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Category: Latest News

  • Newsletter #18: Bitcoin prices reach all-time highs

    Newsletter #18: Bitcoin prices reach all-time highs

    As we near the holiday season we would like to wish everyone a happy and safe holidays! Here’s hoping for gifts of Bitcoin and altcoin pumps!

    Bitcoin reaches ATH of USD$24k!

    It has been awaited for a very long time, but after exactly 3 years the moment has arrived. Bitcoin has literally smashed through the previous high reaching the incredible price of $24,000!

    All the charts look stunning, whichever you look at: daily, weekly and monthly they all say the same thing: Bull Season is here!

    While nobody knows how exactly this will play out people believe that we are in a bull market now. Many actually believe it started right after last March’s Black Swan, where all markets (not only crypto) basically flash crashed within a day.

    If we take a look at the weekly chart, we are still far above the 21 EMA (Exponential Moving Average) and the Relative Strength Index (RSI) is at 2017 peak levels. On the weekly chart it has only been decisively higher a couple of times in 2013. As we repeatedly said in previous issues of the newsletter, big retraces (around 30-40%) are to be expected in bull markets. Until now, the maximum negative “delta” in price we had since last March has been around 20%. This doesn’t necessarily mean that a massive dump is going to happen now though (could happen like not). (https://www.apolloclinic.com/)

    $BTC weekly chart, RSI at top 2017 levels
    $BTC weekly chart, RSI at top 2017 levels

    Bitcoin still not “hot” on Google Trends

    If we have a quick glance at Google Trends we can notice how the query “bitcoin” is still not very much searched worldwide, especially when compared to 2017’s peaks. This is a sign that even though mass media exposure has recently picked up the $BTC trend, the retail FOMO is probably still distant from where we are now. This could hopefully mean that the upside is still gigantic!

    Every $BTC holder is now in profit

    Thanks to the recent pump, Bitcoin is now #12 in assets’ ranking by Market Cap. Just behind Visa and ahead of Walmart! Moreover, the fact that we are beyond ATH, in unexplored price territory, automatically means that each person that has ever bought a fraction of the coin before last week, is now in profit!

    As a consequence, as Glassnode reported, the number of addresses holding more than $1 millions worth of $BTC has increased +150%, equal to 66,540 single wallets now!

    Ethereum follows Bitcoin’s upside while Grayscale continues to load up

    After “The King” moves, the rest usually tends to follow, starting with Ethereum. ETH prices have been going up reaching a new high of almost $680 this week. Differently from $BTC though, its ATH is still way higher than this level, at more than $1400. 2021 could look like the year price will finally reach unexplored territory.

    Meanwhile it doesn’t come as a surprise anymore that big investors continue to accumulate crypto, despite the continuous rise in price, spreading positivity about crypto’s future. According to a report, Grayscale keeps accumulating $ETH. Their Grayscale Ethereum Trust is still considered “the only SEC-registered way to invest in Ethereum.”

    Are you interested in staking on your Ethereum? Learn how to make passive income with ETH 2.0!

    The FinCEN is proposing new KYC reinforcements

    As anticipated in the last weeks, it is now official. The Financial Crimes Enforcement Network (FinCEN) is “proposing a rule on certain digital currencies that will protect national security, assist law enforcement and increase transparency while minimizing the impact on responsible innovation”, said Steven Mnuchin, lead of the U.S. Treasury Department.

    The proposal will impose new regulations on transaction records including those to self-hosted wallets. Especially used in Defi where users prefer to keep their funds in decentralized manners, where they are the only ones responsible for what happens, these private wallets have not required KYCs until now. As a result of the changes (CVC stands for convertible virtual currency while LTDA for legal tender digital asset.):

    “The proposed rule complements existing BSA requirements applicable to banks and MSBs by proposing to add reporting requirements for CVC and LTDA transactions exceeding $10,000 in value. Pursuant to the proposed rule, banks and MSBs will have 15 days from the date on which a reportable transaction occurs to file a report with FinCEN. Further, this proposed rule would require banks and MSBs to keep records of a customer’s CVC or LTDA transactions and counterparties, including verifying the identity of their customers, if a counterparty uses an unhosted or otherwise covered wallet and the transaction is greater than $3,000.”

    This embitterment in regulations was firstly revealed by Brians Armstrong, CEO of Coinbase, in a tweet at the end of November, where he expressed his doubts and concerning on the matter, together with many other public figures. Four U.S Congressmen wrote a public letter and Wyoming Senator-Elect Cynthia Lummis shared her concerns as well in a tweet. The major point of debate are the fact that the proposal could do more harm than good to investors and could leave the U.S. behind in blockchain technology, deviating principal investments outside the county.

    Coinbase IPO is getting closer

    Coinbase, the known U.S. exchange, has “submitted a draft registration statement on Form S-1 with the SEC. The file is now being reviewed. If approved, its IPO will be one of the biggest and most awaited in crypto, considering that Coinbase is already the most valuable American crypto company.

    It is not actually easy to determine exactly how much the company is worth at the moment. The Last evaluation in a funding round in 2018, was of $8 billion, but Coinbase is certainly worth more now, especially considering what prices has Bitcoin arrived at in 2020.

    The Graph goes live on mainnet

    The Graph ($GRT), “the first global and easily searchable index of blockchain data”, has launched its mainnet after 3 years of development. The indexing protocol aims at making web3 accessible to everyone and helping create applications that require no servers.

    The listing was one of the most successful ones recently and the token is already tradable on many exchanges, including first tier ones like Binance and Coinbase. The price is now 24 times higher than that of the token sale which happened last October. At that time, it was offered at $0.03!

    The first phase after launch will be useful to stress and improve mainnet performances before the queries amount will increase exponentially. Following, in the next months, the team will be building a “production-ready Graph Explorer dApp and Gateway” to support all network contributors.

    Here’s everything you need to know about The Graph in our article.

    Red Flags

    Ledger Email Breach – 270,000 emails & addresses leaked publicly

    On July the 14th, Ledger’s database got breached when a hacker stole 1,075,382 email addresses and 272,853 hardware wallet orders. This meant that personal data such as emails, phone numbers and physical addresses (for people who actually bought a device) were probably available behind payment to the hacker himself. As a matter of fact, numerous have been the phishing attempts reported in the last months, usually via emails and/or text messages to their phones.

    Today, as if this wasn’t bad enough itself, the whole database has been dumped for free by an anonymous profile on Raidforum. While funds are still technically safe, users, at the very leas, should expect a new and massive wave of phishing tentatives.

    Check out our video where we explain everything on the Ledger data breach: what happened, who is affected and what NOT to do right now.

    URGENT: Ledger Email Breach – 270,000 emails & addresses leaked publicly

    The company commented on twitter confirming that “early signs” tell them this content is probably from their database.

    They also shared a page with phishing news and tips, like the classic “Never share the 24 words of your recovery phrase with anyone under any circumstances”. While this is certainly important, it is difficult to imagine that hardware wallets’ users still need to hear it. Considering that now anyone can see where the devices owners live, they would probably rather know that the company is actively doing things to prevent future breaches and more.

    Even though protecting funds with col wallets is not something for just rich crypto holders, this is what most people think, and we can all imagine what criminals can do with those addresses in their hands.

    Unfortunately, it appears that new phishing messages are already coming.

