Sell-offs Responsible for Bitcoin Price Drop?

    Since as early as August 2019, Chinese cryptocurrency trading groups have already been circulating that due to the sheer amount involved, the scammers trying to dispose of the ill-gotten Bitcoin are pushing prices downward. And this price dump halted on 15th August 2019, coincidentally when Binance was suspended for trading because of a system upgrade.

    In late November 2019, this issue was again brought to the forefront when Twitter user Ergo reported having traced 187,000 BTC of the approximately 200,000 BTC attributed to PlusToken’s investors. As to these funds, Ergo found they were “shuffled” (albeit badly, if at all) and gradually sent to various cryptocurrency exchanges and OTC brokers, primarily Huobi, for sale on the market.

    Ergo’s findings on the PlusToken funds

    Ergo predicts that if all the “mixed” funds were sold from August to November 2019, it would average out to be around 1,300 BTC sold per day. This could lead people to think it would have an effect on Bitcoin prices, which has fallen from USD $9,981.41 on 1st August 2019 to USD $7,182.89 on 4th December 2019.

    Based on Ergo’s estimates of the amounts sold daily, the sell-off of the remaining 58,000 BTC or so Plus Token funds would continue for another 1.5 to 2 months.

    In an apparent pattern, PlusToken scammers move their funds when BTC prices experience volatility. Such was the case on 11th February 2020, when Bitcoin trading at around USD $9,800, almost 12,000 BTC (worth around USD $118 million) from one of the addresses associated with the Plus Token funds were moved and split amongst various other wallets.

    On 7th March 2020, Bitcoin was again trading at over USD $9,000. Again, Plus Token funds were being funneled through mixing services. This time, Twitter user ErgoBTC noticed that a total of 13,000 BTC (worth around USD $210 million) was involved. Analysts such as Kevin Svenson believe the scammers were “slamming the market with sell orders” every time Bitcoin prices went up so as to unload the funds.

    Is there a pattern to the movement of funds associated with Plus Token?

    According to ErgoBTC, the movement of funds to exchanges took a bit of a break from mid-March to early May 2020. Movement to exchanges has since then resumed and around 300-500 BTC/day is being moved to exchanges.

    Last of PlusToken funds moved to exchanges

    On 22nd June 2020, Twitter user Whale Alert found over 26 million EOS (worth over USD$67mil) had been transferred from a wallet associated with PlusToken to an unknown wallet, prompting cryptocurrency traders to go on high alert for potential downward price movement for EOS.

    Indeed on 24th June 2020 we did see a marked dip in EOS prices, though it cannot be confirmed that this was due to a sale of the PlusToken funds.

    EOS prices from 22 to 26 Jun 2020
    EOS prices from 22 to 26 Jun 2020

    Only a matter of a few days later on 24th June 2020, Whale Alert found another huge chunk of PlusToken funds, this time over 789,000 ETH (worth over USD$187 million) had been transferred from a PlusToken wallet to a new address, and yet again to another unknown address.

    These funds were then further split into multiple unknown addresses of varying amounts.

    Twitter user ErgoBTC, who has been following the movement of the PlusToken funds observes that the ETH that was recently transferred is the remainder of PlusToken’s unmixed coins which are now being moved to mixers. The purpose of this is to cloud the movement history of the PlusToken funds, so that they can avoid being flagged by exchanges when they are eventually sold on the market.

    In addition to the movements of EOS and ETH, it’s been a very busy week for PlusToken. So far they have moved over USD$428 million worth of cryptocurrencies to new addresses and the following exchanges: Binance, Huobi, HBTC, OKEx, Gate.io and MXC Exchange.

    Are Exchanges doing anything to deter scammers?

    Those behind Plustoken rely on cryptocurrency Exchanges to dispose of their scammed funds. Cryptocurrency exchanges do have Know Your Customer (KYC) measures in place which should identify and report any such activity since it clearly constitutes money laundering. However previous massive sell-offs by PlusToken took place in Huobi and Okex, thus demonstrating that their KYC and AML measures were ineffective in stopping them in that instance.

    Since the previous selloff, exchanges have stepped up their standards. For example, in reaction to the selloff Huobi has launched Star Atlas, an on-chain analytics tool to identify problematic activities such as fraud and money laundering on their Exchange. Meanwhile, peer-to-peer exchange Paxful has partnered with Chainalysis so that the exchange’s transactions can be monitored in real time.

