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Category: News

News and updates related to digital assets and Fintech

  • Urgent: Ongoing Solana Hack, Million Dollars Drained from more than 5,000 Wallets

    Urgent: Ongoing Solana Hack, Million Dollars Drained from more than 5,000 Wallets

    What Happened to Solana?

    More than $6 million have been stolen from more than 5000 Solana wallets late Tuesday night, according to a tweet from Solana auditor OtterSec. The tweet is supported by other accounts on Twitter that claimed their holdings were wiped in a matter of minutes.

    The Solana auditor revealed that the transactions were in fact authorized by the owners of the wallets, suggesting a private key breach on a massive scale.

    ETH users may also be impacted by the attack. It is uncertain that the attack is limited only to the Solana blockchain. A TrustWallet and Slope wallet user reported losing USDC on both Solana and Ethereum.

    See also: What is Solana (SOL token): explained

    What Caused the Solana Attack?

    The exact cause of the Solana attack is as yet unknown, but Magic Eden, leading NFT marketplace of Solana, urged all Solana users to “revoke permissions for any suspicious links” as well as all apps if necessary.

    Reports indicate that all internet-connected hot wallets on Solana such as Phantom and Slope have been affected. Wallets that have not been used in more than six months seem to be mostly targeted, and all Phantom wallets have been compromised.

    Phantom tweeted, “We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.”

    On the other hand, crypto security firms believe that the exploit was not the result of a vulnerability with the Solana blockchain itself. Instead, they suspect the attack was a result of a mass compromise of users’ private keys by a third party.

    Sam Bankman-Fried, founder and CEO of FTX, commented in an interview with Fortune, “this wasn’t a core blockchain problem, likely seems like one app someone built was buggy.”

    Slope wallet to blame for the Solana attack?

    Solana is still investigating the hack, but so far is suggesting that wallet provider Slope is largely responsible for the security exploit. In a tweet, they state that “…it appears affected addresses were at one point created, imported, or used in Slope wallet applications.”

    Solana’s investigation is suggesting that Slope may be responsible.

    The Solana team has also found that whilst 60% of the victims were Phantom users, those who were affected did not generate their seed phrase using Phantom. Also, those who were solely Phantom users did not have their wallets drained.

    How Do I Protect Myself from this Attack?

    Users are advised to move their funds to a cold wallet such as a Ledger or Trezor hardware wallet, and ensure that the wallet has no previous approved authorizations to spend funds and is created offline following best security practices.

    For users without a hardware wallet, sending funds to major crypto exchange is a viable temporary solution.

    In the form of a community warning, web3 gaming company Star Atlas also urges users to withdraw permission for all of the apps in their wallets and shift money to cold storage with the Solana exploit underway.

    I have been affected by the Solana attack. What should I do?

    As ongoing investigations suggest that Slope may be responsible for the recent hack, Solana co-founder Anatoly Yakovenko advised Slope wallet users to regenerate their feed phrase in a different wallet.

    Slope has also issued a statement recommending ALL Slope users (not just those affected by the Solana attack) create a new and unique seed phrase wallet and transfer all their assets there. They also reassure users who have been using hardware wallets that their keys have not been compromised. Check this page for our hardware wallet reviews and guides.

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

    Is the Attack Still Ongoing?

    It’s unknown at this point whether the breach is still active, where it came from, and whether any further user funds are still in danger. Blockchain fraud investigator @zachxbt revealed that the attackers funded the main wallet connected to this operation via Binance seven months ago.

    The transaction history reveals that the wallet was inactive until today, at which point, the hackers made transactions with four separate wallets ten minutes before the incident occurred.

    Solana Hacker Wallet Address

    Frequently Asked Questions (FAQ)

    How do I protect myself from the Solana Hack?

    The current best strategy is to move funds into a cold wallet – such as the ledger hardware wallet. Make sure that the wallet has no previous approved authorizations to spend funds and is created offline following best security practices.

    Where to move my Solana funds if I don’t have hardware wallet?

    If you don’t have a hardware wallet, moving funds to a major crypto exchange is also a viable option now. However, it is recommended that users should get a hardware wallet and transfer their funds there as soon as possible. Check this page for our hardware wallet reviews and guides.