    You can use this website to check whether your personal data (and what) was compromised https://haveibeenpwned.com/

    Nexus Mutual’s CEO personal address got hacked

    Unfortunately, this week brought new red flags. The most prominent one involves a project whose mission is (almost ironically) that of protecting protocols’ users from malicious actors.

    Hugh Harp, founder of Nexus Mutual, has seen his personal wallet directly attacked. The hacker has mysteriously managed to install a malicious version of Metamask on his computer, misleading him into confirming a transaction to a different recipient address. The hacker himself. It is one of those cases where using a hardware wallet to sign transactions as second layer of security can’t help.

    The CEO, recognizing this hack was “next level stuff”, has offered a bounty of $300,000 to the hacker in case he decided to send everything back. The unknown figure answered via input data on a subsequent empty transaction.

    “Hello Hugh. I will not sell wNXM any more until wNXM recovers his value or you send me 4.5k ETH. If you need any negotiation with me, send msg to my eth address…..“

    The text end targeting other Hugh’s personal addresses, exposing Hugh’s private details even more.

    We will see how this story unfolds. Meanwhile, someone has started a gitcoin grant to directly compensate Karp for what happened. As a response, he has proposed that all the money raised would be used for improving smart contracts security.

    Boxmining happenings

    • Worried about your funds? Learn more about Cover Protocol ($COVER), one of the most successful platform where to buy coverages.

    Cover Protocol ($COVER): peer-to-peer coverage market for DeFi

    • Yearn Finance ($YFI) has recently partnered with many other top level protocols. Here’s our introduction to the Yearn extended family!

    Yearn.Finance merging the DeFi Ecosystem

    • Interested in lending-borrowing? Is a credit scoring system appealing to you? Listen to what is $WING and how can you profit off of it!
    • Wootrade ($WOO): Boosting the power of cryptocurrency trading?

    Wootrade ($WOO): Boosting the power of cryptocurrency trading?

  • Newsletter #16: Ethereum 2.0 Launches successfully

    Newsletter #16: Ethereum 2.0 Launches successfully

    Market situation: Is the $BTC sale over?

    This week we have witnessed a very strong Bitcoin comeback after the approx. 20% price dump. The price has been going sideways in the USD $18-19,000 area for a few days now in the anticipation of the next move. The bottom of the dip was $16200 (Bitstamp) and many hope this could be the right time to pass the critical wall at $20k (which many have been dreaming about for years). The Relative Strength Index (RSI) on the weekly chart is still in overbought territory and we are far above the 21 Moving Average, an indicator that has historically been respected pretty well by previous bull runs, when the price repeatedly bounced over it during retraces.

    In the meantime, some altcoins have had relief rallies like $SUSHI (2.25x in 10 days) and $RAMP (x2 in the same period), which is now at 6x since the after-launch bottom in October 2020. 

    On the daily chart, we can observe that after the initial spike to almost ATH at the highest existing weekly resistance on the chart, Bitcoin dropped quite abruptly back to the previous weekly support before bouncing back strongly. This channel has then been respected perfectly until now. The price seems to be consolidating at its top and we all hope this could be the launchpad for the next run up!

    Facebook’s Libra to launch in January 2021?

    Libra, the awaited digital currency project founded by Facebook in 2019, could see the light of day at the beginning of 2021.

    In an article published by Coindesk on November 27th, sources claim that the Libra (now re-named Diem) may launch with only one stablecoin, backed by the dollar, unlike the original plan which included a basket of different FIAT currencies (we wrote about Libra/Diem in depth here). 

    Libra/Diem’s journey has been quite tormented by regulators in its short history and some of the initial members have already left the project, like Paypal, Mastercard  and Ebay. Many others have declared that they are waiting to see how the launch will go before even considering an investment.

    Regulatory approvals by the Swiss Financial Market Supervision Authority (FINMA) are still pending. There is no official date.

    US regulators tighten grip on stablecoins

    One of the issues related to stablecoins (like Facebook’s Diem) could now become the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act.

    Introduced by the United State Congress, it aims at reinforcing regulations for stablecoins and stablecoin-related products. In particular, it would require issuers of stable coins to get bank charters and regulatory approval prior to circulating stablecoins.

    The justification for this regulation, according to US Representative Rashida Tlaib is that it would prevent cryptocurrency providers from repeating the crimes by “big banks” against low-moderate income minorities.

    Under the proposed regulations, cryptocurrency providers would be required to fulfill a list of actions like “Require any prospective issuer of a stablecoin to obtain a banking charter” or “Require that any company offering stablecoin services must follow the appropriate banking regulations under the existing regulatory jurisdictions” and more.

    While this should mainly impact private stablecoins provided by big tech companies or big exchanges (and probably less the DeFi movement), many in the cryptocurrency space have raised their voices and doubts. The problem being that, in the end, these regulations if they do become law could have the opposite outcome of what is proposed. Cryptocurrencies have always been totally transparent and equal to all the people who want to invest in it. Costs involved in maintaining your portfolio are mostly negligible, unlike the traditional financial sector, there is no need to wait weeks for approvals, everyone can control their own money and you can access them from anywhere in the world, no matter your “social class” or bank account. Could these regulations in fact increase costs and deter poor people from accessing these services?

    European Central Bank is working on the Digital Euro…will it surpass China’s DCEP?

    Speaking about digital currencies Fabio Panetta, board member of the European Central Bank (ECBD), outlined last week four major areas they are mainly working on to bring forward the digital Euro:

    1. The Target Instant Payment Settlement (TIPS), which allows “individuals and firms to transfer money between each other within seconds”. In particular the ECBD needs to establish that it will be able to function with hundreds of millions of customers;
    2. interoperability between centralized systems and distributed ledger technology (DLT);
    3. use of “payment-dedicated blockchains with electronic identity”; and
    4. study of hardware devices able to maintain the privacy.

    Read the whole article by ledgerinsights. 

    Will it surpass China’s national currency DCEP? For now it seems unlikely as DCEP is in much more advanced stages of testing. The most recent test being a large scale airdrop of RMB 10mil to around 50,000 Shenzhen residents to spend. 

    Learn more about China’s DCEP.

    ETH2 is live!

    On 1st December 2020 the Ethereum 2 Beacon Chain went live exactly one week after the threshold deadline!

    If you are interested in becoming a validator, you can read our full guide here or watch our dedicated livestream on how to set up an Ethereum 2.0 Node!

    GBV acquires OMG Network

    Genesis Block Ventures (GBV), an investment company working with Genesis Block, has announced the acquisition of OMG Network.

    This decision was taken to “leverage its (GBV) network strength, to promote the accelerated growth of OMG Network, and further enhance the adoption of OMG blockchain in Asia and beyond”.

    This is the first acquisition for GBV, an “investment company with a mission of building the future through blockchain” which has been pretty active in Defi this year and has so far worked on building meaningful relationships and collaborations in the area.

    OMG, which launched in 2017 as Omisego, is a second-layer scaling solution for Ethereum platform capable of high-speed transactions (thousands per second).

    Find out more in our upcoming livestream

    See HERE for back issues of our newsletter! 

  • Developing: Huobi Executive rumored to be held under custody

    Developing: Huobi Executive rumored to be held under custody

    Rumors have surfaced in China that a Huobi Executive has been held under custody by Chinese Authorities.

    Huge deposits into Huobi

    There has been a deposit of over $400 Million worth of Tether and other cryptocurrencies to the exchange. Two of the transactions are extremely large, accounting for $304 million USD (as spotted by Whale alerts).

