Category: bitcoin

The eUSD relies on what seems to be a centralized governance structure where the MobileCoin Foundation acts as the primary governing body. The foundation elects “governors” who are authorized to mint and burn eUSD. The stablecoin’s collateral is held in a popular Ethereum multisignature (multisig) wallet called Safe (formerly “Gnosis Safe”). New eUSD is only minted after governors confirm an equivalent amount of collateral has been transferred to the Safe wallet. “Anybody can inspect the contract holding this basket [of collateral], to see what the current balances are. It’s a Gnosis safe, which is also one of the most highly regarded contracts on Ethereum for holding assets,” Henry Holtzman, MobileCoin’s chief innovation officer explained during an interview with CoinDesk.

Similarly, if a user redeems eUSD, the token is “verifiably burned” and governors release the corresponding collateral. Verifiable burning is when burned eUSD is sent to a “burn address” that renders it “visible” for transparency purposes, “but unspendable.” However, everyday users won’t typically engage in burning and minting. An individual seeking eUSD would simply purchase it on an exchange. Approved liquidity providers (LPs) would be the ones minting large amounts of eUSD. To our knowledge, no project has created a native stablecoin with privacy properties, which is a first-class citizen in the ecosystem, and which never requires the use of ‘non-private’ transaction technologies to use normally. In short, no one has yet actually created a private digital dollar,” MobileCoin stated in the eUSD white paper.

Holtzman said that eUSD uses a “reserve-auditor” program that “connects to the Safe wallet via an application programming interface (API) and verifies that each newly minted eUSD has a corresponding amount of collateral in the wallet.” Holtzman added: “We’ll release it all open source. So if you want to run your own copy [of the reserve auditor], you can. You can examine it to make sure we really are backed exactly as we claim,” Holtzman told CoinDesk.

“It is premature to lock a licensing structure in statute without considering both this work and forthcoming federal actions,” Newsom said in a statement. “A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases, and is tailored with the proper tools to address trends and mitigate consumer harm.”

Pleterski’s YouTube channel and Instagram account have been deleted but it appears he purchased articles on websites like Forbes.mc (the top level domain for Monaco) and the far-right news outlet Daily Caller to get his name associated with success in crypto investment. The Daily Caller article from December 2021 includes a photo of Pleterski looking at his phone in what appears to be a private jet. Notably, December 2021 was a time when cryptocurrencies like bitcoin and ethereum were trading near all-time highs. The headline reads, “Aiden Pleterski: Meet the Young Canadian Investor Who Is Taking the World of Crypto By Storm.”

The question remains whether Pleterski actually invested any of the money in crypto to begin with, and speaks to just how strange the crypto market has been over the past year. For all anyone knows, Pleterski may have actually invested the money and lost it like so many others since the peak of November 2021. Bitcoin is down 56% since its price a year ago, while ethereum is down 57%. Pleterski insists he invested the money but that he’s just bad with record-keeping. But some investors suspect Pleterski didn’t even bother investing the money, instead pocketing it for himself, according to people who spoke with the CBC. Investors are trying to get their money back through the bankruptcy court and two civil lawsuits, but criminal charges haven’t been pursued, even though some have reported their incidents to Toronto police, according to the CBC.

Even at a slightly positive net result, it would still take over 20 years to break even on the cost of an RX 6800. We say that tongue-in-cheek, because if there’s one thing we know for certain, it’s that no one can predict what the cryptocurrency market will look like even one year out, never mind 20 years in the future. It’s a volatile market, and there are definitely lots of groups and individuals hoping to figure out a way to Make GPU Mining Profitable Again (MGMPA hats inbound…)

Of the 21 current generation graphics cards from the AMD RX 6000-series and the Nvidia RTX 30-series, only five are theoretically profitable right now, and those are all just barely in the black. This is using data from NiceHash and WhatToMine, so perhaps there are ways to tune other GPUs to get into the net positive, but the bottom line is that no one should be using GPUs for mining right now, and certainly not buying more GPUs for mining purposes. [You can see a full list of the current profitability of the current generation graphics cards here.]