    Which Solana wallets were hacked?

    Multiple wallets – Phantom, Slope, Solflare, TrustWallet – across a wide variety of platforms are compromised. It is advised to move your funds to a hardware wallet or major crypto exchange for security purposes.

    Who were the Solana hackers?

    Investigators identified the following four wallets as the address of the attackers:
    CEzN7mqP9xoxn2HdyW6fjEJ73t7qaX9Rp2zyS6hb3iEu Htp9MGP8Tig923ZFY7Qf2zzbMUmYneFRAhSp7vSg4wxV 5WwBYgQG6BdErM2nNNyUmQXfcUnB68b6kesxBywh1J3n GeEccGJ9BEzVbVor1njkBCCiqXJbXVeDHaXDCrBDbmuy

    Is Solana dead?

    The widespread Solana wallet hack certainly impacts the market sentiment toward Solana, and many investors have expressed doubt about the project’s future. As of now, the attack has prompted an 8% drop in Solana’s price in the two hours following the first reports of the attack.

    What caused the Solana wallet hack?

    Crypto security firms believe that the exploit was not the result of a vulnerability with the Solana blockchain itself. Instead, they suspect the attack was a result of a mass compromise of users’ private keys by a third party.

    An ongoing investigation by Solana suggests that wallet provider Slope is responsible. This is because affected addresses were once created, imported, or used in Slope mobile wallet applications.

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

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

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

    What is USDT?

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

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

    What Happened to USDT?

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

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

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

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

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

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

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

    What is Exactly Backing USDT Value?

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

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

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

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

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

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

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

    • Tether Has Yet to Undergo an Impartial and Comprehensive Audit

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

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

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

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

    What Would Happen if USDT Collapses?

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

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

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

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

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

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

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

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

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

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

    What is Bored Ape Yacht Club (BAYC)?

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

    What is the ApeCoin $APE?

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

  • Top Cryptocurrency News Today (22 July 2022)

    Top Cryptocurrency News Today (22 July 2022)

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

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

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

    Zipmex Suspends Withdrawals, Joins Growing List of Struggling Crypto Exchanges

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

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

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

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

    Binance Unveils Scholarship Program! Future of Crypto Looking Good?

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

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

  • Top Common Myths About NFTs Debunked

    Top Common Myths About NFTs Debunked

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

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

    What are NFTs?

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

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

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

    Myth #1 – NFTs Are a Kind of Cryptocurrency

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

    Myth #2 – NFTs Are Harmful to the Environment

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

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

    Myth #3 – NFTs Don’t Have Value

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

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

    Myth #4 – NFTs Are Easily Copied and Forged 

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

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

    Myth #5 – NFTs Encourage Scams and Money Laundering

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

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

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

    Myth #7 – NFTs Are Just a Fad

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

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

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

    Conclusion: NFT Myths?

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

  • Will the Launch of Ethereum 2.0 Crash Crypto Prices?

    Will the Launch of Ethereum 2.0 Crash Crypto Prices?

    Ethereum 2.0 is coming soon and the question everyone wants to know is “will it cause crypto prices to crash?” This is particularly as markets around the globe are not looking great, and that includes the crypto industry. Everything has been bleeding heavily for months without a sign of stopping, as central banks keep hiking rates, global supply chains struggle, and spending and investment dry up. Stagflation is a very real possibility, and there is no telling how long it will take for us to cool down the overheated markets that have been going only up since the last recession more than ten years ago. 

    The aforementioned notwithstanding, active development in the blockchain space continues to march forward. Although investments might drop significantly, many builders keep on building no matter the state of the markets. As Ethereum is steadily approaching the long-awaited transition from proof-of-work (PoW) to proof-of-stake (PoS), dubbed The Merge, it might be interesting to think about potential impacts of The Merge on the crypto market prices, especially in the context of a potential extended bear market.

    Learn more: 

    Ethereum 2.0 is coming- Here’s what you NEED to know

    Proof of Stake (PoS) explained

    Ethereum ($ETH) Merge: What is it and everything you need to know

    Plus check out our video!

