Telegram Unveils “Stars”: A New Way to Pay for In-App Goods and Services

Popular messaging platform Telegram is shaking things up with the introduction of “Stars,” a new in-app currency specifically designed for buying digital goods and services within the platform.

This move, announced by Telegram CEO Pavel Durov on June 6th, aims to simplify in-app purchases for both users and developers. “Stars” offers a streamlined payment method compared to traditional options, leveraging familiar in-app purchase systems on Android and iOS devices.

Durov’s announcement highlighted the advantages “Stars” brings to developers. They can not only use Stars for purchases, but also convert them into Toncoin (TON), the native cryptocurrency powering Telegram’s “The Open Network.” This conversion happens through Fragment, a platform commonly used for buying and selling Telegram usernames. Furthermore, developers can utilize Stars to promote their apps directly within the Telegram platform.

Durov acknowledged the hefty 30% commission fees charged by Apple and Google for digital product sales. To incentivize developers and make Telegram a more attractive platform for them, Telegram will subsidize advertisements purchased with Stars on these platforms. This effectively reduces the overall commission to a negligible amount, making Telegram a more economically sound option for launching apps compared to traditional mobile app stores.

Future of Stars: Beyond Payments

The future holds even more possibilities for Stars. According to a Telegram post on June 6th, upcoming updates will introduce additional features and functionalities, including the ability to send Stars as gifts to content creators.

Telegram already boasts a thriving ecosystem of bots and mini-apps, with over 400 million of its 900 million users interacting with them each month. The launch of Stars seamlessly integrates with this existing framework, offering a convenient payment solution for users and developers alike.

Telegram’s Crypto Embrace

Telegram’s commitment to cryptocurrency extends beyond Stars. In April, the platform partnered with Tether (USDT), a prominent stablecoin issuer, to integrate USDT onto the TON blockchain. This move aims to facilitate wider adoption of cryptocurrency within the Telegram ecosystem. As Justin Hyun, director of investments for the TON Foundation, stated to Cointelegraph, users no longer need to navigate complex barriers to acquire different cryptocurrencies or tokens.

While Toncoin (TON) recently reached a record high of $7.65 just 36 hours before the announcement of Stars, its price has since settled around $7.50. Despite this slight dip, TON maintains a healthy market capitalization of $18.2 billion, although still short of its peak of $25.2 billion set in mid-April.

The launch of Stars marks a significant step for Telegram, offering a user-friendly and cost-effective way to purchase digital goods and services within the platform. This move, coupled with their existing crypto initiatives, positions Telegram as a strong contender in the evolving landscape of digital payments and blockchain integration.

BNB Soars, But Can It Maintain Altitude Without Its Leader?

BNB, the token powering the BNB Chain, recently reached a new peak of $723 before settling at around $705. This impressive 19% gain in the first week of June significantly outperforms the overall crypto market’s 4.2% rise during the same period. However, this rally raises questions about its sustainability, especially considering the recent incarceration of Binance founder Changpeng Zhao (CZ).

The timing of the surge is unexpected. On June 1st, CZ began serving a four-month sentence in California on money laundering charges. While this outcome was anticipated following his April sentencing, his imprisonment significantly limits his influence on Binance’s strategy and operations.

Valuation Comparison: BNB vs. Solana

Despite the recent turmoil, BNB boasts a market cap of $108 billion, a 37% premium over its competitor, Solana (SOL), which sits at $79 billion. This begs the question: do their ecosystems justify this valuation gap? Part of BNB’s advantage stems from discounts offered on Binance services and exclusive offerings through Binance Launchpad.

DApps Activity

Comparing BNB Chain’s activity with Ethereum, the leader in decentralized applications (DApps), offers another clue to BNB’s price sustainability. However, contrasting activity across different chains is challenging. BNB Chain’s low fees, facilitated by its partially centralized nature, make data manipulation a possibility.

Some analysts initially attributed the rally to excessive leverage from derivative-fueled buying. Evidence suggests otherwise. While BNB futures open interest surpassed $1 billion for the first time on June 6th, this metric only reflects the total number of outstanding contracts, not the leverage direction (long vs. short).

To gauge trader sentiment, perpetual futures, or inverse swaps, are more insightful. These contracts use built-in rates recalculated every eight hours to address leverage demand imbalances. Positive rates indicate a preference for leverage by buyers.

The funding rate for BNB futures remained below 0.03% over the past six days, translating to a weekly rate of 0.6%, a price point considered reasonable by most traders. This rate aligns with Bitcoin’s (BTC) and is lower than Solana’s (SOL) current 0.5%. Therefore, excessive leverage in BNB futures does not appear to be the driving force behind the recent price surge.

BNB Chain remains a top contender in terms of DApps volume, significantly outperforming its direct competitor, Solana. At first glance, this data appears positive for BNB. However, a closer look reveals a relatively stable number of active addresses interacting with DApps, raising questions about genuine user growth. Furthermore, BNB Chain’s $6 billion in seven-day volume pales in comparison to Ethereum’s $40.5 billion during the same period.

While BNB’s on-chain and derivatives data doesn’t raise red flags, it doesn’t necessarily support further price hikes, especially considering the cloud of uncertainty surrounding Binance’s leadership with CZ’s imprisonment.

Willemstad, Curacao, June 6th, 2024, Chainwire

The BetFury crypto ecosystem announced a great Cryptodrop. The prize pool of $20,000,000 will be distributed from the end of Q3 to the beginning of Q4. This initiative offers participants the chance to earn cryptocurrencies by completing various tasks. The Cryptodrop pool consists of top-tier crypto and BFG tokens, which have strengthened their position after burning 33% of the total supply and locking 48% of circulation.

About the Cryptodrop  

Cryptodrop involves distributing tokens to users who complete specific tasks. Unlike other projects, BetFury’s Cryptodrop features tokens with established market value. Participants can earn more crypto by accumulating points through various activities.

Key Features of BetFury Cryptodrop:

Prize pool of $20,000,000;

Rewards in real crypto and the valuable BFG token;

Transparent drop duration (Q3 – Q4, 2024);

Easy-to-join mechanics via Telegram and a user-friendly interface;

The chance to earn free crypto and interactive Fury Game.

The Cryptodrop event offers a gateway for beginners to enter the crypto industry and allows experienced users to explore new opportunities within the BetFury ecosystem.

Funding and Transparency

BetFury Cryptodrop consists of crypto, which the project has accumulated over a certain period, and 350,000,000 BFG, which is transferred from the Community wallet allocated by the team. Thus, every active Cryptodrop participant has a chance of earning currencies like USDT, ETH, BTC, and BFG. 

Since the project has been developing in the industry for over four years, it can afford the Cryptodrop with the $20 million pool. Moreover, BetFury has located this round amount on a public address for total transparency.