    In the latest sell off, it has already been found that substantial funds are being mixed and deposited into Binance, Huobi, HBTC, OKEx, Gate.io and MXC Exchange. Nothing has happened yet, but many traders are already watching to see if a market crash could be incoming, whilst questioning whether the affected exchanges will take any action on the funds that are now in their hands.

    Chinese police seized US$4.2b of PlusToken, forfeited to China’s treasury

    Filings from the Yancheng Intermediate People’s Court reveal that authorities have seized 194,775 Bitcoin (BTC), 833,083 Ether (ETH), 1.4 million Litecoin (LTC), 27.6m EOS, 74,167 Dash, 487m XRP, 6bn Dogecoin (DOGE), 79,581 Bitcoin Cash (BCH) and 213,724 Tether (USDT) from 7 individuals convicted in connection with this case.

    This totals around USD$4.2bn worth of cryptocurrencies!

    Court filings have also indicated that the seized cryptocurrencies will be forfeited to the National Treasury. This is because in China, trading and dealing in cryptocurrencies is illegal. So victims have no legal right for return of the seized assets.

    Hence some victims have joked that they have inadvertently contributed to the national treasury.

    What is happening to Plus Token in 2022?

    It seems that the Plus Token saga, which started all the way back in 2018 had drawn to a close in December 2020 when the court in Jiangsu province, China sentenced the ringleaders of the Plus Token scheme to up to 11 years imprisonment. The main ringleader, Chen Bo and 13 other ringleaders were sentenced to between 2 and 11 years in jail. They were also fined various amounts ranging from 120,000 yuan to 6 million yuan. Another associate, Chen Tao, who was responsible for transferring the illegally obtained funds, was sentenced to over 4 years imprisonment.

    As mentioned in the previous section, all the confiscated cryptocurrencies obtained from the Plus Token fraudsters were turned over to the state.

    The Plus Token scam however is not dead in 2022. We can see from various social media outlets that people making periodical videos saying that the Plus Token project is alive and that they are working with a top Asian cryptocurrency exchange. Furthermore, these “influencers” who apparently have connections with those involved with Plus Token allege that once Plus Token is launched, they will not have a native token but instead the Plus Token proceeds will be issued in the form of that exchange’s own token.

    Note however that the “major Asian exchange” in question has never mentioned any working relationship with Plus Token, nor has there been any announcement that they will issue their own native token.

    Plus Token Sources and References

    Chinese Sources and News Coverage

    Special thanks to Matthew Graham for providing the videos and research!

    https://3kemao.com/archives/124864?from=singlemessage&isappinstalled=0 https://www.ccvalue.cn/article/3952.html?from=singlemessage https://mp.weixin.qq.com/s/EJLo-Rjjzz283FOCbzuLuA https://mp.weixin.qq.com/s/HQxl5gKd0105tUIsQ0TQPg https://mp.weixin.qq.com/s/rPtQAo0sf4P_LDM-8K0Z1g

    Crypto Wallet Addresses

    Chainnode Research: https://www.8btc.com/article/440193
    BlockTempo: https://www.blocktempo.com/unable-to-withdarw-plustoken-is-crashing-down/
    Plus Token Wallet Addresses: http://gscaijing.com/archives/21291
    CoinTelegraph https://cointelegraph.com/news/3b-ponzi-scheme-is-now-allegedly-dumping-bitcoin-by-the-hundreds

    Arrests / Man-hunt

    SCMP: https://www.scmp.com/news/asia/australasia/article/3016604/six-chinese-nationals-wanted-beijing-internet-scam-arrested

    SCMP: https://www.scmp.com/economy/china-economy/article/3112115/chinese-cryptocurrency-scam-ringleaders-jailed-us225-billion

    Plus Token sell-offs and Bitcoin price correlation?

    8BTC: https://news.8btc.com/bitcoin-dip-allegedly-a-result-of-incessant-bitcoin-selloffs-from-3-billion-ponzi-scheme

    Findings from Twitter user Ergo: https://twitter.com/ErgoBTC/status/1197496064854634496?s=20

    Updated on 4th December 2019 to include new section- Plus Token Sell-offs Responsible for Bitcoin Price Drop?
    Updated on 18th December 2019 to correct spelling mistakes and more details of how the Ponzi Scheme operated
    Updated on 9th March 2020 on the latest Plus Token moves in 2020.
    Updated on 25th May 2020 on the latest PlusToken prosecutions and ver 3.0 beta of the app.
    Updated on 25th June 2020 on the movements of PlusToken’s remaining unmixed funds in the week of 21st June 2020.
    Updated on 2nd July 2020 on what exchanges are doing in response

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • CertiK ($CTK) and CertiK Chain: What is in the Ecosystem?