    About Ethereum 2.0

    In short, The Merge will result in Eth2.0’s Beacon chain (the coordination mechanism of the new network) merging with the current Ethereum mainnet, signifying the move to a fully PoS chain. To secure the network, enormous amounts of ETH will be staked in addition to the ETH already staked in the Beacon chain, making all of this locked ETH illiquid. Combined with the EIP-1559 upgrade, which now burns 70-80% of the fees, The Merge is expected to cause the equivalent of 3 bitcoin halvenings, dropping Ethereum’s inflation rate to 0.43% and locking up a lot of ETH, potentially reducing sell pressure by up to 90%. In addition, the PoS mechanism will reduce Ethereum’s energy consumption by up to 99.95%.

    So all is looking great for Ethereum and projects building on top of it, right? Possibly. However, there is still a decent chance that, given the current market conditions, ETH’s price pump might be short-lived, and would continue to drop, bringing down a lot of other projects with it.

    The Potential Impacts of The Merge

    There are two possible scenarios to look at when discussing the downside impact of The Merge on crypto prices:

    1. The external effect would be caused by Ethereum sucking out liquidity from other PoS alt-L1s and the projects built on top of them (especially if they’re EVM-compatible), as one of the more critical selling points compared to Ethereum is environmental sustainability.
    2. Beacon chain staked ETH unlocks, extended bear market, and poor treasury management of Ethereum-backed projects could see more capitulation events as HODLers and projects sell off their ETH to stay afloat as new investments dry up and stagflation looms.

    1. Ethereum Sucks Liquidity From Other PoS alt-L1’s

    By offering lower gas fees, fast transactions, and relatively high throughput at the expense of decentralization and economic sustainability, many PoS chains have attracted developers, investors, and NFT ecosystems to their networks away from Ethereum. Ethereum’s high demand (=high fees), poor L1 scalability, and the concerning PoW mechanism have severely limited its growth. (https://rpdrlatino.com) Understandably, regular people simply do not want to pay exorbitant fees when minting and trading NFTs, and developing inaccessible dApps on a network that is supposedly destroying trees and warming up the planet.

    The environmental argument will be completely invalid after the merge. Coupled with the enormous innovations in Ethereum’s L2 ecosystem, which have already reduced transaction fees to sub-$1 with no signs of stopping, Ethereum is set to once again become the most sought-after smart contract development platform. As post-Merge buy pressure of ETH increases and scalability improves, alt-L1’s could struggle to offer any significant unique selling points, making new projects opt to build on top of the most secure, established and decentralized smart contract chain out there.

    As more and more people flock to Ethereum, established projects might also decide to migrate to the platform with the most demand and upside potential, effectively sucking out liquidity from other chains, and leaving them dry with evaporated treasuries, limited runway, and reduced demand. The strategy of subsidizing transaction fees during a bull market when funds are plentiful will likely not work when no new investments are coming in during a bear market, and an exodus of users is reducing demand and network revenues.

    Of course, there is plenty of room for growth in this space, and projects existing on other chains might not find it too beneficial to move to Ethereum even though short-term liquidity issues might prove challenging.

    2. Beacon Chain ETH Unlocks in Extended Bear Market Cause Mass Capitulation

    The Merge will unlock a lot of ETH, resulting in a potential aggressive selling spree that might have trickle-down effects on a lot of other coins, especially those that have tight correlation with their ETH pair, are ERC-20 tokens, or have been sitting on ETH treasuries to fund their development. A lot more downside risk due to a selloff is also a very real possibility for ETH and other coins simply due to bad timing (i.e. bear market – with recession slowly creeping into our daily lives due to central banks raising interest rates, supply chain issues, energy crises etc.), the unlocked ETH might serve as a critical lifeline for those who had confidently staked their ETH during the bull market.

    During the bear market, investments will be scarce, and projects that during the bull market had made the decision to not convert their treasury ETH to stablecoins are now seeing their wallets drop in value significantly, forcing them to capitulate by selling at low prices to cover their expenses.

    However, it is important to note that the ETH unlocked from the ETH staked on the Beacon chain will not be immediately available right after The Merge. Rather, this feature – EIP-4895: “Beacon chain push withdrawals as operations”, will be enabled during the Shanghai upgrade. It will probably be deployed much later after The Merge, with estimates ranging from a month to 6 months. This means that any amount of potential sell-off of unlocked ETH would come with a significant delay post-Merge, at which point it’s impossible to predict where the market might be in 6-12 months and how it will behave, with contradicting bullish and bearish narratives clashing against one another in an attempt to drive price in either direction.