About the Growing BFG token

BetFury’s Cryptodrop is also an investment in the future prosperity of its native token. BFG has already demonstrated price growth – by 40+% over the last month, according to CoinMarketCap statistics. It’s explained by upgrading a deflationary strategy, which provides for BFG buybacks, locks, monthly burnings, and permanent support for active holders. In addition to transferring 100% of revenue from iGaming activities and crypto functionality to BFG utilities, the BetFury team locked up one billion BFG for 4.8 years. These moves demonstrate the platform’s strong desire to evolve its product and the native token.

How to Participate in BetFury Cryptodrop?

To take part in the BetFury Cryptodrop, the user must go through a few simple steps:

Launch BetFury Cryptodrop Bot on Telegram.

Create a Cryptodrop account via this Bot.

Read a short Cryptodrop overview.

Launch the BetFury Bot and create/connect a BetFury account. This step is necessary to obtain rewards at the end of the event.

After completing these steps, the user becomes an official participant of the Cryptodrop. The more points a participant accumulate, the higher your chances of winning the grand crypto prize.

BFG Farm

BFG Farm is a unique feature that allows users with the potential to earn free crypto. Users can get up to 96,000 BFG daily depending on the BFG Farm level. These levels can be upgraded by collecting Wager points. To claim crypto, the participant should invite two or more friends and connect to a Twitter account for daily shares.

Play Fury Game – Get USDT, BFG & Game Points 

This 2D runner is the best entertainment for the chance to earn real crypto with gameplay that sets it apart from ordinary tap games. Playing as a raccoon, the participant can collect USDT, BFG, game points, and energy recovery badges The duration of each round in Fury Game is determined by energy that can be pumped up, increasing game levels.

Collect Plenty of Points in Quests

Quests are tasks of several types for collecting various points. They are similar to Notcoin Quests but offer more opportunities due to the extensive platform functionality. There are currently four types of Quests:

Gaming Quests: Participants can play Original games and Slots, bet on Sports, and open Lootboxes to get Wager points.

Earn Quests: Participants can join Crypto Staking and take Crypto Loans. Collect Earn points for subscribing to Flexible, Fixed-Term, Boosted Fixed-Term Staking and paying interest for borrowing.

Trading Quests: Participants can trade Futures and swap crypto to receive Trading points.

Social Quests: complete different tasks on BetFury social networks to obtain Social points.

Cryptodrop Wheels – Win Up to 1 Million BFG

Collecting points allows participants to spin different Cryptodrop Wheels. The Social Wheel activates after collecting 9,000 Social and Referral points, while the BetFury Wheel activates after collecting 3,000 Wager, Earn, or Trading points. These Wheels offer additional points and real currency rewards up to 100,000 BFG. The Social Wheel is for one-time use, whereas the BetFury Wheel can be spun unlimited times, with the tenth spin being a Super Spin that increases all rewards and offers a main prize of up to 1,000,000 BFG.

Referral Program

The Cryptodrop event includes a Referral Program where participants can earn rewards based on their referrals’ activities:

1,000 Referral points for each invited friend;

3% of crypto earned by user’s referrals in the BFG Farm;

15% for all points received by user’s referrals.

Referrals also receive 1,000 Referral points when joining through a referral link, making the program beneficial for both parties.

Conclusion

BetFury Cryptodrop is a significant crypto event combining unique reward mechanisms and opportunities for both beginners and experienced users. By participating and accumulating points, users have the chance to share in the $20,000,000 prize pool.

About BetFury

BetFury is a well-established ecosystem offering the chance to various crypto-earning features. With over five years in the market, the platform has achieved:

Over 2.3М of the global community worldwide;

$7.6В total wager and $48.9M bonuses paid;

More than $122.5M of staking payouts.

BetFury offers a fast crypto swap with low fees, trading Futures with a unique FuryWaves randomizer tool, and NFT Lootboxes. Participants can access all these features directly on the BetFury website or via its Telegram Bot for faster platform access and a chance to earn rewards

BetFury is the source of this content. This Press Release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

Contact

Alisia PrestonBetFurypr@betfury.io

Clash Over Crypto: Nigeria Defends Trial of Binance Executive

Tensions are rising between Nigeria and the United States regarding the ongoing legal case against Binance and its executive, Tigran Gambaryan. Gambaryan faces charges of illegal cryptocurrency trading in Nigeria, a situation sparking international debate.

Nigeria Maintains Due Process

Nigeria’s Minister of Information, Mohammed Idris, issued a statement defending the legal proceedings. He emphasized that the trial adheres to established protocols and due process throughout. Prosecutors, according to the statement, are confident in their case based on the collected evidence.

Furthermore, the statement clarifies that Binance will have ample opportunity to defend itself in court against the serious financial crime charges. The next court hearing is scheduled for June 20th, 2024.

U.S. Lawmakers Call for Intervention

The minister’s statement came in response to a recent appeal by 12 U.S. politicians to President Biden. The letter urged the U.S. government to intervene and secure Gambaryan’s release through its hostage affairs unit.

The letter alleges that Gambaryan faces baseless charges, including money laundering and tax evasion. The politicians suspect these accusations are merely a tactic by Nigerian authorities to pressure Binance for financial gain.

Nigeria Rejects Extortion Claims

The minister dismissed these claims, assuring the public that Binance received appropriate consular access from the U.S. He stressed that Nigerian authorities are following standard diplomatic procedures and upholding the rule of law.

The denial of bail for Gambaryan stems from concerns about his potential flight risk, the minister explained. This concern is heightened due to the escape of a co-defendant, now subject to an international arrest warrant.

Binance’s Legal Woes in Nigeria

Binance is currently facing two separate lawsuits in Nigeria, one from the Federal Inland Revenue Service and the other from the Economic and Financial Crimes Commission. The first lawsuit alleges tax evasion, while the second focuses on money laundering and violations of foreign exchange regulations.

These legal troubles began in February 2024 when the Nigerian government arrested Gambaryan, a U.S. citizen, and Nadeem Anjarwalla, on suspicion of money laundering and tax evasion. While Gambaryan remains detained, Anjarwalla managed to escape to Kenya, leaving his colleague behind in a correctional facility in Abuja, Nigeria’s capital.

The arrest coincided with the Nigerian government’s ban on cryptocurrency transactions, a move aimed at curbing currency speculation in the country. Additionally, a court order mandated that Binance provide the Nigerian government with data and details on Nigerian users of its platform.

The fate of Gambaryan and the future of cryptocurrency regulations in Nigeria remain uncertain. While Nigeria maintains it is following legal procedures, the U.S. and some politicians express concern over the fairness of the accusations and Gambaryan’s well-being. The upcoming court hearing on June 20th will likely shed further light on this developing international dispute.

Global Money Flood Fuels Bitcoin Bull Run: Record High Liquidity Injects Optimism

Bitcoin’s ongoing bull run receives a potential boost as global liquidity reaches an unprecedented high. Analysis published on June 5th by Philip Swift, founder of on-chain data platform LookIntoBitcoin, reveals global liquidity nearing a staggering $100 trillion.