    China is tightening control over cryptocurrencies trades

    On an official level, cryptocurrency exchanges are not permitted in china after the 2017 ban. However, enforcement of this policy has been relatively weak in 2018 and 2019. Cryptocurrencies were traded largely via OTC – over the counter desks that exchanged fiat deposits to crypto. Interestingly enough, key Chinese exchanges such as Huobi, Okex, and Binance all offered OTC matching services. It is important to make the distinction that exchanges didn’t facilitate the actual exchange – instead, they matched exchange users and independently operated OTC services.

    In 2020, OTCs bank accounts were targeted and bank accounts of involved parties were suspended.

    Huobi Token drops in value

    The value of the Huobi token declined by over 20% in a flash crash following the rumor. This was also correlated to the large movement of USDT out of the exchange.

    Which Huobi executive is rumoured to be arrested?

    Initially it was suggested that Chairman, Founder and CEO Leon Li was arrested. As with the OKEx detention incident, people on Chinese social media tried to find ways to see if this was true. Among those were people who again tried to check his pedometer and breathed a sign of relief when they found he had been walking more than 5,000 steps today.

    Li Lin pedometer
    Li Lin pedometer

    Huobi Denies all rumors, stating they are false

    Huobi has come out to deny all the rumors, stating that there are no members of the Huobi team that are taken under custody.

    https://twitter.com/HuobiGlobal/status/1323308773390249985?s=20

    Users rush to withdraw their funds from Huobi

    Nevertheless, users are not taking their chances and rushing to withdraw their deposits from Huobi. According to Whale Alert, nearly USD$240 million worth of Bitcoin has been transferred out of Huobi in the space of 2 hours on 3rd November 2020.

    Some transfers out of Huobi
    Some transfers out of Huobi
  • We hear you! Don’t miss out the chance to win Boxmining NFTs!

    We hear you! Don’t miss out the chance to win Boxmining NFTs!

    We have received an overwhelming response in our previous contest. For those that didn’t manage to win our giveaway the last round, here’s your chance!

    Simply follow the steps below:

    Boxmining Limited Edition NFTs Up For Grabs!

    Contest ends: 16 November 2020, 11.59pm HKT

    Winner announcement: 18 November 2020. Winners will be contacted directly via email.

    Don’t miss out your chance to win!

    Terms & Conditions:

    1. Contest duration: 30 Oct, 10am (HKT) – 16 Nov, 11.59pm (HKT). 
    2. Contest ends on 16 November 2020, 11.59pm HKT. Entries received after this time period will not be considered.
    3. Entrants to this contest shall be deemed to have accepted these Terms and Conditions.
    4. Winners will be chosen at random by computer software, from all entries received and verified by Boxmining. 
    5. Boxmining reserves the right to cancel or amend the competition and these terms and conditions without prior notice.
    6. There is no entry fee and no purchase necessary to enter this competition.
    7. Winners will be notified via email on or before 18 November 2020. If the winner does not respond within 7 days after being notified by Boxmining, then the winner’s prize will be forfeited. If a winner rejects their prize or the entry is invalid or in breach of these Terms and Conditions, the winner’s prize will be forfeited. (tesseraonlaketravis)
  • KIRA Network ($KEX): What is it?

    KIRA Network ($KEX): What is it?

    KIRA Network ($KEX) is an interchain exchange protocol that allows users to earn block and fee rewards while staking any digital assets, such as cryptocurrency, stablecoins and non-fungible tokens (NFTs).

    Background

    KIRA is developed by a strong team consisting of full-stack developers, blockchain engineers, back-end developers, and technical architects. The team is led by Milana Valmont (CEO) and Mateusz Grzelak (CTO).

    In the past, Valmont had held different roles which include being a blockchain consultant at Adcoin, as well as a strategy advisor at KNOKS. Grzelak had also held prominent positions in firms such as Settle Finance, Barclays, and Bity.

    KIRA Network’s strategic partners include AlphaBit, TRG Capital, Swingby, and Math Wallet. In addition, the team also includes Roger Lim from NGC Ventures and Alssio Treglia from Tendermint.

    What is KIRA Network?

    KIRA Network is a blockchain-based protocol that brings liquid staking into the DeFi market. It enables access to all virtual currencies, digital fiat, and non-fungible tokens (NFTs) within a cross-chain ecosystem.

    KIRA Network: Liquid Staking
    KIRA Network: Liquid Staking (Image credit: KIRA Network Whitepaper)

    With liquid staking, liquidity providers can stake any digital asset. Consequently, they earn incentives emanating from new blocks and transaction fees.

    The protocol’s idea of liquid staking stems from the current staking space. Here, centralized cryptocurrency exchanges provide crypto trading, acquisition, as well as act as a hub for a host of digital currencies.

    Currently, a large number of those coins that are available for staking are found on centralized exchange platforms. For this reason, KIRA wants to change this by providing a decentralized platform that mirrors what traditional virtual currency exchanges offer.

    As such, even small actors in the PoS ecosystem will have access to liquidity and evade security risks found on centralized platforms. Also, the protocol removes the cap on fee and block incentives for liquidity providers.

    KIRA Network: 8 Key Pillars

    To have a profound impact on the DeFi scene, KIRA Network is supported by eight pillars, which include:

    Security

    Using the Multi-Bonded PoS (MBPoS) consensus mechanism, the network can harness its security from staked assets. In addition, MBPoS helps remove the barrier as to which virtual assets can be staked and/or can attract rewards.

    Utility

    KIRA uses IXP (Interchain Exchange Protocol) to provide market access to the wide range of assets staked on the system.

    Liquidity

    KIRA supports liquidity provision through staking derivatives. The platform has a 1:1 ratio between staking derivatives and staked tokens.

    Expansibility

    The protocol uses validators to ensure the credibility of transactions. Also, the validators operate Initial Validator Offerings (IVOs) that allow investors to raise funds for new projects without affecting their liquidity.

    KIRA Network: On-chain IVO
    KIRA Network: On-chain IVO (Image credit: KIRA Network Whitepaper)

    Investors delegate their tokens to the validators while the validators mine new tokens. Correspondingly, the former earn block rewards.

    Upgradeability

    Upgrading the system relies on developers. Therefore, to drive development, the protocol uses an on-chain contracting system as an incentive scheme.

    Sustainability

    To ensure the platform has long term viability, it uses an on-chain governance structure. To elaborate, the governing body touches on the network’s economic aspects that include inflation and interest rates.

    Scalability

    KIRA tackles scalability by removing restrictions on the number of validators and the stake value. In turn, this makes it possible to introduce shards or zones.

    KIRA Network: DeFi zones
    KIRA Network: DeFi zones (Image credit: KIRA Network website)

    Interoperability

    The Network makes use of Polkadot, Cosmos, and other cross-chain systems to power liquid staking. Notably, this staking mechanism does not discriminate against cryptocurrency assets.

    KIRA Token ($KEX)

    KEX is KIRA Network’s native token. Apart from being used as a staking token on the network, KEX is also used as a base asset upon which other currencies are valued.

    Additionally, KIRA’s native currency is a requirement when participating in the system’s governance issues. Moreover, it’s used to reward holders, delegators, and validators. Note that KEX holders are rewarded by being offered low transaction and exchange costs.

