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Coinbase Banks On Dogecoin Listing To Revive Stuttering Fortunes

Divisive meme token Dogecoin will get a Coinbase listing within the next six to eight weeks.

The comments came from Coinbase CEO Brian Armstrong, who was discussing how the firm can move forward following its worse-than-expected first earnings report as a public company.

However, with Dogecoin struggling to recover after Elon Musk’s SNL blunder, in which he called it a “hustle,” not forgetting the saturation of Dogecoin clones flooding the market, one has to ask, is this the correct strategy for Coinbase?

Is The Dogecoin Narrative Changing?

In implementing a Dogecoin listing, the Coinbase boss is hoping to turn things around at the company. He added there’s a general need to accelerate the process of new token listings.

It’s reasonable to assume that Armstrong believes more choice is a factor in increasing its revenue. There are currently 207 markets available on Coinbase Pro. This falls way short of Binance, which offers users 1,232 markets.

While choice could make Coinbase more appealing to users, selecting the appropriate projects is equally important.

Few tokens have been as influential as Dogecoin this year. It may have started as a joke about an overly serious industry, but its meteoric price rise now puts it in a whole different light.

Regardless of what serious investors think, 10,000% gains YTD suggests public sentiment has a far more significant impact than fundamentals alone.

In the past, earning a Coinbase listing was seen as a milestone achievement. The platform’s quality over quantity approach gave listed tokens an air of legitimacy.

With that, given Dogecoin’s up-and-coming listing on Coinbase, should we now accept that DOGE has transcended its original purpose?

Answering yes means Dogecoin belongs in the same bracket as Bitcoin, Ethereum, and Litecoin. But for some, that remains a step too far.

Dogecoin 4-hourly chart

Source: DOGEUSD on TradingView.com

COIN Stock Continues To Sink

Coinbase released its first-ever quarterly earnings report as a public company on Thursday.

Revenue was $1.8 billion versus an expected $1.81 billion. Earnings per share (EPS) came in at $3.05 versus an expected of $3.09.

In a statement, the firm mentioned it missed out on revenue due to the unavailability of certain crypto assets on its platform.

“Our competitors are supporting certain crypto assets that are experiencing large trading volume and growth in market capitalization that we do not currently support, as well as offering new products and services that we do not offer.”

While actual revenue and EPS were not massively off from expectations, as the first major crypto company to go public, Coinbase is being held to a higher standard.

This shows in its sinking stock price, which is down 19% from its mid-April NASDAQ debut.

Source: google.com

Lisa Ellis of MoffettNathanson said it’s easy to be negative on Coinbase. But she maintains that it’s still early days.

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$425bn Wiped Off Crypto Market As Musk Says Bitcoin Is Bad For The Environment

Elon Musk has released a statement saying Tesla will no longer accept Bitcoin as payment for its electric vehicles. The firm said the decision was based on the increasing use of coal in Bitcoin mining.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emmissions of any fuel.”

This coincided with a sharp decline in the total crypto market cap, which saw $425bn wiped from valuations before bottoming at $2.06 trillion in the early hours (UTC). Bitcoin is down 10.5% in the last 24-hours.

The timing and overall message have drawn confusion, leading to calls to publicize the source, which claims increasing coal usage in BTC mining.

In turn, some have called this hypocritical, as mining rare earth metals, in the production of lithium-ion batteries has a hugely damaging impact on the environment.

The Bitcoin Energy Myth Was Disproven Already

Tesla’s $1.5 billion Bitcoin purchase in February was a massive boost for the cryptocurrency industry. The firm also announced it would later begin accepting BTC as payment for its vehicles, which it implemented a month or so later.

Although accepting BTC for Tesla came with several issues, for example, tax implications, the move was still seen as a step forward in cryptocurrency adoption.

Based on environmental concerns, Tesla has now withdrawn the option to buy using Bitcoin. They went on to say they won’t be selling any Bitcoin and intend to use it once a greener source of energy is implemented.

Interestingly, the firm also revealed it was looking at other, less intensive cryptocurrencies. Whether that’s for a payment option or treasury asset is unknown at this time.

“Tesla will not be selling any Bitcoin and we intend to use it transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”

In response, Bitcoin-bull Anthony Pompliano pointed out that the majority of miners use renewable energy.

“Elon … you realize that 75% of miners use renewable energy, right? This energy story has been debunked over and over again.“

The reason for this is simple economics. Hydroelectric power is the cheapest source of electricity, and cost-conscious miners tend to flock to whichever location can offer cheap electricity.

Lithium-Ion Batteries Are Harmful To The Environment

Tailpipe emissions from electric cars indeed are zero. However, the environmental impact of electric vehicles is felt further up the chain.

In an article titled, “Lithium Batteries’ Dirty Secret: Manufacturing Them Leaves Massive Carbon Footprint,” the authors claim that making lithium-ion batteries could emit 74% more CO2 than making a standard combustion car.

As well as that, there is the destruction and contamination of natural water systems that come from mining earth metals, not forgetting the resulting displacement of indigenous people.

The Head of the Asia Research Division of the German think tank SWP, Günther Hilpert, said the mining for rare earth elements is a highly damaging and wasteful activity.

“Securing just one ton of rare earth elements produces 2,000 tons of toxic waste, and has devastated large regions of China.”

Bitcoin does have an environment through high energy consumption. However, most miners are using renewable sources. At the same time, manufacturing EVs is not saving the planet.

Bitcoin daily chart YTD

Source: BTCUSD on TradingView.com
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Goldman Sachs Exec Says Much Nope To Firm After Making Millions On Dogecoin

According to The Telegraph, a senior Goldman Sachs executive has quit the firm after making millions from Dogecoin. Aziz McMahon, the Head of Emerging Market Sales, resigned after 14 years with the investment bank.

It’s reported McMahon has opened a hedge fund with his gains. But an exact figure on how much he made is unknown at this time. Since the start of the year, the value of DOGE is up approximately 10,000%, forcing a new narrative over what constitutes sound investing.

While the naysayers continue to blow cold on the idea of investing in DOGE, its popularity has spawned a new subcategory of doggy coins. At this stage, it’s difficult to know what to make of things.

The Dogefather Crashes and Burns

The price of Dogecoin posted an all-time high, of $0.74, during the weekend. But the euphoria was short-lived as DOGE tanked, by as much as 30%, following Elon Musk’s appearance on SNL later that day.

Weeks before his appearance on the show, speculation was building on whether he would mention Dogecoin, and he did over several scenes.

But, rather than send DOGE to the moon, markets instead headed south to find a local bottom at $0.41.

Dogecoin daily chart YTD

Source: DOGEUSD on TradingView.com

Despite that, there’s still no denying DOGE’s unreal gains to date. A fact not lost on McMahon, who was able to escape the corporate rat race thanks to Dogecoin.

