Quantum Leap Labs ignites innovation by launching North America’s first incubator dedicated to the Internet Computer Protocol (ICP). This incredible initiative dubbed, the Quantum Leap Labs Incubator, instigates the development of ICP-based projects and provides unparalleled support for the startups from the initial spark of an idea to a successful launch and beyond.

At Quantum Leap Labs, we support passionate entrepreneurs with innovative ideas who want to join the Internet Computer ecosystem. We pride ourselves on professionalism and a family-like atmosphere. Leveraging our experience, we help blockchain entrepreneurs achieve success and build strong reputations for their businesses.

Javier Arroyo Ferrer, Founder of Quantum Leap Labs

The incubator is placed at the very core of the ICP ecosystem beyond being a simple launchpad. As an official partner of ICP HUB Canada & US, it leverages the power of the Olympus platform. This state-of-the-art environment is specifically designed for building high-caliber decentralized applications (dApps).

Think of it as a space for you to work with others, plenty of tools and resources at your disposal – the Olympus Platform makes this possible.

It enables visionaries to connect, share ideas, and push the boundaries of innovation, ultimately leading to projects that thrive within the Web3 space.

The inaugural cohort will commence in the third week of June with applications now open for two distinct programs:

Accelerator Program: Geared toward more seasoned teams working on their Minimum Viable Product (MVP) within the web3 ecosystem.

Resident Program: Offered to winning teams of hackathons and student startup entrepreurs, this is a nurturing ground for new ideas.

Quantum Leap Labs Incubator is designed to redefine how web3 startups gain a competitive edge. The incubator functions as a community builder and catalyst for decentralization – providing a new era of internet independence and innovation.

The incubator’s comprehensive support system is designed to cater to the various needs of growing startups as the participants will receive:

Legal Setup and DAO Implementation: Guidance on legal compliance and decentralized governance.

Tokenomics: Expert advice on token model structuring and economic sustainability 

Marketing and SNS: Customized marketing strategies to enhance visibility and user engagement.

Grant Application Support: Assistance in securing funding through meticulously crafted grant proposals.

Canister Design: Tailored technical support to optimize project infrastructure.

Community Building: Strategies to engage and expand user base.

First 1000 Users: Focused tactics to build a robust early user base.

Our extensive experience as entrepreneurs in various roles within the Internet Computer and blockchain ecosystems provides us with a unique and advantageous perspective for incubating top-tier projects. From technology and legal to marketing, media press, and business development, we assist entrepreneurs in achieving long-term success with their ventures.

Ritvick Paliwal, Tech Advisor

For entrepreneurs and tech enthusiasts looking to make a significant impact in the blockchain space, Quantum Leap Labs Incubator offers an unmatched opportunity to turn visionary ideas into reality. 

Apply now to be part of this transformative journey. For more information and to submit your application, visit Quantum Leap Labs.

“Crypto Airdrops are a good way to reward loyal users and attract new ones,” said Chabgpeng Zhao, the founder and CEO of Binance. “It is similar to having a surprise birthday gift mailed directly to your home.” 

Airdrops in the crypto world are a marketing strategy used by Web3 companies to incentivize their active community or encourage adoption by depositing digital tokens directly into the wallets.

This article explains what airdrops are, how they differ from ICOs and STOs, their potential threats, and how to avoid them simply and easily. Read on and discover one of the most astonishing topics of the crypto world.

What Is Crypto Airdrop?

A crypto airdrop is a promotional initiative by Web3-based companies or startups to encourage adoption or bootstrap their project.

Here, a small amount of virtual currency is deposited directly into the user’s wallet for free or in exchange for small services like retweeting or reposting a post sent by the company announcing airdrops. Airdrops are public campaigns designed to spread awareness about the company’s platform and encourage the adoption of new tokens or coins. 

Promotion of airdrops is generally done on the company’s official website, social media sites like Twitter, Discord, Reddit, or some crypto forums like bitcoin.com. 

Crypto coins or tokens are deposited only to specific wallets depending on the Blockchain network or amount of coin holding.

To qualify for an airdrop may rely on a particular factor, like the recipient must hold some coins or have to perform specific tasks, such as writing a promotional blog post or Twitter thread, reposting the company’s post about the project, increasing the community base of the network or increasing the impressions and interaction with their project and network.

Are you new to Web3? Here’s a Comprehensive guide to know all about Blockchain forks by Droomdoom.

Types of Crypto Airdrops

Standard Airdrop

No task completion is required to qualify for a standard airdrop; participants just need to express their interest in receiving the airdrop. The individual must sign up with a valid email address. This type of airdrop can be time-sensitive and doled out on an FCFS basis (first come, first serve).

They may have a limited supply of coins to distribute, limiting how much each person can get. For example, RabbitX has used standard airdrops to roll out their new coin and create a new user base.

Reminder: Only 3 days left to participate in the #RabbitX airdrop for early mainnet users! Don't miss your chance. Snapshot ends on April 9th, so deposit and trade now at https://t.co/0LV1Tnqxlp #backthebunny pic.twitter.com/K6GYnmp9MH

— RabbitX Get App Now! (@rabbitx_io) April 6, 2023

However, they are popular due to their simple method, which makes them vulnerable. It is effortless for an individual to create multiple wallets to drain out airdrop resources. 

Bounty Airdrop

To qualify for bounty airdrops, participants may need to perform specific tasks. Some companies roll out bounty airdrops when they need low-lift promotional work. The tasks assigned could be retweeting, posting a promotional blog post, writing a Twitter thread and tagging the company’s handles, joining their discord channel, or signing up for their newsletter.

Users may need to perform specific tasks to earn points, and using those points, they can participate in airdrop. For example, a user can participate in an airdrop after earning 500 points. Each task is labeled as 100 points like the Foodie NFT platform rolled out nine 9-step to-do lists to become eligible to participate in their $75000 airdrop, including following their social media handles and tagging friends. 

Holder Airdrop

As mentioned in the name ‘holder,’ this airdrop is specifically for those who may hold a certain number of existing tokens or hold existing tokens at all at the time of promotion.

Companies mainly design holder airdrops to incentivize their most loyal and invested users. Some airdrops may only reward users who meet or exceed a threshold amount set by the company. 

One downside is that some holders may not want the airdrop. 

Exclusive Airdrop

According to the name, the exclusive airdrop is explicitly designed for some users who may not have any holding in their wallets. This type of airdrop is not based on how much coin the user holds but on factors like time spent on the project, money spent on non-token activities, and level of engagement on the forum.

For example, Swapping, bridging, or staking the token.

Exclusive airdrop is a more centralized way of rewarding users closest to the project. For example, Uniswap’s airdrop of 400 UNI tokens for its long-standing users, regardless of their holding status.

Raffle Airdrop

Raffle airdrops implement a lottery mechanism. Here, companies may release the number of airdrops they are willing to give and encourage users to earn raffle tickets. Raffle tickets can be achieved by many methods, such as earning points, simply expressing interest, or holding some tokens.

This results in the number of individuals participating exceeding the number of airdrops to be delivered by the company. Therefore, a raffle occurs, and several wallets are selected randomly for the reward. 

For example, gaming platform Revv rewarded $500 to their 100 lucky winners.

Game-Changing Airdrops

Look

Look is a token NFT trading platform LooksRare on Ethereum issued to increase its user base. Looksrare entered into a genre with tough competition. So, you incentivize people. LooksRare airdropped 12% of LOOKS total supply to anyone with a combined 3 ETH trading Volume or snapshot of the period from January to December. It worked. They captured a large user base within only four months.

Uniswap

In September 2020, the decentralized protocol UNISWAP airdropped 400 UNI tokens worth $1200. Whoever interacted actively with this decentralized exchange before September 1, 2020, was eligible for the airdrop. Uniswap distributed 150m UNI tokens, with more than half of it going to their team members and investors.

Arbitrum

On March 16, 2023, Arbitrum announced its airdrop and ARB token, which went live on March 23, 2023. 

New to Cryptocurrency? What are the inevitable cryptocurrency scams that you’re likely to fall for? 

The Arbitrum rewarded users based on their activity on two chain versions, Arbitrum One and Arbitrum Nova. It was based on a point system. The user needed to earn at least three points to become eligible for the airdrop, which could be achieved by performing transactions, liquidating, and bridging funds on Arbitrum. 

More points = More tokens in Airdrop.

70% of the airdrop resources went to team members and investors with equal to or more than four years of investing period.

Airdrops vs. ICOs vs. STOs

Crypto airdrops and Initial Coin offerings may appear the same in front, but they are pretty different. Unlike ICOs, crypto airdrops don’t require any investment. 

ICOs are very similar to IPOs (Initial public offerings) in raising an investment and locking the funds from investors. In ICOs and IPOs, allotment is done through a lottery mechanism. If users are not allocated the token they bid for, funds are returned automatically to their wallets.

ICOs are initially offered to VCs (venture capitalists). Though ICOs require an upfront investment, investors are expected to buy the coin or tokens instead of going for free airdrops. 

The ultimate goal behind Initial Coin offerings and airdrops is entirely different. ICOs are intended to attract investors willing to put their capital into the project. This user base is more likely to see this project as their investment. Alternatively, airdrops are intended to spread awareness among small users.

STOs ( Security Token Offerings) are a method for fundraising in the crypto world. It involves issuing security tokens representing ownership in an investment asset like real estate or equity in a company.

Learn more ways to spot and avoid Crypto scams, compiled by DroomDroom.

In STOs, the information is recorded for security tokens. However, the main difference is that STOs are saved in the Blockchain and represented by the token. Unlike airdrops or ICOs, STOs are regulated and backed by assets that ensure investor protection. 

Scams and Prevention

Mostly, the ultimate goal of crypto airdrop is promotion. It never seeks capital investment. Some crypto scams involving sending some bitcoins or tokens for winning the airdrops come under dusting scams. 

Airdrops are generally too-good-to-be-true incentives, where it’s easy for users to fall prey to scams. One type of airdrop scam is phishing, which relies on promising users fake airdrops. In phishing scams, users are redirected to third-party websites to input their wallet information to win the phony airdrop. The scam is complete once users connect their wallets using their secret keys or phrases, and their wallet gets drained. 

Do you want to know more about Sandwich scams? Here is a beginner’s guide on Sandwich attacks by Richardson Chinonyerem by DroomDroom.

There is another type of airdrop scam called rug pull scam. It can be described through this phrase: “pumping and dumping.” Here, users can be enticed to invest in certain security hacks, buy many specific tokens to increase their demand or get an airdrop. Scammers could liquidate their shares when the token’s value reaches a certain level, thereby dropping its value.

The unwary investors then are left with a token worth nothing.

Or, some people can approach the investor to invest in their project and later run away with all the money without giving any notice.

Conclusion

Crypto airdrops play a significant role in promoting new coins and encouraging adoption in small communities. It can be an excellent way for Crypto enthusiasts to get free tokens and NFTs. However, it’s essential to be cautious and avoid scams. The go-to phrase for every crypto enthusiast in the Crypto world is “Do your own research.” 

Bitcoin is the first decentralized and one of the most popular digital currencies. It offers peer-to-peer transfers without the involvement of intermediaries like banks, government, or brokers, using Blockchain technology. Blockchain is a distributed immutable ledger that allows maintaining a secure and decentralized record of transactions. It is a shared database that stores data in blocks chained together by cryptography.

Bitcoin mining is a process of minting new coins and validating ongoing transactions by solving complex cryptographic puzzles.

This article explains in detail what is bitcoin mining, how it works, what is bitcoin halving including how bitcoin mining evolved with time, and what economics and issues you need to know when you are exploring bitcoin mining.

What Is Bitcoin Mining?

Bitcoin mining is a process of minting new coins and validating ongoing transactions by solving complex cryptographic puzzles.

It is probably some heavy, expensive machinery in remote parts of the world and suit-face workers with hard hats digging deep underneath the earth’s surface to find natural resources like coal or diamond.

Well, bitcoin miners aren’t suit-faced humans working in remote parts, but it’s a network of powerful computers worldwide. These miners add individual blocks to a Bitcoin’s blockchain network, validating ongoing transactions by solving complex cryptographic puzzles, thereby getting the reward in return: A Bitcoin. Whoever solves the puzzle first wins the prize.

How Does Bitcoin Mining Works?

Bitcoin Mining is a guessing game.

Let’s dive into this quote through a scenario. Let’s say you and your friends have been tasked to guess a number between 1 and 1000. Let’s say the number you have to guess is 25; then, you don’t need to guess an exact number, but you have to be the first one to guess a number less than or equal to 25.

If you came up with a number 55, and one of your friends came up with 27, another 67, and yet another 80, they lost because they all came up with a number more than 25.

But if you have five friends left and one of them guessed 20, then they win, and the remaining others don’t get a chance to guess. The one who guessed 20 was first to guess a number less than or equal to 25.

Here, number 25 represents the target Hash created by the Bitcoin network for a block, and random guesses by you and your friends are guesses made by miners to solve this puzzle. The solution that our computer or miner tries to find for the puzzle given is called “Hash.” So, what is Hash?

The Hash

The Hash is a 64-digit hexadecimal number generated by sending the information in the block through the SHA256 hashing algorithm. In less than a second, this could be done by sending some content into a SHA256 hash generator.

SHA256 is an encryption method the Bitcoin network uses to create a block hash. However, decrypting that hash back is impossible, as it can take centuries to decode with modern technology.

 Hash might look like this (this is the previous paragraph run through a hash generator). If you change one value in that content, like switching one “b” to an “a,” the hash changes:

A65f83a5db7371eeefa2287a0ede750ac623e49a8ba29f248eb785fe0a678559

            Here is the same paragraph, but the first word is misspelled as “Ba” instead of “Bt”:

Fbfa43ff980d1492b3a9275a1eb945d89bd6b699ca19c3c470021b8f253654af

This is the number called block hash, which also acts as the following block’s header. Each block uses the previous Block’s Hash, forming a chain and creating the term “Blockchain.”

The process of guessing the correct number (Hash) is known as proof of work.

Proof of Work 

When a node guesses the number first or solves the puzzle first, the entire network comes to a consensus about that node to validate a transaction because this particular node has done a certain amount of work to solve the puzzle.

That is why the consensus algorithm used in the Bitcoin network is called “Proof of Work .”It consumes much energy and computational power to reach the goal of less than or equal to the target hash. The work done in this process is viewed as validation proof, so it’s called proof-of-work.

The difficulty of mining increases as more miner joins the network. 

Confirmation

Each block contains a hash of the previous block- so when the next Block’s Hash is created, it’s connected; that’s how forming a network is. Even a single change in character in a block changes the Hash, thus changing the Hash of all of the following blocks. This process secured the Blockchain.

The block closed and received reward is only confirmed five blocks later when it’s through many validations.

Are you new to Web3? Here’s a Comprehensive guide to know all about Blockchain forks by Droomdoom.

Evolution of Bitcoin Mining

In the early days of Bitcoin, there were few miners out there. Therefore, general computers with regular CPUs dominated Bitcoin mining. Satoshi, the inventor of Bitcoin, and his friend Hal Finney, along with a few people, were mining Bitcoin with their personal computers using their computer’s central processing unit (CPU) or computer’s brain. In 2009, that was enough for mining Bitcoin as mining difficulty was very low.

GPU Mining

As Bitcoin started to catch people’s eyes, they started looking for more powerful mining solutions,

Learn more ways to spot and avoid Crypto scams, compiled by DroomDroom.

Then GPU mining came to light. A GPU ( Graphical processing unit ), or graphic card, is a unique component added to computers to carry out more complex calculations. Initially, GPUs were intended to allow gamers to run computer games with intense graphics requirements. But, because of their architecture, they became popular in cryptography, and around 2011, people also started using them to mine Bitcoins. They were more effective and faster at mining with better hash rates than CPUs.

For reference, the mining power of one GPU equals that of around 30 CPUs.

But they consumed much power and, because of high demand, have skyrocketed in price.

FPGA Mining

Another evolution came later on with FPGA mining.

FPGA (Field Programmable Gate Array) is a piece of hardware that can be connected to a computer to run calculations. They are just like a GPU, but 3 to 100 times faster. But the downside is that they are more complex to configure, which is why, In 2013, a new type of miner was introduced, an ASIC miner.

ASIC Mining

Launched in 2012, ASIC stands for Application Specific Integrated Circuit.

As miners now prefer custom mining machines for Bitcoin mining, ASIC is hardware manufactured solely for mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they are equipped with specialized chips to mine Bitcoin more efficiently and can’t be used to do anything else. They are hardcoded with functions into the machines and are the mining standard. Some Early ASIC miners even appeared in the form of USB, but they became obsolete rather quickly.

But ASIC rigs could be expensive, ranging from $2,000 to $15000.

Cloud Mining

This is the latest way to mint Bitcoin, where miners can buy a cloud mining service or contract from an existing cloud mining provider specializing in cryptocurrency mining rigs. While this gives the miner the advantage of mining Bitcoins without sunk and maintenance costs of mining hardware setup, one must be careful in choosing a reputed cloud miner to avoid future scams or fraud.

New to Cryptocurrency? What are the inevitable cryptocurrency scams that you’re likely to fall for? 

How Do You Start Bitcoin Mining

To Start Bitcoin mining, every miner needs basics, including

Mining hardware ( like Ebang, Antiminer),

Crypto Wallet, and

Knowledge of how to install and configure mining software.

Let’s look at each one them individually now:

Powerful Hardware Resources

Before a miner starts minting bitcoins, they need a powerful mining hardware setup designed specifically for mining cryptos and tools to solve complex puzzles efficiently. For efficient and effective mining, mining would require graphical processing units with advanced graphic cards, FPGAs( field programmable gate array ), or advanced ASICs (Application-specific integrated circuits ).

Since 2013, after the introduction of ASICs, ASICs-based hardware has been the most advanced and capable of generating the most hashes per second. However, at the same time, it’s costly, which may range in thousands of dollars.

Installing Mining Software

Besides powerful Hardware essentials, miners need to know how to install and configure the mining software ( like CG miner,  XMR miner ). Many of the software are free to download and work on Windows and Mac computers.

E-wallets

Then, a miner would also be required to create an e-wallet to store their rewards as Bitcoin. A Bitcoin wallet is a digital wallet that facilitates storing, accepting, and transferring Bitcoin or any other cryptocurrency.

Additionally, miners must possess advanced technical knowledge to operate hardware systems, improve the mining capacity, and monitor the progress.

Are you opening your first crypto wallet? Learn about Crypto Wallet checker to avoid dirty and sanctioned money, compiled by Droomdroom.

Mining Pool or Solo Mining

Miners can choose between solo mining or opting for pool mining. With all the complexities of just starting up Bitcoin mining and going further, it takes work to do it, so mining pools were invented.

In mining pools, groups of miners are formed to face the increasing difficulty of mining together. Contrary to popular narrative, anyone with regular desktop computers or gaming systems can join the mining pools and mine. However, the returns are limited, as rewards are distributed among all the mining pool members according to how much work each miner has done.

Interested in making a career in Web3 Space? Explore the Ultimate guide to start your career as a blockchain developer, compiled by Droomdroom.

Economics

Bitcoin mining is a business venture.

The three most significant factors that affect the cost of Bitcoin mining are electricity, network, and mining infrastructure.

Mining can result in substantial bills, given that electricity gives the power to run your mining systems 24/7. Mining systems produce much heat while mining, so these rigs need to be cooled, and the air conditioning is costly.