    In contrast, delegators earn almost 99 percent of all block rewards and close to 50 percent of all network fees. Validators, on the other hand, earn a commission depending on their configuration and sit on the system’s governance table. Their earnings could go up to 50 percent network fees.

    KEX is allocated to developers/team (15%), advisors (7%), the KIRA Foundation (20%), as well as reserve and liquidity (26.6%)

    $KEX Token Allocation
    $KEX Token Allocation (Image Credit: “KIRA Network Token Metrics” medium article)

    KIRA Network ($KEX) – Public Sale

    KEX token is not available to trade yet and the public sale is soon to be announced. KEX will be launching ERC-20 KEX token on Ethereum network before KIRA Network is launched with the initial supply of 300,000,000 KEX token. Users will be able to swap for the native KEX token with the equal amount of value once the mainnet is launched.

    KIRA Network has raised 3.6M during the seed (priced at $0.025) and private sale rounds (priced at $0.05), with a vesting period of 18 months starting at mainnet launch. All seed and private round participants will receive approximately 2.5% of their token after finalization of all stages of the public round distribution.

    Public round has a $400k cap, token price at $0.075. Find out more here.

    Governance on KIRA Network

    The protocol uses a governance structure that slowly hedges away from full dependency on stake and or wealth distribution. Governance is guided by rules that exclusively put whitelisted actors to execute on-chain actions that are cleared for execution.

    KIRA Network: Governance Structure
    KIRA Network: Governance Structure (Image credit: KIRA Network Whitepaper)

    On top of these rules are parameters and individually assigned permissions. The network puts checks and balances on its governance model through operators, a voting council, an electorate council, and a proposal council.

    Notable KIRA Network Partnerships

    To drive the adoption and usability of the KIRA protocol, the platform has partnered with notable players in the DeFi Space. Some of the most conspicuous are:

    • KIRA and Finance.vote – The partnership enabled KIRA to provide liquidity to Finance.vote’s social trading layer. For this reason, it opened a new revenue stream for Finance.vote users by allowing them to conduct yield farming using digital assets in their portfolios.
    • KIRA Network and Math Foundation – Here, the Math Foundation benefited from staking KEX (KIRA’s native token) tokens and the interaction with KIRA’s MBPoS.
    • KIRA Network and Swingby – The partnership brought staking functionalities to Skybridge users. Skybridge is a decentralized inter-chain asset bridge.
    • KIRA and Blockparty – This partnership made Blockparty one of KIRA’s validators.

    Conclusion

    From crucial partnerships to using a new consensus mechanism, KIRA Network is keen on expanding the possibilities in the DeFi space for liquidity miners and yield farmers. Furthermore, the protocol’s eight pillars help it to enhance security, sustainability, utility, scalability, among other functionalities that are key in driving DeFi adoption.

    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.

  • OpenSea: Peer to peer NFT marketplace

    OpenSea: Peer to peer NFT marketplace

    OpenSea sees itself as an industry-leading decentralised exchange (DEX) for peer to peer trading of Ethereum-based non-fungible tokens (NFTs). NFTs are tokens that are one of each kind thanks to specific features or signatures that differentiate them from those in related packages. As a result, many secondary markets have developed solely for the trading of unique assets, which became popular following the rise of NFT collectors.

    What is OpenSea?

    OpenSea is a global market for buying and selling digital items. Items include digital goods based on digital art, crypto-collectables, gaming items, digital art, and other digital assets built on the Ethereum ERC-721  and ERC-1155 standards. On OpenSea, you can purchase, sell, and exchange all of these tokens with anyone in the world. At present, OpenSea is the largest decentralized marketplace for digital goods with over 700 different initiatives, including trading card games such as Gods Unchained and CryptoSpells, collectable games such as Axie Infinity and CryptoKitties.

    These goods have multiple categories and are 100% tokenized and digital. As the proof of ownership and transactions are stored permanently on the blockchain, you get to become the valid owner once you pay for them. And unlike physical items, they cannot be “stolen” from you and sold elsewhere as the record of your ownership and any subsequent chain of ownership is permanently recorded on the blockchain.

    Trading on this platform occurs through a smart contract, meaning that your NFTs are never held in custody by any central authority. It also means that parties can trust that the trade will occur as per their agreement without needing to rely on a middleman. NFTs can be stored in a software wallet such as Enjin wallet, Coinbase Wallet or Opera Touch, and even an in-browser chrome plugin like MetaMask.

    Background

    Alex Atallah and Devin Finzer laid the foundation of the OpenSea platform in January 2018. Both have expertise from their backgrounds in Palantir, UC Berkeley, Google, Stanford, Facebook, and Pinterest to form a strong team with experience.

    Major OpenSea partners are Quantstamp, BlockStack, Blockchain Capital, Trust Wallet, Combinator, Coinbase, Founders Fund, and 1C. The platform has raised more than $4 million, with $2.1 million led by Animoca Brands, David Pazdan of MetaMask, and Stanford StartX.

    OpenSea platform
    OpenSea platform

    OpenSea Marketplace guide and tutorial

    How to use the OpenSea marketplace?

    Initially, you need to install MetaMask on your computer.  Furthermore, you must create an account with the necessary details. Learn how to install and use a MetaMask account.

    Once your account is live, you can start using OpenSea by clicking on the person icon on the top right-hand corner of the page and connect your MetaMask. OpenSea can search your wallet automatically for any collectables you have and the money you need to purchase products on the market (like Ether).

    You can also read posts or check for something unique on the platform, and even participate in an auction or design items for your own auction. Most items prices are valued at a set price, whilst auctions typically market rare or unsold goods at a higher cost.

    The price of the goods varies widely based on the kind of item, what discounts are available, etc. You will be able to purchase or sell intangible properties on the platform, which ensures that after you have acquired the rights to their possession, you will be able to sell them again at a later day if you so wish.

    How to purchase or bid on NFTs in OpenSea?

    You can browse the various NFTs offered for sale on the platform. On the front page, the NFTs are organised by categories such as digital art, and virtual worlds and collectibles for various blockchain games etc. You can also see the sales history for the NFTs and see how much others have paid for the same item.

    The platform uses Wrapped ETH (WTH) for bidding as it allows the user to bid on multiple items on the same Ether pool.

    To start bidding, go to your bids section of your OpenSea account and follow the below steps :

    1. Select the item of your choice: Firstly, select the item you desire and hit “Make an offer” to initiate a bid. Then, enter the amount that you would be willing to pay for it. (https://www.visitinfinity.com/)
    2. Wrap your ETH: Once you click on  “Continue”, ETH will be upgraded to WETH via WETH station. In order to make more bids, the platform upgrades .05 WETH.

     It is worth noting that you’ll need to make two transactions the first time you upgrade your ETH.

    1. Place a bid: Once both the transactions are confirmed,  add the offer amount, and click “Confirm Offer”. Now your Bid is posted.
    2. Share your Email: Finally, you need to submit your email so you could get a notification once your bid is accepted.

    To purchase an NFT, users have the option to enter a bid for the listed goods by using the “make offer feature”. Alternatively, some sellers have a fixed price for their items.

    How to list NFTs for sale on OpenSea

    To post a listing, first, find the item on your Account page located on the top right-hand corner. Then click on “My Items”, find the desired item and click “Sell”. Here, one can select the price and duration of the deal and form of bid.

    Listing an item is free of charge, but note that OpenSea can charge a 2.5% fee on the final selling price if goods are sold successfully.