The CEO of Galaxy Digital, Mike Novogratz, said the Dogecoin phenomenon has spawned into a movement whose overriding sentiment is to stick it to the system.

“When you think about the whole spirit of what this crypto revolution is, there’s something pure in what dogecoin has done… It’s a little bit of a middle finger to the system. People are unhappy with the current financial system. They just are.”

Dogecoin Mania Goes Barking Mad

Such is the popularity of Dogecoin that several imitators have come to market, including Dogelon Mars, Dogefi, and DogeMoon, to name a few.

But most successful to date has been Shiba Inu, which launched in August last year, but started gaining traction last month. Having posted an all-time high of $0.00003791 on Monday, a sell-off ensued, calling into question the sustainability of Doge-mania in general.

Binance listed the $SHIB token on Monday. But CEO Changpeng Zhao distanced himself from the decision, saying he believes people should be free to trade it if they please. He added that it’s a high-risk token, and listing it is not a personal endorsement on his part.

Looking to catch the doggy trend, Yearn Finance developer “banteg” recently tweeted about the up-and-coming Woofy token. This resulted in the YFI price spiking to $89.7k off the back of a rumored airdrop for Woofy.

Out of all the pretenders, Woofy holds the most credibility due to Yearn Finance’s established reputation in the crypto space. However, with the sheer number of Dogecoin clones, one has to question whether things have gone too far?

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NYDIG Hires Bridgewater CFO In Drive To Bring Bitcoin To Banks

Bitcoin custody firm NYDIG has appointed John Dalby as its new CFO. Dalby spent almost three years at the world’s largest hedge fund, Bridgewater Associates. Commenting on his new role, he said:

“The growth of NYDIG has been incredible. Every day, more industries come to understand Bitcoin’s potential and more clients seek ways to safely access it. Personally, I share NYDIG’s vision for Bitcoin’s ability to propel economic empowerment for all. I eagerly look forward to doing my part to help NYDIG deliver innovative Bitcoin solutions to institutions and individuals.”

NYDIG believes the route to Bitcoin adoption is through existing legacy banking infrastructure. The firm is working towards implementing an institutional solution that will allow U.S. banks to offer their customers crypto trading.

Bitcoin Banking Services On The Way

In partnership with Fidelity National Information Services, NYDIG is pushing Bitcoin services for banks. Under this scheme, bank customers will soon be able to buy, hold and sell Bitcoin via their existing bank accounts.

According to NYDIG, the response has seen hundreds of smaller banks come on board. However, discussions with some of the bigger banks are still ongoing at this time. Patrick Sells, Head of Bank Solutions at NYDIG, said this setup makes crypto easy for everyday people.

“What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships. If I’m using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin.”

Business Insider points out that less well-resourced banks struggle to compete in the new digital marketplace. The publication drew attention to the rising popularity of challenger banks and financial service providers, such as Revolut and Venmo.

By signing up with NYDIG and offering Bitcoin trading services to its customers, U.S. retail banks can better compete with challenger organizations, which already hold a significant overhead advantage by being branchless.

NYDIG Research Shows Most Don’t Care About Crypto Being Permissionless

NYDIG published a survey they conducted earlier this year that reveals customers are more interested in Bitcoin products from their bank than ever before.

“The increasingly widespread adoption of Bitcoin, with little involvement from banks, has caught many by surprise. Some banks may wonder if consumers simply don’t want to intermingle the two. However, our consumer research points to a vastly different conclusion.”

Interestingly, the survey results show that 80% of existing Bitcoin investors would move their holdings to a bank with secure crypto storage. Also, 71% would switch to a bank that provided Bitcoin services.

Although self custody and direct trading on crypto exchanges is the preferred method for retail crypto enthusiasts, many overlook the fact that some people want an intermediary.

The reasons for this are many, including access to customer service, the perceived complexity of cryptocurrency, and shared responsibility for scam/fraud protection.

Bitcoin daily chart YTD

Source: BTCUSD on TradingView.com
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Internet Computer (ICP) Drops From Nowhere To Storm The Top Ten

Internet Computer (ICP) enters the top ten on CoinMarketCap following its exchange debut. ICP was sitting as high as the fourth spot, but following heavy sell pressure, it’s since dropped to the seventh position, just ahead of XRP, at writing.

The CoinMarketCap rankings have seen a flurry of changes during this bull run. But it’s not often that a relatively unknown token enters the top ten. This has many wondering if ICP is a legit project.

What Is Internet Computer (ICP)?

Internet Computer launched simultaneously on several big exchanges yesterday, including Binance, Coinbase Pro, Huobi, and OKEx.

The sudden appearance of ICP in the top ten has caused a stir in that ICP has achieved a lot in a relatively short time. For example, ICP is already listed on Coinbase Pro, whereas ADA, which has been around since late 2017, only achieved this in March this year.

In reality, ICP is part of a project that has been five years in the making. Developed by Swiss-based Dfinity, the project has several prominent backers, including Silicon Valley venture capitalists Andreessen-Horowitz, and Polychain Capital.

Since 2016, Dfinity has been developing a decentralized blockchain network to expand the internet’s functionality. Research specialists Messari said Dfinity’s obscure and technically complex goals make it a highly misunderstood project.

But, as developments pick up the pace, they see more and more people becoming familiar with what the project is about.

“Dfinity is one of the most tenured and well-funded smart contract platforms in crypto. Yet it is also one of the least understood. Most of Dfinity’s obscurity is due to its technical complexity and abstract vision. The launch of their token and finally open sourcing their code will create more interest and understanding in the project.”

What’s The Use Case?

With Internet Computer, Dfinity is looking to build a decentralized, scalable cloud solution to store data, perform computational tasks, and enable community governance.

It hopes to address concerns associated with the internet in its current guise, namely the poor security and dominance of big tech oligopolies. Therefore, Dfinity is not so much focused on delivering blockchain technology. Instead, the primary goal is to build a free and open internet controlled by users.

With its network of independent data centers, apps will be able to run on the network itself. This is in contrast to the current internet, where apps run on servers, the lion’s share of which is controlled by the likes of Google, Amazon, and Facebook.

Dfinity engineering manager Stanley Jones said, instead of apps running on a dedicated Google cloud server, with Internet Computer, the software has no fixed physical address as it moves between servers run by the independent data centers. This means apps can exist that nobody owns or controls.

The ICP token comes into play as developers pay data centers for running their code. But the data is not accessible, making advertising tracking across this network hard to do.