    This option does seem a bit far-fetched, however, and no one knows how much more pain we will have to suffer before the momentum shifts towards the upside, so it’s best to be prepared for both the upside and downside, and not fall prey to only bullish narratives.

    Conclusion

    As outlined in the two main points, post-Merge many alt-L1 coins could face a risk of crashing even further due to risks associated with reduced liquidity in a bear market (for non-Ethereum coins), liquidity that might flow towards the Ethereum ecosystem due to its established security, track record, and newly acquired environmental sustainability.

    On the other hand, ETH and other ERC-20 tokens living on Ethereum also run a risk of crashing, if the post-Merge ETH unlock from the Beacon chain results in a mass sell-off of ETH, which could crash other coins and project treasuries.

    As this will be the first time the crypto industry experiences a recession or a stagflation, there is a lot of uncertainty about how low the market could go and, most importantly, how long it could stay so low. This is uncharted territory, so making comparisons with past cycles might not be particularly useful. Nations and companies will keep tightening their belts, and spending will significantly decrease across the board, leaving risk-on markets such as crypto vulnerable to a continued mass exodus to safer investments.

  • Starly NFT Staking: How to Tutorial and Guide

    Starly NFT Staking: How to Tutorial and Guide

    The NFT industry has become one of the most exciting spaces amongst emerging blockchain and crypto trends. With many related projects and startups launching, the sector is becoming more popular and has provided creators with significant earning opportunities.

    NFT creators constantly seek more accessible ways to publish and market their assets to varied audiences while also maximizing potential returns on their art. Buyers who like to collect NFTs also look for the best marketplace that curates these assets and facilitates easy access to purchases and rewards. The Starly platform provides all these and more to both categories of stakeholders. 

    Table of contents

    What Is Starly?

    Starly is an NFT-focused launchpad and marketplace where users can create, buy, and sell gamified NFT collectables. The platform aims to make creating, selling and collecting NFTs as seamless as possible. Starly offers complete creative control to NFT minters, allowing them to set prices, rarity ratings, and decide preferred launch dates. 

    Each Starly NFT collection consists of 21 unique NFTs (or NFT cards) divided into three packs for ease of valuation. The packs are composed of 11 common cards, 6 rare cards, and 4 legendary cards. Members of the Starly community can purchase and sell NFT cards on the secondary market, or buy all the cards in a collection to receive special rewards reserved for buyers who acquire complete collections.

    NFT Staking on Starly

    Collectors can stake their NFT cards for Starly token rewards based on the value and rarity of the NFT. Each NFT card in a collection has a Card Score determined by its pack (common, rare, or legendary) and price. Stakers can earn rewards in $STARLY- the project’s native token. The total $STARLY staking reward for each NFT card is equal to its Card Score and gets distributed daily for over a year. This means that it would take 365 days to accrue the total $STARLY staking reward. 

    Although users can claim a limited number of token rewards, these rewards depend on the user’s Starly token tier. Starly uses the following formula for reward distribution:

    Card Score/365 = Token Amount Distributed for 24h.

    For instance, if a user stakes an NFT with a Card Score of 15,000, the available token staking reward for that card is 15,000 $STARLY. The user can claim up to 41 $STARLY (15,000/365) daily depending on the membership tier until the user exhausts 15,000 $STARLY.

    Starly Token Staking Tiers

    Token holders staking $STARLY are categorized into reward tiers curated according to the number of staked tokens. The tiers include the Silver, Gold, and Platinum memberships, with the following required token amounts:

    • Silver Tier: a minimum of 1000 $STARLY staked
    • Gold Tier: a minimum of 10,000 $STARLY staked 
    • Platinum Tier: a minimum of 50,000 $STARLY staked 

    These tiers come with varying benefits, including the ability to claim more daily NFT staking rewards. Members of the Starly community who stake their NFTs but have no staked Starly tokens are not placed in any of the three tiers and can claim only 2 of the available daily token rewards. Silver, Gold, and Platinum tier members can claim 10, 100, and 500, respectively.