Mining alone can be hectic, so mining pools were introduced to reduce the complexity and difficulty miner faces during the mining. However, here, rewards are limited.

Network speeds do not affect significantly, but latency, i.e., time taken to communicate with the rest of the network, does.

So, for this venture to be profitable, the cost for these three inputs should be less than output ( bitcoin’s price ).

Rewards

What does one get for hustling and juggling so much through incurring the costs of such heavy infrastructure and energy usage?

In Bitcoin, the reward for successfully validating a block in Bitcoin’s network is free bitcoins and transaction fees ( a certain percentage of the transaction the miner inserted into the block).

Miner payment = block Reward + Transaction fees

However, since 2009 ( bitcoin launched ), the number of bitcoins each miner gets by validating each transaction is reduced by the Bitcoin halving phenomenon.

To know if you can do Bitcoin mining profitably, you can check it through the Profitability Calculator.

Bitcoin Halving

The reward for mining one block is halved every 210,000 blocks or about every four years. In 2009, when Bitcoin was launched, the reward for mining a block was 50 Bitcoins, then it was limited to 25 Bitcoins in 2012 and 12.5 in 2016. Bitcoin halving aims to cut down the Bitcoin’s inflation and circulation rate, stabilizing its value. The last Bitcoin halving event took place in May 2020.

When Bitcoin reaches its limit of 21 million, expected by 2140, miners will be constantly rewarded with fees for processing transactions that network users will pay. These fees are a way to ensure that miners validating the transactions still have the incentive to mine and keep the network going.

Issues

What is the probability of mining a Bitcoin block successfully through Pow?

It’s one in 57.6 trillion, with that scaling difficulty levels, a massive number of transactions being verified by users, and one block of transaction is verified roughly every 10 minutes. But remember, it’s a goal, not a rule.

Speed

With transactions logged in the Blockchain every 10 minutes, the Bitcoin network can currently process between 3 to 6 transactions per second. Whereas, in comparison, visa can process somewhere 65000 transactions per second. Upgrades and second-layer solutions have been addressed to the Bitcoin network for issues. However, there have yet to be any significant solutions./modern banking systems and other Blockchains dwarf the number of transactions the Bitcoin network can handle.

Scalability

The major problem at the core of Bitcoin protocol has been scaling. Though miners accept this as a core problem, there has yet to be much consensus about how to solve it.

Bitcoin has been introducing upgrades and accepting inputs from layers, but it still needs help with scalability.

Energy Usage

Energy usage has always been a topic of discussion worldwide, from Elon Musk to any average person expressing their opinions about what should and should not be done globally.

According to statistics, bitcoin mining alone consumes nearly 127 terawatt-hours (TWh) a year, more than many countries, including Norway. Bitcoin mining has always been an energy-intensive process. As the complexity and difficulty of Bitcoin mining rise, the computational power required to mine a Bitcoin also rises. 

However, many Bitcoin enthusiasts claim that Bitcoin runs on renewable energy sources only. Nevertheless, it is still a matter of debate as it’s self-reported data from mining pools, and the information provided is scarce and lacks transparency.

Conclusion

Bitcoin has always been the most popular cryptocurrency. While it seems very exciting to mint your Bitcoin, it comes with many complications and upfront costs. Additionally, its extreme price volatility makes it an unviable medium of exchange.

Bitcoin remains a speculative currency due to a lack of intrinsic value that operates in a decentralized and autonomous manner. 

Due to this, it’s invulnerable to regulations and law enforcement. Though, global leaders have addressed the impact and regulatory measures in G20 2023 meetings.

Artificial intelligence and Web3 have been two of the most revolutionary technologies of this era. AI has already become a significant part of the central building block of the world’s software. According to PwC estimates, AI will contribute a staggering $15.7 trillion to the global economy by 2030, resulting in a 14% increase in global GDP. As we as a generation are on the cusp of a new technological era, the transition to Web3, AI, will play a significant role in shaping the digital world we will live in.

AI will revolutionize the Web3 world by adding remarkable automation, personalization, security, advanced data analytics, and improved smart contracts. Integrating AI with Web3 will redefine how Web3 works by focusing on what’s best for users.

Let’s delve into each topic one by one to learn more about the evolution of web3 with AI, starting with what is web3.

Are you new to the Web3 ecosystem? Here’s a comprehensive guide about what Web3 is and how it’s different from Web2 by Droomdroom.

What is Web3?

Web3, widely known as web3.0, is the third generation of the World Wide Web. It is a next-generation on the internet that envisions a decentralized, secure, and user-centric digital ecosystem that works on Blockchain technology.

Web 3.0 is an innovation over Web 2.0. Here, data is controlled by users rather than one giant entity or company, resulting in more privacy and no censorship. Rewards earned are distributed equally among all the stakeholders or users in this case. 

The Main Pillars of Web 3.0

Decentralization

Decentralization is a core aspect of web3. As Web2 uses HTTP to locate information, web3, being Blockchain-based, stores information at multiple locations across a network. It gives users more data control than big tech giants like Google and Meta. It enables users to sell their data according to their own will.

Connectivity

Information and content are more accessible in Web 3.0 as it’s stored at multiple locations and can be accessed by various devices worldwide.

Artificial Intelligence and Machine Learning

Web3 will use technologies like NLP ( natural language processing) and semantic web to make their systems more advanced and receptive, like human intelligence.

Web3 will also utilize machine learning, which uses a large amount of data to train algorithms, improving accuracy and results.

Are you new to Web3? Here’s a Comprehensive guide to know all about Blockchain forks by Droomdoom.

What is AI?

Artificial intelligence (AI) is the simulation of human intelligence by computer systems, capable of performing complex tasks that require reasoning and problem-solving. AI systems run by consuming large amounts of data that are later used to train machine learning algorithms.

They then analyze the data to find patterns to model their decision-making or predict future states. This type of learning is called supervised learning. But some AI systems learn without supervision, for instance, by playing a video game repeatedly until the system knows every rule and way to win. This type of learning is categorized as unsupervised learning.

There are three cognitive skills on which AI programming is based – reasoning, learning, and self-correction.

Types of Artificial intelligence

Weak AI

Systems designed to perform particular tasks only. Personal assistants, Amazon’s Alexa, and video games are examples of weak AI.

Strong AI

Systems that can perform tasks that require human intelligence and are more complex and complicated. For example, self-driving cars.

Ways Evolution of Web3 with AI is Made Possible

Automation

AI’s ultra capability to learn and automate tasks can help Web3 users escape tedious and time-consuming tasks. From minting new NFTs to managing digital wallets, AI can seamlessly shoulder these responsibilities and liberate users to focus on more creative tasks.

Personalization

AI can significantly personalize Web3 users’ journeys and make their experiences more customized and engaging by analyzing user data like browsing history and using machine learning algorithms like collaborative and content-based filtering. AI algorithms can generate personalized recommendations and services that align with users’ needs and interests.

Learn 6 helpful strategies to diversify your crypto portfolio using altcoins, maximizing your investment potential, with this comprehensive article.

For example, AI can be used in advertising to make targeted marketing campaigns by analyzing user data to make it appealing and most relatable to individual users, resulting in better advertising and conversion rates.

Data Analysis and Insights 

AI-driven analysis can play a crucial role in developing the Web3 ecosystem. The key aspect of AI analysis is that it can process large amounts of vast, complex, and diverse datasets generated by decentralized platforms, users, transactions, and execution of smart contracts. AI can find uncovered patterns and insights that can contribute highly to the growth and development of the Web3 ecosystem.

Security

AI can play a vital role in enhancing security and trust within the Web3 ecosystem by identifying potential risks, vulnerabilities, threats, or hacks. By proactive detection of any future cyber threats or dangers, AI can help Web3 maintain a secure and safe environment by keeping data private through advanced encryption and anonymization.

Machine learning algorithms can be trained on large data sets to identify future cyber threats, such as phishing attacks or unauthorized access to an account. 

AI can be used for unique protection by providing personalized authentication to each user by analyzing their behavioral patterns or user-specific characteristics like facial features. This will help web3 platforms to become more robust and less vulnerable to fraud and impersonation.

Smart Contracts 

AI implementation can significantly revolutionize the functionality of smart contracts in Web3 by integrating advanced decision-making capabilities and enabling dynamic transactions on any Web3 platform. 

Smart contracts are, like any contract, executed an agreement with terms and conditions written into a code. It does not need any broker or intermediaries to execute the agreement, thus reducing the probability of manipulation and ensuring trust and transparency.

Are you new to the crypto world? Here’s a comprehensive guide on the role of smart contracts in Decentralized Finance. 

What Factors Contribute to WEB3 Adopting ML Technologies From a Top-Doen Approach?

Adopting machine learning (ML) technologies follows a top-down approach mainly due to its complex infrastructure, which needs experts to implement ML technologies into the Web3 ecosystem.

The top-down approach is adopted in Web3 for ML technology for several reasons: 

Technical Complexity

Integration of ML technology in Web3 space requires a deep understanding of both Decentralization Infratech and ML algorithms. Seamless integration of ML technologies in decentralized infrastructure demands expertise as it’s very intricate.

Security and Privacy

Providing security and privacy is one of the primary goals of Web 3.0. Integrating ML technology through a top-down approach allows experts to design and implement ML solutions that align with the core principles of Web3, ensuring that these goals are not compromised.

Scalability and Performance 

Implementing ML technologies requires addressing significant challenges with Web3, including scalability and performance. The top-down approach helps ensure that ML solutions designed are intended to make the Web3 ecosystem more efficient and scalable.

Standardization and Interoperability

For effective adoption of ML technologies across Web3 platforms, standardization and interoperability must be achieved. Top-down adoption allows a more unified approach and promotes collaboration among stakeholders. 

Key Challenges Faced by AI: Web 3.0 as a Solution

With large language models like ChatGPT and Midjourney, we have seen a drastic change in digital content creation and businesses.

While these technologies offer many advantages, such as high-quality content, increased productivity, and efficiency, they also come with many new challenges.

Here, we have uncovered some critical challenges in generated content and potential threats that must be addressed.

Fake Spread of News 

One of the significant problems of AI-generated content is the propagation of fake content. With language models like ChatGPT and Midjourney, producing realistic news articles and pictures is easy, making it more challenging to differentiate from human-written content. Keeping track is more complex as the line between reality and fiction becomes blurred. It can result in a potential collapse in the perception of reality.

Solution

Various tools have been developed to check the content’s origin, with metadata tracking and reverse image searches. Many organizations like factcheck.org are working to burst fake news stories and maintain a trustworthy ecosystem. Blockchain can play a vital role in tracking the authenticity of the content by storing their metadata, the author’s identity with a  timestamp of publication, on a decentralized and tamper-proof ledger where readers can verify the origin of information.

Trust Collapse

The rapid increase in AI-generated content can result in the trust collapse of the public as it becomes harder to look into the authenticity of the content. Trust collapse can raise implications for journalism and businesses that highly run on public trust, only undermining the credibility of the content produced. This makes establishing accountability for any wrongful facts or inaccuracies presented in the range harder. As a result, the public becomes skeptical about any content they come across. 

Solution

Transparency with the origin of the content, such as watermarking or labeling the source, can help. Blockchain can play an important role here as any piece of content stored on Blockchain is verified. by validators, which makes every piece of information stored there unique with the help of hash value allotted to every individual piece of information, which is interlinked with previous information stored, hence making a chain.

Exploitation of Law

AI-generated content can be used to exploit loopholes in laws and regulations. For example, AI can create convincing, deep, fake videos and audio, altering court proceedings and results. 

Solution

Lawmakers should be aware of AI advancements and develop policies and regulations restricting cause mishaps. Collaborative work between AI researchers and Lawmakers will ensure that.

Blackmails and Threats 

AI-generated blackmail can take many forms:  

Deepfakes: AI can generate very realistic videos, images, and audio, which can be used to threaten anyone and put them in compromising situations with the threat of public exposure.

AI-generated threats: AI’s capability of producing personalized content can raise considerable dangers of creating convincing and personalized blackmail, playing on their fears and vulnerabilities. 

Fabricated documents: AI-generated content can be presented as authentic documents, which become more complex to differentiate from the original one. This can result in coercing victims to pay huge ransoms and comply with the blackmailer’s demands.

Solutions

Machine learning algorithms can be trained to identify patterns and commonalities of AI-generated threats and signs of manipulation. To combat AI-generated threats, collaborative work of lawmakers and cybersecurity professionals to detect and restrict any mishaps.

A decentralized reputation system can help users identify trustworthy content and counterparts and promote transparency.

Popular Web3 Platforms Using AI 

Medibloc

It is a decentralized healthcare platform built on Ethereum Blockchain. It aims to provide efficient and effective healthcare by enabling secure, transparent data transfer. It uses smart contracts for data sharing and accessing other healthcare services.

It has its own MED cryptocurrency, which facilitates transactions and rewards users who are willing to share their data. Medibloc has its own AI system, which analyzes the stored data to identify patterns and trends to provide personalized treatment recommendations and automate tasks such as reminders for taking medication.

Augur

Founded in 2014, Augur is a decentralized prediction market platform built on the Ethereum blockchain. Here, users can predict the outcome of events like sports games and elections and trade on those outcomes.

Augur has an AI system that improves the accuracy of predictions by analyzing data from various sources like news, social media posts, and the internet to find patterns and trends that might affect the outcome. It also rewards its users when they predict accurate results.

Chainanalysis

Founded in 2014, Chainanalysis is a Blockchain analytics platform. It is used by multiple organizations, including cryptocurrency exchanges, financial institutions, and law enforcement agencies, to detect and prevent fraudulent and illegal activities on Web3.

Chain analysis has a proprietary dataset of known addresses and transactions of fraudulent or illegal activities, which they use to check for suspicious activity on the Blockchain.

Conclusion

Web3 stands on the door of immense possibilities, and its integration with AI will serve as the cherry on the cake. With the potential to influence various fields of the digital ecosystem, the implication of AI is significant in web3. As we embark on a journey of exploring the implications and applications of AI in web3, we will witness notable advancements in the coming years.

In less than two years after ApeCoin (APE) hit its all-time high, the token has endured a drastic fall. In March 2022, APE raised eyebrows as it recorded its all-time high and fell by 97% in a single day. Ever since the token has struggled to replicate a good market run. Together, let’s journey through the fundamentals of this token that once caused a huge frenzy in the cryptocurrency market. 

ApeCoin (APE) is the native token of the APE ecosystem. As an ERC-20 utility token, APE relies on the proof-of-stake consensus mechanism for security. Initially, the token is designed to empower and incentivize the APE ecosystem that is keen on becoming a force to reckon with in the web3 space. However, the popularity of the token has seen its utilization gradually spread beyond the Ape Ecosystem. 

Team Members and Background

More so, ApeCoin is issued by the ApeCoin DAO (Decentralized Autonomous Organization) which is the legal representative of the project. All holders of APE are members of the DAO and they reserve the right to vote on issues relating to the ecosystem. Some of these issues are system upgrades, fund allocation, partnerships, formation of new policies. 

While the ApeCoin DAO governs the Ape ecosystem, the autonomous organization is officially represented by the ApeCoin Foundation. The Foundation helps in implementing decisions adopted by the DAO. Additionally, as the legal representative of the DAO, the ApeCoin Foundation caters to the overall growth of the ecosystem. 

You may be wondering how a DAO works, this exclusive article on DroomDroom will provide you with enough information and satisfy your curiosity. 

It is worth establishing that the ApeCoin Foundation is headed by a Board that comprises five (5) members. In most cases, the Board is saddled with the responsibility of executing the visions and targets of the Foundation. According to the regulation of the ApeCoin Foundation, the tenure of the Board only lasts a year. At the end of each administration, members of the ApeCoin DAO; mostly APE holders cast their votes to elect a new Board. 

The DAO is here to fund your ambition & the sky’s the limit Love the passion & brilliance being shared daily on Discourse – keep it up fam! If you have ideas to help our community or drive Web3 forwards, let's make it happen together Key resources to get started below

— ApeCoin (@apecoin) August 8, 2022

The ApeCoin Ecosystem 

The ApeCoin ecosystem is a vast web3 community that consists of every holder of APE and some notable NFTs collections. Primarily, the holders of the ApeCoin are the foundation of the ecosystem. Meanwhile, when ApeCoin launched in May 2022, holders of the Bored Ape Yacht Club (BAYC) NFT received some of the tokens as part of the startup effort. 

Thereafter, Yuga Labs adopted ApeCoin as the utility token of the BAYC ecosystem. Thus, making it the official token for purchasing BAYC’s merchandise and event ticket. So we consider the BAYC NFT collection to be part of the ApeCoin ecosystem. Other NFT collections like Mutant Ape Yacht Club (MAYC), CryptoPunks, Meebits, and Bored Ape Kennel Club (BAKC) relating to BAYC and Yuga Labs belong to the ecosystem as well. 

The Otherside metaverse is another prominent project within the ApeCoin ecosystem. Yuga Labs, Animoca Brands, and BAYC all collaborated to organize a Dutch auction-style for Otherside Lands in April 2022. Then, the team mandated that payment for Otherside Lands be made using ApeCoin. The directive led to an immense surge in the value of the token. Yugaverse is another well-known project within the ApeCoin ecosystem. 

It may be tempting to attribute the creation of ApeCoin to Yuga Labs. This general assumption emanated from various reasons. Foremost, since Yuga Labs’ host of NFTs collection carries the name “Ape” one can easily assume that Yuga Labs created ApeCoin. Nonetheless, on various occasions, the NFT giant has denounced its ownership of the token. 

Against popular opinion, ApeCoin was created by the ApeCoin DAO, not Yuga Labs. It is no coincidence that the DAO organized and executed the initial distribution of the token. Nonetheless, Yuga Labs has admitted to an existing relationship between the two.

On the official website of Yuga Labs, the firm indicated that it is a contributor to APE and also a member of the ApeCoin DAO. In recognition of the existing relationship between the two organizations, Yuga Labs gifted the ApeCoin DAO a special NFT. 

You may not know that NFTs and Metaverse are distinct initiatives, this article on DroomDroom provides 7 key differences between the two.

Tokenomics of Apecoin

Distribution

ApeCoin has a fixed supply of 1 billion. The project team allocated 47% of the total supply to the DAO Treasury. Also, holders of BAYC and MAYC received 15% of the token, while another 15% was allocated to Yuga Labs. Launch contributors received 14% of the total supply, and BAYC founders received 8.0%.

Lastly, the project team allotted 1% to the Jane Goodall Legacy Foundation (JGLF). The donation to JGLF is aimed at supporting the foundation’s educational initiatives and research on environmental issues. It is worth mentioning that about 30% of ApeCoin’s total supply was unlocked when the project launched. The rest were structured to unlock gradually at certain intervals till all the tokens become available by the end of 2026. 

Use Cases

Primarily, APE is designed for adoption by a host of web3 and metaverse projects. However, the token is more relevant in the APE ecosystem as it serves a lot of purposes. The most important usage of ApeCoin is how it permits its holders to participate in the governance of the ApeCoin DAO. Also, APE allows holders to explore some parts of the ecosystem that are reserved; with the token, you can access exclusive games and initiatives.