Bitcoin and cryptocurrency markets are well-known for their sensitivity to global liquidity trends. In 2024, these conditions appear particularly favorable for a continued rise in Bitcoin’s price. This is the conclusion drawn by Swift, whose platform tracks the world’s M2 money supply and analyzes its correlation with Bitcoin’s price movements.

The M2 money supply, measured in U.S. dollars, currently sits at a record $94 trillion. This surpasses the previous high and represents a $3 trillion increase over the period when Bitcoin reached its all-time high of $69,000 in late 2021. Significantly, since dipping to $85 trillion in late 2022 (coinciding with the depths of the crypto bear market), the M2 money supply has rebounded a full 10%.

“The most important chart for this bull run has just made a new all-time high,” declared Swift in his commentary. “Are you ready?”

This data aligns with other recent liquidity-focused studies, all reaching similarly bullish conclusions about Bitcoin’s future trajectory. For example, the comparison between Bitcoin and the U.S. M1 money supply is on the verge of breaking out of a seven-year consolidation period – the longest in Bitcoin’s history. This breakout has historically been associated with significant price increases.

Furthermore, as financial conditions become more relaxed, additional analysis suggests a growing appetite for crypto and other risk assets among institutional investors.

In its “Weekly Report” submitted to Cointelegraph, on-chain analytics platform CryptoQuant identified parallels with investor behavior in 2020. The report states, “Indeed, large investors are adding about $1 billion into Bitcoin, mirroring 2020’s activity before the rally from $10,000 to $70,000. Back in 2020, Bitcoin hovered around $10,000 for 6 months with high on-chain activity, later revealed to be over-the-counter (OTC) deals.”

The report continues, “Now, despite low price volatility, on-chain activity remains high, with $1 billion added daily by new whale wallets, likely through Bitcoin purchases from institutional investors entering into custody wallets.” An accompanying chart visually compares the aggregate cost basis (realized price) of new whales from 2020 to 2024.

CryptoQuant also highlighted a surge in inflows to U.S. spot Bitcoin exchange-traded funds (ETFs), recording their second-highest net inflows on June 4th.

The confluence of record global liquidity, historical price correlations, and resurfacing institutional interest all paint a potentially bullish picture for Bitcoin’s future. However, as with any investment, careful consideration and thorough research are crucial before making any financial decisions.

Singapore, SIngapore, June 6th, 2024, Chainwire

Dora Factory, the pioneering infrastructure of decentralized governance technology and public good funding, announces the gas fee airdrop of its native token, $DORA, to all ATOM stakers on June 5, 2024. Over one million addresses are eligible to receive $DORA token, with the airdrop campaign inviting the Cosmos community to participate in the governance of its democratic public goods funding program, the ATOM Economic Zone Quadratic Funding, on DoraHacks.io. With 1.04 million addresses whitelisted, the privacy voting round implemented by the Dora team will be the largest MACI (Minimum Anti Collusion Infrastructure) voting round ever.  

1.04 million ATOM stakers are eligible for the airdrop

On June 5, all ATOM stakers have received $DORA tokens in their wallets. $DORA is the native token of Dora Vota, a decentralized governance application chain developed by the Dora Factory using the Cosmos SDK. 

This airdrop is one of the largest in history. With over one million addresses, Dora Factory aims to mobilize the Cosmos community, known for its passion for decentralized governance, to participate in a crucial public goods governance experiment for the community.

Empowering Community with AEZ Funding and MACI Voting

After receiving the airdrop, Cosmos communities can participate in the ATOM Economic Zone (AEZ) quadratic funding initiative jointly launched by DoraHacks, Dora Factory, and ATOM Accelerator DAO. They can use ATOM to vote for and donate to public goods teams they value, support early-stage developers, and determine the distribution of an 80,000 ATOM and $200,000 USDC matching pool across 10 rounds of AEZ Quadratic Funding and MACI voting. The smart contracts for this quadratic voting round are deployed on the Dora Vota network, and the community can use $DORA to cover gas fees.

This campaign goes beyond merely distributing the reward pool to early-stage projects and essential public goods in AEZ in the first round; it is a democratic governance experiment designed to mobilize community power in supporting public goods and promising early-stage developers. The quadratic funding mechanism ensures that even small donations from community members have a substantial impact. 

MACI Voting With Enshrined Privacy

Dora Factory invites community members to participate in MACI (Minimal Anti-Collusion Infrastructure) privacy voting, distributing a $20,000 USDC prize pool to selected teams. Unlike traditional quadratic voting, this method allows voters to express their opinions on public goods without revealing their identity (address). Addresses with more ATOM staked will receive more Voice Credits (voting power). 

Through MACI voting, Dora Factory aims to introduce cutting-edge privacy-enabled voting technology to the Cosmos community. This initiative marks the beginning of integrating secure, private, and anti-collusion technologies into a wider range of governance use cases in the future.

Dora Factory’s Dedication

To ensure every community member can participate in MACI voting without concerns, Dora Factory will implement Dora Vota’s native Gas Station feature to cover all voting fees for the MACI voting round. This fee subsidy represents Dora Factory’s commitment to the community outlined in Cosmos Governance Proposal 917.

A Historical Community Governance Ceremony

With the quadratic funding module now natively implemented on Dora Vota for the Cosmos Hub, Cosmos has the potential to become one of the largest on-chain communities that supports public goods. The first round of the two-year quadratic funding plan for the ATOM Economic Zone commencing in June 2024 has attracted numerous outstanding projects and awaits the attention and support of community members. 

The Largest Privacy-Preserving Governance Experiment

MACI implementation is a groundbreaking step for the Cosmos community, as its first privacy voting attempt. Dora Factory has whitelisted over 1 million addresses, setting a new record for the largest whitelist, and marking the largest voting experiment in MACI’s history. The Dora Factory team is excited to invite the Cosmos community to create a historic moment collectively.

About Dora Factory

Dora Factory is at the forefront of decentralized governance protocol stacks, providing governance and long-term incentives for the global hacker movement, open-source communities, and decentralized organizations through Public Good Staking and Dora Vota. The platform has pioneered the development of public good staking infrastructure, revolutionizing the way developers are funded long-term in the PoS ecosystem. Additionally, Dora Vota offers a comprehensive decentralized governance platform, enabling users to create programmable governance mechanisms such as MACI and quadratic voting through its open platform. This reduces the cost of decentralized governance, laying a solid foundation for its widespread adoption.

To better understand and try the products of Dora Factory, users can visit DoraFactory.org.

Users can visit Dora Research Blog for more details: research.dorahacks.io

Contact

ContributorChris LeeDora Factorywinniedrinkwater@gmail.com

ZonePOS: A Revolutionary PoS Gateway Aims to Boost Financial Inclusion in Africa

Zone, the company pioneering Africa’s first regulated blockchain network for payments, unveiled its innovative “ZonePOS” point-of-sale (PoS) payment gateway solution on June 5th. This launch marks a significant step towards a more inclusive and efficient financial landscape across the continent.