    Furthermore, if an NFT card is unstaked, all unclaimed rewards of the staked card remain locked on the card till the user stakes it again. Additionally, if the unstaked NFT card gets sold, the new owner gets all unclaimed staking rewards locked in the card and can stake the card again for token rewards.

    $STARLY Token

    $STARLY is the platform’s native token, helping creators earn from their NFT assets. On the Starly marketplace, creators can monetize their NFT collectibles and receive rewards for their effort via $STARLY tokens. The platform has a total supply of 100 million tokens allocated for different uses. For instance, the largest allocation is for the Product and Ecosystem Development Fund at 31.25% or 31,250,000 tokens. Others include 22% for the Team and Advisors, 20% for the private sale, and 0.75% for the public sale. Furthermore, Starly allocated 5% each for token liquidity and staking payouts, while reserving 16% for the community.

    Benefits Of Starly NFT Staking

    All NFTs have inherent value that provides some aspect of collectibility or utility to collectors. However, collectors can derive additional value by staking these NFTs on Starly. The primary benefit of staking owned NFTs is that users can accrue more $STARLY and then re-stake for added rewards. As users collect more tokens, their designated membership tier moves from Silver to Gold or Gold to Platinum. New tiers furnish users with additional Starly benefits, such as voting rights and exclusive NFT drops from selected artists.

    Staking has become a significant way of contributing to projects across the blockchain and crypto space, with billions of tokens and coins locked on many platforms. NFT staking is no different and is an excellent way for users to earn passive income from idle NFT collections. Although the concept is still relatively in its infancy, Starly opens users to more NFT staking opportunities with the possibility of progressive rewards.

    Visit Starly here to learn more about them.

  • Colizeum ($ZEUM): Bridging the Earning Gap Between Blockchain and Traditional Gaming

    Colizeum ($ZEUM): Bridging the Earning Gap Between Blockchain and Traditional Gaming

    The gaming market has seen impressive growth over the last few years and is still set for more expansion. According to a 2021 report, the gaming market’s valuation for the year hit $198.4 billion. The same report states that the market will register a compound annual growth rate (CAGR) of 8.94% from 2022 to 2027. By 2027, the valuation could jump 71.3% to $339.95 billion.

    Several factors contribute to the gaming market’s popularity, attracting more people to the sector. Game developers are continually improving options and general gameplay, a factor that keeps existing gamers interested enough to stay. In addition to improved features, there is also increased advancement in technology.

    The introduction of blockchain technology to the gaming sector is easily the market’s most significant advancement. Apart from the immutability and security of the gaming infrastructure and assets stored, blockchain also provides players with an opportunity to earn while enjoying their gameplay. Platforms like Colizeum are taking this further by stretching blockchain gameplay features past earning rewards.

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    What is Colizeum?

    Colizeum is an ecosystem bridging the gap between the blockchain and traditional gaming worlds. It is a play-to-earn platform that connects several games and related applications from multiple developers, providing a shared marketplace for developers and gamers alike. 

    Colizeum continuously closes the traditional and blockchain gaming gap through its Colizeum Software Development Kit (SDK). Conventional game developers can use the Colizeum SDK to effortlessly build blockchain games without the expected technicalities from decentralized applications. The kit also provides a cost-effective way for creators to design and publish games since there is no need for blockchain developer teams.

    Why Colizeum?

    There are several features the Colizeum ecosystem offers the gaming public. In addition to the ease of creating exciting play-to-earn games, here are a few points to note:

    • Earnings for All: The Colizeum ecosystem maintains an equal focus on gamer and developer earnings. As players accumulate rewards by participating in their favorite play-to-earn games, developers also earn from gamers and the entire Colizeum community.
    • In-Game NFTs: Colizeum supports low-cost NFT minting while checking other related boxes, including demand programming and multilayering.
    • Tournaments-as-a-Service: The Colizeum SDK allows developers to create multiplayer games in different modes and designs. Depending on game specifics, players can enjoy tournaments and earn by winning or simply participating.