Internet Computer hourly chart

Source: ICPUSD on TradingView.com
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Justin Sun Offers $50M Dogecoin For TRX And BTT SpaceX Satellite Launch

Justin Sun has enquired with SpaceX to launch Tron and BitTorrent satellites on his behalf. He added that he’s willing to pay $50 million in Dogecoin to make it happen.

In conjunction with Geometric Energy Corporation, SpaceX wishes to make DOGE the “unit of account for lunar business in the space sector.” By supporting this setup, Sun is hoping to champion the Dogecoin cause.

“@elonmusk I am serious. I would like to pay $50 million worth $Doge for this launch and you should consider my offer since @SpaceX need first satellite deal transaction paid with doge from customer order.”

Dogecoin To The Moon, Literally

Following his SNL appearance on the weekend, which coincided with a downturn in the DOGE price, SpaceX CEO Elon Musk restated his plans to literally put Dogecoin on the moon.

In Q1 2022, the SpaceX Doge-1 moon mission will embark on the first-ever commercial lunar payload, all of which will be paid for in Dogecoin. Partnering with Geometric Energy, the Falcon 9 rocket will carry a 40kg CubeSat into orbit for the purposes of research.

SpaceX Vice President of Commercial Sales Tom Ochinero billed the Doge-1 mission as a tester for the application of cryptocurrency off-planet, and even the beginning of space commerce.

“This mission will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.”

Keen to be a part of this campaign, Sun said he wants SpaceX to launch Tron and BitTorrent satellites. However, at this stage, it’s not clear for what purpose he intends their use.

Over the years, Sun has earned himself a reputation for being a flamboyant marketer. Milestone events in cryptocurrency often involve Sun. This includes being narrowly outbid on buying the world’s most expensive NFT, Beeple’s The First 5000 Day, as well as paying $4.6 million for lunch with Warren Buffett.

Skeptics Continue Sounding The Alarm Over DOGE

Many believe Dogecoin has transcended blockchain to become a cultural movement. This would go some way in explaining its unreal price performance despite a lack of fundamentals.

Equally, concerns remain that it will all end badly. IOG CEO Charles Hoskinson has been a vocal member of the anti-DOGE crowd. Recently, he shared his opinion on the matter, saying he doesn’t like Dogecoin because he sees it as harmful to cryptocurrency.

“I don’t like things that destroy the reputation of my industry, make my job harder, and ultimately harm people. I really, really don’t. And it’s my belief that what’s going on with DOGE is a) not sustainable, b) will result in a systematic, catastrophic failure of that cryptocurrency, and c) will create millions of people who are disillusioned, disenfranchised…”

At the same time, as evidenced by SpaceX and Geometric Energy using Dogecoin to fund lunar missions, DOGE is starting to develop qualities that add to its stability and overall health.

For now, the decline of DOGE was halted by finding strong support around the $0.41 level. As of today, DOGE is up 16% to $0.48 at the time of writing.

Dogecoin 4-hourly chart

Source: DOGEUSD on TradingView.com
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Crypto Analyst: Buying Litecoin Now Is Like “2020 Ethereum”

Litecoin is in scintillating form of late, having posted a new all-time high of $410 in the early hours. After months of stuttering, LTC finally joined the likes of BTC and ETH in reaching that milestone moment during this bull run.

With that, the bull case is building. Some suggest this is just the beginning, with more upside for Litecoin on the way. This is especially applicable as the Mimblewimble upgrade draws closer to rollout.

Litecoin Starting to Build Momentum

Dogecoin’s top performance shows miracles can happen. DOGE is up an unbelievable 12,000% YTD, working its way into the fourth spot on CoinMarketCap off the back of this run.

Meanwhile, Litecoin’s relative underperformance so far has raised several concerns. Even so, LTC manages to remain in and around the top-ten despite its underwhelming price action. However, in what some see as a turning point, Litecoin today posted a new all-time high.

@KongBTC chimed in by drawing parallels between Litecoin now and Ethereum in October 2020, when it was priced around the mid-three hundreds.

“Buying $LTC at $360 now is the same as buying $ETH at $360 in October ’20. that’s the tweet.”

Since Q4 2020, Ethereum has gone on to break all-time high after all-time high, growing by approximately 1,050% during this period.

Analyst alanmasters charted Litecoin on a weekly time frame using fib bands to perform his analysis. He expects the price to hit as high as $1.5k in the mid-term. With a $5k price target by year-end if it can sustain its momentum.

Litecoin TA

Source: TradingView.com

“We are likely to see much more growth, if Litecoin is to follow the King and Queen of the cryptocurrency coins.

Based on my fib. Projections, we are looking at $500, $900 and even $1,450 or more…

$5,000? Maybe, but this can take longer… We aim at $1,500 mid-term… $5K is surely possible but this might happen by years end.”

Mimblewimble Update

Mimblewimble is Litecoin’s most significant implementation to date. Founder Charlie Lee described the update as the final piece of the puzzle in making Litecoin sound money. Lee said the history attached to cryptocurrencies is a major sticking point that counts against them in this regard.

“You’ve heard stories of Coinbase banning people from using their service if they found out that the coins you received were sent from, say, a gambling website or from a dark marketplace. That makes the coins not very fungible.”

This is why he sees the addition of privacy and fungibility, via Mimblewimble, as critical to Litecoin’s future.

Developers have been working on Mimblewimble since late 2019. Lead developer David Burkett recently gave an update saying the project is nearing completion. But loose ends to do with audits, reviews, bug fixing, and documentation still require tying up.

However, Burkett has yet to confirm a definite rollout date.

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Elon Musk Brushes Off SNL Fail, Plans To Literally Send Dogecoin To The Moon

The Tesla and SpaceX CEO Elon Musk said he plans to launch the Doge-1 satellite in Q1 2022. This project will be funded entirely using Dogecoin, making it the first cryptocurrency and meme in space, in Musk’s words.

This comes following the negative market reaction to Musk’s SNL appearance during the weekend, in which he mentioned Dogecoin on several occasions. Add to that short-sellers coming out of the woodwork, and the immediate outlook for DOGE looks uncertain.

Musk Is Not Done With Dogecoin

In the run-up to last weekend’s SNL show, Musk was expected to mention Dogecoin, which he did during his opening monologue, and again during a Q&A describing it as a “hustle.” But markets reacted by selling off, tanking the price by as much as 30% at one point.

DOGE has since posted a recovery of sorts. But it’s still some 20% off the $0.74 local high going into the weekend.

4-hourly Dogecoin chart month to date

Source: DOGEUSD on TradingView.com

Nonetheless, that hasn’t dampened Musk’s enthusiasm for Dogecoin. Back in April, he mentioned that SpaceX would put a “literal Dogecoin on the literal moon.” Late Sunday evening, he reiterated these plans in a tweet, accompanying his message with the “official” Dogecoin song.