    CertiK ($CTK) and CertiK Chain: What is in the Ecosystem?

    CertiK aims to provide a secure platform where blockchain infrastructure and decentralized applications can be developed. Its ecosystem consists of security layers that exist below the blockchain level, including the DeepSEA compiler, the CertiK Virtual Machine (CVM), and CertiKOS. Its native token, $CTK, has launched in Binance Launchpool on 27 October 2020. Below is a detailed overview of the CertiK ecosystem, including the CertiK chain.

    Background

    The CertiK Foundation supports the CertiK platform. The organization champions trust in blockchain systems. Its efforts are displayed through the development of a secure network that can boost confidence in decentralized systems. Furthermore, the CertiK Foundation is lead by renowned computer professors.

    What is CertiK?

    CertiK is a decentralized smart contract platform powering Dapps. Additionally, it supports inter-chain communication and runs on the Certik Chain.

    The system is primed for highly-specialized use cases. The protocol employs a PoS variation called delegated proof-of-stake (DPoS) and uses the Cosmos software development kit (SDK).

    The CertiK Foundation has taken upon itself to restore the trust in distributed platforms by employing cutting-edge security technologies and techniques. A key milestone achieved by CertiK is the provision of provable trust in a decentralized platform. Apart from focusing on security, the network also addresses performance and token economics.

    CertiK Token ($CTK)

    The economic aspect of the platform relies on the platform’s native currency, CTK. CTK’s major offering is being a utility token. (Provigil) Therefore, it helps power the crucial aspects of the CertiK ecosystem.

    For example, the token provides a mode of payment and settlement among the platform’s users.

    However, the token does not give its holders the right to interact and does not act as an investment into CertiK Foundation. Being issued inside a PoS-powered system, the token carries various benefits to incentivize holders to participate in staking and securing the network.

    Apart from being used on the CertiK protocol, CTK is a significant ingredient in the CertiK Chain. Here, the token is used to pay for transaction fees.

    In return, the fees reward staking nodes on the chain. Also, the token is used to reward those who delegate their CTK holding to validator nodes.

    CTK Token Allocation
    CTK Token Allocation (Image source: Binance Research)

    The token’s first issuance was achieved through two private sales that sold a total of 38 million CTK tokens worth a cumulative $39,430,000. Apart from the private sale 1 & 2 (29.0% & 9.0% respectively), the token distribution allocated 1.5% of its total supply to Binance Launchpool, 10.0% to the CertiK team, 25% to the CertiK Foundation, 17.5% to the community pool, and 8.0% to the CertiKShield pool.

    What is CertiK Chain?

    CertiK Chain is a blockchain protocol powering the CertiK ecosystem. It is highly secure and has cross-chain interoperability. To effectively achieve its mission, the platform incorporates key components such as a security oracle and a CertiKShield pool.

    Let’s dig into each of these components.

    CertiK Chain
    CertiK Chain (Image Source: CertiK Chain Whitepaper)

    CertiK’s Security Oracle

    The platform’s security oracle compresses audit reports to make them available on-chain. Basically, audit reports hold information as to the reliability of smart contracts. But, the reliability of smart contracts can be sabotaged by the data it uses to make decisions.

    With these reports living outside blockchain platforms, it poses a security threat prompting CertiK to bring them on-chain through its security oracle. Consequently, the network can effectively verify the security of a smart contract.

    Note that this component allocates scores depending on a smart contract’s latest audit report. The scores give an overview of a contract’s code reliability.

    CertiK Security Oracle
    CertiK Security Oracle (Image Source: CertiK Chain Whitepaper)

    More than just scoring contracts, the security oracle can track and report unaudited smart contracts. A distributed security team handles such reports. Using the CertiK Oracle Combinator, results from the security team are aggregated into a single score that can be accessed online. And, of course, the security team is rewarded.

    Luckily, this functionality is crucial in a decentralized finance (DeFi) setting where unaudited smart contracts are wreaking havoc. For example, by incorporating the CertiK’s security oracle, the responsibility of an audit is shifted from the contract creator to the contract users.