    Colizeum is a fully-decentralized, anonymous, on-chain, and community-focused ecosystem. The platform also features an Attention Marketplace – a tokenized product that allows the direct monetization of gamers’ attention. Instead of going through Ad Exchanges that charge excessive fees and still keep a large portion of generated revenues, the Attention Marketplace enables transparent user acquisition and monetization via $ZEUM staking. Colizeum already has an exciting list of partners, including the Israeli Blockchain Association, IHODL, and Cex.io.

    Benefits to Game Developers

    • The SDK provides quick and inexpensive game development that can shorten developer timelines by up to 1 year
    • Creators can introduce a play-to-earn feature to any mobile game, attracting more players and allowing gamers to earn during gameplay
    • Colizeum is a cross-chain and cross-platform ecosystem that enables gamers and developers to enjoy the best of multiple games regardless of their host platform
    • In-game assets can be easily converted to NFTs
    • Since there are no middlemen on the platform, all processes are cheaper and faster

    Benefits to Gamers

    • Colizeum allows players to use one token across all games hosted in the ecosystem
    • In-game assets are tradeable as NFTs. This will enable players to earn more in addition to direct gameplay. Trading NFTs also serves as passive income for gamers
    • Enjoy earnings from any of the games hosted by Colizeum

    Tokenomics

    The Colizeum ecosystem has a total supply of 1 billion $ZEUM tokens available for different purposes. The seed round featured 6% or 60 million tokens, while 13% or 130 million tokens were available at the private round – both with 18-month vesting periods. There also is another 19% allocated to the Colizeum team, 5% to the DAO fund, 15% for strategic partnerships, and 8.650% for its in-game reward program. As a community-focused platform, Colizeum also allotted 10% (100 million tokens) to community incentives.

    Colizeum is set to be one of the largest play-to-earn platforms in the blockchain sector as it leverages flexibility and interoperability. Creators will be able to develop games that easily interact with each other, thereby adding to Colizeum’s credibility as the go-to play-to-earn host platform. Furthermore, the earning opportunities available to players across all games will attract more users and also appeal to game developers.

  • The 2.0 of Step.App – FitEvo: Advancing from Play-to-Earn to Move-to-Earn

    The 2.0 of Step.App – FitEvo: Advancing from Play-to-Earn to Move-to-Earn

    Play-to-Earn experienced a massive wave of adoption during 2021, as crypto-friendly gamers jumped on the opportunity to earn money while playing games. P2E games such as Axie Infinity, Star Atlas, and others saw a dramatic increase in user and revenue growth. However, after the initial hype wave over P2E games settled, what was left was a realization that many of these games lacked truly engaging gameplay, social features, and sustainable tokenomics.

    Fast forward to late 2021/early 2022, we witnessed a significant pivot in the blockchain gaming space: Move-to-Earn. M2E has taken the world by storm, with numerous projects popping up and their valuations skyrocketing. Among the younger generations, there is a trend towards self-care and maintaining a more healthy lifestyle as we continuously get reminded of just how much time we end up spending indoors. Covid lockdowns took this lifestyle to the extreme and forced everyone to spend time at home longer than many felt comfortable. Now there is a thirst for a more active, healthier life.

    P2E games have had (and continue to have) a good run, but M2E has managed to capture the interest of not only gamers, but also those blockchain enthusiasts who might not be fully on board with just spending time tapping away at their phone screen to earn their P2E tokens. However, every project comes with its own shortcomings. Let’s take a look at these shortcomings and how an emerging project – FitEvo has transformed its platform amidst this trend with a new edge.

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    Finding An Edge in the M2E World

    With popular M2E games such as STEPN, Genopets, and STEP, you’ll find that they share a common gameplay model in which the user acquires an in-game asset, be it a sneaker or a pet animal, and upgrades it further as they keep on exercising.

    But these features on their own are not enough to make an M2E game successful. The focus should be just as much on the social aspects and community engagement opportunities around a user’s physical activities, as it is on the earning and NFT upgrading experiences. And many of the games in this space seem to have forgotten what the most popular traditional social fitness apps such as Strava, FitBit, and MyFitnessPal have already done in order to expand their user base, and keep it engaged. 

    Strava, one of the pioneers in the social fitness app space, has achieved an enormous global user adoption, boasting nearly 100 million users. Much of this growth can be attributed to the app offering not only a feed of activities of their friends, but also other social features that are geography-centric and community engagement focused.