ZonePOS offers a unique solution tailored to the African market. Zone’s press release highlights the platform’s reliance on blockchain technology to route transactions directly to issuing banks, adhering to established interbank payment regulations. This approach positions ZonePOS as one of the few, if not the only, decentralized gateways in Africa that can handle payments in various currencies.

“Our PoS Payment Gateway Product embodies our commitment to financial inclusion and propelling Africa’s digital payment revolution. ZonePOS represents another crucial step towards our vision: a world where anyone, anywhere in Africa, can make and receive instant payments using any payment method, in any currency.”

Enhanced Transaction Speeds and Security

ZonePOS boasts significant improvements in transaction processing times. Unlike traditional systems that can take days to settle, ZonePOS guarantees same-day settlements for transactions. Additionally, the platform leverages blockchain technology to provide robust chargeback protection. According to the press release, ZonePOS eliminates chargeback fraud on PoS terminals through real-time, automated functionalities. Unsuccessful transactions trigger automatic customer refunds, while fraudulent chargebacks are automatically declined.

The launch of ZonePOS coincides with a period of evolving regulations in key African markets, like Nigeria, where the platform is being introduced. A recent Cointelegraph report highlighted the “bewilderment” expressed by younger Nigerians regarding the government’s recent actions against the cryptocurrency and blockchain industries. President Tinubu campaigned on a platform that promised to legalize and support these technologies. However, since his election in February 2023, the government has taken seemingly contradictory steps, leaving cryptocurrency enthusiasts questioning his long-term commitment to the sector.

ZonePOS, with its innovative approach and focus on financial inclusion, has the potential to revolutionize the African payment landscape. However, navigating the evolving regulatory environment will be a key challenge for Zone and other players in the fintech space.

Crypto Advocacy Grows: Stand with Crypto PAC Tops 1 Million Supporters

The Stand with Crypto Alliance political action committee (PAC), launched by cryptocurrency exchange Coinbase in 2023, has reached a significant milestone. According to a recent announcement, over 1 million Americans have signed on as advocates, aiming to amplify their voices on cryptocurrency issues in Washington D.C.

Widespread Crypto Ownership and Legislative Focus

The pro-crypto PAC cites statistics suggesting a growing national interest in digital assets. They claim 52 million Americans currently hold some form of cryptocurrency, and a survey conducted by the PAC found that 87% of Americans believe the current financial system needs reform. Additionally, they report that 45% of respondents wouldn’t vote for a candidate who opposes cryptocurrency.

These figures highlight public sentiment and underscore the importance of the “Financial Innovation and Technology for the 21st Century Act” (FIT21). The bill, a key focus of Stand with Crypto PAC, aims to establish a comprehensive regulatory framework for cryptocurrencies and digital assets in the U.S. Notably, FIT21 passed the House of Representatives with bipartisan support (278-136 vote).

Bipartisan Support and Senate Hurdles

While the bill’s passage in the House reflects a rare moment of political agreement, it still faces an uphill battle in the Senate. The Democrat-controlled upper chamber includes vocal crypto critics like Senator Elizabeth Warren.

This partisan divide underlines the contentious nature of cryptocurrency regulation, which has become a hot-button political issue with ramifications for the upcoming presidential election and beyond.

Shifting Tides: From Niche to National Concern

Recent developments signal a change in the political landscape surrounding cryptocurrency. Former President Trump’s newfound support for crypto innovation highlights the growing national interest. In a recent statement, he advocated for the industry’s continued growth, emphasizing the importance of embracing innovation domestically to avoid falling behind other nations.

This stance marks a stark contrast to Trump’s previous skepticism towards Bitcoin and cryptocurrencies. His shift in perspective potentially reflects a broader change in government attitudes towards digital assets in the U.S.

Both Candidates Seek Industry Input

Following Trump’s comments, President Biden’s campaign reportedly reached out to industry leaders to solicit input for the administration’s future crypto policy. This move suggests both major political parties are recognizing the growing importance of the crypto space and seeking to understand industry perspectives.

Looking Ahead: Advocacy and Regulation

The Stand with Crypto PAC’s milestone of 1 million supporters underscores the growing public interest in cryptocurrency. With both political parties acknowledging the industry’s significance, crafting a balanced regulatory framework that fosters innovation while maintaining consumer protections will be a key challenge in the months and years to come.

Public Blockchains: Too Fragile for Tokenization Boom? Professor Raises Concerns

Public blockchains, the technology underpinning cryptocurrencies like Bitcoin, might not be ready for the large-scale tokenization of real-world assets (RWAs), according to a recent Congressional testimony.

Professor Hilary Allen Sounds the Alarm

Hilary Allen, a financial law professor at the American University Washington College of Law, voiced her concerns before the U.S. House Financial Services Committee (HFSC) on June 5th. She argued that public blockchains, while offering a permissionless and decentralized system, are simply not robust enough to handle the massive influx of tokenized assets expected in the coming years.

“Blockchains suffer from inescapable inefficiencies and operational fragilities that make them unsuitable as supporting infrastructure for real-world assets,” Professor Allen stated. She elaborated that her initial enthusiasm for blockchain’s revolutionary potential waned as she learned more about its limitations. “Permissionless public blockchains are a poor fit for the vast majority of problems people have tried to make it solve,” she concluded, even describing herself as a “pessimistic financial futurist” on the subject.

Scalability Concerns: Can Public Blockchains Handle the Load?

One of Professor Allen’s central arguments focused on scalability. Public blockchains, known for their slow transaction processing times, might struggle with the sheer volume of transactions associated with tokenizing trillions of dollars in real-world assets. While large transfers do occur on blockchains like Bitcoin and Ethereum (a recent example being a $6 billion Bitcoin transfer), such instances are exceptions rather than the norm.

Alternative Solutions and the Tokenization Landscape

Professor Allen refrained from endorsing specific alternative technologies, but did suggest that other ledgers and databases might be better suited for tokenization. This raises a key question: are public blockchains the only game in town when it comes to tokenization?

Professor Allen’s perspective stands in stark contrast to the views of industry leaders like BlackRock CEO Larry Fink, who envision a future where every stock and bond is tokenized on a blockchain. BlackRock itself took a step towards this vision by tokenizing its BlackRock USD Institutional Digital Liquidity Fund on Ethereum in March of this year.

Furthermore, a significant amount of tokenization is already happening. Over $1.53 billion in U.S. treasuries have been tokenized on blockchains, and investment banks like Citi estimate that $4 trillion to $5 trillion of RWAs could be tokenized by 2030.

However, even these optimistic projections acknowledge the challenges. Building the necessary infrastructure and establishing a standardized set of interoperability protocols remain hurdles that need to be overcome.

Professor Allen’s cautionary remarks highlight the need for a measured approach to tokenization. While blockchain technology undoubtedly holds promise, ensuring its scalability and security is vital for widespread adoption within the realm of real-world asset tokenization. Finding the right balance between innovation and practicality will be key to unlocking the full potential of this emerging technology.