    CertiKShield Pool

    The CertiKShield pool is a unique component meant to minimize the risks emanating from the private nature of (most) cryptocurrencies. This may include losses from both avoidable and unavoidable circumstances such as house fires.

    The shield works by providing a flexible pool of CTK tokens. Since the token uses on-chain governance mechanisms, it can be used to compensate losses sprouting from inaccessibility and/or theft.

    In other words, this operates as an insurance platform. But, its decentralized nature allows it to receive inputs from all involved individuals before settling a claim.

    The CertiKShield Pool is made up of collateral providers and shied purchasers. Collateral providers earn staking rewards while shield purchasers pay for requested protection.

    CertiK Chain Architecture

    The main components of the CertiK Chain are baked together in an architecture that can achieve provable trust. Apart from the security oracle and the shield pool, the network’s backbone comprises a virtual machine and the DeepSEA toolchain.

    CertiK Virtual Machine (CVM)

    The CVM effectively eliminates the errors that may be introduced when converting smart contract code from human-based language to machine language. Although these errors may be unknown to contract developers, they pose a severe security risk.

    Being a security-first decentralized platform, the CVM relies on the output of DeepSEA, a certified compiler. The compiler’s output includes bytecode and mathematical proofs. The proofs can be used to isolate smart contracts’ code that doesn’t meet the security standards.

    DeepSEA Toolchain

    DeepSEA is a compiler and a programming language that’s hailed for its security. Notably, the CertiK-native tool is developed in conjunction with researchers from leading learning institutions such as Columbia and Yale University.

    DeepSea ToolChain
    DeepSea ToolChain (Image Source: CertiK Chain Whitepaper)

    The toolchain can determine the complex correctness properties of smart contracts. As such, it enhances the security of the network and products built on top of it.

    CertiK Governance

    The CertiK protocol uses on-chain governance methods to enable community involvement in decision-making. However, to vote for proposals, CTK holders can either delegate their voting powers to validators or vote directly. Validator nodes ensure the smooth running of the platform through powering activities such as block production.

    CertiK accommodates five types of proposals from its community:

    • Plain text: These are proposals that request modification of things like altering the number of incentives paid to validators.
    • Software upgrade: They lead to code modifications. They may include proposals to add new features.
    • Bounty: Examples of proposals in this category include those touching on creating chain artifacts and conducting security audits.
    • Community pool spend – They cater for the transfer of funds from a pool to an individual address, for instance, an individual developing a CertiK-specific product or upgrade.
    • Certifier: They are submitted by a certifier with a request to add or remove a certifier. Note that certifiers and validators vote on proposals.

    Conclusion

    In a space where malicious actors are always on the prowl for weaknesses in DeFi-focused smart contracts, CertiK provides the much-needed peace of mind. In addition, enabling a decentralized contract audit removes the need for DeFi users to solely rely on reports provided by the team, which, in some cases, are anonymous.

    From the security oracle to the reimbursement pools, to DeepSEA, the network structurally achieves a security-first approach with provable trust.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Reef Finance ($REEF): The All-In-One Defi Platform

    Reef Finance ($REEF): The All-In-One Defi Platform

    In the last months, we have witnessed the crypto space and blockchain industry go beyond the norm. With more decentralized finance (DeFi) projects than ever, it is clear that the next target should be greater adoption. However, the complexity of dealing with multiple (d)Apps interfaces in order to access a wide array of services, inevitably narrows down the number of participants. Reef Finance is built to change that.

    The way Reef Finance works is by reuniting all blockchain services together in a single, unified interface. This makes the whole DeFi user experience seamless and convenient. In just a single dApp, anyone can buy crypto, perform trades, stake assets, take loans, farm, manage their portfolio and more without any fuss.

    Tackling Defi’s Fragmentation

    What Denko Mancheski, CEO of Reef Finance, and his team had in mind when they started working on the project, was to solve an inherent complexity. Mancheski believes that, while there have already been many useful innovations in crypto recently, mass adoption is still difficult to achieve. The reason he points out is the psychological barrier that dampens the DeFi communities’ growth. True enough, the DeFi space today seems very fragmented. There are features existing in a particular application that are unavailable in another, and there are contract functions that would complement each other, but only exist on separate platforms.

    The space offers promising products, but they are too overwhelming to spur adoption, especially for beginners. This is why Reef Finance’s goal has been, according to Mancheski, to “abstract away complexities” and try to “onboard a simple non-tech savvy user.”