    This precedent for a successful M2E game is exactly the reason why FitEvo is so appealing in terms of fundamentals. FitEvo, an M2E dragon breeding NFT game, has the makings of an incredibly successful blockchain-based game, as they have incorporated many of the social features that people know and love.

    FitEvo: Focusing on the Interaction Between Individuals

    FitEvo aims to engage the masses through a powerful combination of NFT dragon breeding (evolving together with a dragon companion), and social features that gamify physical activity and human competitiveness, and bring friends and communities closer together.

    An engaging and fun dragon breeding game, FitEvo has been inspired by the greats, like Tamagotchi and Pokemon, taking it to the next level by syncing the user’s movements with the development of their very own dragon. In FitEvo, the dragon co-evolves with the user, creating a bond between the two. The hatching of eggs, breeding and evolving of dragons, will be intimately linked to the physical movements of their masters.

    And here is where FitEvo will really shine – the social and gamification features. For those familiar with the M2E STEP game, FitEvo will be like a new and improved Step 2.0, incorporating all the crucial engagement mechanisms that have made traditional social fitness apps so popular. If you’re one of those who didn’t manage to get in on STEP early on, it might be worth your while to pay close attention to FitEvo.

    The multiplayer feature alone will offer an enormous amount of value to the users, FitEvo allows FITamins(as the FitEvo community calls itself) to meet other like-minded and even geographically adjacent individuals by organizing group runs or other group exercises. Anyone who has ever tried getting back in shape with their friends cheering them up or even being right next to them, sweating off their own dietary sins, knows how much it helps to have someone give you motivation and some peer pressure at your lowest moments. This type of community support will be possible, with FITamins helping each other become their better selves.

    Of course, what would a fitness app be without some healthy competition? FitEvo will offer many opportunities to challenge others and stimulate their competitive neurons through classical challenges, as well as user-created routes with leaderboards.

    In addition to earning $FIVO tokens through movement, FitEvo has made sure that attention is paid to incentivizing more extensive user engagement beyond exercising and dragon breeding. Users will be able to collect Active Points through interactions, referral count, daily sign-ins, missions completed, community contributions, and more. The Points will significantly influence users’ earnings to the upside, so it will be in everyone’s best interest if they try to make the best of their experiences on the FitEvo app – and why shouldn’t they?

    Another interesting feature that we are yet to hear more about is the training programme, which will offer inexperienced users the opportunity to learn from the community and follow pre-planned exercise curricula without having to design them themselves.

    Incorporating all of these features will be no small feat for FitEvo, and it will be interesting to see how the project progresses forward. With such a clear edge over their competitors defined, it’s now up to the FitEvo team to deliver on these ambitions and rise through the ranks of the M2E space.

    To learn more about FitEvo, see: https://linktr.ee/FitEvoNFT

  • The Dark Side of NFTs: Controversies and How to Fix Them

    The Dark Side of NFTs: Controversies and How to Fix Them

    As digital investing is growing in popularity, a new type of digital asset known as non-fungible tokens (NFTs) are entering the market. An NFT is a cryptographic asset that is presented as artworks, music, videos, and in-game items, with many other new ideas coming up each day. Having made their debut in 2014, NFTs have been increasingly in-demand as a method to purchase and sell digital works of art in our current day of age.

    In January 2022, one of the monumental NFT marketplaces, OpenSea, reported a trading volume of 5 billion USD. Popular public figures have also hopped on the NFT craze such as pop singer Justin Bieber, rap artist Snoop Dogg, and football legend Lionel Messi.

    With the increasing popularity of NFTs, this raises a new question: Are there any disadvantages to using NFTs? In this article, we discuss the current challenges NFTs are facing, and discuss whether NFTs possess the potential to grow even bigger in the blockchain industry.

    Challenge 1 – Plagiarism and Ownership of NFTs and underlying works

    NFT ownership does not equal “complete” ownership, to some extent. NFTs can be duplicated and downloaded by thousands of people on the internet with a simple screenshot. Although buyers technically own the NFT on the blockchain, digital art thieves can easily steal them — as a complete digital replica.

    With the upsurge of NFT theft, artists gradually noticed that their artworks were being turned into NFTs and sold without consent on various online marketplaces. For example, in 2021, Russian artist Weird Undead discovered her recent artwork up for auction on OpenSea.