Marathon Digital, a leading Bitcoin mining firm, has been aggressively selling its mined Bitcoin (BTC) in the aftermath of the recent halving event. According to their monthly report, they sold over 60% of their May production, raising questions about their strategy.

In May, Marathon sold a significant portion of its mined Bitcoin. Their report details selling 390 BTC, representing a staggering 63% of the 616 BTC they mined that month. This stands out in comparison to other miners like Riot Platforms, who held onto their entire 215 BTC May production, or CleanSpark, who only sold a small portion of their 417 mined BTC.

The halving event, which occurs roughly every four years, cuts the reward for mining a Bitcoin block in half. The most recent halving took place in late April, reducing the reward from 6.25 BTC to 3.125 BTC per block.

Despite the halving’s impact, Marathon claims they mitigated its effect by increasing the number of blocks mined. In May, they mined 170 blocks, a 32% increase compared to April. This resulted in a production decline of only 27%, according to Fred Thiel, Marathon’s CEO.

To stay competitive with shrinking rewards, Bitcoin miners are focusing on fleet expansion and efficiency improvements. CleanSpark, for instance, is actively pursuing mergers and acquisitions, aiming to secure additional mining opportunities.

Marathon’s Global Expansion Plans

Marathon, however, appears to be looking beyond domestic expansion. They recently partnered with Kenya’s Ministry of Energy and Petroleum to optimize renewable energy projects in the country. Additionally, they have a pilot project underway in Paraguay focused on optimizing energy structures.

“Our goal is to generate 50% of our revenue from overseas operations by 2028,” stated Thiel. This ambitious strategy suggests a belief that international markets hold significant growth potential for Bitcoin mining.

The Role of Bitcoin Miners in Energy Infrastructure

Bitcoin mining offers a unique benefit – it can act as a flexible load, stabilizing the energy grid. Miners can adjust their energy consumption based on grid demands, absorbing excess renewable energy during peak production periods and reducing consumption during peak usage times. This flexibility can contribute to a more efficient and sustainable energy infrastructure.

Singapore, Singapore, June 5th, 2024, Chainwire

Ambitious 2024 Roadmap Includes 8x Improved Throughput, zkAuth for Web2 ID, Major Grants

Moonbeam Network, a smart contract platform for building cross-chain connected applications, announced the ‘Moonrise’ initiative anchored by a 2024 Product Roadmap that includes the introduction of parallel processing to improve throughput by 8 times, upgrading ecosystem integration, improving the developer and user experience, and more. Moonrise signals the next phase in evolution for Moonbeam and canary network Moonriver, which is incorporating Axelar bridging technology.

More than two years since its mainnet launch in January 2022, Moonbeam is well-established as the leading solution for integrating networks such as Polkadot, Ethereum and the broader EVM ecosystems. The 2024 Roadmap demonstrates Moonbeam’s dedication to continually improving its cutting-edge performance and experience for developers and users.

The Moonrise initiative is reflected in a comprehensive rebrand of Moonbeam’s look, underscoring how Moonbeam is more than a chain. It’s a hub for developers, Web3 enthusiasts, interoperability supporters and more.

“We’re beyond excited to reveal Moonbeam’s new look in conjunction with our ambitious plans for 2024. This year we are implementing improvements, upgrades and announcements to all facets of the Moonbeam and Moonriver networks,” said Aaron Evans, Head of Operations at Moonbeam Foundation. “As our passionate community of supporters knows, Moonbeam is a modern blockchain with features for developers and users that are still just a dream for other networks that remain in testnet phase.”

A lynchpin of the 2024 Roadmap is enhancing the core protocol with the introduction of asynchronous backing, a form of parallel processing that will quadruple block space and halve block times to 6 seconds, resulting in an 8x increase in overall throughput for Moonbeam.

More improvements include ensuring compatibility and seamless interoperability with Ethereum’s gas-saving Dencun upgrade, substantial upgrades to the UX for Moonbeam Routed Liquidity, and improvements to governance mechanisms.

Other highlights include:

Ecosystem Integration: Glacis integration for reliable cross-chain transactions, Tanssi integration for appchain deployments, revitalized Moonriver with Axelar’s Amplifier program for bridging and a v3 AMM liquidity program.

Developer Tools: Governance tracks for dApps, support for EIP-4337 Account Abstraction, expanded tooling integration for ease of development, deployment, and debugging/monitoring.

User Experience: Zero Knowledge Initiative (zkAuth) for Web2 authentication, tokenomics incentive updates, and streamlined stablecoin flows.

The series of initiatives will begin rolling out immediately and will continue to be deployed through Q3 and Q4 of 2024, and into 2025.

To check out Moonbeam’s new website and follow the network’s upcoming developments, see: https://moonbeam.network.

About Moonbeam Network

Moonbeam is a smart contract platform for building cross-chain connected applications that can access users, assets, and services on any chain. By uniting functionality from Ethereum, Cosmos, Polkadot and more into a single platform, Moonbeam solves today’s fragmented user experience — unlocking true interoperability and paving the way for the next generation of applications. The Moonbeam platform uses integrated cross-chain messaging to allow developers to create smart contracts that access services across many remote blockchains. This approach, plus Moonbeam’s developer-friendly EVM platform, vast tool support, and modern Substrate architecture, creates the ideal development environment for building connected applications.

Social media links: 

Website | YouTube | GitHub | Telegram | Medium | X | Discord

Contact

Patrick BrendelSCRIB3patrick@scrib3.co

Tortola, British Virgin Islands, June 5th, 2024, Chainwire

Nibiru EVM execution boasts blazing-fast transaction speeds, scalability, and seamless integration for Ethereum developers, positioning Nibiru to drive mainstream adoption and innovation in Web3. 

Overcoming Ethereum’s Scalability Hurdles

Nibiru Chain, a pioneering smart contract ecosystem, introduces Nibiru EVM, a high-performance Ethereum Virtual Machine (EVM) execution environment, showcased in its latest v2 release.

Nibiru plans to scale beyond Ethereum’s current infrastructure, which is limited to approximately 20 transactions per second (TPS) and results in high fees during periods of congestion. These constraints hinder developers from building performance-intensive applications similar to the ones seen in Web2. Nibiru EVM surpasses these limitations by offering throughput exceeding 10,000 TPS even with just single-threaded execution.

To take the scaling and performance a step further, Nibiru plans to upgrade the network to process transactions with parallel optimistic execution, which is “targeted for release before the end of 2024,” according to Co-Founder of Nibiru, Unique Divine. This approach allows nodes to utilize extra hardware resources, pushing the boundaries on the network’s transaction handling capabilities.

Fueling Ecosystem Expansion and Enhanced Developer Experience

“Compatibility with Ethereum is a key driver for attracting liquidity and promoting ecosystem growth on Nibiru EVM. Launching a blockchain protocol is about building trust and showcasing real-world utility. Innovating and improving the EVM is a key part of our strategy,” explains Unique.