    What is Reef Finance?

    Reef Finance (“Reef”) is a non-custodial multi-chain smart yield engine and liquidity aggregator. Powered by Polkadot, it enables cross-chain integrations across various DeFi protocols.

    Essentially, it makes Decentralized Finance much easier to access, with the ability to diversify a portfolio in a single click. It functions as a one-stop-shop for DeFi projects that users can access without having to switch from different applications, one after another. Within its interface users can access different exchanges and, through the help of smart contracts, Reef combines the liquidity of these markets. Furthermore, trading can be easily done on the platform. 

    Reef Finance is the first Polkadot project ever launched on Binance Launchpool. The farming started on December the 23rd and will continue for 30 days. The platform will be beginner-friendly and will launch in Q1 2021, while the protocol has recently been audited by Halborn.

    Why Polkadot?

    Reef’s deployment on the Polkadot ecosystem will benefit users in terms of transaction costs and speed. As it is well known to many, the ‘traffic’ on the Ethereum’s network has often resulted in skyrocketing fees and long transaction times. This will continue at least until Ethereum 2.0 is fully deployed, which isn’t likely to happen for a while. 

    Polkadot, on the other hand, doesn’t suffer from the same issues. Parachains’ independence on the network prevents network congestion. It also powers Reef’s cross-chain functionality through the ‘Bridge’ protocol. By implementing this blockchain innovation, Reef can rely on products and services from different networks into a single interface.

    The Reef platform is made of three major components that complement each other.

    Global Liquidity Aggregator

    Reef offers a simil-exchange service linked to some of the biggest trading platforms in the space. The uniqueness here is that the aggregated liquidity goes through CEXs and DEXs. In this way, users can hedge the downsides of the two types of liquidity sources, among which trading fees and high slippage.

    Reef can access all the liquidity combined of CEXs and DEXs
    Reef can access all the liquidity combined of CEXs and DEXs

    The centralized exchange liquidity will be accessed through the use of brokerage services, such as Tagomi, Caspian or Quantreq. Conversely, decentralized liquidity will come from sources like on-chain order-books (0x) and AMMs (Uniswap, Balancer, Bancor….). Reef’s liquidity aggregation will also assist in protecting users from market manipulation and front-running attacks.

    All of this will make trading on Reef not only easy and affordable, but also diverse.

    Smart Yield Farming Aggregator

    Reef Yield Engine enables staking in multiple asset baskets which can be automated through the help of an AI that users can configure based on their financial needs. Users can decide how much to allocate to each basket and the operating system will dynamically rebalance and adjust them, moving portions of the allocations to other more convenient assets/pools.

    The purpose of the ‘Reef Intelligence Engine’ is to enable the AI to manage assets on user’s behalf. This helps automate the nitty-gritty of trading and staking for Reef’s newcomers. Planning a profitable allocation of assets according to each trader’s risk level has never been much easier in Defi. The engine is machine learning-powered, enabling its growth over time.

    Since the AI is data-driven, the information it holds is fed by an off-chain oracle (they have a partnership with Chainlink also). The oracle supplies data to proxy smart contracts that serve as the AI’s backbone. It monitors every pertinent information concerning services offered on the platform, whether they are social media data, latest news, or on-chain data.

    Reef also integrates with some Defi insurance protocols to provide coverages for its users.

    Smart Asset Management

    The third founding element of the platform is its asset management option. Users can seamlessly rebalance their allocations between their baskets through an easy UI accessible from mobile devices or computers. The AI engine will also make intelligent recommendations to help with taking decisions.

    The $REEF Token

    $REEF is the native, utility token of the Reef platform. It is mainly used to pay for transaction fees as well as support the protocol rewards structure.

    An important role for the platform is that of Network Collators. They assure that the network is healthy by keeping a copy of the full state of Parachains at a given time. They are similar to miners producing blocks, supporting the Polkadot blockchain. The Collators receive $REEF tokens as a reward for all basic operations such as processing transactions, deploying smart contracts, submitting a proposal and more.

    Staking and Governance

    Reef Protocol utilizes Polkadot’s Proof of Stake base consensus mechanism and it’s governed through a DAO structure. By holding and staking $REEF tokens, users can take part in important protocol decisions concerning the structure of the asset baskets, reserve limits, yield rewards, liquidity pools, and others.