Similarly, third-party developers can participate in the Ape ecosystem by integrating ApeCoin into their project. Likewise, ApeCoin rose to prominence during the minting of 55,000 parcels of virtual lands known as “Otherside.” The Otherdside NFTs were valued in APE and they recorded about $300 million in sales. Transactions relating to the NFT collection were carried out in ApeCoin.

In recent times, we’ve witnessed how the usage of ApeCoin overlaps beyond projects relating to Yuga Labs. Winnings and perks on Benji Bananas, a game developed by Animoca Brands, are paid in APE.

Competition

Decentraland (MANA)

MANA, a native token to popular metaverse and web3 platform, Decentraland is one of the direct competitors of APE. This is due to how the two tokens are drivers of their respective ecosystem towards becoming a force to reckon with in the web3 landscape. On Decentraland, one can acquire virtual lands, assets, and perks and unlock exclusive components of the web3 project. 

As the native token of Decentraland, MANA gives its holders a reserved right to suggest and vote on important proposals relating to the Decentraland ecosystem. Simply, it is safe to say that MANA is to Decentraland DAO what APE is to the ApeCoin DAO. Another direct similarity between the two coins is that they are both ERC-20 tokens.

MANA is a notable project in the crypto and web3 landscape, explore this article on DroomDroom to learn more about this amazing initiative. 

Axie Infinity Shard (AXS)

AXS is the native token of the Axie Infinity ecosystem. The coin serves as the governance token of the ecosystem which allows holders to vote on key issues relating to Axie Infinity. Additionally, holders of AXS have the right to enquire about how the funds in the Axie Community Treasury are spent. 

Also, gamers can use the AXS token to purchase and breed Axies in the popular play-to-earn game. Likewise, one can use the token to acquire perks and merchandise within the Axie Infinity game. Rewards and freebies in the Axie Infinity game are also paid out in AXS. 

The Sandbox (SAND) 

SAND the native token of popular web3 project, The Sandbox is also a direct competitor of APE. As the utility token of The Sandbox ecosystem, holders of the token can use SAND to create ASSET coins. Furthermore, holders of SAND can as well buy and sell ASSET on the Sandbox marketplace. 

With SAND, players can easily interact with user generated initiatives on The Sandbox. Like APE, AXS, and MANA, holders of SAND are directly members of The Sandbox DAO. This implies that their ownership of SAND gives them the opportunity to vote and weigh in on issues relating to The Sandbox ecosystem. 

Most of APE competitors are ERC-20 tokens, however, BRC-20 tokens are also growing in popularity among investors. This complete guide will illuminate more on how BRC-20 tokens work.

Future of The Project

The future of ApeCoin seems blurry at the moment. This is not unconnected to the fact that the prosperity of the token is attached to the success of the Ape ecosystem. Evident to this submission is how the token rallied massively during the auction of the Otherdeeds NFTs. Therefore, APE might need the recurrence of the attention it enjoyed during the auction of the Otherdeed collections to pose good returns for holders.

Also, most projects within the APE ecosystem are NFTs, and the cooling interest in virtual collectibles is also a major factor militating against the future of the project. Nonetheless, it is not entirely over for APE as an interesting project within its ecosystem can breathe life into its dying state.

Drawback and Weaknesses

One of the major weaknesses of APE is its limited relevance to the Ape ecosystem. The token is struggling to attract more use cases outside its ecosystem. This limitation to an extent has halted the growth of the token toward becoming a major name in the market. 

Our Takeaway 

Against all setbacks and fierce competition in the web3 sector, APE stands tall as an interesting project. While we admit that the token has its good sides, we urge investors to trade or acquire APE with caution.

Like most cryptocurrencies, ApeCoin is highly volatile which can inflict huge losses on investors. On the flip side, the token has shown flashes of rewarding investors’ faith in it. Above all, we urge investors to carry out enough findings before investing in ApeCoin and any other cryptocurrency.

Imagine a betting platform that is reliable, secure, and fully transparent. A place where you don’t need a huge fortune to be able to bet. A place so discreet that no one asks your identity unless you disclose it at your will.

Polymarket is a crypto-betting platform by Adventure One QSS Inc.

that leverages the power of blockchain to provide a safe, secure, transparent, highly liquid, and anonymous betting experience. With hundreds of prediction markets catering to almost every event that relates to the crypto world, the platform provides a unique blend of experiences,

Largest Decentralized Crypto Gambling Platform

Polymarket is a decentralized betting platform based on the Polygon Layer-2 blockchain technology and largely centered around crypto markets. The platform has hundreds of betting markets around elections, crypto events, price predictions, memecoins, regulatory approvals, macroeconomic events, and many other themes.

The platform claims to be the largest betting market. It hosts several opportunities that users can take to make money, do market research, analyze crowd psychology, and also understand market trends.

Mounting Crypto Losses ? Try bots to exit your trade before you make a loss

The platform is so popular that an average trader in the top 3 rank by trading volume contributes $1 million at least in trades each week.

Below is a snapshot of the Polymarket homepage.

Features

Being on the Ethereum blockchain, Polymarket can provide a host of features to its users while taking full advantage of blockchain security and Ethereum’s trust along with the speed of Polygon’s layer-2 solution.

Decentralized

The entire Polymarket platform is decentralized which allows it to be resilient from crashes, and hacks and even makes it redundant to multiple failures.

Secure and Immutable

The platform boasts of its security which has been audited by Chain Security, a well-known company in the field of smart contract audits.

Real-Time Bets

Like most top-grade betting markets, Polymarket provides real-time blockchain-secured bets. Each bet is recorded on the Polymarket which is based on the Polygon blockchain. This makes sure that everyone using the platform receives the exact reward that they deserve. It also reduces manipulation to zero and makes the platform more transparent.

Additional Rewards

Besides winning bets, the platform also allows you to earn rewards by just placing orders. The key to winning high rewards is placing orders that are close to the market average. 

For example, if you are placing orders for Donald Trump to win in the 2024 elections and the market shows that “yes” orders are $0.59 while sell orders are at $0.41, then you will only earn a reward if you place a “yes” order for $0.41.

The aim of rewarding such orders is that they help make the market more balanced. Also, rewards are highest for limit orders. 

Limit orders are those where the order is only executed if the price hits a trigger price that has been set at a certain price. For example, you may order to buy 100 shares of Donald Trump’s win only if the price hits $0.57. If the price hits $0.57, only then your 100 shares orders will be executed otherwise it will be nulled at the end of the “betting period”.

How Does Polymarket Work?

Polymarket is a blockchain-based betting market provider. It facilitates users to access crypto-focused betting markets that are secured with blockchain and have the trust of Ethereum and Polygon. 

Technology

Polymarket is a special purpose Layer-3 based on Polygon. The platform utilizes the Ethereum Virtual Machine to stay online and does not depend on any single server.

Being based on a blockchain, it requires users to have USDC, USDT or ETH to be able to use the platform.

Is it Layer-2 or Layer-3?

Though Polymarket has been referred to as a Layer-2 platform, it is truly a layer-3 platform because like other layer-3s it is a single application Dapp providing a specific service. Further, it has been built on a Layer-2 solution, Polygon.

Layer-2s are general-purpose blockchains that facilitate the scaling of Ethereum transactions.

Automated Market Makers

Polymarket uses automated market makers to provide liquidity for the betting markets which are software that help facilitate the exchange of tokens with the help of liquidity pools.

All the deposited crypto on Polymarkets are pooled together from where users get “credits” to transact on the platform. The liquidity is shared by all betting markets provided in the platform so that all users can buy and sell any bet on the platform and do not have to wait long. This reduces the reliance on manual effort to provide liquidity

How to Transfer Crypto to Polymarket?

Polymarket provides you with two different channels to fund your account. 

Deposit From Exchange/PayPal

Using the first method, you can deposit crypto from PayPal or available crypto exchanges. This is the cheapest method if you have crypto in your exchange wallet and want to save on gas fees.

Deposit from Coinbase

You can deposit Ethereum, USDC, or USDT from Coinbase, straight from your account. 

Make sure you have sufficient funds available in your Coinbase account. You can always buy USDC from the exchange via cards or P2P.

Once you have the funds, copy the USDC (Polygon) address from Polymarket account.

On your Coinbase account, under Assets, you will find USDC.

Select send, enter the amount of crypto, for example 50 USDC and click on continue.

Deposit from PayPal

Users in the US can buy crypto from PayPal and then send it to their Polymarket account. 

Select buy and sell under crypto.

Choose Ethereum.

Enter the amount and click buy now.

At the bottom of your balances page, you will find the transfer button.

Copy the address on your Polymarket account under Ethereum (under other methods) and paste it in your PayPal transfer page.

Make sure that the address you are sending to is a Polygon address.

By clicking send now, you can send the ETH to your Polymarket wallet.

This feature is currently not available for users outside the USA.

Deposit from Robinhood

You can also deposit crypto from Robinhood. 

Select the transfer option.

Select  the deposit Ethereum method from your Polymarket account.

Copy and paste the Polygon blockchain address in your Robinhood transfer page.

Make sure that the address you are sending to is a Polygon address.

Click send.

Send Crypto Directly From Wallets

Otherwise, you could also use the second option, i.e., transfer crypto directly to your Polymarket account. In this method, you can either transfer Ethereum, USDT, or USDC, all on the Polygon blockchain.

Don’t forget to check your transaction after it has been approved.

Deposit USDT and USDC

In your Polymarket deposit page, select USDC or USDT as per your preference.

Copy the address that is shown (ERC-20).

Paste the address in your wallet.

Choose the amount that you want to send to your Polymarket account.

Approve the transaction.

You will see a timer after which you will receive the funds on your Polymarket account.

Note that USDT is automatically converted into USDC on Polymarket.

Deposit Ethereum

In your Polymarket deposit page, under other methods, choose Ethereum.

Copy the deposit address and paste it in your wallet/account’s transfer page.

Approve the transaction.

Once done, you will receive ETH from your wallet/account and it will be automatically converted into USDC.

Guide to Making Money on Polymarket

Making money on Polymarket is easy. You just need to know a few things before you can start.

First, being on the blockchain, you need to have some crypto with you, preferably ETH.

Once you have that, you need to select a betting market. For example the below prediction for the winner of the US Presidential elections.

Next, you need to understand how betting works, Being a zero-sum game, there would be winners and losers. Winners will all that they have betted plus the amount losers have lost.

For example, in the above example, if a winner places a bet on Donald Trump, they need to pay at least $0.56 (and then in multiples). In case they win, they will win back $1, i.e., the bet amount of $0.56 plus $0.44 which has been lost by the loser.

However, if they change their mind in the middle, they are allowed to switch but at prevailing prices.

For example, suppose a person places a bet at $0.56 and expects Donald Trump to win. If they have changed their mind, they can sell the bet at prevailing rates say at $0.58, next they can bet for Donald Trump losing by buying a bet at $0.42 (the prevailing rate i.e., $1-$0.58 = $0.42).

At any point in time, the sum of the positive and negative bet would be $1 due to the laws of a zero-sum game.

It is notable that prediction or gambling markets are subject to future events and may change at times due to market forces. Hence, it is always advised to do your research before betting.

How to Place Bets?

Placing bets on the Polymarket platform is as easy as it can be. 

First, you need to log in to Polymarket.

Next, you can log in to the platform using MetaMask, Coinbase Wallet, Wallet Connect, Gmail, or any other Email ID. Make sure that your wallet is well-funded before you proceed further.

Agree to the terms and conditions and then select start trading.

To start betting, you need to deposit USDC or USDT (ERC-20) in your Polymarket account. You can also buy the same using the links provided below.

Learn the difference between USD Stablecoins and never make a mistake while making transfers.

Once you are logged in, proceed to any betting market. For example, the previous betting market for the US Presidential elections.

Place your bet by buying the “shares” for the bet. In our US presidential election example, the bet for Donald Trump winning could be placed by buying a share worth $0.59.

Approve the transaction and your bet is placed.

How to Withdraw Funds From Polymarkets?

Now that we have covered deposits in detail, its time to learn how you can withdraw your funds from Polymarket to your crypto exchange account or your wallet.

Navigate to the Polymarket funds page.

Click on Withdraw.

Get your wallet’s or exchange account’s USDC address. Typically, you will get this address under deposit crypto option in your exchange or wallet.

Copy the USDC address. Make sure your blockchain for deposit has been selected as Polygon. Most wallets and exchanges set Ethereum as default.

Paste the USDC address on Polygon.

Click withdraw.

Your deposits will arrive after a few network confirmations.

Always make sure that the USDC that you are sending is to a Polygon address. Sending crypto to wrong blockchain addresses results in a total loss of funds most of the time.

Want a safe place to deposit crypto? Check out the MetaMask wallet.

Pros and Cons

Pros of Using Polymarket

The benefits listed below has been from our experience of using the platform recently. 

Easy deposit and withdrawal methods.

The degree of security provided in the platform is of high grade.

The platform is highly transparent with each transaction being secured with the power of blockchain.

Cons of Using Polymarket

Based on our usage of the platform, we have found Polymarket to be lacking in the following areas.

The withdrawal process is only available on Polygon. An Ethereum address would have been more easy since users would have to use another app like Uniswap to bridge USDC from Polygon to Ethereum.

The Dapp accepts deposits on the Polygon network only, adding other networks especially Ethereum and Solana could have made it easier to deposit crypto.

The conversion from ETH and USDT to USDC adds extra charges as well as delay hurting the user experience.

What are the Alternatives to Polymarket?

Augur

Augur is a low-fee betting market. It charges 1.5% as fee for all betting activities. The platform is open to everyone in the world and claims to be a non-profit. The platform is based on a decentralized oracle based on the Ethereum blockchain.

Gnosis

Gnosis is a decentralized betting market based on the Gnosis chain which itself has been built on top of Ethereum. Rather han a betting market itself, Gnosis has become more of a template for anyone willing to develop a decentralized betting market.

Frequently Asked Questions

Is Polymarket Legal?

Polymarket is legal in all the countries that allow gambling. It is fully legal in the US and EU. The platform works as an offshore betting market accessible to US residents and citizens.

My Deposits Have Not Arrived on my Polymarket Account. What should I do?

Typically deposits arrive within a few minutes. However, in days when the network is congested, they make take as long as a couple of hours. To make sure your deposits are fast, please set the maximum gas fee higher than the average gas fee on Polygon. If you have deposited or withdrawn a very small amount, less than $10, chances are that your deposits might not be displayed in your account. In such cases, we have experienced there is a loss of crypto. So, make sure that you deposit a higher amount to ensure quick transfers.

I have Deposited Funds to Ethereum Blockchain. Are My Funds Lost?

In most cases, if you send crypto to the wrong address, the transferred amount is lost forever. However, since USDC has implemented cross-chain transfer protocol, you might get your transfers even if you put the wrong blockchain. However, make sure that you never try this knowingly.

Does Polymarket has an Contact Email or Phone Number?

The platform has listed hello@polymarket.com  as their email  address.

Injective Protocol is one of the top platforms that provides traders unlimited access to various markets. The protocol is a vast ecosystem that offers a variety of decentralized services. Every element of the Injective protocol is streamlined to support and enhance the functionality of its decentralized exchange. This article will provide more insights into an interesting project that is perfectly crafted to meet growing demands in web3 finance. 

Injective protocol offers decentralized exchange services like cross-chain margin trading, derivatives, and forex futures trading. Injective Protocol provides traders with a wide range of markets, allowing them to trade their preferred asset assets without any hurdles. The protocol has a native coin known as INJ and it functions as its governance token.

More so, the protocol has managed to distinguish itself from other decentralized exchanges because it didn’t adopt the Automated Market Maker (AMM) procedure to control liquidity. The decentralized exchange stands tall among its peers because it uses the order book model which is more synonymous with centralized stock and cryptocurrency exchanges. 

Centralized and decentralized exchanges offer similar services but operate differently. This insightful guide on DroomDroom will explain the similarities and differences between the two. 

The network doesn’t charge gas fees to complete users’ transactions, instead, it only charges standard market maker and taker fees. Moreover, users can only pay for the standard market and taker fees using the native token of the protocol; INJ. It is safe to say that the protocol focuses on complementing the translucency of decentralized exchanges (DEX) with the orderliness of traditional finance. 

Are you a developer seeking for a right platform to build and launch your DeFi applications?Look no farther because @Injective_ offer a robust and open financial infrastructure for building various DeFi products.See infographic below! pic.twitter.com/r6ZbMWKznF

— BR WN (@Lemaronskin) November 15, 2023

It’s worth establishing that the Injective protocol is based on the Cosmos network as a layer 2 chain. Likewise, Injective leverages chain bridges which allow users to access tokens from other networks like Ethererum.

The protocol made a name for itself as the first network within the Cosmos ecosystem to natively support assets on Ethereum. Users of Injective can as well access tokens from Inter-Blockchain Communication Protocol (IBC) blockchains and non-Ethereum Virtual Machine (EVM) networks.

zkEVM is entirely different from EVM, you may not know but this article on DroomDroom will provide you with enough details on the key difference between the two. 

Injective Protocol Project Team

Injective Labs is the first entity that contributed to the development of the Injective Protocol. The firm is a research and development company co-founded by Eric Chen. Before establishing the organization, Chen was prominent as a trader and he worked at a renowned crypto fund. While working with the crypto fund, the co-founder oversaw the development of innovative market-neutral trading initiatives in the blockchain landscape. 

Chen masterminded the crypto fund’s investment into top companies like Ox, Cosmos, and ChainLink. The co-founder is a cryptographic researcher and he has a robust knowledge of blockchain protocols. His experience also cut across the traditional finance sphere.

Another distinguished personality connected to the project is Albert Chon who is the Chief Technology Officer (CTO) of Injective Labs. He graduated from Stanford University, bagging a Bachelor’s and Master’s degree from the institution. 

At one point, Chon worked as a development engineer at Amazon. He made a name for himself in the crypto landscape by inventing a new Ethereum standard that is in use by a host of projects in the industry today. Mirza Uddin, Chris Choi, Noah Axler, Julie Lee, Bojan Angjelkoski, and Nam Dang are prominent members of the Injective Protocol team.

Tokenomics of Injective 

Distribution 

The total supply for $IJN is 100,000,000 and its  allocation is directed heavily towards the growth of its ecosystem. As revealed, 36.33% of the token’s total supply is allocated to its ecosystem development. The allocation model set aside 20% of the token’s total supply for the team while it committed 16.67% to private sale. 

Also, as a project that prioritizes a well-established community, 10% of the allocation will be channeled towards community growth. 9% of the token total supply went to its Binance Launchpad sale, while 6.0% was earmarked to the seed sale. Likewise, project advisors received 2% of the token’s total supply. 

Use Cases 

According to the official website of the project, INJ has three (3) major use cases. The token has significant relevance to the Injective ecosystem because it covers crucial areas relating to the protocol. 

Governance 

INJ serves as a partway for its holders to participate in the Injective ecosystem. Holders of the token automatically become a member of the Injective decentralized autonomous organization (DAO).  

Meanwhile, the DAO controls the Injective exchange which gives every holder of IJN direct access to trade and create market derivatives. Similarly, as a member of the DAO, holders of injective can make proposals and vote on issues relating to the exchange. 

Staking 

Holding the INJ token gives the holder the opportunity to become a network validator on the Injective Chain. Also, holders of the token can as well stake their INJ by trusting it with an existing chain validator. In both cases, holders stand the chance to earn rewards for protecting the Injective network.