With Ethereum developers accounting for applications that make up over 90% of the total value locked (TVL) across smart contract ecosystems, Nibiru EVM significantly lowers barriers to entry and accelerates development timelines.

Nibiru EVM empowers developers with a robust, user-friendly environment that enables seamless interaction between Ethereum-based tokens and applications across multiple virtual machines. This multi-VM approach ensures fast transaction processing and a streamlined user experience.

Ethereum developers are able to deploy applications in a familiar EVM environment, reducing barriers to entry and accelerating development timelines, whilst also reaping the benefits of parallel optimistic execution and instant finality.

Nibiru in Early Innings

Since its mainnet launch in March 2024, Nibiru has supported Wasm (Web Assembly) smart contracts written in the Rust programming language. The introduction of Nibiru EVM promises developers an EVM-compatible execution environment that is both highly performant and scalable. Positioned to play a crucial role in the future of decentralized applications, Nibiru is driving innovation and setting the stage for mainstream adoption.

About Nibiru

Users can stay up-to-date on the latest news or engage with Nibiru by visiting the Community Hub. Users can find the official web application and information on user guides, block explorers, and upcoming governance and improvement proposals. 

Nibiru aims to be the most developer-friendly and user-friendly smart contract ecosystem, leading the charge toward mainstream Web3 adoption by innovating at each layer of the stack: dApp development, infra, consensus, a comprehensive dev toolkit, and value accrual.

Contact

PR & Media Inquiriesmedia@nibiru.org

Ethereum ETF Hype: A Sobering Look at Futures Market Signals

The recent approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has sparked excitement in the crypto market. However, the actual launch date of these instruments remains uncertain as individual fund applications (S-1 filings) require further regulatory approval. This uncertainty is reflected in the price of Ether (ETH), which has struggled to break through the $3,900 resistance level.

Concerns and Uncertainties

Several factors are contributing to investor unease surrounding Ethereum ETFs. One concern is the potential conversion of the Grayscale Ethereum Trust (ETHE) into a spot instrument. If Grayscale maintains its current high fund fees, investors might pull their money, mirroring the recent outflows experienced by Grayscale’s Bitcoin Trust (GBTC). This could negate any inflows from competing ETF providers like BlackRock, Fidelity, VanEck, and ARK 21Shares.

Another theory suggests political influence played a role in the SEC’s decision. Some analysts believe the agency faced pressure from Democrats to greenlight Ethereum ETFs as a way to gain support in the upcoming U.S. presidential election. However, others argue that the SEC simply took a more practical approach, recognizing the similarity between Ethereum and Bitcoin ETFs in terms of regulatory requirements.

Looking at Futures Market Data

The debate now centers on whether bullish bets are being placed through ETH derivatives markets or if the price of Ether is being artificially suppressed due to delays in the ETF launch. This uncertainty stems from mixed signals in the crypto market, including recent actions by President Biden who vetoed a Congressional resolution aimed at weakening the SEC’s stance on cryptocurrencies.

Predicting the SEC’s approval timeline for individual Ethereum ETF applications is challenging. To gauge investor sentiment, we can turn to trading metrics. Perpetual contracts (inverse swaps) incorporate a funding rate that adjusts every eight hours. A positive funding rate suggests more leverage is being used by long positions (buyers).

While the funding cost for ETH leverage has seen a brief spike recently, it remains insignificant overall. This indicates a balanced demand between long and short positions using perpetual contracts.

Monthly Futures Show Fading Optimism

To get a clearer picture, we can analyze the ETH monthly futures annualized premium (basis rate). These contracts generally trade at a premium (5-10%) compared to the spot price due to their longer settlement period. However, during periods of high enthusiasm, the premium can reach 20% as buyers are willing to pay more for leverage.

The ETH monthly futures premium surged to 15% following the price rally to $3,800 in May. However, this optimism began to wane by June 3rd, with the indicator falling back to 13%. While still slightly above neutral, it doesn’t signal short-term bullishness.

It’s important to note that this data doesn’t necessarily indicate a lack of confidence in the eventual launch of spot Ethereum ETFs. Stricter global regulations, such as Hong Kong’s ban on unlicensed exchanges and Paraguay’s seizure of unregistered mining equipment, also contribute to the cautious outlook.

Conclusion

Based on current ETH futures pricing, there seems to be a low level of trust in significant net inflows from U.S. spot ETFs. This could be due to the delay in approvals or the potential outflow from Grayscale’s ETHE. Consequently, a price rally above $4,000 in the near future appears unlikely based on the signals from the Ethereum futures market.

New York, United States, June 5th, 2024, Chainwire

Talisman, the ultra-secure multi-chain crypto wallet, has today announced the launch of Talisman Quests, a gamified experience designed to drive user engagement and education in the Polkadot ecosystem.

Having recently operated in beta, Quests compels crypto users to create a profile and progress through different levels by accumulating experience points (XP) and unlocking rewards. This progression is gamified with twists, turns, and a hidden story that gradually unfolds as users amass more XP.

“One of the biggest barriers to blockchain adoption is understanding where to start and how to go about navigating the sometimes dizzying world of web3,” said Jonathan Dunne, Co-Founder & Head of Technology at Talisman.

“With our new Quests app, we are making onboarding fun as well as rewarding, incentivizing users to explore all of the interesting projects and apps this space has to offer.”

Users can earn XP through a variety of means, including:

Wallet Mining: Simply holding tokens in your wallet generates rewards that correspond to the token type (staking activities also provide XP multipliers). Rewards can be claimed every four hours

Quests: Completing cross-ecosystem missions helps users earn XP, boosted points and rewards 

Referrals: Earning 5% of any friend’s total XP when they sign up using your referral link

Each month, Talisman will also release a new top rank, continually pushing the “frontier” as users find and seize The Sceptre, follow it to The Tower, and ultimately claim the Ultimate Power of Talisman.

“We built Quests to be engaging and memorable, while also serving as an educational journey for users venturing into the Polkadot ecosystem,” added Dunne. “Interacting with real apps and assets accelerates the learning curve in a meaningful way.”

An ultra-secure crypto wallet that makes it simple to store, send, receive, stake and swap Polkadot and Ethereum-based digital assets, Talisman was founded in 2021. Notable for its speed, security, and UX, Dunne says all the team’s work so far has led to this moment.

To get started with Talisman Quests, users can download the wallet at talisman.xyz and create their profile. There is also an option to import your account or recovery phrase from existing wallets such as Metamask, Rabby and Trust.

About Talisman

Talisman is an ultra-secure multi-chain wallet that makes web3 simple for beginners and unlocks superpowers for pros. With Talisman users can safely store, send, receive Polkadot and Ethereum assets, and connect to decentralized applications (dApps).

Contacts

Head of MarketingCharlie JobsonTalismancharlie@talisman.xyzCEOAgyleTalismanagyle@talisman.xyz

Bitcoin Awakens: Long-Dormant Coins Stir as Price Nears Record Highs

Bitcoin is experiencing a surge in activity from wallets that have been inactive for years, a trend coinciding with the cryptocurrency’s price approaching its all-time high of $70,000.