    Conclusion

    As NFTs are still relatively new, its use cases are still an area that is constantly being explored. However, if the crypto community steps into more innovation in the NFT ecosystem, they have a high chance of attracting vast audiences from gamers and collectors. OpenSea is the biggest global marketplace in the world for crypto-collectibles and NFTs, including assets such as ERC-721 and ERC-1155.

    OpenSea has a good track record as a secure platform for specific blockchain-based assets. For many large games like My Crypto Heroes, Etheremon Adventure, CryptoVoxels, ChainBreakers, CryptoBeasties, Ether Kingdoms, etc., OpenSea has served as the key marketplace. In particular, one of the most popular NFT assets is Etheremon. Etheremon is another game based on Ethereum that is quite similar to Pokemon. The minimum cost for an Etheremon is 0.04 ETH and some can even go as high as 0.3 ETH for one of these NFTs.

    Overall, the platform is playing a valuable role in the crypto sector by providing an easy-to-use marketplace that allows the NFT ecosystem to thrive.

    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.

  • Aavegotchi ($GHST) –DeFi x NFT crossover?

    Aavegotchi ($GHST) –DeFi x NFT crossover?

    Aavegotchi ($GHST), powered by Aave, is the combination of DeFi staking and non-fungible tokens (NFT) that possesses three attributes, determining their value and rarity: collateral stake, traits, and wearables.

    Aave, one of the biggest DeFi protocols today, developed NFTs that function within the DeFi framework. The project shows a promising alternative to the way many stakers perform yield farming.


    Background

    Launched in July 2018, the team behind Aave created Aavegotchi to offer new alternatives for yield farming. This project puts entertaining gaming mechanics on the platform to support a new type of DeFi experience for its users.

    Daniel Mathieu, the lead developer for Buillionix.io, and Jesse Johnson, co-founder at Bullionix, lead the team of builders working for the Aavegotchi team. Their work centers on the main goal of “gamifying DeFi experience” through NFTs.

    What is Aavegotchi?

    Aavegotchi – DeFi-Staked Crypto Collectibles (Image credit: Aavegotchi Whitepaper)

    Aavegotchis are Ethereum-based crypto-collectibles powered by NFT technology. The Aavegotchi NFTs follow a similar set-up that other blockchain-based games such as Cryptokitties implement on their own gaming economies.

    What Aavegotchi offers to the blockchain gaming space are DeFi models such as collateral staking, dynamic rarity, rarity farming, decentralized autonomous organizations (DAO), and smart contract implementations. Simply put, the objective is to use DeFi and yield farming concepts in creating NFTs that can hold value and appreciate over time.

    The team behind Aavegotchi sought to liken the project to the Tamagotchi. Aavegotchis can be considered as the blockchain counterpart of digital pets that we play within Tamagotchi. Aavegotchis are playable NFTs that can hold digital economic value.

    There are three elements to the Aavegotchi NFT that help define its value and rarity. They are:

    • Spirit Force – Putting it in DeFi terms, this means “collateral stake.” Aavegotchi has an escrow account where every owner’s Aave-backed ERC20 tokens are held as collateral. These collateralized tokens are called “aTokens,” and are accessible to Aave’s lending pool. Since these are assets can generate yield over time, this helps increase the value of aTokens kept in Aavegotchi’s escrow account. Today, there are many aTokens supported by the platform such as aDAI, aLEND, aLINK, and aUSD, among others.
    • Traits – Aavegotchis can have different attributes that make up their identity as NFTs. These traits affect their rarity, performance, and compatible wearables. While most of these traits are given to Aavegotchis randomly the moment they are created, they can be affected by user interactions that their holders make.
    • Wearables – Through the ERC-998 composability standard, Aavegotchi can be used to manage child NFTs as well. These child NFTs back the wearables that users can attach to Aavegotchis. If worn on compatible Aavegotchis, they can affect their traits and value.

    Where do Aavegotchis gain value?

    Aavegotchis derive their value from two sources: intrinsic value and rarity value.

    Anatomy of an Aavegotchi (Image credit: Aaevegotchi Whitepaper)

    Intrinsic Value

    Their intrinsic value originates from the amount staked by users on the NFT behind the Aavegotchi. The collateral stake, along with the interest it has accrued from Aave’s lending pool, becomes an Aavegotchi’s intrinsic value. For example, a 10 aLEND stake in an Aavegotchi will mean that it can hold that value as well, along with the interest accrued.

    As of now, the only collaterals that can be staked on Aavegotchis are ERC-20 tokens listed on the Aave platform. As soon as the AavegotchiDAO is launched, the number of acceptable collaterals can be expanded. (lakeforestgc.com)

    Rarity Value

    The rarity of an Aavegotchi influences its value as well. This introduces the concept of “rarity farming” on the ecosystem as well. Users get rewards for training rare Aavegotchis and trading them with other players on its platform.

    Aavegotchi Ecosystem

    Portals

    Users can only summon or create Aavegotchis through the Portal. This is backed by a smart contract that allows for the creation of new NFTs. Portals can be bought from the Aavegotchi dapp or from an external marketplace.

    In claiming Aavegotchis, users have to stake the collateral required for it. Portals can only support the summoning of one Aavegotchi.

    What is $GHST Token?

    $GHST is the native utility token for the Aavegotchi platform. They can be used as a medium of exchange, fees payment for purchasing stuff like portals and wearables, voting functions, and rarity farming. $GHST is also required to mint REALM.

    $GHST’s can be freely transferred to other users or swapped with supported tokens on the Aave platform.

    $GHST Tokenomics

    $GHST will be distributed in 3 main phases – i) Initial token distribution event, and ii) Governance rewards and iii) Rarity farming.

    The Token Distribution Event is planned to begin in late Q3 2020 or early Q4 2020, split into 3 phases: Private Round, Pre Sale Round, and Token Bonding Curve.

    • Private Round – 5,000,000 GHST tokens will be distributed, at a price of 0.05 DAI / GHST. Open to participants with KYC validation with a minimum of 20K DAI to be redeemed for GHST tokens. The total vesting period is 365 days, with an initial release of tokens on the 180th day after the close of the pre-sale round, followed by a release over the subsequent 185 days thereafter. 
    • Pre Sale Round – 500,000 GHST tokens will be distributed, at a price of 0.1 DAI / GHST. Open to participants with KYC validation with no minimum contribution. The vesting period is the same as the Private Round. Funds raised during the Pre Sale will be used as  liquidity in the Token Bonding Curve reserve pool.
    • Token Bonding Curve (TBC) – Open to participants with KYC validation with no minimum contribution. No maximum supply of GHST distributed via the bonding curve. No lockup or vesting period.

    During the Pre Sale Round, $GHST will also be created and distributed to the Ecosystem Fund (1,000,000 GHST) and Team Fund (1,000,000 GHST). Both funds are locked according to the same schedule as the Private Round. 

    $GHST Token Utility (Image credit: Aaevegotchi Whitepaper)

    AavegotchiDAO

    The community-governance model of the platform will be supported by the AavegotchiDAO. This protocol will allow the users to decide on the list of collaterals that can be staked in NFTs, amend gaming parameters, and even limit the number of Aavegotchis that can be created in the future. To incentivize token holders on community governance, they are rewarded with GHST.

    Aavegotchi Realm

    This refers to the metaverse for Aavegotchis. The Realm is the digital world where Aavegotchis can interact with each other and join games, execute smart contracts, and call for governance functions.