    Stakers have the freedom to choose how they want to receive their rewards, whether in ETH/USDC or $REEF. Opting for the native token will lead to better rates.

    New Partnerships and roadmap

    Even though Reef Finance launched in late September, its development has been in progress for long. The project secured over 20 partnerships in 2020 and more are coming this year. Among them, important were those with Matic, Kava, Covalent, Bluzelle and Chainlink. Reef’s integration with Binance Access Api will also allow a FIAT ramp for cryptocurrency purchases along with a decentralized trading opportunity within their platform.

    In January, they secured a new partnership with OpenDefi, a platform that allows the tokenization of insured and physically backed real-world assets, held by custodians. Users can stake to receive instant loans against their assets and enjoy yield opportunities. More on the partnerships and on OpenDefi can be found here and here.

    Another notable collaboration is the one with Manta Network, a cross-chain privacy devoted Defi platform and price-stable Dex. Reef users will be able to access the liquidity offered by Manta Network Dex, reinforcing the core aspect of Reef Finance: liquidity aggregation.

    On January the 20th a two-week “zero gas fee” initiative started on OpenOcean, a trading platform, which has given traders the opportunity to receive a refund for all the fees spent while trading $REEF. The offer was limited to a total of 40,000 $REEF.

    The official Roadmap is constantly updated and more information on future news can be found on Reef Finance’s Medium page. This project is definitely one of the most anticipated and rumored in 2021!

    Conclusion

    DeFi innovation has to attract a lot more people to keep creating a vibrant and supportive community. After all, it is adoption that helps sustaining all these blockchain developments in the long run. Simplifying access to multiple DeFi products and creating a unified platform is exactly what the space needs today.

    Reef Finance’s target to abstract (?) DeFi looks promising. Not only do they make it easier for users to tap into other exchanges, but the platform also introduced AI technology to make it convenient for traders to manage their assets. The project may be young, but it has the tools users need to efficiently and profitably take control of their funds.

    Our interview with Denko Mancheski, CEO of Reef Finance

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Public Mint ($MINT): can they bridge fiat and cryptocurrency?

    Public Mint ($MINT): can they bridge fiat and cryptocurrency?

    Public Mint seeks to solve transaction complexity by bridging the blockchain and the financial world of fiat. According to Public Mint adoption has always been the concern of the cryptocurrency community. And while tokens are becoming increasingly popular, the number of new entrants in the space today is still not enough to spur massive acceptance of crypto-assets in retail stores.

    Background

    Public Mint was launched in March 2020, following two years of research and development. It was created to make banks capable of holding funds that could later be tokenized on the blockchain. Today, it has been mainly implemented to ease the experience of using fiat currencies in performing blockchain-based transactions.

    Ever since the launch of the platform, it has already partnered with more than 200 banks that hold the fiat used to collateralize its tokens. Some of its prominent supporters are IBM Digital Asset Labs and Hyperledger.

    What is Public Mint?

    Public Mint is a decentralized, payment platform that aims to bridge the blockchain and fiat currencies. It offers tokenized fiat which is fully-collateralized and regulatory compliant. To secure the funds held in the platform’s accounts, they are also insured with the FDIC.

    Public Mint can be used to open blockchain-based fiat accounts to conduct money transfers worldwide without the need for any third-party facilitator. And because the platform was designed to be decentralized, it will not have control over the ownership and management of its user funds.

    The acceptance of payments via credit card, ACH, or wire transfer, are all made possible with the Public Mint platform as well. This makes it easier for anyone to perform transactions on the blockchain without having to exchange their fiat to crypto.

    Public Mint’s Open platform is designed to support these functions and make it easy for anyone to tokenize any fiat in the network. Tokenizing through the platform simply means that you will be able to make a token counterpart of your local currency on the blockchain.

    Features of Public Mint

    Fiat-Native Blockchain

    The platform supports the use of fiat in asset transfers and payments for network fees. Thanks to this feature, users do not need to purchase another digital asset just to be able to initiate transactions on the network.

    Simplified Key Storage

    It is easy for any user to store their private keys. The platform furnishes users with their own keys, which they can store in any cloud provider. Through this, the user has full control over his own funds without dealing with centralization problems like censorship.

    Direct Fiat Access

    Public Mint has a bank-to-chain feature that allows users to directly fund their wallets from various sources. At the same time, it also has a chain-to-bank feature that lets users directly withdraw their funds to their bank just using their wallet.