On-chain analytics platform CryptoQuant reveals a surge in movement of “older” Bitcoins, with thousands of coins leaving dormant wallets on a daily basis. This renewed activity on the blockchain is a significant development in the crypto market.

CryptoQuant’s data dives into the age of these “spent outputs,” highlighting a significant increase in movement. On June 2nd alone, roughly 2,800 Bitcoins that had been dormant for 2-3 years shifted on the blockchain for the first time in that period. The numbers are even higher for coins inactive for 4-5 years, with a staggering 4,500 BTC changing hands.

Perhaps most surprising, June 3rd saw the movement of 210 Bitcoins that had been untouched in their wallet for a decade or longer. CryptoQuant analyst J.A. Maartunn noted this trend on their X platform, with the commentary simply stating, “Old coins moving, after old coins moving, after old coins moving.”

Long-Term Holders Remain Steadfast

This movement of “ancient” Bitcoins, while uncommon, isn’t entirely unprecedented. However, the current bull market in Bitcoin appears to be accelerating this trend.

Data from CryptoQuant highlights a rise in activity for this “oldest” group of Bitcoins starting in late February, coinciding with the lead-up to Bitcoin’s current all-time high of $73,800.

As previously reported by Cointelegraph, Bitcoin’s long-term holders (LTHs) – those who haven’t sold their coins for at least 155 days – are generally resisting the urge to cash out. These LTHs represent a crucial pillar of the Bitcoin market.

While “older” LTHs remain unfazed, CryptoQuant data suggests a change in behavior among “newer” LTHs, those holding coins dormant for 1-2 years. This group has shown a decrease in selling activity.

“As Bitcoin recovers from its recent dip to $56,000, we observe a shift in holder behavior,” CryptoQuant contributor Onchained wrote in a recent market update. “The 1-year+ and 2-year+ cohorts have stopped selling, transitioning from a distribution phase to a holding phase.”

Onchained interprets this shift as a sign of renewed confidence in Bitcoin’s future potential. These LTHs are choosing to hold onto their coins rather than selling them at current prices. An accompanying chart within the report visually depicts the varying levels of inactivity among different LTH groups.

Onchained further suggests that multiple on-chain indicators point towards a strong underlying bullish sentiment in the market. This aligns with recent findings from popular crypto trader Alan Tardigrade.

Zimbabwe’s recently launched gold-backed currency, the Zimbabwe Gold (ZiG), is experiencing mixed results. While performing well on the foreign exchange market, it’s facing challenges within the country.

On June 4th, the Zimbabwe Reserve Bank (ZRB) took steps to address a black market for ZiG. Through its X account, the ZRB urged citizens to report illegal currency traders and businesses refusing to accept ZiG. This initiative aims to combat unofficial foreign exchange trading, a persistent issue in Zimbabwe.

According to Bloomberg, ZiG has seen a 1.9% gain against the US dollar since its physical launch. However, despite initial crackdowns by authorities, the ZRB’s X post suggests the fight against the black market continues.

Coin Shortage and Accessibility Issues

Another hurdle for the ZRB is a lack of ZiG coins in smaller denominations. The ZRB announced plans to increase the availability of ZiG1, ZiG2, ZiG5, and ZiG10 coins to address this problem.

Furthermore, to enhance accessibility, ZiG cash withdrawals using debit cards will be available at government-owned Homelink financial services in seven cities starting June 10th. This service will eventually expand to other financial institutions.

ZiG marks Zimbabwe’s sixth currency in just 15 years. While backed by gold and foreign currency, it initially launched as a digital token pegged to the gold price. Its introduction in physical form in April received mixed public reactions.

The previous gold-backed digital token, now called the GBDT (gold-backed digital token), faced criticism for its similarity to central bank digital currencies. Currently, the GBDT functions as a separate “investment instrument” from the physical ZiG. Additionally, several foreign currencies remain legal tender in Zimbabwe.

The success of ZiG hinges on the ZRB’s ability to address the black market, increase coin availability, and improve accessibility. Public perception will also play a crucial role in determining the long-term viability of this new currency.

Elon Musk Disputes Chip Allocation Report, Clarifies AI Plans.

Tesla CEO Elon Musk has fired back against a CNBC report alleging he diverted artificial intelligence (AI) chips from Tesla to his social media company, X (formerly Twitter).

On June 4th, CNBC published an article claiming emails revealed Musk requested Nvidia, a leading manufacturer of graphics processing units (GPUs) used for AI, to prioritize chip shipments for X over Tesla. The article alleged Musk diverted 12,000 Nvidia H100 chips originally intended for Tesla’s operations.

Taking to social media, Musk vehemently denied these claims. He clarified that Tesla simply didn’t require the chips at this specific time. Having them sit idle in storage wouldn’t benefit Tesla.

Further refuting the report, Musk mentioned the nearing completion of the south extension at the Giga Texas factory. This expansion, according to him, will house 50,000 H100 chips specifically dedicated to Tesla’s Full Self-Driving (FSD) training program. He even went on to label the CNBC article’s author a “liar” in a separate social media post.

Market Reaction and Investor Concerns

The CNBC report triggered a temporary dip in Tesla’s share price, dropping 1% in early trading on June 4th. CNBC also suggested the allegations worsened existing tensions between Musk and some Tesla investors. These investors worry about potential conflicts of interest arising from Musk’s leadership of multiple companies, including Tesla, SpaceX, Neuralink, xAI, and X.

Musk is a prominent figure in the AI and brain-computer interface (BCI) space. Companies like X and Neuralink compete directly with established players like OpenAI and Google.

X launched the Grok chatbot in 2023, positioning it as a “non-woke” alternative to OpenAI’s ChatGPT. This large language model chatbot is now accessible to all X’s paid subscribers.

Neuralink also received a crucial green light from the U.S. Food and Drug Administration (FDA) for human trials. In February 2024, they successfully implanted the first human subject with their BCI technology. Musk claims this individual could control a computer mouse directly using the interface, solely through their thoughts.

SEC Shuts Down Regional Office After DEBT Box Case Loss.

The U.S. Securities and Exchange Commission (SEC) is closing one of its regional offices following a costly legal defeat. The regulator was ordered to pay nearly $1.8 million in attorney and receivership fees associated with a dismissed lawsuit against cryptocurrency firm DEBT Box.

In a June 4th announcement, the SEC revealed the closure of its Salt Lake Regional Office. Citing “significant attrition” at the office, the commission plans to shift its operations to Denver. This closure comes just one week after a federal judge dismissed the SEC’s civil lawsuit against DEBT Box, a company doing business under the name Digital Licensing.

Judge Robert Shelby dismissed the lawsuit and further ordered the SEC to reimburse DEBT Box for legal costs. This sum totals roughly $1 million for attorney fees and an additional $750,000 for receiver fees.