    The artist tweeted, “I don’t give any permission (ESPECIALLY to random jerks) to make tokens from my content and I feel so angry.” The non-fungible token has since been taken down from OpenSea after Weird Undead filed legal notices against the online auction site.

    (Twitter user @WeirdUndead’s tweet garnered 21.9K likes)

    NFT theft is, unfortunately, rather common. Although profit loss will occur when plagiarising an artist’s work, there are currently no preventive measures for those who mint another person’s art and sell it as an NFT. It may also prove difficult for the artist to claim any compensation or seek remedies against the person who plagiarised them since they are most likely anonymous and living in another country. 

    Challenge 2 – NFTs are bad for the environment?

    Most NFTs use the Ethereum blockchain which also operates on the Proof of Stake (PoS) algorithm. Transaction verification requires the PoS to perform multiplex calculations — where a stupendous amount of computers is vital.

    The issue is that it takes a great toll on electricity to mine Ethereum. Each transaction on Ethereum takes 48.14 kWh, which is comparatively a lot more than other average computational tasks. The substantial use of this algorithmic power and electricity results in the increase in consumption of fossil fuels and leaving an even bigger carbon footprint on our planet.

    These NFTs are largely to blame for the massive amounts of greenhouse gas emissions emitted by cryptocurrency transactions and a lot of people don’t believe that the recommended solutions are possible.

    A digital art marketplace called ArtStation withdrew plans to develop a platform for NFTs within hours after receiving criticisms from people who believe that dealing in crypto art is unethical. ArtStation’s proposals for carbon credits have been equated by artists on Twitter as “setting a house on fire then placing a single potted plant on the burned property.”

    (Twitter user @Bleaaeach is among many who strongly disagrees with the NFT phenomenon)

    Fixing the challenges faced by NFTs?

    With the right protocols that can protect the artist’s work and also the environment, NFTs can potentially thrive for generations to come.

    Artists should be protected by intellectual property laws when selling their artwork in the NFT space. In the US, their copyright laws state that only the original holder has the right to turn their artwork into an NFT. To illustrate, consider the lawsuit brought against Foundation, an NFT platform, for showcasing artwork created by another NFT project called Cryptopunk which was promptly called out by claimed creator Ryder Ripple.

    Essentially, artists still have the potential to have their art protected and respected for their original and exclusive value in the form of NFTs. NFT creators can also take the opportunity to earn royalties on the resale of their work — a feat that is comparatively much more difficult to achieve in the traditional market.

    Environmental strategies for NFTs?

    For environmental concerns, NFTs are still relatively new and were not expected to consume a tremendous amount of electricity when being mined. There are potential sustainable methods that can be adopted to protect the environment when exploring the NFT space. A renewable energy strategy would be a practical method as PoS mining can utilize emission-free energy. In recent years, solar power is a common practice when companies take on an environmental approach, but other alternatives, such as wind-generated electricity can also be considered.

    Another environmental strategy would be to purchase carbon offset credits. “A carbon offset credit is a transferable instrument certified by governments or independent certification bodies to represent an emission reduction of one metric tonne of CO2,” explained by the Carbon Offset Research and Education. Although NFT investors who purchased offsets will not directly reduce carbon dioxide emissions, it can bestow a financial motivation to lessen total emissions on an annual basis.

    Will NFTs survive?

    Despite the disadvantages of NFTs mentioned earlier, NFTs won’t be seeing the finish line anytime soon. NFTs’ most evident advantage is their capacity to improve market efficiency. Digitization improves efficiency and safety by removing the need to handle physical assets. With the ability to store and protect sensitive data and documents, they might be the next biggest beneficial tool for both individuals and businesses.

    NFT is also transforming art, music, and sports by allowing digital assets to be sold and providing a range of revenue streams for digital artists. Upcoming trends, such as play-to-earn is providing users with the opportunity to also earn while gaming with their NFTs. Seems like going forward, the utility concepts in NFTs will only continue to drive the sector, instead of ruining it.

    With the rapid growth and popularity of NFTs, there is no doubt they will have a significant impact on the global economy in years to come. It is not a matter of how, but when.