The SpaceX Doge-1 moon mission is in collaboration with Geometric Energy Corporation. It will see a 40kg satellite launch, as a rideshare, on the Falcon 9 lunar mission early next year. The firm said it intends to monitor lunar spatial intelligence using cameras and sensors onboard the satellite.

Geometric Energy’s CEO Samuel Reid said Dogecoin has “solidified” itself as the go-to currency for space travel. Adding, its qualities of speed, reliability, and security make it sophisticated enough for financing commercial moon projects.

“Having officially transacted with DOGE for a deal of this magnitude, Geometric Energy Corporation and SpaceX have solidified DOGE as a unit of account for lunar business in the space sector.”

DCG Short Selling DOGE

Dogecoin’s amazing performance this year has split the cryptocurrency community. While the pro-DOGE faithful maintains that it’s the people’s cryptocurrency, the skeptics point to a lack of fundamentals and development.

The latter group warns that DOGE’s position is unsustainable and may even result in a crypto clampdown by the authorities should a significant selloff occur.

The Digital Currency Group (DCG) Founder, Barry Silbert, revealed his firm had opened a $1 million short position, betting that the DOGE price will decline.

“Okay $DOGE peeps, it’s been fun. Welcome to crypto! But the time has come for you to convert your DOGE to BTC“

Enabling this trade, Silbert used a margin token called DOGEBEAR available on crypto derivatives exchange FTX.

At this point, Dogecoin has proven itself a cultural phenomenon, bringing much-needed exposure to the cryptocurrency space. But, with DCG going short, should the rest of us take this as a sign of what’s to come?

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Citi Just Realized It Can’t Beat Bitcoin, Considers Joining Instead

U.S. financial services firm Citi considers offering Bitcoin services following a flood of interest from its clients. The firm is one of many banks that has warmed to cryptocurrency in recent times.

Although Citi has only signaled an interest at this time, a new custody initiative backed by Fidelity could soon see hundreds of U.S. banks offering Bitcoin services. And rather significantly from an adoption standpoint, not just for institutional players or high net worth individuals.

Citi Ready For A Bitcoin Explosion

Citi’s Global Head of Foreign Exchange, Itay Tuchman, said the company is thinking about entering the Bitcoin market. Despite the less than sound reputation of crypto, mounting interest in Bitcoin from asset managers and hedge funds has forced Citi into considering the move.

“We shouldn’t do anything that’s not safe and sound. We will jump in when we are confident that we can build something that benefits clients and that regulators can support.”

Tuchman said no decision had been made as to whether it would offer crypto services. However, under consideration were trading, custody, and financing options for clients.

“There are different options from our perspective and we are considering where we can best service clients. This is not going to be a prop-trading effort.”

Prop-trading, or proprietary trading, refers to a financial company trading its own funds for direct gain instead of earning a commission by trading on behalf of its clients.

During Q4 2020, a leaked Citi report showed a senior analyst giving a Bitcoin price prediction of $318k by December 2021. Global Head of CitiFX Technicals, Tom Fitzpatrick, wrote:

“The whole existence of bitcoin has been characterised by unthinkable rallies followed by painful corrections, the type of pattern that sustains a long term trend.” He asked, “Are we on the cusp of another such structural development?”

Banks Are Changing Their Tune

Lately, several large U.S. banking groups have announced they are working on introducing crypto services due to demand from clients. This includes BNY Mellon, Goldman Sachs, and Morgan Stanley.

But thanks to crypto custody firm NYDIG, customers of some U.S. banks will soon be able to buy, hold and sell Bitcoin via their existing accounts.

Head of Bank Solutions at NYDIG, Patrick Sells, said discussion with on-boarding big players is still ongoing at the moment. But hundreds of smaller banks have already enrolled in the program.

“What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships. If I’m using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin.”

NYDIG is a subsidiary of Stone Ridge asset managers, which has partnered with Fidelity National Information Services to offer the service.

Bitcoin daily chart

Source: BTCUSD on TradingView.com
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New U.S Regulatory Agency Possibly In The Works To Oversee Crypto Exchanges Directly

The U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, said Congress needs new regulatory frameworks for crypto exchanges. At present, no single agency is directly responsible for them, leading to an incoherent regulatory approach.

A possible solution lies in the formation of a new agency to oversee crypto exchanges directly. Alternatively, an existing agency would see an expanded role. Either way, regulatory clarity remains a central sticking point for the cryptocurrency industry. Can we now expect to move forward on the issue?

The U.S. Crypto Industry May Finally Get Regulatory Clarity

Newly appointed Gensler addressed the House Financial Services Committee yesterday. Among the many topics discussed was the fact that no single agency is in charge of crypto exchanges in the U.S.

The statement was Gensler’s first regarding his approach to cryptocurrency regulation. He pointed out that crypto businesses must deal with multiple regulators. The issue is compounded by a mishmash of rules at both the state and federal levels.

By putting in place a regulatory framework for exchanges, Gensler hopes more direct oversight will lead to a vibrant crypto marketplace that’s safer for investors.

“That could instill greater confidence. Right now there’s not a market regulator around these crypto exchanges. And thus there’s really not protection against fraud or manipulation.”

Chief Legal Officer at Coinbase, Paul Grewal, said he welcomes the opportunity to discuss how to get crypto regulation right. Adding, his firm is willing to share its knowledge on what works and what doesn’t.

Earlier this year, in responding to SEC allegations of selling unregistered securities, Ripple CEO Brad Garlinghouse said the regulatory landscape is a mess. Going further, he explained that Ripple deals with eight different agencies, and each has its own take on cryptocurrency.

“With 8 different govt agencies, each with their own (and sometimes opposing) views of crypto, U.S. market participants are facing conflicting policies and no surprise, some act conservatively.“

Robinhood Under Fire

Also on the agenda with the House Financial Services Committee was Robinhood. Lawmakers raised concerns over the possible conflict of interest that comes with zero commission trading apps.

Under its “payments for order flow” business model, the firm receives compensation and other benefits for directing orders to different parties for trade execution, with Citadel Securities executing near half of Robinhood trades.

Julian Emanuel, the Chief Equity and Derivatives Strategist at BTIG, said zero commission at the front end increases the likelihood of users trading.

“When you can engage in an activity that used to cost you something and no longer seemingly costs you anything, the inclination is particularly if you’re making money doing it, you’re likely to do it more often. It’s a perfect example of the law of unintended consequences.”

Similarly, accusations of “gameifying” trading have the same effect. Regulators widely criticized the use of confetti and other techniques to entice customers into trading.

In December last year, Robinhood agreed to settle with the SEC for $65 million over charges it failed to disclose its “payments for order flow” model adequately.