The staking option is open to both validators and delegates. Furthermore, the staking option has a predetermined reward ratio. Every 150 INJ stake comes with a 5% annual return. 

Collateral Derivatives

Another major use case of INJ is that it can function as a stand-in stablecoin to supply collateral for margin trading and the use of Injective’s derivatives market. Correspondingly, the token can function as a collateral backing and insurance pool staking in specialized futures markets. This particular use case of the token allows those who stake INJ to receive interest in their locked liquidity provider coins.  

Competition 

Avalanche 

Avalanche is a layer one blockchain that is popular for its vast support for dApps and custom networks. The network has an enormous ecosystem that houses a host of dApps and DeFi solutions. Also, Avalanche focuses on offering a high speed by processing about 6,500 transactions per second without compromising scalability. 

Do you wish to learn more about DeFi solutions? This article will provide you with the key elements of decentralized finance. 

The intense focus on high throughput is aided by the network’s distinct architecture. Avalanche is equipped with three different blockchains; X-chain, C-Chain, and P-chain. Each blockchain within the Avalanche network has its respective responsibilities which have aided the project to stand out among its peers.

NEAR Protocol 

NEAR is another alternative to INJ. The NEAR Protocol is a layer one network structured as a community-oriented cloud computing platform. The network is designed to proffer solutions to blockchain trilemma. Hence, the focus on tackling issues relating to popular blockchains made NEAR Protocol ideal for dApps developers and users.

NEAR Protocol is popular among developers because it provides them with modular elements that aid them to kick-start projects like token contracts and NFTs swiftly. Moreover, the protocol has simplified the onboarding of other networks by splitting addresses and designing dApps with registration stipulations that are similar to what users are familiar with.

ChainLink

Since its establishment in 2017, Chainlink has established itself as one of the top networks that allow blockchains to safely interact with external data feeds.

With the aid of a decentralized oracle network, Chainlink permits blockchains to interact with events and payment systems by supporting them with important details that are crucial for complex smart contracts. The provided details allow complex smart contracts to evolve into a dominant form of virtual agreement. 

Smart contracts play a crucial role in the DeFi sector, this article on DroomDroom aid you in understanding the importance of these phenomenons. 

Additionally, Chainlink as a blockchain abstraction layer has proven effective in enabling universally connected smart contracts. It is supported by an enormous open-source community of data suppliers, node operators, smart contract builders, blockchain auditors, and analytical experts. The project has a vast community that has contributed massively to the popularity of its native token, LINK. 

Future of Injective

Investors and Experts are optimistic that IJN will enjoy a bullish run in the near future. A substantial portion of their prediction relies solely on how the project has managed to attract the attention of users. They projected that the growing attention on the protocol will increase over the years which in return will boost the value of its native token; INJ. 

Meanwhile, according to the project’s roadmap, there are plans to collaborate and integrate with some established projects in the industry. Also, Injective Protocol intends to roll out initiatives that are aimed at growing its ecosystem and establishing its community. There are growing signs that Injective Protocol may compete with some of the biggest names in the near future.  

Drawback and Weakness

Despite having attractive sides, Injective Protocol has its setbacks too and users must consider them before embracing the platform. You may not enjoy voluminous liquidity when using the derivative exchange because it hasn’t gained enough ground compared to well-known exchanges in the crypto market.

Another high-profile setback of this interesting project is its reliance on centralized price feeds for a noticeable part of its market. Despite being a decentralized protocol, the dependence on central price feeds can expose traders to price manipulation and deficiencies in pricing data.

Conclusion

To an extent, INJ looks like a lucrative investment. Various publications and prediction outlets are backing the token to soar significantly in the nearest future. However, we are convinced by some notable features of the project which made it look more transparent and result-driven. 

Injective Protocol has a robust community that consists of developers, DeFi enthusiasts, market makers, and institutional and individual investors. In addition, Injective Protocol is one of the top projects in the web3 finance landscape. It has a straightforward roadmap that focuses on advancement, collaboration, and integration. 

One step at a time but without a doubt, @Injective_ is redefining Web3 finance.

— Mirza.inj (@TheMirza_) November 15, 2023

We can attest that Injective Protocol has a recognizable team. The project’s team are not pseudonymous inventors without a trace, in fact, a substantial part of the crew is well known in the industry. Hence, investors can trust in the project and invest in the token. Nonetheless, all cryptocurrencies including INJ are volatile and their value mostly fluctuates. We urge investors not to commit more than what they can lose in the project. 

Despite all the legal and illegal blows that it got, no one can deny that Binance is still the largest crypto exchange in the world. Everyday millions of customers transfer billions of dollars of crypto despite all regulatory sanctions which makes us think there must be something unique about the exchange. 

In this article, we will take a look at the journey of the largest exchange that went from a nearly failed startup to the ruler of the crypto world. A company which has been through good, bad and everything in between, led by a humble and visionary leader.

So, let’s begin the journey.

Origins

Prior to founding Binance, Changpeng Zhao was an entrepreneur and a tech professional. He founded Fusion Systems in 2005 in Shanghai which built a high speed trading system for stock market brokers.

In 2013, he joined Blockchain.info as the third member of the crypto wallet’s team.

Zhao started Binance in 2017 after leaving OKCoin as its CTO. He founded the company in China. However, soon he had to move out of the country because of the Chinese ban on crypto.

Binance launched its ICO which helped it attract $15 million in coin sales. This gave birth to the BNB cryptocurrency. It was initially conceived as a cryptocurrency to pay trading fee on Binance. By mid-2024, BNB commanded over $87 billion.

Investing in ICOs, Must Read These Risk Management Strategies

The cryptocurrency now has an autoburn mechanism which helps greatly in price appreciation.

Expansion

By Jan 2018, Binance became the largest crypto exchange with over $1.3 billion in valuation.

Throughout the year, Binance opened three offices in Malta, Bermuda and Jersey.

In June 2018, Binance acquired Trust Wallet, which has been one of the most popular crypto wallets.

In May 2019, Binance revealed that it became a victim of a large-scale security breach and had lost over 7000 Bitcoins valued then at $6 million.

Don’t Miss: What Happens to Crypto if Binance Goes Bankrupt?

In September 2019, Binance launched BUSD in collaboration with Paxos, a well known developer of stablecoins. Within a few years, it rose to become the third largest stablecoin after USDT and USDC. At its peak, it commanded over $23.5 billion  in market cap (November 2022). However, it had to shut down the stablecoin as its issuer Paxos was ordered by New York authorities to shut minting in early 2023.

Mature Phase

In February 2020, Binance had a brief spat with the Malta Financial Services Authority(MFSA) over regulation. The authority issued a press release stating that despite being a Maltese company, Binance was not registered with MFSA and thereby was not under its regulatory oversight.

In October 2020, the Forbes Magazine did a story on Binance which claimed that Zhao and other Binance executives designed the corporate structure in a way that would profit from the country but would avoid compliance with US regulations.

By May 2021, there were unconfirmed reports that Binance was under legal scrutiny by the Internal Revenue Service as well as by the US Department of Justice. However, it would take almost a year before US regulators finally charge Binance on paper.

In a Post-COVID World

Binance was perhaps the greatest benefactor of the COVID induced crypto bull run from 2020-2022. With lockdowns and travel restrictions all over the world, users had almost nothing to spend their money. A rising crypto trend in such times, prompted users to invest in crypto. Investments from all over the world made crypto rally faster than ever.

By the end of  2023, Binance had dominated at least 50% of the crypto market in terms of trading volumes.

Growth of Binance in 2022. Shown in Light Green

This alerted several regulators all over the world and around the same time, we saw the initial troubles of the exchange.

Controversial Stand on Russia Ukraine War

The troubles of Binance might have taken concrete shape in 2022 when after a Russian invasion of Ukraine, Binance decided not to ban Russian users from its platform. In doing so, it might have irked US authorities. However, later Binance softened their approach and donated $10 million in support of Ukraine.

In 2024, the exchange pleaded guilty to having allowed billions of dollars to flow without restriction through its exchange. It also was found guilty of having  helped users bypass the US sanctions against Russia.

The Regulatory Troubles Begin

Binance vs US SEC

On June 05, 2023, the US SEC registered a case against Binance and its 13 companies that includes Binance.com, Binance.us, BAM trading services, and the group’s co-founder Changpeng Zhao. The charges include operating unregistered exchanges, unregistered broker, dealer and clearing services, misrepresenting trader controls over Binance.us and finally the offering and sale of unregistered securities.

Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H

— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023

Binance vs US Department of Justice

The case registered against Binance by the US Department of Justice (DOJ) charged the company and its CEO of committing a violation of the Bank Secrecy Act. As per the act, it was charged with transferring money without registration. The exchange was also charged with violating US Sanctions against Russia.

Binance agreed to pay the biggest fine ever paid in corporate history. The company settled the case by the US Department of Justice after paying the latter, a sum of $4.3 billion.

Binance and CEO Plead Guilty to Federal Charges in $4B ResolutionBinance Admits It Engaged in Anti-Money Laundering, Unlicensed Money Transmitting, and Sanctions Violations in Largest Corporate Resolution to Include Criminal Charges for an Executivehttps://t.co/yz0mCgTEOZ pic.twitter.com/cYdmmHCfSG

— U.S. Department of Justice (@TheJusticeDept) November 21, 2023

Further, Changpeng Zhao, co-founder of Binance had to agree to step down as the CEO and from the Board of the US arm. 

The prosecutors had also demanded a three year sentencing. However, Zhao only received a light four month sentence due to his cooperation, clean image and clear track record.

This was possible because of several reasons. Changpeng Zhao had been a very ethical entrepreneur in his past. When the US DOJ registered the case against Binance, he had Canadian citizenship and could have easily lived a life on the run. His wealth was enough for him to sustain any lifestyle. Still, he decided to cooperate with the US DOJ and even was present physically prior to sentencing.

Another factor that greatly helped in reducing the sentencing was the letters of support that poured in the court prior to his sentencing. Several well known corporate houses, industry professionals, friends and family had vouched for Zhao being a good and ethical person. Even Zhao himself penned a letter of apology to the court, asking for forgiveness.

All of these helped him not only to clarify his own image, but also secured him a less harsh prison sentence.

Binance vs Nigeria

The case of Binance was quite unique. It was summoned by the Nigerian SEC as well as multiple agencies under the government.

It was charged by the Nigerian government to work in the country without legal registrations, facilitate illicit transactions and also engage in tax evasion.

Between late February and early March 2024, the Nigerian authorities levied a $10 billion fine on Binance for involvement in money laundering. However, the notice was soon withdrawn and the government went into denial as claims of the government strong-arming Binance surfaced. The fine was later changed to $35 million by 30th March 2024.

Further, on multiple occasions, the Nigerian house of representatives had summoned Binance executives including its CEO Richard Teng. However, the CEO did not comply with any summons yet.

Binance vs French Authorities

Binance received regulatory clearance way back in 2022. The license allowed the company to provide digital asset services in France. However, by mid-2023, the Paris prosecutor’s office had charged the exchange with money laundering in the country.

Then Binance CEO Changpeng Zhao had clarified that despite unannounced inspections, the exchange fully cooperated with the French authorities.

4. FUD.In France, surprise (no advanced notice) on-site inspections of regulated businesses are the norm, for banks, and now for crypto too.The surprise visit for Binance France happened a couple of weeks ago. It's not "news". Binance France cooperated fully. Binance also… https://t.co/xdbLc5jXBW

— CZ BNB (@cz_binance) June 16, 2023

Later the case seems to have receded into oblivion with no further updates after June 2023.

Binance and Netherlands

In 2022, Dutch authorities put a fine on Binance for operating in the country without a proper license.

However, by June 2023, due to failure to secure the correct licenses, it had to exit the country. All its users were transferred to its rival Coinmerce.

Despite everything, the exchange had said during its exit that in the future, it would reintroduce its services in the country after obtaining proper licenses and documents.

Binance in India

Binance’s troubles were unique in India. Due to the presence of strong AML laws, and the focus on increasing compliance, the exchange was initially seen as a non-complying entity. However, that soon changed with Binance’s decision to comply.

Perhaps it was the only incident where both parties, the regulator and the company, mutually understood and agreed to each other’s needs without any collateral damage.

In India, there exists a powerful but less known regulator called the Financial Intelligence Unit (FIU). It was established to detect money laundering, financial crimes and also provide intelligence inputs to the government of India.

The FIU asked crypto exchanges operating in India, both native and international, to register with the regulator, share transactions data with it and also comply with Indian money laundering laws. However, due to a lack of response, the regulator decided to put a shadow ban on Binance.com on 27th December 2023. The URL of Binance.com was blocked for Indian users and its mobile apps were taken down from Apple and Google stores.

Binance quickly responded that it was ready to comply with Indian laws. Soon the negotiations began and by May 10, 2024, Binance finalized its initial registrations with India along with KuCoin. Within a few days, both the companies got approval and a nod to resume their operations in India. Binance also reportedly agreed to pay a $2 million fine.

Binance registers with FIU as it seeks to resume operations in Indiahttps://t.co/08QvIBVw75

— Gadgets 360 (@Gadgets360) May 11, 2024

Binance in the UAE

UAE is perhaps the few countries where Binance actually had ease to do business. The vision of the UAE government to make the country a crypto hub has greatly helped Binance and several other crypto businesses.  The country has been hosting several successful crypto events lately.

In June 2023, Binance received a VASP license which acted as a MVP license in Dubai and allowed Binance to establish operations. Later, on 18th April 2024, Binance received full operational license in Dubai.

The Illegality of the Legal Troubles

It’s well known that the troubles of all crypto-native companies would have been far less if countries had crypto regulations in place. Till date only a few countries have crossed the policy stage.

When the US charged Binance, it did not even have a draft policy for crypto, let alone having a concrete set of regulations. The SEC had repeatedly tried to impose its authority to regulate crypto even when it had lost a case against Ripple. That case also made it clear that any retail sales of XRP never amounted to their classification as securities.

Similarly, the prosecution of Binance under the Nigerian laws never took any concrete stand because crypto as a whole was for tax evasion, money laundering and several other crimes. Such services were provided by several other companies including those native to the country.

Countries at Various Stages of Crypto Legislation/Regulation, Source IMF

Data by WEF shows that even as late as Jan 2024, most countries are still unable to regulate crypto in its entirety. Only a few economies such as the EU, UAE, Switzerland and Japan seem to have comprehensive regulations.

Choosing a Way Forward

Battling with authorities had always proven fatal even if someone was right. The Ripple vs SEC case dragged on for years and despite a win by Ripple (in relation to the retail sales), it had to spend a huge sum, estimated at $1.3 billion, on just legal fees. Yet, the case is far from being a complete resolution.

Read More: Ultimate Guide to Safe P2P Transactions

It won’t be an overstatement to assume that Binance decided to skip all those legal headaches and went directly into resolution. Not only was it an apt decision with respect to cost, but also it helped Binance skip all the negative media attention. Further, compliance also strengthened its position in the eye of the regulators and lawmakers.

Frequently Asked Questions

Can Indians Legally Trade on Binance?

Binance has registered with the Indian Financial Intelligence Unit on May 11, 2024 and has received a nod to resume its operations in the country. Though it was never illegal to trade on Binance, yet with the registration, using Binance is more lawful than ever in India

Is Trading in Binance Safe and Legal?

Before trying to trade, take a look at the legal status of Binance in your country. If it is legally operational, you can trade safely. However, please beware of P2P transactions as they pose a risk of fraud.

Bitcoin Futures ETF allows investors to invest their money in leveraged Bitcoin instruments such as Futures and Options. Leverage provides them with a way to reap greater returns than the average investors. 

However, there are ample risks involved too. Risks such as capital risk, and regulatory risk pose a great challenge. Yet, with diligence, these ETFs prove a great investment.

This article explores Bitcoin Futures ETF and tries to explain their working, benefits and disadvantages. At the end, there is a list of 16 top Bitcoin Futures ETFs with a brief explanation on how they make money for their investors.

What are Bitcoin Futures?

Bitcoin Futures refers to the derivative contracts which trade with a certain amount of leverage. These contracts do not trade actual bitcoin but place a kind of bet on the future price of Bitcoin (hence the name). The bets are usually directional (bullish or bearish) and provide multifold return to the investor who has accurately predicted the price movement.

Usually a derivative contract is between two parties, one among whom assumes that the price will go higher and the other assumes the price would go lower. These parties remain anonymous to each other and meet via a crypto derivative exchange such as Binance, Coinbase or Derebit.

Futures trading has been beneficial for both institutional as well as retain traders. Institutions can take market positions (bearish or bullish) against a certain event (say elections) and protect their holdings from volatility. Whereas for retail users, it is a quick way to make a lot of money, although with a huge risk.

How Bitcoin Futures and Future ETFs Work?

Let us understand how future trading works with an example.

Suppose Bitcoin is at $60,000 and you run a Bitcoin ETF with 100k Bitcoins. Now imagine, if there is any negative news, for example, if the US Fed raises interest rates by 1%, it would definitely result in a market crash. But you won’t be able to sell all your 100k Bitcoins before the crash takes place, simply because of the fund size.

For the sake of simplicity, let us assume that Bitcoin would rise or fall just $1,000 in any case.

If you would have sold your Bitcoins at $60k, there is no surety that it would have fetched you the same price i.e.$60k, because selling such a large holding takes time. Plus, if you try to sell such a huge number of Bitcoins, it could have resulted in a market crash. Also, you would have been banned from trading in any crypto exchange.

Now here comes a person, who says that if Bitcoin falls from $60k to $59k, I will give you $1000 cash and if the reverse happens, say a rally from $60k to $61k, you will have to pay me $1000.

Now, think, why would someone enter into such an agreement with you. The reason is with Bitcoin futures, the person would have to pay a very small price($10 with a leverage of 100) as investment(margin) and gain $1000 if they are right. This contract is called a leveraged futures contract.

NOTE: Leverage is a form of trader where a person invests a small amount (margin), say $10 and is allowed to trade at a much bigger nominal value, say $100. The trader is liquidated (stopped) if their losses go above $10. This is how leverage works in its simplest form.

For more details on how leverage works, see the relevant section below.

If the institution/Bitcoin ETF fails (i.e., the market goes higher), they just lose $1000 and but their entire fund is still protected and also as price goes up by $1000, they make more gains. If they are right (market goes down) they still get $1000 from the individual trader.

On the trader’s side, they gain $1000 if the market goes up but lose $10 if the market goes down.

Why Are Bitcoin Future ETFs Popular?

Bitcoin ETFs provide a safe yet rewarding way for retailers to earn from Bitcoin derivatives.

Futures trading is greatly rewarding for individual retail traders, however, there is a catch. Retail traders often lack the sophisticated knowledge of trading strategies. For retail individual traders, this results in a loss most of the time they trade.

However, there is a better way for them to benefit. Traders and investors who want to benefit from Futures trading, but do not want to do it on their own, can take the benefit of Bitcoin Futures ETF.

Bitcoin Futures ETF are the shares of the companies that trade Bitcoin Futures with expert knowledge and years of experience. These traders have quantitative models, risk-reward ratio calculations and several times even insider knowledge that helps them secure a profit most of the times they trade. Even their losses are capped with the diligent usage of risk management strategies.

Must Read for Loss Making Traders: Risk Management Strategies for Investing in Pre-Sale Crypto

These ETFs charge a small amount of money to manage customer funds, often in the range of 0.1% to 2%.