SEC Accused of Misconduct

The SEC filed its lawsuit against DEBT Box in July 2023, alleging the company ran a $50 million illegal crypto scheme. However, the tide turned in March 2024 when Judge Shelby found the SEC engaged in “bad faith conduct.” This accusation stemmed from the SEC’s use of a temporary restraining order to freeze DEBT Box’s assets, which the judge deemed improper. As a consequence, the SEC was sanctioned and required to cover all legal expenses incurred by DEBT Box due to the “improvidently entered” order.

Two SEC lawyers from the Salt Lake Regional Office reportedly resigned following the DEBT Box case controversy. While the specific cause for their departure remains unclear, it potentially contributed to the “significant attrition” cited by the SEC as a reason for closure.

DEBT Box Responds

DEBT Box chief marketing officer Miguel Francis-Santiago sees the closure as a direct response to the SEC’s “gross misuse of power” in their case. He further emphasized that any future SEC action against DEBT Box must be brought before Judge Shelby to prevent repetition of misconduct.

Despite this setback, the SEC continues its enforcement activities against several other cryptocurrency companies, including industry giants like Coinbase, Binance, Kraken, and Ripple. Additionally, May 2024 saw Terraform Labs and its co-founder Do Kwon reportedly reach an in-principle settlement with the SEC regarding their ongoing case.

Fidelity Recommends Bitcoin Allocation: Overcoming Analysis Paralysis

Fidelity Investments, a leading financial services firm, is urging investors to consider including Bitcoin (BTC) in their portfolios, regardless of their overall stance on digital assets. This recommendation comes from Matt Horne, head of digital asset strategies at Fidelity, who emphasizes the importance of overcoming “analysis paralysis” when approaching Bitcoin.

In a recent CNBC interview, Horne acknowledged the challenge traditional investors face when navigating the complex world of digital assets. The sheer volume of data available can lead to “analysis paralysis,” hindering investors from making informed decisions. However, Horne argues that this data overload shouldn’t be a barrier to Bitcoin investment.

“With digital assets,” Horne explained, “you don’t have the luxury [of extensive data analysis]. And I think that’s fine.” He encourages investors to focus on the fundamental potential of Bitcoin technology and strategically position themselves accordingly.

Strategic Allocation: Minimizing Risk, Maximizing Opportunity

Horne suggests a small allocation, ranging from 1% to 5% of an investor’s portfolio, as a way to mitigate risk while still capitalizing on Bitcoin’s potential upside. This approach minimizes the impact of a potential Bitcoin price drop to zero while allowing investors to benefit from potential price increases and Bitcoin’s potential as a hedge against inflation.

Institutional Interest on the Rise

Horne’s comments reflect a growing trend of institutional investor interest in Bitcoin and the broader cryptocurrency market. This shift comes after years of skepticism from many large financial institutions. The introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States in January 2024 is seen as a major catalyst for this growing institutional adoption.

ETF Inflows Signal Positive Sentiment

The surge in Bitcoin’s price to over $70,000 per coin coincides with the launch of these Bitcoin ETFs. Data from the Coinshares “Digital Asset Fund Flows” report paints a clear picture: Bitcoin funds attracted $148 million in inflows during the last week of May, with a total of nearly $2 billion flowing into Bitcoin funds throughout the month.

Looking at the year-to-date figures, Bitcoin funds and ETFs have raked in over $14 billion in inflows, further highlighting investor confidence. Interestingly, short Bitcoin funds experienced capital outflows of $12.3 million in May, indicating that ETF and ETP investors remain bullish on Bitcoin’s future.

Bitcoin Investment Growing Globally

The Coinshares report also reveals that Bitcoin investment funds now manage a staggering $74 billion in assets under management globally. This significant figure underscores the growing institutional acceptance and integration of Bitcoin into mainstream investment strategies.

Fidelity’s recommendation to allocate a portion of a portfolio to Bitcoin reflects a changing tide in the financial landscape. As investor awareness and education around Bitcoin and digital assets expand, we can expect continued institutional adoption and potentially even higher levels of Bitcoin integration into traditional investment strategies.

Solana Gains Traction: Scalability and Partnerships Attract Institutions

Solana, a high-speed blockchain network, is emerging as a favorite among financial institutions. This growing interest is fueled by Solana’s potential to “future-proof” the offerings of these institutions, according to industry experts.

Robinson Burkey, co-founder and chief commercial officer of Wormhole Foundation, believes established players like PayPal, Stripe, and Visa recognize the need to adapt to the evolving financial landscape. Integrating with Solana allows them to cater to their most forward-thinking users who are already adopting this innovative platform. Burkey predicts “many more institutional moments for Solana in the coming years.”

PayPal’s Move to Solana: A Game Changer

In May 2024, PayPal expanded its USD (PYUSD) stablecoin to the Solana network. This marked a significant shift, as it was PayPal’s first venture beyond the Ethereum ecosystem. The integration enables Solana users to conduct low-cost transactions with PYUSD, potentially increasing its adoption for everyday purchases.

Global payments giant Visa had already embraced Solana in September 2023 by launching USD Coin on the network. This made Solana the second blockchain, after Ethereum, to support this popular stablecoin.

Solana’s Advantages for Institutions

Solana’s key advantage lies in its scalability. The network boasts a theoretical throughput of up to 65,000 transactions per second (TPS) at an average cost of $0.0025 per transaction. This far surpasses Ethereum’s current capabilities, which are limited to around 15 TPS with significantly higher gas fees that can range from $1 to $50 or more during periods of congestion.

Ran Goldi, vice president of payments at Fireblocks, believes Solana’s infrastructure can seamlessly integrate with existing payment systems used by traditional institutions. This, according to him, will pave the way for wider institutional adoption. He emphasizes the importance of features like “confidential transfers,” which are crucial for large-volume transactions and ensuring compliance with regulations. Implementing such features, Goldi adds, could unlock “additional names adopting the blockchain into their flows.”

Solana ETF: A Possibility on the Horizon?

Industry experts like Tristan Frizza, founder of Zeta Markets, believe Solana could be the next cryptocurrency to have its own exchange-traded fund (ETF). Frizza highlights Solana’s position as one of the “big three” cryptos alongside Bitcoin and Ethereum, further bolstered by its partnerships with major players like Visa, Stripe, Shopify Pay, and PayPal. These factors, he argues, suggest a potential increase in merchant and institutional adoption of Solana.

The possibility of a Solana ETF first gained traction in January 2024 when trillion-dollar asset manager Franklin Templeton praised Solana’s unique approach to blockchain scaling. Crypto investor Brian Kelly also echoed this sentiment, suggesting Solana could be a strong contender for the next U.S. crypto ETF.

Solana’s focus on scalability, combined with its growing list of high-profile partnerships, positions it as a strong contender for mainstream adoption within the institutional financial landscape. The potential launch of a Solana ETF could further solidify its standing as a major player in the ever-evolving world of cryptocurrency.