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Saylor Reacts To Taunts That Bitcoin Has Become The MySpace of Crypto

MicroStrategy CEO Michael Saylor responded to a tweet implying that Bitcoin’s days are numbered. In it, the poster likened the leading cryptocurrency to MySpace. Saylor answered by saying BTC trade volumes equal MySpace’s peak valuation every few hours.

With some now calling Bitcoin “boomer crypto,” due to it being relatively unexciting compared to the others, is there any truth in the MySpace allegations?

Is Bitcoin Becoming The MySpace of Crypto?

Defending Bitcoin over claims it is becoming irrelevant, Saylor said the leading cryptocurrency had grown faster than any company in history. He added that Bitcoin towers over MySpace in terms of valuation.

“At its peak, MySpace was valued for a day in a single private transaction at less than .06% of #Bitcoin which has grown faster to a larger market capitalization than any company in the history of the world. We trade one lifetime worth of MySpace in $BTC every few hours.”

MySpace was the first social network to reach a global audience. It was the dominant platform between 2005 and 2008, serving 100 million users a month.

By May 2009, Facebook’s number of monthly users exceeded that of MySpace for the first time. This was the beginning of the end, and its user count continued to fall off despite several site overhauls. Even so, it continues to this day with around 7 million users a month. In comparison, Facebook pulls in 2.7 billion users a month.

According to Lifewire, MySpace’s downfall was due to several factors, but its failure to innovate and keep pace with competing platforms was chief among them.

“one argument held that the company never figured out how to innovate well enough to keep up with the competition.”

While Saylor may argue that BTC trade volumes are substantial relative to MySpace, some would say he didn’t address the point of the argument. Bitcoin is often accused of being an innovation graveyard.

Taproot Upgrade Already In-Play

The last major Bitcoin innovation came in 2017 with the SegWit soft fork, enabling transactions to be split into blocks by separating signatures. SegWit was intended to avoid accidental transactions and make the network run faster and more efficiently.

Earlier this week, developers merged Bitcoin’s Taproot upgrade with the source code. It will make Bitcoin multi-signature transactions cheaper, more private, and easier to deploy.

“It is intended to increase Bitcoin’s fungibility, improve the functionality of smart contracts, and boost privacy by making all transactions look the same to outsiders.”

Miners who approve of the upgrade can signal their support by including particular data, known as a “signal bit,” in their mined blocks. If 90% of the mined blocks up to the cutoff point of August 11 include the Taproot signal, the upgrade gets locked for activation in November.

The majority of mining pools have already signaled their approval of Taproot. But as far as crypto innovations go, some would say Taproot is still a relatively conservative innovation.

Bitcoin daily chart

Source: BTCUSD on TradingView.com
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Dogecoin’s Triumph Is A Snub Of The Monetary System

In accounting for Dogecoin’s phenomenal rise, Mike Novogratz, the CEO of Galaxy Digital, said it’s a middle finger to the system. He added that many people, Millennials and Gen Z, have turned to it because they are unhappy with the current financial system.

The market cap of Dogecoin is now $75 billion, which is more than many well-known firms that are titans in their respective industries, including Dell, Capital One, and Nintendo. As a project with no active development, or definitive purpose, does Dogecoin’s success call into question the validity of cryptocurrency as a whole?

Dogecoin As The People’s Crypto

Dogecoin’s unreal growth is drawing serious attention. It turns out, investing stimulus money, totaling $3,200, into DOGE at the time of payment would have returned over half a million dollars.

This astonishing performance has propelled Dogecoin into the fourth spot on CoinMarketCap. What’s more, Binance Coin is in sight for an overtake. Given the momentum behind the movement, it would not be a shock if that happened.

Novogratz sees Dogecoin as a movement. He drew parallels between it and the GameStop saga orchestrated by the WallStreetBets crowd earlier this year. In their desire to teach Wall Street a lesson, they drove up the price of GME, resulting in the loss of billions for the predatory short sellers.

“I think we should all listen to what Dogecoin is saying. It’s the same thing we heard when we saw GameStop. There is a group of young people, a lot of them, that are singing out their voice loud and clear, saying, “Hey we’re going to put our money behind this.”

Novogratz points out that it’s the coordinated action of many DOGE supporters that’s behind the logic-defying growth. Much like GameStop, Dogecoin has come to represent a protest, but this time against financial disparity.

“When you think about the whole spirit of what this crypto revolution is, there’s something pure in what dogecoin has done… It’s a little bit of a middle finger to the system. People are unhappy with the current financial system. They just are.”

Is This A Joke… Coin?

There comes the point when a joke stops becoming funny. In the case of Dogecoin, given the show of strength behind the coin, that time is perhaps now.

Data on the Korean Composite Stock Price Index (KOSPI) shows an average daily volume of $9 billion. However, such is the demand for DOGE in Korea that Dogecoin volumes far exceed the KOSPI, with the last 24-hour volume of DOGEKRW trading coming in at $32 billion.

Add to that the growing narrative of Dogecoin as a payment method, and it seems as though a purpose is being built out for DOGE. There are unconfirmed rumors that KFC Canada will accept DOGE. A tweet saying, we accept cash, card, and Dogecoin,” has since been deleted.

While it was likely a joke, it still emphasizes Dogecoin’s now massive scale of influence.

Dogecoin daily chart

Source: DOGEUSD on TradingView.com
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Undeterred By Central Bank Scare Tactics Crypto Trading Is Booming In India

According to a local media source, crypto trading in India is on the rise. This comes as the Indian government is mulling over a ban on private digital currencies, which they say is necessary to protect investors. But, based on the rising popularity of local crypto exchanges, it appears that people remain unfazed.

India Proposes Crypto Ban

Talk of a crypto ban in India has been ongoing since 2018. Back then, the Reserve Bank of India (RBI) sought to turn the taps off by stopping financial institutions from dealing with cryptocurrencies.

“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [virtual currencies].”

But the country’s Supreme Court overturned this ruling in March 2020 because it was deemed unconstitutional. Although many saw this as a victory for common sense, that victory was short-lived.

The start of 2021 saw the introduction of a sovereign digital currency bill. It laid out the framework for a central bank digital currency while also stipulating a ban on private cryptocurrency. The move was met with a massive backlash.

Finance Minister Nirmala Sitharaman later responded by saying they have no intention to close down all options. Adding that the government is open to the idea of windows of experimentation.

“From our side, we are very clear we’re not shutting all options off. We will allow a certain amount of, a window for people to use, so that experiments in blockchain, Bitcoin, or whatever you may want to call it.”

What this means exactly has yet to be determined. But, it’s reported that failure to comply could result in jail terms of up to 10 years.

India’s Leading Exchange Reporting Record Volume

Despite the uncertain regulatory situation, India’s biggest exchange, WazirX, is enjoying record business.