There are several Bitcoin Futures all over the world and they have been present since October 2021.

Terms Related to Bitcoin Futures ET

Bitcoin

Bitcoin is a cryptocurrency and the first one to solve the double spending problem. Previously, all other cryptocurrencies could be just copied and pasted several times to create multiple yet identical copies. Bitcoin used a unique method called proof of work to make sure that a certain user could only spend their crypto once.

Futures

Futures and Options, together called derivatives, allows users to place intelligent bets on the future price of a certain asset, here Bitcoin. A future trade is composed of two traders who have different and opposing views on the price of Bitcoin at a future date, say 1 month ahead.

ETF

An Exchange Traded Fund or ETF is a share of a trust fund that trades solely in Bitcoin Futures. Whatever proceeds are obtained as a result, are shared between the subscribers of the ETF based on their percentage of ownership.

Margin

Margin is the minimum amount you have to put forward in order to trade a Future contract. For example, if you are trading a 10x Futures contract with a nominal value of $100, you would need a margin of $10.

A Comprehensive Guide To Bitcoin Futures vs. Margin Trading, Spot Markets

Derivative

Futures and Options are collectively called as derivatives because they derive their value from a separate independent financial asset such as stocks, crypto or commodities. For this article, a financial asset refers to Bitcoin, Ethereum or any other cryptocurrency.

Leverage

Leverage is the ratio of the nominal amount of your trade and the margin you put forward. In the above example of Margin, the leverage is 10x since it allows you to trade a contract that has a nominal value of 100 with a margin of $10.

Liquidation/Liquidated

Liquidation, in the scope of this article, is the act of terminating a futures contract because its losses have either exceeded the amount of margin put forward or simply because the exchange cannot settle this trade beyond a certain level. This acts as a safety mechanism and prevents a sell-off or shoot-off in a crypto’s price.

Advantages of Bitcoin Future ETFs

There are several advantages of investing in a Bitcoin Futures ETF.

Your funds are managed by seasoned experts.

The funds are easily invested and redeemed without any lock-in period.

Bitcoin futures ETFs allow investing with leverage which allows investors to reap multi-fold benefits.

ETFs are regulated by government bodies which ensure consumer protection.

The ETFs also benefit from Bitcoin fundamentals such as growing adoption and scarcity introduced due to Bitcoin halving.

Despite their high appeal, Futures Bitcoin ETFs barely hold just 12% of the market share among all Bitcoin ETFs.

Market Share of Spot Bitcoin ETF vs Futures ETF Disadvantages of Bitcoin Future ETFs

The risk factor is higher than spot Bitcoin ETFs due to the use of leverage trading in Bitcoin Futures.

The ETFs are not suited for all investor types, especially the risk averse investors.

A wrong time of entry would mean that you would lose a great portion of your invested money.

Crypto is still a sparsely regulated sector and there are serious regulatory risks with any investment.

Bitcoin’s price often reduced to one-fifth of its cycle high during the bear markets.

Must Read: Crypto Futures Traders: What Are the 8 Common Trading Mistakes to Avoid?

List of Top 16 Bitcoin Futures ETFs

The list below contains all the major Bitcoin Futures ETFs. Some of them help increase your invested capital through Bitcoin Futures while others use a mix of Bitcoin Futures, Options, Ethereum Futures, and several other financial instruments.

Below is a series of 3 charts showing the investment trend in all Bitcoin and Ethereum Future ETFs. There are separate charts for Bitcoin and Ether derivatives along with a combined chart.

Futures ETF Subscription Trends, Bitcoin vs Ether vs Mixed

These ETFs do not directly invest in any Bitcoin, and do not even track the price of spot Bitcoin. Most of these ETFs track Bitcoin price that is provided by the Chicago Mercantile Exchange (CME).

ProShares Bitcoin Strategy ETF

This was the first Bitcoin strategy ETF launched on October 19, 2021 and relies on Bitcoin Future contracts solely.

2x Bitcoin Strategy ETF

This is a leveraged Bitcoin Futures ETF which uses 2x leverage to trade. This feature allows it to increase its profits at twice the pace with the same level of investments.  

ProShares Short Bitcoin Strategy ETF (BITI)

The ProShares ETF only invests in bearish derivatives contracts and seeks to make most of its gains in bearish markets and during contra trades in bull markets. 

Valkyrie Bitcoin and Ethereum Strategy ETF (BTF)

This ETF dynamically allocates its funds to Bitcoin and Ethereum derivative contracts. The allocation is not fixed and is actively adjusted to reap the full benefits of the prevalent market conditions.

Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX)

This ETF like the 2x Bitcoin Strategy ETF uses leveraged trade to make multi-fold returns in Bitcoin Future contracts. Though there is a risk associated with this fund, yet it has been performing well and has given high returns since inception.

GlobalX Blockchain and Bitcoin Strategy ETF (BITS)

This ETF is a hybrid ETF that seeks to invest for both the long term and the short term. For long term investments, it invests in equity of various blockchain companies. However, for short term investments, it relies on Bitcoin derivatives.

The ETF is good for those who seek a balanced approach to investing in crypto.

Simplify Bitcoin Strategy Plus Income ETF (MAXI)

This ETF issued by Simplify invests in Bitcoin futures as well as in debt instruments. The ETF provides dual benefits. When markets are good, the ETF gives a yield which is obtained through Bitcoin Futures and during bad markets, the debt instruments provide a fixed income, making the ETF an all-weather one.

Ark Shares21 Active Bitcoin Futures Strategy ETF (ARKA)

This Ark Shares21 ETF uses dynamic allocation in Bitcoin derivatives to take advantage of prevalent market conditions.

ProShares Ultra Short Bitcoin ETF

This ETF by ProShares purely invests in shorting or bearish opportunities in Bitcoin which helps it profit everytime there is a dip in Bitcoin. 

The best time for any trader to invest in this ETF is during the bear cycle in Bitcoin which happens once every 4 years and could last up to a year. The last bear cycle started in November 2021 and lasted till January 2023.

Bitwise Bitcoin Strategy Ultimate Roll ETF (BITC)

The BITC ETF uses money market securities for collateral to invest in the highest yield Bitcoin derivatives contracts.

Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP)

This ETF by Bitwise invests equal amounts in both the future and options contracts of Bitcoin and Ethereum. 

ProShares Bitcoin and Ether Market Cap Weight Strategy ETF

This ETF is yet again unique in its approach where it just invests in Bitcoin and Ether derivatives but in the ratio of 11:3 respectively. The ratio of 11:3 represents the domination of Bitcoin(54%) and Ethereum(15%) over the entire crypto market.

The benefit of this ETF is that it lets you bet at almost 70% of the crypto market. The choice of just Bitcoin and Ethereum futures avoids unnecessary volatility which is seen in broader markets.

ProShares Bitcoin and Ether Equal Weight Strategy ETF

This ProShares derivatives ETF invests in both Bitcoin and Ethereum derivative contracts in equal weight, i.e., equal capital allocation.

ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY)

The ETF invests in both Ethereum and Bitcoin Futures and Options contracts. The active tag in its name shows that portfolio allocation is dynamic.

Such ETFs tend to benefit you in highly volatile markets such as one which was seen around the 4th Bitcoin halving.

CyberHornet S&P 500 and Bitcoin 75 / 25 Strategy ETF (ZZZ)

This is a unique hybrid ETF which allocates 25% of its funds to Bitcoin derivatives such as futures and options. The other 75% is allocated to S&P 500 which is one of the stock market indices in the USA.

ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC)

This ARK 21Shares ETF uses on-chain metrics and models to prepare strategies which it then uses to invest in Bitcoin futures and options. On-chain metrics help in identifying real-time usage of Bitcoin and is widely used throughout the world to make informed investments in Bitcoin.

Conclusion

Bitcoin Future ETFs invest in Bitcoin Future contracts to reap greater benefits than ordinary Bitcoin investors. They use leverage trade to reap multifold returns in a very short period. 

Suggested Reading: Trading Bitcoin vs. BTC Futures: A Comprehensive Guide

These ETFs often create a win-win situation for retail and institutional traders. Retailers use it to quickly make a good profit while institutions use it for better risk management.

However, these ETFs are also much more riskier than the spot ETFs and could potentially wipe out participant’s capital during a bearish market.

Bitcoin Runes is a token standard that provides much more efficient methods to create new fungible tokens. Created by Casey Rodarmor, it was launched on the 4th Bitcoin halving day and on the 840,000th block. 

Runes employ an efficient method of creating new cryptocurrencies from unspent transaction outputs (UTXOs) which till now just went to junk. 

The protocol brings great relief to developers, miners, creators and also to the entire ecosystem which has been reeling with the after effects of Bitcoin Halving. The protocol has several advantages over its predecessor and would likely see the same shining fate as of its senior cousin, the Bitcoin Ordinals.

Introduction

Bitcoin Runes is a token standard that guides developers in the creation of new cryptocurrencies. These new cryptocurrencies are created as fungible tokens and can be easily developed with a little knowledge. 

The protocol was created by Casey Rodarmor who was also responsible for creating the Bitcoin Ordinals. The Ordinals protocol was key in introducing NFT-like features on the Bitcoin blockchain, something which was much greater than any expectation. 

This article explores every aspect of Bitcoin Runes, be it around its benefits, improvements over predecessors, technical information, jargons and also disadvantages. At the end we have also provided a few comments on its sustainability and its future.

Who Created The Runes Protocol

The Runes Protocol was first proposed by Casey Rodarmor, who also created the famous Bitcoin Ordinals in December 2022. Casey’s proposal sought to address the problems of BRC-20 protocol which left a huge amount of junk in the form of unspent transaction outputs or UTXOs. These UTXOs were created as a result of every successful transaction.

In the Bitcoin network, transaction outputs work in a similar way as “gas” in Ethereum but in a slightly different way. Consider that you were buying something worth $4.93 with a $5 bill. Now imagine what would happen if people could only transact with notes and no one accepted coins. Obviously, the 7 cent worth of coins would go to waste. 

The Bitcoin UTXOs are small quantities of Bitcoins that are used to pay for transaction fees. They are very similar to the loose 7 cents that no one accepts.

Motive for Creating Bitcoin Runes

The Bitcoin Runes were created primarily as an easy way to create memecoin-like cryptocurrencies. Upon seeing the success of memecoins in Solana (BONK, dogwifhat, and others), he was looking for a way to implement it in the Bitcoin network.

Here is a tweet from the creator himself on why he created Bitcoin Runes.

Runes were built for degens and memecoins, but the protocol is simple, efficient, and secure. It is a legitimate competitor to Taproot Assets and RGB.The protocol is self contained and has no dependencies on ordinals or inscriptions, making it extremely simple.Balances are…

— Casey (@rodarmor) April 1, 2024

Though the BRC-20 protocol existed which creates cryptocurrencies on the Bitcoin network, yet it was a resource intensive method and left a huge signature of UTXOs much like an old car leaves a smoke trail.

Runes were a much simpler way of creating new coins. The protocol does not depend on any other protocol such as BRC-20 or Ordinals and is self-contained which means all its dependencies are already present inside it.

Terms and Definitions Associated with Bitcoin Runes

Struct

A struct or structure in the context of Bitcoin is a set of instructions that guide an activity inside the Bitcoin blockchain.

Runestone

A runestone is a message that is used to send parameters to the Bitcoin network on how the fungible token (Rune) should be created.

A runestone looks in a similar way as below.

“`rust

struct Runestone1 {

edicts: Vec<Edicts>,

etching: Option<Etching>,

mint: Option <RuneID>,

pointer: Option <u32>’

}

“`

Each Runestone is capable of transferring multiple types of fungible tokens within a single output.

Etching

Etching is the process of inscribing a transaction output with a message (runestone) that contains details of the fungible token that is to be created. The message contains details such as name, quantity, symbol, etc. 

UTXO

An UTXO is a collection of satoshis (100 Mn Satoshis = 1 Bitcoin) that are used to pay for transaction fees on the Bitcoin network. When a transaction output becomes so small that it cannot be used to pay for network fee, it goes to junk. The Runes protocol is key to manage these junk UTXOs.

Cenotaphs

Those runestones which have some kind of an error are called cenotaphs. These errors may have been introduced due to bad parameters, any network clog or any other random factor.

How Does it Work?

Overview

The Runes Protocol works in a way which is known by the OP_RETURN method. 

First, with each transaction, a set of parameters are given to the Bitcoin network. This process is known as etching.

After a successful transaction, these parameters define the output. The parameters contain information as to how the UTXOs will be converted into new fungible tokens. The process is called minting.

The next step involves transferring a rune from a transaction input to output. This process is called an edict.

At the end of the transaction, the user receives fungible tokens on their address.

Let us now break down the steps to understand the process in a much more detailed manner

Etching

Etching is the process of creating a Bitcoin Rune by sending token parameters to a transaction input.

The list of parameters that are sent along with a transaction output are:

Name: The name simply refers to the name of the fungible token to be minted. 

Divisibility factor: This is the number of units a rune can be divided into.

Symbol: This refers to the symbol of the new fungible token or tokens.

Premine: It refers to the initial allocation of the runes that are kept for its creator.

Terms: Refers to the rules that are to be followed by users during an open mint.

Cap: It refers to the number of times a rune should be minted.

Amount: This refers to the numeric quantity of the rune to be minted. A single UTXO can mint multiple fungible tokens at once.

Start height: This is the block height where the minting of the rune starts.

End height: This is the block height where the minting of the rune ends.

Edict: These are messages that contain instructions on how a transaction input can be converted into an output.

Minting

Minting refers to the process of converting the unspent transaction outputs(UTXOs) into new fungible tokens. The UTXOs are converted into runes through a function called OP RETURN. This function returns the UTXOs in the form of new fungible tokens.

Transfer

The next step involves transferring a rune from input to output. These transfers are governed by edicts which are messages that are sent to describe the specifications of a rune.

Here is a sample of an edict:

“`rust

struct Edict {

id: RuneID,

amount: u128,

output: u32,

}

“`

Each runestone can create multiple types of fungible tokens with just a single input. This is a great improvement over earlier protocols where only a single type of fungible token was created at one time.

To do that, we just need to define each output with a separate edict.

For example, let’s say we have an UTXO that we wish to convert into fungible tokens. With Runes, we can not only do that but also achieve something that was impossible prior to this. For example, a single UTXO can create  1000 tokens of A type, 20 tokens of B type and 5 tokens of C type. 

Bitcoin Runes vs BRC 20s

Bitcoin Runes provide several upgrades over BRC-20 protocol and these upgrades define the difference between the two.

UTXOs are repurposed on Runes whereas they are discarded on the BRC-20 protocol.

The fungible tokens created using Runes protocol can be transferred on Layer-2 solutions like the Lightning Network, whereas BRC-20 tokens cannot be transferred using L2s.

Runes are based on UTXOs whereas BRC-20 tokens are based on Ordinals theory.

Suggested Reading: BRC-20 Tokens: Everything You Need To Know

Bitcoin Runes vs Bitcoin Ordinals

Runes are a protocol that uses UTXOs to create new fungible tokens. On the other hand Ordinals use satoshis to create inscriptions that lead to the creation of non-fungible assets.

What Does Runes Offer to the Bitcoin Ecosystem?

Runes offer a great benefit to the entire Bitcoin network. 

Reduces Wastage of UTXOs

First, it reduces the junk that is created by UTXOs. With Runes, these UTXOs can be converted into useful tokens with a simple OP_RETURN method.

More Users and Greater Liquidity

Second, it brings more liquidity to the Bitcoin ecosystem. Due to the bullishness around memecoins, Runes would be able to bring more users and liquidity to the Bitcoin ecosystem. Just like other ecosystems, Runes have capability to drive memecoin rally into the Bitcoin ecosystem. More tokens would attract more users and hence more liquidity.

More Fees to Miners

Third, it brings more fees to the miners. More transactions would definitely generate more fees which would compensate miners in a better way. Further, after the Bitcoin Halving event, miners desperately need more fees to cover operational costs. 

Suggested Reading: What is Bitcoin Halving: A Comprehensive Guide

Runes have already generated the traffic that could fulfill the needs of the miners. However, its sustainability is in question. If it goes in the Ordinal way, it would surely compensate Bitcoin miners in a sustainable way.

Advantages over Other Protocols

There are several advantages associated with the launch of the Runes protocol. Some of them are:

Improvement Over BRC-20

The main intention of creating runes was to establish a token minting process that would not be as messy as the BRC-20 protocol which left a huge trail of UTXOs after each transaction.

The Runes protocol on the other hand, managed these UTXOs in a clean way by allowing users to repurpose them as new tokens.

Works Well on Bitcoin Layer-2 Solutions

Runes work well on Layer-2 protocols such as the Lightning Network. However, BRC_20 protocols do not work in Bitcoin L2s.

Simplified Token Minting Process

With the Runes protocol, minting a new token on the Bitcoin blockchain would be at its easiest. This has already begun in great numbers. A few Runes-based tokens are:

Satoshi Nakamoto

The Ticker Elsa

Wanko Manko Runes

Meme Economics

LOBO The Wolf Pup

Are There Any Disadvantages?

Despite all the advantages, there has been an unintended consequence of Bitcoin Ordinals. As a result of their immense popularity, just like Ordinals, Bitcoin Runes too have clogged the Bitcoin blockchain. Despite being an unintended act, this congestion has led to a spike in fees.

Bitcoin Runes Creates Spike in Bitcoin Fees

On April 20th, 2024, the day of launch of the Runes protocol, there was a clog in the Bitcoin network which spiked its fee to $128 per transaction as compared to its usual fee of $5 to $10 per transaction. Although the major reason for the spike was the race to transact on the 840,000th block (the halving block), yet Runes were a major contributor to the spike in the  transactions.

What’s Next for Runes?

If the development of Runes continues in the future, we see a thriving ecosystem. Runes have the capability to bring DeFi to the Bitcoin blockchain, something that every Bitcoiners wants in the ecosystem. Though some rudimentary DeFi capabilities exist on Bitcoin, yet the network is far from achieving the feats of Ethereum.

Conclusion

Bitcoin Runes are a new improvement over BRC-20 protocol to create new tokens. The Runes protocol utilizes a new way to create cryptocurrencies with the Unspent Transaction Outputs (UTXOs). This method not only reduces junk UTXOs but also converts them into something useful.

The protocol is expected to bring much relief to the Bitcoin ecosystem in terms of users, miner fees and liquidity. Also, it is expected to bring much greater DeFi capabilities to the Bitcoin ecosystem, something which is much desired. Finally, we expect Runes to have a stable presence in the Bitcoin network so that it not only improves the network’s capabilities but also helps Bitcoin achieve the tag of a true market dominator.

A Guide to Bitcoin Dominance: Its Importance and Is It Declining?

It goes without saying that cryptocurrency and digital asset adoption has reached an inflection point. The recent approval of several Bitcoin Spot ETFs in the United States marked a significant milestone for Bitcoin and the entire crypto market as a whole.

Last year, we speculated on the prospect of these approvals and what impact it could have on the markets. 

Since the approvals in January, the cryptocurrency markets have entered a raging bull market with increased deliberation among the mainstream media. This week, we see yet another turning point towards widespread adoption with the chatter of the SEC (Securities and Exchange Commission) potentially approving several Ethereum Spot ETFs amidst a political backdrop in the US that is becoming increasingly crypto-friendly. 