    Users can purchase parcels of land, or REALM, in the Aavegotchi world by staking GHST tokens. Aavegotchi’s Realm is also the social layer for the AavegotchiDAO, aimed at creating a more visual experience for community voters. Within this digital experience, Aavegotchis convene in a 2D town square to discuss platform proposals and cast votes.

    Conclusion

    The DeFi space seems a bit too complex for many newbies. This reality can be daunting for someone who is just newly-introduced to the world of blockchain, which unfortunately presents psychological barriers to adoption. Platforms that help users ease themselves onto DeFi could be helpful additions to the crypto space in general.

    Aavegotchi is a valuable concept on that end since it has a promising model in making it easier for anyone to participate in yield farming. Gamifying the DeFi space for anyone who wants to dip their toes on interest-earning products is likely to help foster adoption later on. Overall, the project shows huge potential in proving the capacity of different blockchain innovations, such as NFTs and collateral staking, to provide reliable financial products and services.

    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.

  • Rarible ($RARI): The evolution of NFTs?

    Rarible ($RARI): The evolution of NFTs?

    Rarible ($RARI) is a platform that allows users to create and sell their digital collectibles secured with blockchain technology.

    Traditional ways of marketing your own work as an artist, selling high-value collectibles, or even just finding the opportunity to show your work to the rest of the world can be a difficult endeavor. Apart from the operational and financial costs that these objectives may incur, there are always intellectual property risks on an artist’s or collectible owner’s end. Rarible offers an innovative solution for those concerns—and more.

    Through the blockchain, Rarible has created a platform that allows artists and owners to reach a wider audience and find interested investors. All of these goals are achievable through the platform without risking an artist’s ownership of a particular art, or an owner’s claim over a collectible. But how are they doing this, and how did it all begin?

    Summary

    • Rarible is a platform that allows users to create, sell and buy non-fungible tokens (NFTs).
    • RARI is Rarible’s native utility token. Users can earn these tokens from various activities on the platform such as buying/selling artworks or collectables- known as “Marketplace liquidity mining”.
    • The RARI token gives holders the right to decide on system updates on Rarible and to curate what content is marketed on the platform.

    Background

    Rarible was founded by Alex Salnikov and Alexei Falin in early 2020. Their vision is to be able to create a successful blockchain application with a focus on helping artists and owners of collectables.

    The team behind Rarible came up with a blockchain-based online marketplace where artists can find prospective buyers for their content.

    According to Salnikov, community participation in terms of making decisions for the platform can help a lot moving forward. Charging fees for the use of the platform is one example of a community concern that Salnikov believes could be discussed, hence, their decision to implement a governance token for the platform.

    These features have given Rarible a share of the attention that decentralized finance (DeFi) platforms were getting in mid-2020.

    What is Rarible?

    Rarible is an Ethereum-based decentralized application (dapp) focused on creating a marketplace for NFTs. It also enables a feature for users to make their own NFTs, which means tokenizing their collectables.

    Rarible Marketplace
    Rarible Marketplace (Image credit: Rarible website)

    A notable feature of the platform, which has also caught the attention of many, is its governance set-up. Through its native utility token, users can participate in protocol governance decisions through a voting mechanism. This is what is referred to by Rarible implementing a decentralized autonomous organization (DAO).

    Such a feature does not exist in most NFT marketplaces in the crypto space.

    What are NFTs?

    NFTs are part of the many blockchain innovations that allow anyone to create a digital counterpart of a real-world asset being held. In essence, this gives real-world assets the potential not only to be marketed worldwide but also to have the capability to receive international investments as long as they are connected to the network.

    NFTs also ensure that owners of artworks, or any kind of work, can be assured that their products cannot be duplicated via a feature that allows for authenticity checks.

    Learn more about NFTs.

    How Does Rarible use NFTs?

    Anyone can create an NFT. An artist can easily go to the platform and create its digital counterpart. Whether or not they want to put their NFTs on sale is up to them.

    The cost of transaction fees in purchasing a particular artwork can also be decided by the owner of an NFT. Through token transfer features, a collectible can be conveniently given to another person as a gift by just sending the NFT to the intended recipient.

    If the owner of an artwork decides that they want to remove their work from the platform, they can freely do so. By “burning” the NFT, the artwork can be removed from the blockchain. Ultimately, every function that pertains to the ownership of a collectible is entirely under the control of the owners of NFTs.

    The platform also implements a “royalty system,” which functions similarly to the traditional reward mechanism for an artwork’s original creator. Through this system, a creator is entitled to a certain percentage of the artwork’s selling price should it be sold again to others.

    If users find that some artworks or collectibles were counterfeited, they can freely report them through the platform as well.

    Rarible’s DAO

    The future implementation of the DAO is included in Rarible’s roadmap. This is where its platform participants are given the right to participate in protocol governance. This means that they can propose platform upgrades and amend existing protocols as a community.

    RARI is the token that backs the implementation of the DAO. But how can you get RARI?

    $RARI Token

    As already mentioned, RARI is Rarible’s native utility token. It cannot be bought from the platform and can only be earned by participating in platform activities, such as buying and selling artworks and other collectibles. This is called “Marketplace Liquidity Mining.”

    $RARI Tokenomics
    $RARI Tokenomics (Image credit: ‘Introducing $RARI — the first governance token in the NFT space’ Medium article)

    Marketplace Liquidity Mining started on 15 July 2020 and issuance of the token held every Sunday from 19 July 2020 for 200 weeks consecutively. Exactly 75,000 RARI is distributed to users weekly, proportional to the volume of their sales and purchases from the preceding week. Both buyers and sellers equally receive half of the distributed amount.

    $RARI Marketplace Liquidity Mining - Token Distribution
    $RARI Marketplace Liquidity Mining – Token Distribution (Image credit: ‘Introducing $RARI — the first governance token in the NFT space’ Medium article)

    Holding RARI entitles a user to certain rights. Apart from decisions on system updates, RARI holders can also be part of Rarible’s community-based platform moderation.

    RARI is also used in helping curate the content marketed on the platform. The community can vote on which artwork belongs to its weekly pick, giving them an added boost in the reach that they need.

    Rarible weekly picks
    Rarible Weekly Picks (Image credit: Rarible website)

    In the future, RARI will be rolling-out its NFT market index, which features a portfolio of the most sought-after NFTs that investors could be interested in supporting.

    Other future implementations include:

    • Price Discovery Mechanism
    • Mobile App
    • Social Features
    • More Types of Content (AR+VR+Metaverse+3D)
    • DeFi NFTs
    • Fractional Ownership

    Conclusion

    Blockchain has unlocked the potential of the digital world, which would greatly benefit users. Traditionally, it is difficult to market an artwork without having to find middlemen to help you connect to a wider audience. The operational and financial costs of doing so are also a different discussion altogether.

    And through blockchain, these may not be so much of a concern anymore. Rarible is one of the innovations that will ensure that collectible owners and artists can be completely independent in making decisions for their own assets.

    Rarible also makes sure that the platform is as decentralized as it can be by leaving protocol governance decisions to the discretion of its community. With that in mind, the road ahead appears to be promising.

    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.

  • Filecoin: What is it and why is it so popular in China?

    Filecoin: What is it and why is it so popular in China?