The floor price of the most popular NFT collection, Bored Ape Yacht Club, fell 53% to 72.4 Ether (about $110,000) as of Monday, from a high of 153.7 Ether on April 30, according to CoinGecko. Another popular NFT collection, CryptoPunks, is down 19% from its July peak. Yes, but: the report notes that “only 16% of U.S. adults had invested in crypto, nearly the same number who said they had invested last September.”

Further reading: NFT Marketplace OpenSea Lays Off 20% of Its Staff

“But can you trust what your crypto exchange or e-brokerage reports about trading in the most important digital currency?”
One of the most common criticisms of bitcoin is pervasive wash trading (a form of fake volume) and poor surveillance across exchanges. The U.S. Commodity Futures Trading Commission defines wash trading as “entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader’s market position.” The reason why some traders engage in wash trading is to inflate the trading volume of an asset to give the appearance of rising popularity. In some cases trading bots execute these wash trades in tokens, increasing volume, while at the same time insiders reinforce the activity with bullish remarks, driving up the price in what is effectively a pump and dump scheme. Wash trading also benefits exchanges because it allows them to appear to have more volume than they actually do, potentially encouraging more legitimate trading.

There is no universally accepted method of calculating bitcoin daily volume, even among the industry’s most reputable research firms. For instance, as of this writing, CoinMarketCap puts the latest 24-hour trading of bitcoin at $32 billion, CoinGecko at $27 billion, Nomics at $57 billion and Messari at $5 billion….

As part of Forbes research into the crypto ecosystem using 2021 data, we ranked the 60 best exchanges in March. More recently we conducted a deeper-dive into the bitcoin trading markets…. Our study evaluated 157 crypto exchanges across the world. Here are our main findings:

– More than half of all reported trading volume is likely to be fake or non-economic. Forbes estimates the global daily bitcoin volume for the industry was $128 billion on June 14. That is 51% less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources….

– The biggest problem areas regarding fake volume are firms that tout big volume but operate with little or no regulatory oversight that would make their figures more credible, notably Binance, MEXC Global and Bybit. Altogether, the lesser regulated exchanges in our study account for approximately $89 billion of the true volume (they claim $217 billion).

Forbes adds that their report “builds on top of the important work done by other digital asset researchers such as Bitwise, which estimated in a March 2019 white paper that 95% of CoinMarketCap’s bitcoin trading volume was fake and/or non-economic.”

Their article includes some other interesting findings, including an observation that Tether “continues to be a dominant player in the crypto trading economy, especially when it comes to trades against bitcoin. Its current market capitalization is $68 billion, despite questions about its reserves.”

Thanks to Slashdot reader rrconan for sharing the article…

– “The results of our investigation … are disturbing … revealing that cryptominers are large energy users that account for a significant — and rapidly growing — amount of carbon emissions,” the letter states.

“It is imperative that your agencies work together to address the lack of information about cryptomining’s energy use and environmental impacts.” The congressional Democrats have asked the EPA and the Department of Energy to require cryptominers to disclose emissions and energy use, noting that regulators know little about the full environmental impact of the industry….

The power demands of the industry are also coming at a cost to consumers, the letter states, citing a study that found cryptomining operations in upstate New York led to a rise in electric bills by roughly $165m for small businesses and $79m for individuals.
The main operator of Texas’s grid admitted this week to the Verge that by 2026 crypto mining is set to increase demand on the state’s power grid by a whopping 27 gigawatts — or nearly a third of the grid’s current maximum capacity.

And an associate professor at Rochester Institute of Technology with a background in electricity system policy warns the site that “The more crypto mining that comes into the state, the higher the residents should expect the electricity prices to become.”

“GameStop and Immutable X launched a $100 million token grant fund to bring game developers onto the marketplace. A press release notes that gaming NFTs will be added in the future.”

Further reading: Game Developer On ‘Why NFTs Are a Nightmare’

As of Monday, the company said it’s still working on “stabilizing [their] liquidity and operations.”

“It’s the beginning of the end of Coinbase’s high-fee business model,” says Mizuho Securities analyst Dan Dolev. “We’ve said that the fees will eventually go close to zero. And it could be pretty rapid — it may be months. The market is very competitive and getting tighter.”