    The platform also supports USDC, making it easier for any crypto user to interact with other blockchain platforms.

    Public Mint wallet
    Pay others from your public mint wallet

    Multi-custodial

    There are multiple custodians on the platform. They are composed of banks and other regulated financial institutions. Their purpose is to hold funds while the multi-custodial structure of the network ensures that there will be no single point of failure in the system.

    Public Mint supported merchants
    Public Mint supports several major payment merchants

    Instant Transaction Settlement

    Transactions made on Public Mint can be settled in as fast as 3-5 seconds because the network offers finality with just one confirmation.

    Ethereum-Compatible

    The network is compatible with Ethereum, which means that any developer can build on the platform and improve it. It can also support decentralized applications that are established on the Ethereum network.

    What is the difference between Public Mint’s tokenized fiat and stablecoins?

    Stablecoins like Tether (USDT), USD Coin (USDC), TrueUSD (TUSD), were only designed to support one fiat: the US Dollar. And to purchase them, there are times that you have to first buy another cryptocurrency trading pair. According to the team behind Public Mint, this process can be too complex for a newcomer and it also exposes them to the volatility of other digital assets.

    Public Mint has its own fiat-dedicated network. The platform supports a comprehensive ecosystem that is designed to support the direct use of fiat currencies to make blockchain-based payments. And unlike the usual stablecoin, Public Mint is designed to support the use of multiple fiat currencies on the platform

    Conclusion

    Public Mint is a strong competitor among stablecoin platforms. However, its strength lies in its ability to facilitate easy and real-time transactions. If its partnerships with banks prosper, it can support a global payment ecosystem that will not fully rely on a blockchain. This addresses the problem most stablecoins users face in terms of transaction time and costs.

    Moreover, it can be a less volatile medium of exchange since it is collateralized by fiat and not by other digital assets. If ever the platform gets hacked and its funds are stolen, users are secured by its FDIC-insurance. Looking at where Public Mint is today, its potential to be the go-to alternative from stablecoins is high.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Ethernity Chain ($ERN): Authenticated NFTs for a good cause

    Ethernity Chain ($ERN): Authenticated NFTs for a good cause

    Ethernity Chain is a blockchain-based platform that deals with limited authenticated NFTs from top artists and with endorsements from popular figures in the sporting and entertainment scene.

    Although Bitcoin concentrated on hedging away from government-issued currencies, its blockchain technology opened a much bigger world of possibilities. For example, Ethereum tapped into the technology to build a decentralized computer and power decentralized applications (Dapps). Next came decentralized finance (DeFi). Non-fungible tokens (NFTs) then followed suit.

    However, most NFT projects concentrate on the broad digital artwork space. Consequently, they fail to address specific problems in any of the artwork subsections. This leaves room for platforms such as Ethernity Chain to take over. Below is a detailed overview of the platform and what it brings to the NFT ecosystem.


    Background

    Ethernity Chain is a community-focused project that banks on artworks from top artists and stars.  The project’s team is led by Nick Rose Ntertsas, the platform’s founder and chief executive officer.

    What is Ethernity Chain?

    Ethernity Chain deals with limited authenticated NFTs from top artists and with endorsements from popular figures in the sporting and entertainment scene.

    Its vision is to raise funds for charitable causes while at the same time keeping NFT creators motivated. The charity offerings ride on the project’s for-profit status that allows it to design services for more users compared to non-profit themed networks.

    Apart from charity, Ethernity Chain provides a crucial connection between non-fungible tokens and the wider DeFi industry. Consequently, it enables increased access to rare and collectible virtual artworks designed by reputable artists and features respected public figures. Notably, featured celebrities must approve the NFTs using a digital signature, known as aNFTs.

    What are aNFTs?

    aNFTs are authenticated non-fungible tokens- a unique creation of Ethernity Chain. These aNFTs are authenticated by the creator so that purchasers or traders know it is officially endorsed by them.

    Users can buy these aNFTs using Ethernity Chain’s native token, known as ERN. ERN can be purchased on the market or earned when users LP stake and earn ERN and use these rewards to purchase aNFTs.

    Pelé charity aNFT collection

    Ethernity Chain has recently released the officially licensed collection from renowned football legend Pelé. The collection will comprise authenticated non-fungible tokens (aNFTs), of which 3-6 pieces will drop on the Ethernity Chain platform on 2 May 2021.