    Filecoin ($FIL) is created by Protocol Labs and aims to provide a real use case for blockchain technology outside of finance. As the name suggests, it’s all about files. But, since the system is decentralized, how does it guarantee security and availability? Also, are those storing files paid? Here, we look at what Filecoin is, plus the reasons why it has become quite a sensation in China.

    Summary

    • Filecoin is a decentralised file storage network. Users pay for their files to be stored whilst those that help with storage are rewarded with $FIL tokens.
    • The project raised USD$200 million in its Initial Coin Offering (ICO) in 2017. Mainnet launch will be around 3:00pm (UTC) on 15th October 2020.
    • Filecoin has already been on the Chinese radar since 2018 where Chinese firms have started marketing Filecoin cloud mining services. It is considered easier to mine because specialised mining devices are not required.
    • Filecoin is also popular in China because of speculation on the price of $FIL tokens. Some exchanges already offer $FIL trading on an IOU basis.

    What is Filecoin ($FIL)?

    Filecoin is a decentralised file storing network that rewards users who store files. Those who keep files are referred to as storage miners. Users pay for their files to be stored while storage miners are rewarded for their work.

    Its distributed nature allows for peer-to-peer file storage and retrieval design. The platform has a native virtual currency called FIL, which is used to reward miners.

    The network is inspired by Web3, an advanced software development architecture that eliminates centralization. Filecoin can provide file storage services to other decentralized platforms as well. Furthermore, the network projects a way to enable transaction interaction with other blockchain platforms promoting interoperability.

    What is Filecoin Token $FIL?

    Filecoin token $FIL is the platform’s native virtual currency which is used to reward miners. Note that Filecoin mainnet has not launched yet and FIL tokens are not in circulation. However, as will be seen below a few exchanges are already trading FIL on an IOU basis. This means that users will only receive FIL tokens in the future. However, this has not deterred enthusiasts, with FIL having more than USD$100 million in trading volume every 24 hours and prices seemingly on an upward trajectory.

    Upon the Filecoin mainnet launch (see below), Huobi Global will launch $FIL and open trading, deposits and withdrawals. Other exchanges have also rushed to list one of the most talked-about Chinese projects since 2017 such as Binance and FTX exchanges.

    Filecoin Mainnet Launch

    Protocol Labs spearheaded the project’s ICO in 2017. Backed by top names in venture capital like Sequoia and Andreessen Horowitz, $200 million was raised.

    The ICO was followed by testnet postponement until 2019. Protocol Labs initially promised the mainnet launch in the first quarter of 2020.

    Filecoin mainnet has now launched at epoch 148,888- at around 3:00pm (UTC) on 15th October 2020. You can check the status of the chain here.

    How Filecoin works

    For users

    Users on the platform are charged for file storage. However, storage charges vary depending on whether a user chooses speed over redundancy and vice versa. Also, storage prices are affected by availability and demand.

    For storage miners/providers

    On the Filecoin protocol, a storage provider can either be an individual or an organization. And the only criteria for becoming a miner is having a free hard disk space and an internet connection. Miners will also have access to the entire pool of Filecoin users.

    For smooth usage, the network provides a standard application programming interface for miners and advertises their availability. Without individual marketing, storage providers rely on speed, storage space, and reliability to woe users and attract rewards.

    Filecoin has a self-healing feature that automatically checks if files on the blockchain are stored correctly. Additionally, the feature enables the network to detect faulty miners and their loads to be distributed to other miners.

    The process of self-healing generates tracks showing a miner’s history on the network. A good reputation earns them more storage opportunities hence more rewards. The system uses proof-of-file and proof-of-storage mechanisms that are not energy-intensive, like the proof-of-work mechanism employed by Bitcoin (BTC).

    Apart from general storage miners, there are also retrieval miners. These type of miners need to have a strong internet connection as they pre-fetch the most downloaded files and deliver them to users who are in close proximity. Afterward, they are rewarded for facilitating a smooth traffic flow on the network.

    China is all-in on Filecoin

    Miners are seriously considering Filecoin

    Although the protocol does not require specialized mining devices for access, China is eyeing developing Filecoin mining hardware. Furthermore, Chinese investors are already speculating on FIL’s price. In fact, the Chinese have already been into Filecoin since as early as 2018, and with the mainnet launch being potentially weeks away, the hype is only getting stronger.

    For example, when Protocol Labs announced an incentive program in early June 2020, Chinese firms started marketing cloud mining services that users can contract and use to provide storage to Filecoin users.

    With the popularity of cryptocurrency mining in China, it is not surprising that these firms attracted a minimum of $500,000 in sales in the first few days. In addition, data from blockchain explorers revealed that the leading storage miners on Filecoin are located in China. Cumulatively, these miners account for over 80 percent of the network’s testnet storage mining power at roughly 15 petabytes (15,000 terabytes).

    However, the tremendous uptake of storage mining in the Asian country can be attributed to the country’s love for Bitcoin and other cryptocurrency mining activities. Although Bitcoin trading is banned in China, most of Bitcoin’s mining power is still concentrated in the country at approximately 65 percent.

    Also, even before Filecoin went live, mining hardware companies were already hyping their products in anticipation. Andy Tian, the co-founder of 1475, a hardware manufacturing company, thinks that China’s Filecoin mining hype is partly driven by the fact that the idea behind the mining is simpler to retail miners compared to mining BTC where ASICs are used.

    The anticipation in China is so high that more than $15 million worth of Filecoin mining software and hardware has been stashed by mining pools waiting for investors and self-mining. Other large BTC mining companies like RRMine reportedly sold $15 million in cloud computing contracts “within minutes.” RRMine is also accumulating FIL mining hardware.

    Unfortunately, it’s not the amount of free space you provide to the network that matters more, but the amount of sealed data. While accessing the FIL protocol does not require massive processing power, sealing data on a hard drive does.

    The sealing can be done by harnessing power from a CPU or a GPU hardware. However, throwing a piece of specialized equipment in the mix makes it faster, allowing miners to seal more data in a day. In return, they also get more rewards.

    Chinese Companies are also speculating on Filecoin

    But it does not stop at mining. Close to 50 cryptocurrency exchanges in the Southeastern Asian country, including Biki Exchange and MXC Exchange, have FIL futures served with Tether (USDT) on their menu. Note however that this is only an IOU, as the token hasn’t actually been released yet.

    Cryptocurrency data aggregator platforms like CoinMarketCap, Feixiaohao, recorded roughly $100 million in trading volume in 24 hours. The price of Filecoin futures, however, has been fluctuating from $11 to $28 to $18 within days.

    Some firms dealing in cloud contracts, e.g., Mars Finance, project a 300 percent annual return for FIL miners without providing the amount of FIL tokens each terabyte of contracted space can bring.

    Conclusion

    Although the mainnet and the rules governing storage mining are yet to be released, the Chinese community has long gravitated towards Filecoin. Some of the reasons behind this craze can be because of China’s uneven domestic investment landscape that has alienated middle-class individuals looking for attractive investment opportunities.

    Also, China’s rigid stand on capital controls has led Chinese investors to seek reputable cryptocurrency or blockchain-based projects that can facilitate financial interaction with the rest of the world. Filecoin’s association with leading venture capital firms makes it attractive to the Chinese community. Also, its storage mining tag makes it simple for retail miners and investors.

    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.