Even though rumors of the Ethereum Spot ETF have been floating around for months, it wasn’t until this week when real traction grew. The SEC began actively engaging with issuers and national exchanges, mirroring the approach taken prior to the approval of the Bitcoin Spot ETFs. This blog explores what an approval could bring to Ethereum, altcoins and the cryptocurrency sector as a whole over the short term and long term. 

If they approve the Ethereum ETF, they are approving the entire industry. This is the last dam to be broken.

— Pomp (@APompliano) May 21, 2024

The SEC’s Stance on Ethereum 

The second largest cryptocurrency, Ethereum, has been in the crossfire with the United States’ SEC for years. Ever since Ethereum’s transition from proof of work (PoW) to proof of stake (PoS) in 2022, the SEC under the helm of Gary Gensler has been maneuvering to classify Ethereum as a security rather than a commodity. Shortly after the Merge, Gary Gensler stated that tokens in a PoS consensus system could be considered securities since investors rely on the efforts of others to make a profit.

Classifying Ethereum as a security poses significant drawbacks for the crypto market. Such a designation would subject Ethereum to stringent regulatory requirements, potentially stifling innovation and deterring investment.

The increased compliance costs and legal uncertainties could hinder the development of decentralized applications (dApps) and other blockchain-based technologies built on the Ethereum network.

Furthermore, it might prompt exchanges to delist Ethereum to avoid the complexities of trading securities, reducing its liquidity and accessibility for investors. This regulatory shift could create a ripple effect, impacting the broader crypto ecosystem and slowing the adoption of blockchain technology. 

In early 2024, the SEC began investigating Ethereum, issuing subpoenas to U.S. entities connected to the Ethereum Foundation. This move raised questions about whether it is part of a broader effort to classify ether as a security, possibly slashing hopes that the regulator will approve Ethereum Spot ETFs. Until last week, this mounting bearish stance pushed the odds of an Ethereum spot ETF being approved to 10%. 

Over the past week, however, the SEC has seemingly done a 180 on their stance on Ethereum. On Monday, news that the SEC had informed exchanges the agency was leaning towards approving Ethereum spot ETFs shook the world of cryptocurrencies. 

Possible Impact of an Approval 

Price Appreciation

While the decision on the Ethereum Spot ETF’s to be authorized is still pending, it is interesting to speculate on some of the scenarios that could take place. One such is an Ethereum price surge. This scenario has in fact already taken place. Since the news broke, Ethereum’s price rallied a staggering 20% in a single day. 

Some on twitter are also of the opinion that the news has not been priced in. Others view the break of structure as an indicator of the start of a longer-term parabolic bull market. 

To understand market sentiment and the characteristics that typify a crypto bull and bear market, read this article: Bull and Bear Markets Explained: A Guide to Maximizing Profits in Crypto

The ETH ETF is not priced in.

— Ran Neuner (@cryptomanran) May 21, 2024

#Altcoins $ETHIs #Ethereum on the verge of a parabolic run?-Bounce on the blue line as in 2020-Are we in the yellow zone, as in 2020?So far, everything has been almost identical.The next few months could be life changing if we repeat the structure.Don't mess it up. pic.twitter.com/pGeUezpeMb

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 (@el_crypto_prof) May 22, 2024

Even though predicting short term price swings can be difficult, the recent surge in Bitcoin’s price following its ETF approvals may signal similar trends for Ethereum. 

An Altcoin Season 

An approval of Ethereum Spot ETFs could potentially trigger an altcoin season by significantly boosting investor confidence in the broader cryptocurrency market. Ethereum, as the second largest cryptocurrency by market capitalization, holds a pivotal role in the crypto ecosystem. Its recognition and validation through a spot ETF would likely attract a wave of institutional and retail investment. 

This influx of capital could not only drive up the price of Ethereum but also increase interest in other altcoins, as investors look to diversify their portfolios and capitalize on the broader market momentum.

Historically, major developments and positive regulatory news for bluechip cryptocurrencies like Bitcoin and Ethereum have had a cascading effect, lifting the entire market. 

Read this article for an introductory guide on what altcoins are and their different types: A Brief Overview of Altcoins: What are Their Types, Pros and Cons 

Moreover, an Ethereum Spot ETF approval could pave the way for a broader trend of crypto ETFs gaining regulatory approval. Established protocols like Solana are already being speculated as the next candidates for such recognition. 

JUST IN: Ethereum ETF applicants submit amended 19b-4's • VanEck• Fidelity • Franklin • ArkInvest• Grayscale• Invesco Galaxy

— Watcher.Guru (@WatcherGuru) May 21, 2024

A better trade I will argue for is: "BUY SOL/ETH". This may sound absurd and definitely unpopular. Reasons are:1) SOL will be the No.1 next in line if ETH ETF get approved. 2) ETH/BTC did +12% within a week after the BTC approval as people expect ETH ETFs3) Not a crowded trade

— Daniel Yan (@_D_Y_A_N) May 21, 2024

Increased Institutional Adoption 

One possible scenario following the approval of an Ethereum Spot ETF is a significant increase in institutional adoption of Ethereum. With a spot ETF, traditional financial institutions such as mutual funds, pension funds, and hedge funds would have a regulated and accessible way to gain exposure to Ethereum without the complexities of directly purchasing and storing the cryptocurrency.

This could lead to a substantial influx of institutional capital into the market, which would not only drive up the price of Ethereum but also enhance its legitimacy as a mainstream investment asset. 

We have already seen this play out with the Bitcoin ETFs with large hedge funds accumulating the digital asset at unprecedented rates. 

A Process, NOT an Event. The "institutions" have been coming to #Bitcoin since at least 12/2017 when CME futures But the ETFs have really accelerated this. the 5th largest hedge fund Millennium Management is now holding almost $2 Billion of #BTC and they are not alone:… pic.twitter.com/1slcemaYjO

— Mark Moss (@1MarkMoss) May 16, 2024

Easier Accessibility

Ethereum Spot ETFs will significantly enhance accessibility for people interested in investing in cryptocurrencies without having to navigate the complex technicalities of the Web3 ecosystem.

Traditionally, investing in Ethereum requires a basic understanding of setting up crypto wallets, managing private keys, and purchasing the asset via cryptocurrency exchanges—all of which can be challenging for those unfamiliar with this space. With the introduction of Ethereum Spot ETFs, investors can bypass these hurdles.

Read this article for an end-to-end guide on cryptocurrency wallets: Cryptocurrency Wallets: Explained

These ETFs, traded on traditional stock exchanges, offer a familiar and regulated investment vehicle that simplifies the process. This ease of access means that anyone with a brokerage account can gain exposure to Ethereum just as easily as they would with stocks or conventional ETFs.

The availability of Ethereum Spot ETFs will diversify the investor base by attracting people who use legacy investment platforms. By offering a product that fits within the existing framework of traditional finance, Ethereum Spot ETFs open the market to a broader audience, including institutional investors, retirement funds, and everyday individuals who prefer the security and simplicity of regulated financial products. 

Closing Thoughts

The prospect of an Ethereum Spot ETF approval stands to significantly shake up the crypto sector, with both short-term and long-term implications. The approval of Ethereum Spot ETFs would mark a pivotal step towards mainstream adoption and integration of cryptocurrencies into the global financial system.

While the decision for approval remains to be seen at the time of this writing, the mere possibility and the precedent set by approved Bitcoin ETFs speak volumes about the progress and maturation of the cryptocurrency industry since its inception 15 years ago.

The journey of digital assets from a niche investment opportunity to a significant component of the financial landscape underscores its transformative potential and the capacity to redefine financial paradigms.

Crypto perpetual futures contracts attract traders with the highest profit opportunities but need a careful analysis of critical factors. The major challenges like leverages causing stronger wicks, staking losses, and fluctuating funding trades impact play a vital role in the highly volatile crypto trading.

Expert traders may adopt measures like stop orders based on the market price to explore new profit ventures like liquidity mining or staking. The perpetual futures contracts offer attractive prospects and a detailed analysis for a successful trading experience.

Perpetual futures contracts allow maximum gains, but traders should always consider the risk factors. Risks may include purchasing the altcoins with future threats, stronger wicks fund fluctuating prices, and loss from possible staking.

Leverage enhances wicks, so handle the long-term trade very carefully. Liquidity mining and staking yields are compromised with a perpetual future, lowering long-term profits. The fluctuating funding reduces profits while a bullish market trend. So, perpetual futures have pitfalls like wicks staking loss funding rates issues despite high gains.         

What is Crypto Perpetual Futures Contracts?

Crypto perpetual futures contracts are a cryptocurrency derivative with no expiry date. The traders can hold indefinitely as long they maintain the required margins and pay the funding rate. These contraGcts permit continuing hedging and betting on fluctuations in the value of cryptocurrencies without actually owning them.

Perpetual futures bring traders flexibility because they don’t have to roll into a new contract. So, Traders frequently apply the cryptocurrency market as a hedge or speculation tool for potential price swings.

The crypto space witnessed many crypto derivatives, including perpetual futures, future markets, options, and contracts. They work in the form of leverages. The crypto perpetual futures contracts are more flexible and give higher returns than traditional spot trading. Per centralized exchange information, cryptocurrency derivatives trading rose to $3.12 trillion by July 2022. 

Crypto Futures vs. Traditional Futures – A Detailed and Comparative Analysis.

Factors to Consider While Trading in Crypto Perpetual Futures Contracts 

Cryptocurrency investors should consider the following factors in Crypto Futures Contracts

Use Market Analysis Tools

As a trader, you must be well aware of marketing analysis tools, including chart patterns, technical indicators, or support/resistance level. The knowledge of these tools will enhance your insight to analyse profitable trading business. You can take benefits by applying these techniques and took long or short position based upon market trends.

Set Stop Loss orders

You can also avoid the majority or the entire capital loss by applying stop loss order if the price of the asset moves adversely. The stop loss strategy ensures that the particular asset trade will be automatically closed if its price reaches the particular point. However you must also be very vigilant while the price movement is in a favorable direction to take benefit.  This technique is known as a discipline money management. 

Be Cautious About Funding Rates Fluctuations

Perpetual contracts embed a rate that is always charged every eight hours. These are also called inverse swaps. There can be no risk imbalances between buyers and sellers for exchange through funding rates. Although the interests of both buyers and sellers open matches at all times, leverage is subject to variation.

Crypto Futures Traders: What Are the 8 Common Trading Mistakes to Avoid?

The funding rate increases when the buyers long ask for greater leverage. Consequently, the fees will be covered by those buyers. This problem is particularly prevalent during bull run periods when there is typically a greater demand for longs.

ETHUSDT is an ETH/USDT perpetual futures contract priced on the BETHT Index. Each contract has a value equal to its price in Tether. The funding cost is paid and received every 8 hours. ETHUSDT uses a Premium index to calculate funding rates. 

The chart shows that the ETH USDT market made a bullish trend on November 10, 2023, raising its value to $2,118. After that, the market showed a slightly bearish trend and declined to $1,924 on November 17, 2023. 

However, it should be noted that some exchanges will allow manual selection of rates and set borrowing periods by users. This attitude is far better since unpleasant surprises are presented in this case, which will certainly occur after a large-scale buying activity.

Although perpetual futures trading is an excellent tool, it has shortcomings. Among those are stronger wicks running stop losses, inability to do staking, and the variable funding rate.

Leverage Results in More Powerful Wicks

The leverage will only lead to stronger wicks regardless of the market’s liquidity. Even though these moves usually do not result in a forced liquidation, they might run investors’ stops.

Thus, the principal reason why carrying futures positions for extended periods should be shunned is the probability of errant wicks.

Learn all about perpetual futures contracts in the cryptocurrency market, from their mechanics to trading strategies, with this comprehensive article.

Futures liquidation engines use price indexes from several spot (regular) exchanges to avoid price manipulation. So, the system will close positions with insufficient margin only once an index reaches its stops.

We have pasted screenshots of the two major crypto exchanges, Binance and Coinbase. You have noticed that at the same moment, Binance is showing a BTC price of $69,852, which is lower than the price of the same asset at Coinbase is $70,244. Although the change is small, it can cause traders to close trades. 

Understand how liquidity pools are transforming the crypto futures market and their impact on your trading strategies with this comprehensive article.

Traders also have options to avoid such issues. They can change the trigger of stop orders from the last price to the Mark Price (Index). This simple strategy can save traders from liquidation, provided perpetual futures contracts separate monetarily from their index. 

One very positive trend in market structure is that the percentage of Bitcoin futures contracts collateralized with BTC/crypto has been on a perpetual decline for almost 3 years now, from 70% to just 25% today. Why is this relevant and why should you care?When you're long BTC… pic.twitter.com/yZybMALZtj

— Will (@WClementeIII) November 13, 2023

Conclusion

So that’s it! If you’ve read the following sections, you should be familiar with what a perpetual futures contracts in crypto is and how to start perpetual contracts trading yourself with the help of one of the leading crypto exchanges on the market.

Learn the strategies and intricacies of perpetual swap contracts trading to enhance your 2024 investment tactics with this comprehensive article.

But, of course, being that this is such a broad subject, there are many things that we need more time to touch on, such as the question of whether perpetual futures contracts are enforceable, the funding fees mentioned above, and so on. Either way, you have a solid foundation for expanding your perpetual futures contract trading knowledge further.

Microsoft Azure customers worldwide now gain access to KrypC’s flagship product, Krypcore Web3,  to take advantage of the scalability, reliability, and agility of Azure to drive application development and shape business strategies.

New Jersey, USA — May 21, 2024 — KrypC, a leading blockchain and Web3 company, today announced the availability of its flagship product Krypcore Web3 in the Microsoft Azure Marketplace, an online store providing applications and services for use on Azure. KrypC’s customers can now take advantage of the scalability, high availability, and security of Azure, with streamlined deployment and management.

Krypcore Web3 is an enterprise-grade middleware platform that provides robust Web 3.0 infrastructure, powerful APIs, a unified SDK, and many pre-built tools for creating and deploying Web3 applications on various blockchain protocols. To simplify the blockchain adoption journey, Krypcore Web3 provides certain unique and enterprise-friendly features such as gasless transactions, datalake, distributed storage, wallet-as-a-service, NFT studio, and smart contract studio. This comprehensive suite enables enterprises to use blockchain technology to create innovative business solutions across sectors such as supply chains, media & entertainment, finance, healthcare, and more.   

The availability of Krypcore Web3 in the Microsoft Azure Marketplace allows us to offer the benefits of Krypcore to a wider range of organizations across the globe. By subscribing to Krypcore Web3 in the Azure Marketplace, enterprises and leading developers can quickly leap forward in their Web3 and blockchain innovation journey backed by Azure’s trusted cloud platform.

Said Dave Sasson, Chief Business Officer of KrypC. 

Through Krypcore we aim to simplify and accelerate Web3 adoption, providing developers and enterprises with the tools necessary to leverage the advantages the Web 3.0 ecosystem provides.   

Said Mohit Sethi, head of Research and Technology at KrypC.

 Microsoft Azure Marketplace welcomes Krypcore Web3, which joins a cloud marketplace landscape predicted to grow revenue 500% from 2022 to 2025.

Said Jake Zborowski, General Manager, Microsoft Azure Platform at Microsoft Corp.

Thanks to Azure Marketplace and partners like KrypC, customers can do more with less by increasing efficiency, buying confidently, and spending smarter.

The Azure Marketplace is an online market for buying and selling cloud solutions certified to run on Azure. The Azure Marketplace helps connect companies seeking innovative, cloud-based solutions with partners who have developed solutions that are ready to use. 

Learn more about Krypcore Web3 and get it now by visiting its page on the Azure Marketplace.

About KrypC

KrypC Technologies, a pioneering venture in blockchain technology, was founded by seasoned cryptography and enterprise tech professionals with a vision to establish a global blockchain powerhouse that empowers enterprises and startups by harnessing blockchain technology to build innovative distributed ledger solutions. Since its inception in 2016, KrypC has continuously invested time and resources into developing cutting-edge technology assets, facilitating faster and easier blockchain adoption. Headquartered in the USA, KrypC operates across multiple locations including the US, Netherlands, India, and the UAE.

For more information, please visit www.krypcore.com and follow us on LinkedIn.

SocialFi, a trailblazer of Social Finance, is Web3’s answer to Web2’s social media platforms by restoring ownership to users and content creators, directly offering more lucrative monetization possibilities by removing expensive intermediaries. This natural evolution of DeFi and social media champions the hallmark values of decentralization such as privacy, security, censorship, and data ownership, promoting a fairer form of monetization where creators keep the lion’s share of the value they produce.

SocialFi innovations are marking a departure from conventional social networking paradigms by introducing a decentralized, self-governed and community-driven environment for users to interact with each other, share content and earn rewards. SocialFi innovations are opening up new opportunities for businesses and entrepreneurs along with decentralized collaboration spaces that reward users for their contributions and allow them to monetize their content while keeping more of their earnings.

According to dAppRadar’s 2023 Dapp Industry Report, there has been an impressive increase in the social sector in 2023 with the daily count of Unique Active Wallets (UAW) exceeding 250,000. Compared to 2022, there was a substantial growth of 518%, which underlines the importance of decentralized social media.

In this article, we will explore some of the most exciting SocialFi innovations that are driving the growth and adoption of this space.

Quick Overview of How SocialFi Functions

Unlike traditional social media platforms controlled by massive centralized parties, SocialFi uses Decentralized Autonomous Organizations (DAOs) to make decisions–ensuring no single entity controls the platform while maintaining users’ say in how it operates. With the help of DAOs, developers and the platform’s team are prevented from making unilateral changes to the code fostering trust and transparency.

The economy within these SocialFi innovations is fueled by decentralized tokens tokens used for various purposes like tipping creators or participating in governance voting to determine the direction in which the platform evolves. 

On some of these platforms, creators can even launch their own tokens to directly monetize their influence and content. 

How? 

Since users control their wallets and tokens, they can choose which creators to engage with and want to support by holding the creator’s token to participate.

Turn influence into income with #SuperDapp! Engage and grow your greatest asset —your community, with Super Groups, leveraging your social power into tangible benefits! Learn more about the monetization opportunities of #SocialFi at https://t.co/lvwtxU1pNL pic.twitter.com/1z8jjGojSA

— SuperDapp (@SuperDappAI) May 1, 2024

SuperDapp allows you to monetize your social media influence through “Super Groups.”

Digital ownership is facilitated through features like a profile picture (PFP) NFTs for identity and other NFTs to track content ownership, allowing for the monetization of content, including posts, videos, and more.

Decentralized SocialFi models allow for incentivized engagement and affiliate programs, with users controlling their wallets and tokens, choosing which creators to support by holding the creator’s token.

SocialFi Innovations: A Look at Emerging Trends

Messari’s Crypto Theses 2024 Report discusses socialFi innovations as part of the three new “De’s” of decentralized innovations, including DeSoc which is short for Decentralized Social Media. DeSoc relieves creator woes of traditional social platforms that take a hefty cut from revenue generated through advertising or sponsored content.

Moreover, with SocialFi platforms like SuperDapp, content remains unalterable, ensuring users can share information without fear of being censored.

DroomDroom’s article discusses how decentralized social media platforms like SuperDapp are emerging as an alternative to traditional social media.