    90% of the proceeds from the sale will go towards the Pelé Foundation, a charity that empowers and educates children battling poverty around the world.

    Major Ethereum Chain Products

    Ethernity Packs

    Here, NFTs have a community focus and employ a lottery model. Notably, these packs have a minimum and maximum price of $50 and $300, depending on rarity. The Ethernity Chain team curates all the collectibles in this category.

    To awaken collectors’ taste buds, the team hides rare NFTs inside random packs, and collectors won’t know what’s inside before purchase. Also, the packs are available at different times on the network. Interacting with this product requires the platform’s native asset, ERN. Note that Ethernity Packs have a connection to STONES.

    STONES

    STONES is a product earned through staking the native token. In other words, it’s a farm-only offering. The farming process involves interfacing your MetaMask wallet with Ethernity Chain using the Ethernity.io platform.

    Note that one ERN coin gives its holder 1000 STONES when locked in the farming contract for one day. Unfortunately, STONES are indivisible. As such, if you unlock your ERN tokens before the completion of the staking cycle, you end up with no rewards.

    Additionally, STONES cannot be transferred from the farming contract, have no monetary bearing, and can’t be swapped with ERN or Ethereum (ETH). This leaves them exclusively for exchanging with a select number of NFTs on the protocol.

    March 24, 2021, marks the first STONES farming spree, with the second slated for the end of April the same year.

    Ethernity Chain ($ERN) Staking and Rewards

    Ethernity Chain runs a staking program for liquidity providers. However, the rewards go to those who choose to interact with the ERN/ETH pair on Uniswap. Staking has a lockup period of 30 days, after which the pool is restarted. The annual percentage yield (APY) for staking fluctuates between 100 and 300% and has a monthly payment plan.

    How the ERN staking process works

    1. First, deposit tokens in Uniswap’s V2 ERN/ETH pair.
    2. In return, the decentralized exchange (DEX) issues LP tokens equivalent to your stake in the pool.
    3. Next, access the staking option on Ethernity and connect your wallet address that holds the assigned LP tokens. Then, approve and lock the tokens into the staking contract known as the Liquidity Reward Program.
    4. Note that Ethernity Chain ties the unstaking event with claiming ERN. As such, unstaking automatically claims the native asset.
    5. Staking rewards are calculated by dividing the amount of LP tokens a staker has in the contract with the total amount of LP tokens padlocked in the staking contract.

    Ethernity Chain ($ERN) Tokenomics

    The total ERN supply is 30 million tokens. Token distribution includes to team/advisors (20%), partnerships (8%), expansion (6%), staking/rewards (12%), and reserves (15%). Also, there’s a 30.6% allocation to private price sale, 3.33% to a public initial digital offering (IDO), and 5% to liquidity.

    However, some of the allocations have different freeze and unlock times. For example, the private sale has a two-month vesting period, while distribution to partnerships has 14 months vesting time.

    Ethernity Chain Strategic Partnerships and Investments

    Ethernity has its eyes set on interacting with the larger cryptocurrency industry. As such, it has inked notable partnerships with major firms building different products. For example, the protocol partnered with Kenetic, a reputable global blockchain-focused firm working to drive the adoption of decentralized protocols by offering investments, technology, tech, and advisory services. Kenetic’s managing partner, Jehan Chu, believes “NFTs are the true missing link between online and offline objects.”

    They have also partnered with Chainlink by integrating Chainlink’s oracle solution to secure the minting and pricing of aNFTs.

    Another notable partnership is with Terra Virtua, an inter-blockchain NFT protocol. Terra Virtua, through its Terra Virtua Kolect platform, provides a tailor-made marketplace for NFT collectors and creators on the web, mobile, and PC environments.

    Conclusion

    With a growing NFT ecosystem, Ethernity Chain provides a specific solution to the sector. For example, its focus on authenticated digital artworks gives collectors assurance of rarity, among other things.

    Notably, the works are authenticated by globally renowned individuals such as Tony Hawk, a skateboarding legend, and Fernando Tatis Jr., a high-profile baseball player. Also, partnering with major firms like Terra Virtua and Kenetic boosts its vision in the future of the non-fungible industry. (https://www.smallhandsbigart.com/)

    Also, other hidden gems inside Ethernity Chain Packs keep the collector’s hope alive. STONES add fun to the NFT farming while staking allows liquidity providers to earn rewards.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.