Last month, it recorded its highest-ever daily trading volume at $419 million. At the start of 2021, this figure stood at just $17 million. Add to that a doubling of users, from one million to two million, in the first quarter of 2021, and it seems as though Indian investors have not lost their appetite for crypto.

daily crypto trading volume on WazirX

Source: nomics.com

However, in a throwback to 2018’s RBI ban on financial institutions dealing with crypto, reports have emerged today that banks are blocking the payment gateways of cryptocurrency exchanges. WazirX CEO Nischal Shetty pointed out that current legislation does not prohibit banks from dealing with crypto businesses.

“It’s not fair that the crypto industry has a clear go-ahead from the Supreme Court of India, and yet banks deny banking to the industry.”

Bitcoin-bull Anthony Pompliano recently said that banning Bitcoin will backfire considering there is no single point of failure. He added that embracing crypto will be more beneficial from an economic prosperity point of view.

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Buying Dogecoin With Stimulus Money Would Have Netted You Over $500k

The epic rise of Dogecoin continues to split the crypto community. But one thing that’s not being disputed is DOGE’s unreal performance. In fact, investing stimulus money into DOGE shows a significant outperformance over Bitcoin.

With a seemingly unstoppable surge, is now the time to admit we were wrong about Dogecoin?

Dogecoin daily chart

Source: DOGEUSD on TradingView.com

Dogecoin Outperforms Bitcoin By A Significant Margin

Much has been made over the dollar growth of stimulus money invested into Bitcoin as a point of difference between fiat and crypto. According to @BitcoinStimulus, the original $1,200 payment made on April 15, 2020, is worth $10,211. That’s a 750% increase.

But the scale of difference between Dogecoin and Bitcoin gets highlighted when the same calculation is applied to DOGE.

A $1,200 DOGE investment in April 2020 would now be worth $439k, which equates to a 37,900% increase. This makes Dogecoin 50 times more profitable than Bitcoin.

If an investor had used all of their stimulus money to buy DOGE on receiving each of the three stimulus payments, they would be holding 787,250 tokens. At today’s price, that investment would be worth a staggering $536k.

Binance CEO Changpeng Zhao said he underestimated DOGE, amongst others. Blockfolio points out DOGE is worth more than BMW now. As much as crypto purists may sneer at the meme token, the numbers do the talking.

Even so, not everyone is convinced. Host of the Profit Maximalist podcast, Luke Martin, drew attention to the precarious position of DOGE investors. He mentioned the fleeting “Elon effect,” and the hold that whales have as reasons why trading DOGE is like playing musical chairs.

Nearly 1 in 10 Americans Bought Cryptocurrency With Stimulus Money

Missing the Dogecoin train is a point of regret for many people. While it’s easy to say things with hindsight, more people used stimulus money to buy crypto than you think.

According to The Harris Poll, of the first stimulus payment, 15% invested part or all of the money, with 7% specifically going into cryptocurrency. Regarding the second payment, respondents to the poll held steady, with 7% saying they invested some, or all, of the money in cryptocurrency.

In respect of the most recent payment, the poll concluded that Americans are not planning spending sprees as a whole. Instead, a significant proportion will save or invest the money, with 7%-8% of respondents saying they will buy cryptocurrency.

“It’s clear, though, that right now, getting back to spending is not the sole focus for Americans. Although most of those who expect to receive the next stimulus payment do see themselves in need, a large plurality plan to put at least some of the money into their savings (40%) or invest the funds (17%). Of those who plan to invest money from the new stimulus check, 53% plan to invest in cryptocurrencies.”

Based on yearly performance, investing in Dogecoin would have eased much of the current financial anxiety people face. However, as Martin points out, there may not be long before fundamentals catch up.

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Want to Buy a Banksy With Bitcoin? Sotherby’s Says Yes

Fine arts dealer Sotheby’s is now accepting Bitcoin and Ether as payment methods. The first offering to test the response is Banksy’s Love is in the Air, which depicts a masked man throwing flowers.

This is made possible by partnering with Coinbase, which has set up a bespoke solution to enable this. Stefan Pepe, Sotheby’s Chief Technology Officer, said, by doing this, the firm is enhancing the client experience and appealing to a whole new clientele as well. The move represents another step towards cryptocurrency going mainstream.

“Leveraging the trusted exchange Coinbase is a natural progression and is in line with our dedication to enhancing our client buying experience and developing new ways to expand our client base by meeting them where they are.”

It's now possible to buy physical artwork from Sotheby's using Bitcoin

Source: sothebys.com

Bitcoin as a Payment Method

Speaking to CNBC, CEO of Sotheby’s Charles Stewart said accepting cryptocurrencies is something the firm has been thinking about for a while now.

Stewart mentioned that the positive response to its recent Pak NFT auction, which netted a total of $16.8 million, gave the incentive to explore accepting cryptocurrency for physical art.

“This will be the first time cryptocurrency will be accepted as payment for physical artwork. We’re really excited to make this happen. It’s something we’ve been thinking about for quite some time. You may recall we had our first NFT sale a few weeks back. We had over 3,000 bidders and participants in that sales series.”

The first piece to test the waters will be Banksy’s Love is in the Air. Stewart said buyers can pay cash as well if they wish. He estimates the piece to net between $3-$5 million.

“Banksy has been, as you might be well aware, a very popular artist at auction. And there’s a lot of interest in his work, paying with physical money as well. But what better combination to introduce crypto than an iconic Banksy painting?”

Bitcoin-bull Anthony Pompliano chimed in by saying soon, every company will accept the currency of the future rather than cash.

Bitcoin daily chart

Source: BTCUSD on TradingView.com

Banksy’s Message

Banksy is a pseudonymous street artist whose real identity remains unconfirmed and the subject of much speculation.

He came to prominence during the 1990s and follows a subversive, satirical style that expresses anti-war and anti-authoritarian themes. His artworks are publically displayed, such as on walls or repurposed prop pieces. These are often resold, which involves the removal of walls in most cases.

The artist unofficially sells a limited run of pieces through an agency called Pest Control.

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Bank of England Used as Bitcoin Advertising Board Stoking Inflationary Fears

In a bid to wake people to the dangers of Modern Monetary Theory (MMT), a message that read “printing money is stealing from the poor,” accompanied by a Bitcoin symbol, was projected on the Bank of England (BoE) building.

The incident has highlighted the disconnect between economic policy and cryptocurrency in general. With alarm bells sounding over the global economy’s health, can we expect a mass awakening to the financial fraud being perpetrated against the people?

Bitcoin used to sign off warning on dangers of money printing

Source: Reddit.com

Central Banks and Bitcoin Don’t Get on

The core idea behind MMT states that governments can and should print as much money as needed. This is because they have a monopoly over the fiat money supply and cannot go broke or insolvent.

“Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency.”

Critics of MMT argue that this philosophy goes against the conventional understanding of the government’s role in society, the nature of money, the purpose of taxation, and fiscal responsibility. There’s also the matter of inflationary pressure that builds from the excessive money supply.

With its 21 million capped supply, Bitcoin is held up by cryptocurrency advocates as the antithesis to this model. But how it would fare replacing global money, at least on layer 1, is a different matter entirely.

Nonetheless, regardless of the feasibility of that scenario, true to its creator’s intent, Bitcoin has come to symbolize the opposite of reckless monetary policy in the digital age.

For that reason, central banks tend to carry negative views towards cryptocurrency. Earlier this year, at a panel discussion at the World Economic Forum, BoE Governor Andrew Bailey warned that cryptocurrency, in particular Bitcoin, would not last due to a “lack of design and governance.”

Inflationary Fears Begin to Creep

The weekend saw Warren Buffett address Berkshire Hathaway shareholders warning that the company is facing inflationary pressures.

His firm reported strong profits of $11.7 billion. But Buffett drew attention to rising prices due to economic stimulus and a “healing labor market.” He added that people are flush with money and are willing to pay higher prices.

“We’re seeing very substantial inflation. It’s very interesting. We’re raising prices. People are raising prices to us and it’s being accepted.”

To settle concerns, the U.S. central bank released a statement in which they labeled inflationary pressures as “transitory.”

However, Chief Economic Advisor at Allianz, Mohamed El-Erian, takes a different view. El-Erian said he believes inflation will be persistent. Adding that the Fed has backed itself into a corner by describing inflation as “transitory.”

Given the mysterious Bitcoin projections on the BoE building and earlier this month on the Houses of Parliament, it’s clear that confidence in central banks is on the wane.

Bitcoin daily chart

Source: BTCUSD on TradingView.com
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Dogecoin Proving The Haters Wrong as Market Cap Now Exceeds Twitter

In a testament to how crazy markets have become, Dogecoin is now worth more than Twitter. While it looked like the DOGE train had run out of steam during late April’s sell-off, its market cap has gone on to nearly double, to just below $50 billion, in less than two weeks.

Elon Musk’s involvement is a factor in all of this. The Tesla billionaire is reportedly going to mention Dogecoin during his up-and-coming appearance on Saturday Night Live on May 8. On a fundamental level, there’s also the fact that more merchants are beginning to accept the meme token as a payment method. While critics maintain DOGE lacks fundamentals, who’s having the last laugh now?

Dogecoin Stuns The Market With Ever-Increasing Price Tear

In defiance of convention, Dogecoin continues its incredible run, even managing to flip Cardano in the process. YTD gains currently stand at 7,800%.

Following the recent market sell-off, a strong recovery from DOGE set in motion a steep uptrend in price. Today sees more of the same, gaining 7% since opening the day.

Analyst Kas1a charted DOGE on a 4-hourly, concluding that its run is “unstoppable.” His analysis shows a price trend respecting an upwards grind line that formed during the recent dip. Add to that a price level above the 13, 50, and well above the 200 and 800 EMAs, and the case for a $1 DOGE looks increasingly possible.

Dogecoin TA

Source: TradingView.com

Dogecoin co-founder Billy Markus said a $1 DOGE is not something he can wrap his head around. By his admission, Dogecoin was created in a matter of hours and was always intended as a crack against the ultra-serious cryptocurrency industry, not a project outdoing Twitter.

It gets even more absurd. A look at current company market caps shows DOGE within striking distance of Volvo, Honda, and Philips Electronics. All of which provide tangible goods and services to millions of people.

Markus cannot explain how or why his creation has gotten to where it is today. However, he raises the possibility that we no longer live in reality. Given the divergence of stock markets from the real economy, he may have a point.

“Maybe it’s that Dogecoin can be a good barometer for how far from reality things can get.”

How Long Can DOGE Keep This up?

Commenting on Dogecoin’s rise, IOG CEO Charles Hoskinson labeled the situation a bubble. He attributes its price performance to Elon Musk and market manipulation by “clever whales.”

“Let’s be very clear, this is a bubble. The price of DOGE is not sustainable, it’s going to collapse and a massive amount of retail money is going to be lost very quickly.”

When things go south for DOGE, Hoskinson fears that regulators will be forced to take action, resulting in tougher regulation for the entire cryptocurrency industry.

Those comments were made two weeks ago. Since then, DOGE has proven more resilient than Cardano. Maybe it’s time to accept that fundamentals no longer matter.

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People Should Know Bitcoin and Wall Street Bitcoin Are Two Different Things Entirely

Chief Investment Officer at Second Foundation Partners, Ben Hunt, believes Bitcoin going mainstream dulls its original use case and brings unacceptable compromises.

The leading cryptocurrency was founded on the principles of being permissionless and censorship-resistant. In short, a way to stick it to the establishment. But with Wall Street increasingly co-opting Bitcoin for its own ends, Hunt sees a coming Bitcoin identity crisis ahead.

The Institutions Are Coming in a Big Way

Recent times have seen institutions getting into Bitcoin in a big way. A popular method for institutions to invest in the leading cryptocurrency is via Grayscale asset managers.

Grayscale deals only with accredited investors. This means they serve individuals earning more than $200k a year and a net worth of over $1 million. Or in the case of organizations, entities with more than $5 million in liquid assets, or all beneficial owners meeting the criteria for individuals above.

Grayscale’s Q4 2020 Report showed that last year’s total inflows equated to four times the cumulative inflows of the previous seven years. With over half of 2020’s coming in the final quarter of 2020.

“$3 Billion Dollar Quarter: Grayscale experienced unprecedented investor demand, with approximately $3.3 billion of inflows. Investment into the Grayscale family of products surpassed $5.7 billion during 2020, more than four times the $1.2 billion cumulative inflow into the products from 2013-2019.”

Some big Wall Street players are also moving directly into Bitcoin themselves. The likes of BNY Mellon, Goldman Sachs, and Morgan Stanley, to name a few, have all given their nod of approval.

Their sudden interest in Bitcoin is for many reasons. A common theme from banks is the growing investor appetite for cryptocurrencies. There’s also the hedge narrative which is gaining traction as investors brace for a coming economic implosion.

Inventor Satoshi Nakamoto intended his creation to work as an alternative, even a replacement, to “the system.” However, as Hunt points out, that system is slowly subverting it for its own means.

Better to Stifle Bitcoin Than Ban it

Many called 2020 the year of institutional Bitcoin investment. Even attributing its break of $20k and the subsequent run-up to institutional money pouring into the markets. Either way, Q4’s unbelievable performance made it hard to ignore BTC.