Overview of decentralized social networks by Messari

Clearly, it is a rapidly evolving field with new socialFi innovations and use cases on the brink of it. Here, we explore some of the most interesting innovations that are pushing the boundaries of what’s possible.

Combating Fake Content & Fraud

Many SocialFi platforms grapple with the challenge of fraudulent activity aimed at manipulating reward systems. The research paper titled, “Blockchain-based Reputation Evaluation Using Game Theory in Social Networking”, proposes a novel approach for evaluating reputation on social media platforms that leverages blockchain technology and game theory to tackle the issue of ‘ghost commentators’.

SocialFi innovations include developing advanced anti-fraud algorithms to detect and prevent such behavior. These algorithms can analyze user engagement patterns and identify suspicious activity that might indicate attempts to inflate rewards through inauthentic means such as bots.

The AI-infused SocialFi platform SuperDapp prioritizes security by offering features like encrypted communication and secure storage. Additionally, AiDA, SuperDapp’s AI assistant has the potential to further enhance users’ experiences by filtering out abusive or spammy behavior.

“At the heart of our innovative pursuit, we recognize that the true strength of blockchain lies not just in securing transactions but in building trust and transparency across digital communities. By integrating artificial intelligence, we are setting new standards for integrity and user experience in the SocialFi ecosystem.”

Jagdeep Sidhu, SYS Labs CEO 

Read this article by DroomDroom to understand how Artificial Intelligence (AI) assistant named AIDA is being used by SuperDapp to make interacting with dApps easier and more intuitive.

Decentralized Social Graphs and Interoperability

A core tenet of SocialFi is the concept of user ownership and control over data. 

Decentralized social graph protocols are merging to address this need and they’ve become existential for free and open speech as highlighted by The necessity of this has also been reflected in mainstream Web2 platforms, particularly demonstrated by Elon Musk’s Twitter acquisition and the potential for “coordinated advertiser boycotts.

On the Web3 side, these protocols leverage blockchain technology to store user data, such as profiles, posts and follower lists. Ultimately, users can control who can access their information, providing them with the freedom to move their social graph– their network of connections–across different SocialFi applications built on compatible protocols.

Account abstraction is another innovation facilitating interoperability across blockchains by simplifying the onboarding process for new users by eliminating the need to manage multiple private keys for different chains. This reduces the barrier to entry for users unfamiliar with the complexities of blockchain technology.

Features like portable social graphs are moving beyond being exceptional perks, and quickly becoming the standard a more informed generation of users have come to expect.

Rebalancing Power and Profits

Traditional social media platforms often generate substantial revenue from user data while users themselves see little to no financial benefit from their contributions. This is because legacy, centralized platforms have relied on the well established norm of, “If you are not paying for the product, then are the product.”

A cursory look at the market cap of major social media company’s market caps will show just how valuable that data, which users have given freely, has turned out to be. By enshrining each user’s right to ownership and privacy, SocialFi requires an entirely different model to both incentivize user participation and ensure its own sustainability.

This necessity is fulfilled by utility tokens, or “cryptocurrencies with actual purpose”, the purpose in this instance being the lifeblood of a self-sustaining ecosystem or economy.

In the case of SuperDapp, its economy is supported by its utility token, SUPR. Aside from being a simple payment method, SUPR also supports widely used DeFi applications such as staking, or locking the token as collateral in order to contribute to the platform’s liquidity and economic stability, earning rewards in the process.

This is similar to how a savings account at an old-fashioned bank works, even including an APR (annual percentage rate) and APY (annual percentage yield) that automatically adjusts so potential stakers can always make an informed decision.

Aside from payments and staking, as previously mentioned, SUPR ownership also entitles users to directly participate in SuperDapp’s governance by voting on policies and features they believe are in the best interest of the platform.

Watch-to-Earn and Fan Engagement

A growing trend in SocialFi is the concept of Watch-to-Earn wherein the platforms reward users with crypto tokens for actively engaging with content such as watching videos or interacting with creators.

Brave Browser, and its token, BAT, is a Web3 pioneer of this basic concept. BAT stands for “Basic Attention Token”, aptly named for a token intended to attach a monetary value to how internet users spend their time or to what they give their attention.

Some Watch-to-Earn platforms allow creators to issue their own tokens, which fans can earn by engaging with the creator. These creator tokens can offer various benefits such as governance rights over the creator’s content or access to exclusive perks as determined by their issuer, the creator.

In order to avoid a proliferation of meaningless tokens, think of them as “sub-tokens” to SUPR. The total value of a sub-tokens’ supply can only be as valuable as the amount of SUPR that has been locked to mint them.

So what happens if a creator whose token you hold has done something you dislike and you no longer wish to support them? It’s simple, once the lock period of the SUPR you exchanged for the creator’s token expires, cash out and switch back to SUPR.

If the creator offended more than just you, causing their popularity to decrease, then you’ll get less SUPR in return. Vice versa, if the creator has grown in popularity and support, then you’ll receive more SUPR back than you initially put in.

Super Groups, a feature that allows users to connect and monetize content. Empowering the Future: The Impact of SocialFi

SocialFi represents a transformative shift from the centralized, profit-driven models of traditional social media to a decentralized, user-centric ecosystem. By placing ownership and control back into the hands of users, SocialFi platforms like SuperDapp are not just challenging the status quo – they are paving the way for a more equitable and engaging digital future.

The innovations driving SocialFi—from combating fake content and fraud to fostering interoperable social graphs and rewarding active participation—are laying the foundation for this new paradigm. These advancements ensure that users can interact in a secure, transparent, and rewarding environment, free from the constraints and exploitative practices of legacy systems.

Platforms like SuperDapp exemplify the potential of SocialFi innovations with its comprehensive suite of features, including AI-powered moderation, decentralized governance, community-building features like Super Groups and incentivized engagement through mechanisms like Watch-to-Earn and creator tokens.

By integrating these cutting-edge technologies, SuperDapp is not just enhancing user experience but also building a thriving community where users can truly benefit from their contributions.

As we look to the future, SocialFi innovations stand at the forefront of digital innovation, offering a glimpse into a world where online interaction is not only more secure and private but also more rewarding and community-driven. The journey of SocialFi innovations has only just begun, and with platforms like SuperDapp leading the way, the possibilities for growth and positive change are boundless.

The demand for Bitcoin has been steadily rising which is being driven by its growing mainstream adoption and the appeal of its decentralized nature. The emergence of Decentralized Exchanges (DEXs) and stablecoins gave hope to investors and changed the way users can acquire Bitcoin offering a more accessible approach.

DEXs, however, for years faced challenges when it came to purchasing bitcoin using a stablecoin on any network. While stablecoins have emerged as an integral part of the cryptocurrency ecosystem, providing a stable medium of exchange, the lack of direct trading pairs between Bitcoin and stablecoins on most platforms poses a significant challenge.

The absence of an interoperable platform with sufficient liquidity to support direct conversions between Bitcoin and stablecoins on any network remained a limitation for a long time until came ChaiDEX.

ChaiDEX boasts a much faster transaction time and lower fees compared to traditional exchanges. It also supports EVM chains, Solana and Bitcoin allowing users to swap assets between chains such as SOL-BTC or ETH-SOL. The DEX has innovated with local stablecoins available in five regions: India, Vietnam, Oman, Nigeria, and the Philippines. These stablecoins, such as the INRC in India, are pegged 1:1 to their respective fiat currencies and backed by USD-pegged stablecoins like USDT/USDC.

ChaiDEX sets itself apart by offering interoperability across multiple blockchain networks, making it simple to purchase Bitcoin with any stablecoin on any network.

In addition to these local stablecoins, ChaiDEX also offers CHAIT, which serves as the utility token of the platform. CHAIT is used primarily for governance and accessing specific features on the ChaiDEX platform rather than just financial stability goals done by other stablecoins.

These stablecoins serve as a reliable and efficient medium of exchange, enabling users to acquire Bitcoin without the volatility typically associated with other cryptocurrencies.

To purchase Bitcoin using a stablecoin users typically needed to follow a multi-step process involving centralized exchanges, wallet transfers and DEX trading. This process can be cumbersome and may incur additional fees and transaction times compared to direct trading pairs. Let’s get a better understanding of some of the other challenges faced by users while purchasing a Bitcoin on a DEX.

Challenges Faced by Users while Purchasing Bitcoin via Stablecoin on DEXs?

Buying Bitcoin directly from any stablecoin on any network involves a few complexities and limitations some of which are:- 

Network Compatibility

Bitcoin operates on its own blockchain which is different from where most stablecoins are issued and the lack of local stablecoins in each country adds to the problems of compatability. For instance, popular stablecoins like USDT and USDC are predominantly issued on Ethereum, Tron, and other blockchains. To exchange these stablecoins directly for Bitcoin, there needs to be a bridge or mechanism that facilitates the cross-chain transaction, which adds complexity. 

Liquidity and Exchange Support

Not all exchanges support direct trading pairs between Bitcoin and every stablecoin across all networks. This limitation is often due to liquidity issues—exchanges tend to support trading pairs that have enough user demand and trading volume to ensure smooth market operations.

Regulatory and Security Concerns

Cross-chain operations, especially those involving different assets like Bitcoin and various stablecoins pose regulatory and security challenges. 

Technological Infrastructure

The technology required to facilitate seamless and secure cross-chain transactions is still evolving. Solutions like wrapped tokens (e.g.Wrapped Bitcoin on Ethereum) and decentralized bridges are in development, but they come with their own risks and limitations.

Up until now to buy Bitcoin using a stablecoin from a specific network one typically has to rely on centralized or decentralized exchanges that support such transactions or use intermediary currencies or services to facilitate the exchange.

DroomDroom’s article about peer-to-peer trading platforms and how they offer an alternative to centralized exchanges for crypto trading. Read here.

ChaiDEX: Purchase Bitcoin via Any Stablecoin on Any Network 

Purchasing Bitcoin on ChaiDEX offers several advantages, including its non-custodial nature which ensures you retain control over your funds. The platform supports direct token trading without needing wrapped tokens, or token bridging solutions. Apart from these basic benefits of a hybrid DEX some reasons that make ChaiDEX your primary contender for in the DeFi world are:- 

Lower Transaction Fees 

When compared to the inefficiencies of traditional DEX aggregators, ChaiDEX addresses the issue of high trading costs which arises from complex routing paths to buy BTC (for example.) Manually checking multiple DEXs for the best prices can be tedious and inefficient, leading to higher overall costs for traders. 

ChaiDEX charges a low transaction fee of 0.1% and distributes 50% of the returns to stakers. Moreover, ChaiDEX has the remaining 50% allocated to a buyback and burn program creating token stability.

In case you were stuck, here’s your guide to staking on ChaiDEX for how this decentralized exchange uses a buyback and burn mechanism to stabilize its token price.

Interoperability

ChaiDEX stands out not just for its broad support across multiple blockchain networks but also for enabling the first-ever cross-chain transfers without the need for bridging solutions. This capability allows for seamless and direct transactions between different blockchains.

ChaiDEX utilizes a staking mechanism that involves depositing stablecoins into a secure pool to accumulate rewards and mint local stablecoins. 

Presently, ChaiDEX supports transactions across 11 different chains and will be supporting many more, enabling exchanges between a variety of cryptocurrencies (for example BTC – SOL) 

DeFi’s true potential lies in democratizing finance and creating a borderless financial ecosystem. 

Our vision is to shape a future where blockchain isn’t just a platform for innovation, but a cornerstone for ethical and equitable practices across industries.

Jaydip Rathod, Founder, ChaiDEX

For an in-depth review of the hybrid DEX, ChaiDEX, including its unique features and advantages, read this DroomDroom article.

Faster Transactions 

ChaiDEX utilizes Atomic Swap technology to power its transactions, eliminating the need for intermediaries or “hoppers” that can cause delays. 

Atomic Swaps enables ChaiDEX to facilitate transactions across different blockchain networks. This means that users can trade assets native to one blockchain (e.g., Bitcoin on the Bitcoin blockchain) for assets native to another blockchain (e.g., Ethereum on the Ethereum blockchain) without the need for token bridges or wrapping. 

Localised Stablecoins 

ChaiDEX has hit it for a homerun with its local stablecoins pegged 1:1 against their local currencies, currently available in five regions, India, Vietnam, Oman, Nigeria and the Philipines. These local stablecoins are backed by USDC and USDT and not the local currencies because of regulatory issues. These local stablecoins provide users with the freedom to buy or sell them quickly and with minimal fees, as they are not subject to pricing or liquidity constraints.

Overall, these local stablecoins are designed to be a stable and reliable way to store and transfer value. They are free from pricing or liquidity constraints and they are always backed by real value.ChaiDEX V0.2 supports EVM chains, Solana, and Bitcoin, allowing users to easily swap assets between chains such as SOL-BTC or ETH-SOL.

In order to make sure that these stablecoins are reliable, ChaiDEX maintains a reserve of USD-pegged stablecoins which are equal or greater to the number of stablecoins in circulation. Doing this the and allowing everyone to verify that they have the reserves, the DEX ensures a transparent proof-of-reserves process.

Conclusion – How to Purchase Bitcoin on DEX

Buying Bitcoin with a stablecoin on a DEX was a challenge. Network incompatibility between Bitcoin and most stablecoins forced users through complex cross-chain transactions or exchanges with limited pairs. This resulted in slow speeds, high fees and security concerns.

ChaiDEX reduces this complexity. It acts as a network-agnostic DEX, allowing Bitcoin purchases with any stablecoin on any network. Through atomic swaps and a strong staking mechanism, ChaiDEX offers faster transactions, lower fees and increased security. This innovative approach positions ChaiDEX as the only DEX where users can purchase a Bitcoin on any network via any stablecoin.

Social Media is the lifeline of today’s generation. Creators are making money from social media as much as consuming it. There are about 5.6 billion social media users in 2024 and the creator economy is expected to generate $22.8 billion worldwide in 2024. 

However, creators face the problem of lack of data ownership and autonomy. Companies like Facebook and Instagram own the users’ data creating privacy issues. This is where SocialFi stepped in years ago promising Privacy and Security in SocialFi revolution.

Right now, applications like the SuperDapp built on top of Syscoin the Layer-zero Bitcoin chain bring along a robust set of privacy and security measures such as self-custody asset management to SocialFi. These measures give users full ownership of their assets and reduce any counter-party risks

The whole concept of SocialFi is about integrating social media applications with the decentralized network. SocialFi prioritizes user ownership of their content, ensures monetary benefits to creators and enables direct interactions with your favorite musicians, artists, celebrities, etc. Combining these elements SocialFi creates a decentralized and user-centric environment for the Web3 world. 

As we approach a higher point in the adoption curve of SocialFi along come some challenges of privacy and security in SocialFi. In this article, we will understand those challenges and how applications like SuperDapp tackle them and build more and more trust in the Web3 world. 

Read this article from the experts at DroomDroom explaining how blockchain has empowered, emerging artists and eased their communications with fans. 

How Does SocialFi Work?

SocialFi disrupted the traditional structure of Web2 social media platforms like Facebook, Instagram, X (formerly Twitter), etc. It achieves this by enabling users’ control over their interactions rather than algorithms controlling them and enabling them to earn income based on the value of content they share on the platform.

SocialFi is a decentralized social media platform that combines elements of decentralized finance (DeFi) and social networking. It operates on a model similar to Patreon’s Web2, where content creators such as artists, musicians, and writers connect directly with their audience.

Furthermore, users on SocialFi platforms have multiple earning opportunities based on their engagement and following. There are no restrictions on what can be monetized, so users have the freedom to earn from various sources.

DAOs & their Role in Privacy and Security in SocialFi 

Decentralized Autonomous Organizations (DAOs) play quite an important role in managing the privacy and security of SocialFi platforms. The DAOs are responsible for the governance of the platform and for ensuring that there is no central authority controlling user activity on the networks. 

These act as regulatory bodies and also prevent developers and other teams from modifying the platforms’ code. This means that every decision such as sharing incentive is will go through a vote on the DAO.

The platforms’ monetization depends on social DeFi tokens which are either native tokens or other traded assets on the platform. In addition to in-app tokens, content creators can develop their own tokens which they can use to monetize their social interactions with their fans.

Since the platforms are decentralized, users can choose which creators to engage with and must hold a creator’s token to engage. These tokens make it possible to incentivize engagement with creators and reward affiliate programs.

Additionally, when we talk about digital ownership, it means that creators can use PFP NFTs to prove their identity and track digital content ownership through other NFTs. This model makes it easier for creators to monetize anything they post, including messages, GIFs, blogs, photos and music. Creators can earn more revenue through advertising, which is fairly distributed on SocialFi networks.

All good till now right?, Here comes a spoiler and to warn you, it’s not a good one. Each coin has two sides and vulnerability is the other side of blockchain technology.The blockchain network extensively uses smart contracts. For pre-defined execution of money transfers or token transfers based on the number of likes a creator gets, there have to be some rules embedded in the technology. These rules are a set of smart contracts themselves and the problem is that these are vulnerable to security breaches just as much as the DeFi sector is separately. 

The threats of cyber attacks create a vulnerability in upholding the platform’s integrity and safeguarding users’ assets. Let’s understand these challenges and how Dapps like SuperDapp solve this challenge. 

Privacy and Security in SocialFi

A diagram illustrating the evolution of the web labeled Web 1.0, Web 2.0, and Web 3.0.

Privacy in Web3 is often discussed in terms of data sovereignty, where individuals have ownership of their personal information and decide who can access it. This creates a shift that could lead to a future where personal data isn’t used for advertising purposes. In Web3 users can participate in online ecosystems without exposing unnecessary information.

However, achieving privacy and security in SocialFi Web3 is a complex challenge. While blockchain technology provides transparency and security through immutability, it also poses many privacy risks because public blockchains by design are visible to all. This means that even pseudonymous transactions can be tracked and analyzed for patterns and other data points. 

In order to reduce these challenges, Web3 projects are exploring a range of privacy-enhancing techniques, like zero-knowledge proofs and confidential transactions which allow for verification of data without revealing sensitive details. 

When talking about challenges, not all blockchains are public, some blockchains are public and some are private. Experts at DroomDroom have explained it brilliantly with this article. 

How SuperDapp Preserves and Protects Privacy?

In the Web3 world digital security and privacy and security in SocialFi world are more crucial than ever and Syscoin blockchain-based SuperDapp offers a solution that redefines how we interact with our digital assets. Built on the innovative Rollux technology, Super Dapp’s self-custody wallet is designed to provide users with complete control over their cryptocurrencies and digital assets.

This approach ensures that your data remains yours—secure, private and free from centralized control.

Read this article to understand in depth how the rise of non-custodial wallets has created a space of safety in the blockchain world.

Some of the other ways in which SuperDapp preserves the privacy of its users are – 

Layer-Zero Bitcoin chain

SuperDapp secures itself through the power of Syscoin, the Layer-Zero Bitcoin chain. Syscoin inherits Bitcoin’s robust Proof-of-Work consensus mechanism making it extremely difficult to tamper with SuperDapp’s data.

Our protocol proved itself resilient in this scenario several weeks ago. No halts in adverse conditions.Our Finality is an additive. In its absence, Nakamoto consensus catches, for graceful degradation.#proofofwork is the keystone.#proofofstake is supplementary only. https://t.co/9Bn23Sivpp

— Syscoin (@syscoin) February 23, 2024

Syscoin shares about their blockchain’s resilience and implies strong security – a key aspect for privacy.