  • REVV: Animoca Brands’ racing games go crypto

    REVV: Animoca Brands’ racing games go crypto

    REVV is the currency of purchase, utility and action for Animoca Games‘ motorsports games. Animoca Games is a blockchain gaming firm and global game developer which leverages popular brands such as Power Rangers, Masterchef etc., together with gamification, AI, blockchain and mobile technology to create gaming apps.

    Check out my debate with Co-Founder and CEO, Yat Siu where we debated whether Non-Fungible Tokens (NFTs) are the NEXT BIG THING, and I did NOT hold back playing Devil’s Advocate:

    Background

    Animoca Brands released its own utility token called REVV to power its blockchain-based gaming platform. The goal of the team is to build an ecosystem that will link the economies of their company’s games together.

    Animoca believes that REVV’s presence in all its blockchain games will help attract more people to their platform and add value to the token for accessing a larger consumer base. REVV is designed to be the “currency of purchase, utility, and action” for the ecosystem’s gaming titles.

    According to recent reports in July 2020, Animoca has already reached over $4 million in revenue, with $1.8 million from their assets kept in cryptocurrency holdings.

    “Revv can be used right now for our time trial games and soon also to buy and trade our NFT and game assets,” said Yat Siu, co-founder of Animoca Brands.

    Here’s our video on NFTs and what they can do for gaming.

    Non-Fungible Tokens Explained (ERC 721, ERC 1155)

    What is REVV?

    REVV is a non-fungible cryptocurrency token based on the Ethereum blockchain. It is utilized as a medium of exchange for REVV’s ecosystem, as well as Animoca Brands’ gaming platforms like F1 Delta Time.

    REVV is already available on Uniswap, one of the biggest exchanges in the DeFi space today. Trading began against ETH last September 4, with an initial token price of $0.00666.

    REVV is one of the latest additions to projects aimed at improving the adoption of NFTs, which many consider to be a hundred million dollar market. A similar project named SAND, established under The Sandbox, a mobile gaming platform, was also recently listed on Binance.

    REVV ecosystem

    The REVV ecosystem is a collection of games whereby players can use the REVV token and the NFTs across their games. Their first games will be F1 Delta Time (an official product of the FIA Formula One World Championship) and its upcoming MotoGP title. F1 Delta Time is expected to be released in November 2020, whilst the MotoGP title will be released in Q4 2020. REVV is also planning a third blockchain game soon and it is expected to also be based on a global racing franchise.

    Furthermore, with REVV’s partnership with Atari, Atari’s classic motorsport video games Night Driver and Fatal Run will also be joining the REVV ecosystem.

    REVV token

    REVV token acts both as a utility token as well as the in-game currency of the motorsports games produced by Animoca brands. There are two features of the REVV token:

    Play Utility: REVV can be used by players to enter Grand Prix and Time Trial game modes. There is a set fee for the Time Trial, with the Grand Prix priced on a tier-basis. Higher tier games require more REVV, which also secures more rewards for the best performers.

    The Tyre Durability systems also require REVV. To maintain the durability of a player’s tyres in the game, they have to pay in REVV for restorations depending on their condition.

    Purchase Utility: REVV can be used to buy F1 Delta Time 2020 Collectibles.

    REVV NFTs

    REVV is already selling their NFTs for F1 Delta Time. On the F1 Delta Time NFT marketplace on OpenSea, there are already 11,427 items listed and 571 owners.

    F1 Delta Time NFTs
    Some of the NFTs available on OpenSea

    Once the F1 Delta Time game is launched, the NFTs will become usable in the game for example to upgrade their cars, drivers, racetracks etc. Once more games under REVV are released, it is expected that the NFTs can be used in these other games too. In addition, these NFTs have value as collectables since Animoca Brands holds the licenses to both Formula One and Motor GP brands.

    REVV Pools

    REVV keeps a pool of tokens created to support the F1 Delta Time ecosystem. The allocation in REVV pools, however, can still be changed in the future depending on the outcome for other titles.

    • Reserve: 200,000,000 REVV is kept for future use as a back-up fund as the ecosystem continues growing.
    • Game Operations: 273,980,000 REVV is allocated to the primary pool of the game. It will be used to support the reward mechanism of the platform.
    • Staking: 6,020,000 REVV is allocated for its 2019 staking run, but the staking pool for 2020 can include REVV allocated in the Game Operations Pool, Reserve Pool, or both.
    • Marketing and Promotions: 20,000,000 REVV is allocated from promotional airdrops.

    Staking

    Staking on Animoca Brand’s game, F1 Delta Time will be available from 15th September 2020 onwards. Users who stake their F1 Delta Time car NFTs will enable them to earn REVV tokens. How many tokens you would be entitled to is determined mainly by how rare the NFT is, with rarer items being able to generate greater returns.

    30mil REVV tokens have been allocated to the staking pool for users to claim. From 15th September 2020 (HKT), the first round of staking will begin for 4 weeks. A total of 2.04mil REVV will be available for claim. After this, there will be a further 12 week period of staking where 10mil REVV is up for grabs.

    More details on the staking feature are available here.

    Rewards: how to earn REVV

    There are two ways to receive REVV. One is by participating in its sale, another is by playing the game.

    Promotional: Verified accounts on the F1 Delta Time will receive 50 REVV upon joining the game. Those who also participated in the game’s 2019 Crate Sale will be given REVV based on the category of the crate they are holding.

    The cut-off period for this set of rewards is yet to be announced but will be published soon.

    Play-to-Earn: REVV will also be given as a reward for players depending on their race car NFTs and other gaming features. Gaming modes such as Time Trial and Grand Prix also entitles players to some REVV rewards, especially those who are included in the game’s Leaderboards.

    Another opportunity to earn comes in the form of dividends doled out to Track owners since these are also considered “ownable NFTs.” These owners will be given a proportion of their share in the total amount of REVV spent by players to race in that Track.

    Recent Updates

    From the time that they announced the sale of REVV on Uniswap, seven million tokens were sold out in just 20 minutes.

    Included in their roadmap are plans on expanding their ecosystem to GAMEE and QUIDD, both of which are gaming and collectible companies that they have acquired in July this year and August last year, respectively.

    Partnership with Atari

    On 12th October 2020, REVV announced its partnership with iconic video gaming company Atari. Atari owns and/or manages a portfolio of over 200 games and franchises such as Asteroids, Pong and RollerCoaster Tycoon.

    The partnership was in the way of a token swap whereby the 2 companies have agreed to swap USD$625,000 worth of each others’ tokens. Specifically, Animoca will provide 5mil REVV tokens at USD$0.025 per token, in exchange for 7,812,500 ATRI tokens, along with its other tokens it is in the process of being listed. 90% of REVV and ATRI will be locked for 18 months from the delivery date, whilst the remaining 10% will be unlocked on the first day the tokens list on an exchange.

    Conclusion

    It is definitely good to see that the expansion of use cases for the blockchain has already reached a lot of individuals. Real-life or digital activities tapping into the power of blockchain does not merely stimulate more innovation, but also help facilitate mass adoption.

    The first step in mass adoption is to convince the public about the ease of transactions that can be made in crypto, as well as the capacity of these digital currencies to be used as a store of value.

    And we have made enormous progress so far in the last decade. Innovations like REVV give people the opportunity to make crypto transactions with utmost convenience and security, which is exactly what blockchain has promised since its inception. It is also bringing cryptocurrency into the world of gaming, which most people have been hotly anticipating as the most likely route to mass adoption.

    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.