While some investors, including Ray Dalio and Jim Rogers, believe a ban could come, Hunt takes a different view. Rather than outlawing the leading cryptocurrency, Hunt sees authorities striking back with “golden handcuffs and administrative surveillance.”

He describes the strategy as a way to accommodate and swallow Bitcoin, which is what they’ve done with every other financial innovation. Adding it’s preferable to stifle its censorship resistance and turn it into another Wall Street gaming table. The upshot to this is a future where people are encouraged to buy Bitcoin.

“Because the artistic Bitcoin identity I admire and value has been subverted by the neutering machine of Wall Street and the regulatory panopticon of the US Treasury Dept.

Because what made Bitcoin special in the first place is nearly lost, and what remains is a false and constructed narrative that exists in service to Wall Street and Washington rather than in resistance.”

The reality is most investors, whether libertarian or not, care only for the gains. At the same time, Bitcoin’s message may become diluted with institutional involvement, the primary concern for most remains making money.

Bitcoin daily chart

Source: BTCUSD on TradingView.com
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Cardano Africa Special Event Soured by Fact Checking Calls

The Africa Special event aired on Thursday, showcasing Cardano developments on the continent. At the time of writing, the show has hit over 120k views, with IOG CEO Charles Hoskinson calling it the most popular show they’ve done to date.

Although the response was largely positive, with a wide range of mainstream and crypto publications covering the event, Hoskinson spoke about a distinct lack of coverage from CoinDesk. The Executive Editor at CoinDesk, Marc Hochstein, said they are still waiting on a response from Ethiopia’s Ministry.

“media response was incredible as well, we were interviewed by the Financial Times, Cointelegraph, my lord they actually covered it, CityAM, New York Times, and dozens of others. More news will come trickling out. Notably absent, I can’t see it right now, I don’t know if it’s covered or not. I didn’t check my media list, was CoinDesk.”

Cardano’s African Strategy

Cardano has been plugging away at blockchain adoption in Africa for many years now.

Hoskinson said he founded IOG with the goal of equalizing the developed and developing worlds. Adding that developed nations take for granted many things such as payments, insurance, credit, etc. In contrast, poor infrastructure in developing nations makes even simple tasks, such as getting paid, a laborious process.

“I started my company in February 2015 with the dream of delivering economic identity to those that don’t have it. The reality is, the world lives still in two different configurations. One for the developed and one for the developing.”

News of Ethiopia’s Ministry of Education partnering with Cardano via the Atala PRISM solution broke before the Africa Special event. The deal aims to boost education and employment prospects through a blockchain-based student-teacher attainment recording system. It will digitally verify grades and allow for the monitoring of school performance.

The most prominent announcement during the Africa Special event was news of infrastructure development in Tanzania. It will see a tie-in with World Mobile to provide mobile internet access and financial inclusion infrastructure to enable banking, loans, insurance, etc.

Hoskinson Defends The Assertion He’s Pulling a Fast One

Despite the monumental achievements made by IOG in Africa, Hoskinson highlighted the lack of coverage from CoinDesk on the matter.

Various representatives from the publication have skirted the issue, with its Executive Editor, Hochstein, asking for evidence of the claims directly “from the horse’s mouth.”

Hoskinson felt this degree of fact-checking is an extreme request considering the multiple sources of evidence already available, including directly from Ethiopia’s Minister of Education, Dr.-Ing. Getahun Mekuria, who spoke during Thursday’s show.

“Apparently, having the Minister appear on camera talking about the relationship, the official government channels tweeting about the relationship, and major publications like the New York Times is not good enough for this editor at CoinDesk for an official announcement.”

Hoskinson labeled the response bizarre and claimed there’s more to the snub than waiting for confirmation of facts.

Cardano daily chart

Source: ADAUSDT on TradingView.com

 

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Ethereum Miners Strike Back in Bid to Retain PoW Mining Community

In a bid to save the Ethereum mining community, a group known as the Ethereum Genesys Foundation (EGF) successfully hard forked the chain to continue Proof-of-Work (PoW) mining.

With the ETH 2.0 upgrade well underway, the switch to Proof-of-Stake (PoS) would render miners redundant. What’s more, miners claim they are slowly being phased out, even before ETH 2.0 is fully rolled out. Community splits are difficult at the best of times, more so how the original chain tends to fare better. With that in mind, is Ethereum Genesys doomed to fail?

Ethereum Genesys Looking to Continue PoW

The EGF successfully initiated the hard fork of the Ethereum mainnet in mid-April, which they called the “Maple Fork.” They intend to save the PoW mining community and produce a forked token called Ethereum Genesys (ETG).

On why users would prefer this to the original Ethereum, they say the Ethereum Foundation’s approach to PoS makes it less decentralized than PoW as most Beaconchain validators run on either AWS, Google Cloud, or Azure. They also mention the minimum staking requirement of 32 ETH ($88k) is prohibitively expensive for the average person.

“Our first priority is to save the miners across the world the have been securing the Ethereum block chain since the beginning. Therefore we will stay a pure PoW blockchain. We do not agree with Ethereums [sic] future path forward with a pure PoS model.”

Core devs are considering the implementation of Ethereum Improvement Proposal (EIP) 3238 in the London hard fork scheduled for July. This “Difficulty Bomb” increases the difficulty level of PoW puzzles. The result is longer block times and therefore less reward for miners.

The difficulty will increase over time to the point of “Ice Age,” when mining becomes so difficult it’s not economically attractive to do so.

Founding member of EGF, Earl Mai, said the “Difficulty Bomb” is the first step in ending PoW mining on Ethereum. But thanks to the Maple Fork, this code has been disabled.

“The Ethereum GeneSys Foundation has disabled this code forever, so that mining can continue indefinitely. All parameters needed to enable the fork in the ‘geth’ and ‘openethereum’ code bases are submitted on GitHub for easy setup of nodes, including fork configuration changes.”

The community response to ETG has been underwhelming, with little coverage of the split.

Community Sentiment

This month, community sentiment over the miners’ “show of force” against EIP 1559 was met with animosity.

EIP 1559 is a fee market overhaul that will bring predictable fees and a burn mechanism. This may see a reduction in revenue for miners. To protest this, some Ethereum miners threatened to concentrate hashing power to a single pool, leaving the chain potentially open to a 51% attack. They planned for this to happen on April 1, but this day came and went without any action.

At the time, many said that miners were isolating themselves from the rest of the community by making the threat. This only highlighted a conflict between what different segments of the Ethereum community want.

With that, a successful project needs all stakeholders on board. But retaining PoW is a big ask for users fed up with high gas prices.

Ethereum daily chart

Source: ETHUSD on TradingView.com