Transactions on both chains are immutable, further guaranteeing the integrity of information stored on SuperDapp. Syscoin adds another layer of security. Breaching SuperDapp would require compromising the security level of the Bitcoin blockchain, a near-impossible feat.

Your Keys, Your Control

Yes, you heard it right!

Even to this date, there are some crypto platforms in the SocialFi space that control your private keys. However, SuperDapp’s self-custody wallet lets you manage your keys without relying on anyone else. This makes you the custodian of your digital assets handing you the power to buy, sell and transfer your funds.

Multi-Signature 

SuperDapp goes beyond basic security measures such as encryption and self-custody of assets. It offers advanced features that are both secure and easy to use. The multi-signature functionality lets you add extra security by requiring multiple approvals for certain actions. 

“Its user-friendly interface makes it easy to manage your crypto even if you’re not a tech expert. This balance between security and ease of use is what makes SuperDapp stand out”

Jagdeep Sidhu, CEO of SYS Labs

Strict Non-Disclosure Policy

SuperDapp has a zero-disclosure policy. They will not share user data with anyone unless required by a court order.

Advanced Encryption & Secure Connections

Adding to the list of security features, the platform employs multiple encryption algorithms like AES 256, RSA and Elliptic Curve to protect user data and has multiple SSL/TLS protocols in place to create secure connections. 

Multi-factor authentication & Zero-Knowledge Proofs

SuperDapp uses blockchain technology and Zero-knowledge proofs to encrypt user data and all their communications. SuperDapp offers an optional multi-factor authentication (MFA) as an extra layer of security.

The platform’s commitment to bringing privacy and security in SocialFi is further demonstrated through its collaboration with Fort Knoxer which is a leading crypto security company. Through this partnership, Syscoin ensures that the latest security protocols and privacy-enhancing technologies are integrated into the platform offering you users the peace of mind to have a safe and private conversation with your loved ones. 

Zero-Knowledge proofs are like a magician’s act when it comes to blockchain. Read this article to understand Zk-SNARKs which are a type of non-interactive ZK-Proofs. 

Conclusion

Privacy and security in SocialFi is essential because of the inherent nature of blockchains. Blockchains are designed to be public and transparent, which means anyone from the world can view the entire history of transactions executed on a particular chain. However, this has become problematic to the web3 world as there is some personal and sensitive information stored on the blockchain when it comes to SocialFi. 

This dilemma of the “Blockchain Privacy Paradox” is being solved by modern-age applications like SuperDapp. SuperDapp, based on Rollux addresses this issue with an end-to-end encrypted suite of communication. Additionally, it provides a layer of security along with the use Zero- Knowledge proofs and MFAs. 

The hope for privacy and security in SocialFi space is filled with optimism in the year 2024 with such applications and with the creator economy booming, blockchain technology is at the very right place to on-board the latest generation of users with its new-to-age benefits.

Cryptocurrency has raised exposure to innovative concepts and opportunities, changed economic paradigms, and become the “new economy.” Although cryptocurrencies are becoming increasingly familiar in every corner of the world, crypto volatility is just like nothing before. Currency can play for bigger profits or, on the other hand, greater losses in a very short time. Understanding the nature of Bitcoin and other crypto volatility is important.  

Crypto volatility means the unpredictable price nature of the cryptocurrency market. Bitcoin has a history of great price volatility in bursts with periodic crashes. Market sentiment, regulatory changes, and macroeconomic factors cause sudden big drops in its price.

What is Crypto Volatility?

Volatility measures the amount of an asset’s price that has fluctuated over time. In general, the volatility of an asset indicates how risky the investors perceive it to be and how much potential it exhibits for delivering higher returns or bigger losses over time horizons of shorter duration than the relatively less volatile money.

As cryptocurrencies are a relatively new asset class, they are commonly viewed as having potentially huge gains and losses in short periods. The digital assets possess high volatility, as in the case of “penny stocks,” to relatively quieter large-cap corners. On the other hand, bonds show lower volatility, where they normally move less sharply up or down over long periods.

Measurement of Crypto Volatility

When measuring volatility, it commonly refers to “historical volatility,” resulting from the analysis of prices on a given period, usually 30 days back, a year or more. Because the future is impossible to predict with certainty, the science of “implied volatility” — which offers an educated guess about what’s to come – stands as far less exact even as it serves as the foundation for such popular financial tools as the Cboe Volatility Index, often termed the “fear index” because it predicts stock market volatility over the next 30 days.  

There are two methods for quantifying crypto volatility:

One way to do this is to employ beta, The beta measures how volatile a stock is relative to the entire market (usually using the S&P 500 for that gauge).

The standard deviation of an asset, which indicates how much its price has deviated from its historical average, can be calculated.

The Importance of Crypto Volatility

Volatility is among the main elements used to determine a particular investment’s risk. Normally, investors take on quite a bit of risk if the potential gain from an investment is such that there is an equal chance that the investor might lose some of the initial investment. (Everything they’d invested is gone — as in the case of high-risk hedge-fund manager Bill Hwang, whose entire $20bn fund vanished in two days.)

5 Proven Tips to Protect Your Money During a Crypto Crash.

If anything, the retail investor usually has it as a mantra that they should be aware that they should diversify risk by spreading their holdings within an asset class. One typically well-liked way is investing in an index fund or a basket of stocks instead of buying a select few. This may also be coupled with diversification of investments in low volatile assets, such as bonds, at the same time as they have investments in more volatile asset categories, such as stocks, to minimize even further the chances of any investment giving negative returns.

Despite the cryptocurrency asset class being only a bit over a decade old, which has led to numerous very sharp run-ups followed by retrenchments and considered as, on balance, more volatile than stocks the increased trading volumes and greater institutional participation witnessed in Bitcoin, the largest cryptocurrency by market capitalization, appear to be diminishing its volatility over time. When trying emerging crypto assets like DeFi tokens or cryptocurrencies with lower trading volumes, it’s best practice to risk amounts you can afford to lose, as these are usually experiences with higher volatility. 

Crypto volatility arises from positive or negative news coverage and better or worse than estimated quarterly results. Crypto volatility is primarily attributed to irregular spikes, such that the level of trading volume can be exceptionally high. Low volume normally means high crypto volatility, such as dealing with smaller cryptocurrencies or penny stocks not traded on major markets.

Can We Reduce Crypto Volatility?

And while its crypto volatility has been decreasing of late, bitcoin often moves by double-digit percentage amounts in a single week, presenting ample opportunity for tactics such as “buying the dip.” Moreover, its high crypto volatility makes it attractive to some cryptocurrency investors as it gives the potential for big returns.

What Happens to Crypto if Binance Goes Bankrupt?

Dollar-cost averaging can reduce the negative effects of crypto volatility for less risk-tolerant people. Longer-term investors generally do not pay as much need to concern themselves with short-term fluctuations because they have every reason to believe that an investment will eventually rise over time.  Stablecoins, such as USD Coin and Dai, are less volatile cryptocurrencies – their value is set to some reserve asset, such as the US dollar.

An Overview of Bitcoin Crashes in The Past 

In 2022, Bitcoin (BTC) saw one of the worst crashes in history, with the price of BTC falling below $20,000 in June 2022, following a peak of $68,000 in November 2021. Since September 2011, June 2022 has been the worst month for Bitcoin due to monthly losses that have reached 40%.

Additionally, the cryptocurrency reported its worst quarterly losses in eleven years. Nevertheless, bear markets and Bitcoin crashes are not limited to 2022 due to the present market sell-off. In fact, since the genesis block—the first block of Bitcoin—was mined in January 2009, the cryptocurrency has witnessed its fair share of crypto winters. When we pan out the Bitcoin price chart, we can find the following five most significant price drops in its history.

Bitcoin Crashed From 32 USD to 0.01 USD in 2011

In April 2011, the price of Bitcoin broke through its first significant psychological barrier of $1, igniting the first-ever rally that saw it reach $32 on June 8, 2011. Happiness, however, was short-lived as the value of Bitcoin then crashed, bottoming out at just $0.01 over a few days.

The sharp sell-off was mainly instigated by security flaws at the now-defunct Mt. Gox, a Japanese cryptocurrency exchange that conducted the majority of Bitcoin trades then. The theft of 850,000 BTC was a security breach in the exchange’s platform, raising serious questions about the safety of Bitcoin that it staked on exchanges.

The flash crash in June 2011 kept that part of the significant Bitcoin history when BTC lost almost 99% of its value through a very short period, measured in a few days. The event started long before Bitcoin bounced its price back to the previous high of $32, and new all-time highs were reached in February 2013.

Trying to follow pre-2013 Bitcoin price charts is akin to comparing them with more recent ones. Established lineament price tracking services or websites such as CoinGecko, for instance, or CoinMarketCap did not track prices of the Bitcoin before April 2013.

Bitcoin Crashed From $1,000 to $200 in 2015

Data on BTC price depicts that Bitcoin peaked in mid-April 2013 at $100. Riding up ever since for the first time in history, it touched $1,000 in November of 2013.

Top 5 Tips For Newbie Bitcoin Investors: Here’s What You Need To Know

Less than a month after crushing the $1,000 barrier for the first time, Bitcoin embarked on one of its most savage bear market runs in history. The decline in value coincided with the crackdown on Bitcoin by the Chinese central bank in late 2013, which prohibited regional financial institutions from processing transactions involving the said cryptocurrency.

Prices of the cryptocurrencies continued to spiral down in the ensuing two years, hitting a low of $170 in January 2015 after first bottoming out at around $360 in April 2014.

December of 2013 ushered in the extended cryptocurrency winter of 2014, linked to the compromised Mt. Gox cryptocurrency exchange that was refusing Bitcoin withdrawals during the first few days of February 2014 – any trades made with the platform stopped after this point and ultimately ended in bankruptcy between the US and Tokyo.

Several other leading financial authorities around the world also aired concerns regarding Bitcoin. In 2014, late in the year, the U.S. Commodity Futures Trading Commission claimed its authority over “Bitcoin price manipulation.”

Before a long-term trend started a reversal in August 2015, the general sentiment concerning Bitcoin was mostly bearish. In January 2017, between a healthy bull market, for the first time since then, the price of Bitcoin reached $1,000 again. In the history of Bitcoin, this was the longest price recovery period from an all-time high.

Bitcoin Falls Below $3,200 After Reaching $20,000 in December 2017

In January 2017, Bitcoin recovered to $1,000, and by the end of the year, it had reached a high of $20,000.

However, similar to the $1,000 high in the history of Bitcoin, its triumph of $20,000 was short-lived as the cryptocurrency plummeted and lost over 60% of its value in just months.

So, the Bitcoin market decided to continue its way down in 2018, and the year with lightning speed soon was christened on exchanges as “crypto winter” – by December 2018, bitcoins fell only to a low of about 3,200 dollars.

Alarm bells for the commencement of the crypto winter were ringing over security concerns at Coincheck, another Japan-based cryptocurrency exchange. Coincheck was hit by a massive hack in January 2018, which resulted in the loss of around $530m NEM (NEM) cryptocurrency.

The bear market worsened when the tech giants Facebook and Google issued bans on ads for initial coin offerings and token sales in March and June 2018, respectively.

One of these initiatives contributing to the bear market was the U.S. Securities and Exchange Commission’s decision to reject applications for Bitcoin exchange-traded funds.

Bitcoin Drops From $63,000 to $29,000 in 2021

However, until 2020, the cryptocurrency market was mostly bearish, as with the retracing of Bitcoin to $20,000 – and more so in the latter half of 2018 to $3,000 – it started a new massive bull run that outpaced every other run before it and peaked at above $63k in April 2021.

Despite the slight setback, it became one of the crucial years for Bitcoin in which the cryptocurrency crossed the $1 trillion market cap.

After hitting new highs in mid-April, Bitcoin drew back a little but dropped its price to as low as $29,000 in three months.

The 2021 mini-bear market came with a growing media narrative insinuating that there are some environmental, social, and corporate governance (ESG) problems posed by Bitcoin mining.

The global ESG-related FUD around Bitcoin became even louder when Tesla, Elon Musk’s electric car company, dumped Bitcoin as payment in May on ESG concerns. Just three months later, Musk admitted that about half of Bitcoin mining was powered by renewable energy.

The bear market was short-lived despite a major crackdown on local mining farms that followed China. The bullish trend had returned by the end of July, and eventually, Bitcoin would go up to its still-unbroken all-time high of $68,000 set in November 2021.

Bitcoin Plummets From $68,000 to Below $20,000 in 2022

Bitcoin failed to break through above $70,000 and started declining in late 2021. Since the November season of last year, cryptocurrency has been experiencing a bear market with its largest historical crashers during December 2022.

In June, the cryptocurrency fell below $20,000 for the first time since 2020, fueling market panic.

The crisis of algorithmic stablecoins happens with the TerraUSD Classic (USTC) stablecoin being held to a 1:1 peg against US dollars through blockchain algorithms instead of equivalent cash reserves.

USTC, a major algorithmic stablecoin, lost its dollar peg in May. One of the most violent de-pegging saw USTC end as it skyrocketed to break into the podium of the third-largest stablecoins before it faced its demise.

Trading Bitcoin vs. BTC Futures: A Comprehensive Guide

A cryptocurrency lending crisis fueled huge liquidations and uncertainty caused by the Terra consortium, and the former had a domino effect on the rest of the cryptocurrency market. 

Investing in crypto vs. trading crypto.How to take advantage of crypto volatility?Sign up for today's webinar to learn more. pic.twitter.com/cCknuPrfhh

— Pavel | Robuxio (@PKycek) November 29, 2023

Conclusion

The history of Bitcoin crashes is a crypto volatility story and has elements of resilience, adaptation, and growth. In creating one’s path through the cryptocurrency markets’ bumpy ride, treading with some nuance on how they come about will be critical. Learning from the past, appreciating the impact of human behavior, and vigilantly standing in touch with regulatory and technological shifts can provide investors with more confidence and resilience in navigating the crypto landscape.

It has also changed how we perceive value in this digital world. Via the intersection of NFTs and branding, NFTs are gaining popularity and renowned companies like Nike and Adidas are joining the trend. These brands are exploring ways to utilize NFTs as a means of engaging with their fans and providing enjoyable experiences.

The influence of NFTs on branding is noteworthy. Brands are using NFTs to forge bonds with their customers and provide one-of-a-kind experiences. Through NFTs, brands can offer digital collectibles, virtual merchandise, and privileged access to events or experiences.

Some Ways In Which NFTs Can Impact Branding

Limited Edition Digital Collectibles

Companies such as Nike and Adidas have started introducing collectibles known as NFTs, which are connected to specific products or collections. Fans can purchase, own, and trade these collectibles creating a sense of rarity and exclusivity. This innovative use of NFTs allows brands to tap into the growing market for collectibles while also generating revenue streams.

Virtual Merchandise

NFTs also offer brands an opportunity to create merchandise that can be utilized within virtual reality or gaming environments. For instance, imagine Nike unveiling an edition sneaker that gamers can wear in a popular virtual reality game. This not only enables brands to connect with audiences but also adds an extra layer of engagement and interaction with their products.

Exclusive Access and Experiences

NFTs can serve as passports to events or experiences granting access to devoted fans. Brands can design NFTs that act as tickets for gatherings, meet and greets with celebrities, or behind-the-scenes tours. These immersive encounters not only strengthen the bond between the brand and its customers but also generate excitement and buzz around the brand.

Non-fungible tokens (NFTs) have changed the way that we view ownership of digital assets.

The convergence of NFTs and branding opens up opportunities for brand innovation and customer engagement. By harnessing the power of NFT technology brands can create experiences that deeply resonate with their audience.

Top Brands Using NFTs As A Part Of Their Marketing Strategy

Many renowned companies have embraced the use of NFTs as a part of their marketing strategies. Here are a few notable examples:

Coca Cola

In July 2021 the company made its foray into the world of NFTs by organizing an auction where they sold a series of collectibles for an impressive sum of $575,883.61. The NFT campaign was closely tied to Coke’s image as a symbol of friendship.

Adidas

Collaborating with names in the NFT community like Bored Ape Yacht Club and Punks Comic, Adidas has created exclusive digital apparel pieces designed specifically for blockchain-based gaming platforms. Through this initiative, Adidas aims to highlight themes of individuality and self-expression that are central to their real-world marketing efforts.

Nike

To establish its presence in the realm and drive revenue growth Nike has been actively investing in NFTs. It has introduced collections, including the Nike CryptoKicks – virtual sneakers that can be worn within blockchain-based games.

Tiffany & Co.

This luxury brand ventured into the Web3 world with one of the iconic NFT projects known as CryptoPunks. Tiffany & Co. Has achieved overall revenue amounting to $12.62 million in Oct 2022 from its involvement in NFTs.

Gucci

With releases under its belt, Gucci also joined the NFT bandwagon by launching various collections such as Gucci Aria NFTs, which were made available through online auctions.

Forever 21

Forever 21 has introduced its digital shopping hub called Forever 21 Shop City, which operates on the blockchain. This platform enables users to engage in real estate transactions as well as buy and sell NFTs.

Nike's NFT-related projects have made over $185M in revenue, positioning it as the biggest earning brand from NFTs.@DuneAnalytics dashboard by @nlevine19. pic.twitter.com/UDD90kz8Af

— NFTgators – Web3 News (@NFTgators) August 22, 2022

Benefits Of Integrating NFTs In Brand Strategy

Here are some of the advantages of including NFTs in brand strategy: 

Enhanced Brand Experience

NFTs offer brands the opportunity to provide customers with captivating experiences. By creating one-of-a-kind collectibles or immersive virtual encounters brands can forge connections, with consumers and deliver a heightened level of engagement.

Explore the leading Metaverse projects and companies worldwide, gaining insight into the future of virtual reality and digital economies, with this comprehensive article.

Increased Customer Engagement

Empower brands to foster connections with their customers. Through NFT drops or special rewards, brands can inspire customer participation. Cultivate a vibrant community spirit.

Tap into the Digital Art Market

NFTs serve as a gateway for brands to enter the realm of art and collaborate with artists in this space. By introducing branded NFT art collections brands can captivate an audience while positioning themselves as pioneers within the artistic domain.

Authenticity and Scarcity

With NFTs brands have the means to establish authenticity and rarity for their assets. This creates an aura of exclusivity and value, for collectors fueling demand and potentially enhancing brand worth.

Challenges Of Integrating NFTs Into Branding Strategies

Understanding the Technical Aspects and Implementation

To incorporate NFTs into strategies brands must have a grasp of technology and the NFT ecosystem. It may be necessary to invest in resources or seek guidance, from experts to navigate this space effectively.

Safeguarding Brand Reputation and Addressing Risks in the NFT Market

The NFT market is still relatively new and constantly evolving making it crucial for brands to carefully assess risks to their reputation. Conducting diligence when collaborating with NFT platforms or artists is essential to ensure alignment with brand values and authenticity.

Evaluating Financial Considerations

Introducing NFTs into strategies comes with costs such as platform fees, gas fees, and collaborations, with artists. Brands should analyze the feasibility. Return on investment before integrating NFTs into their approach.

Compliance and Legal Regulations

Like any asset brands must comply with relevant legal and regulatory requirements when creating and selling NFTs. Intellectual property rights, licensing agreements, and consumer protection laws should be taken into account to safeguard both the brand’s interests and consumers rights.

Explore the intersection of the metaverse and NFTs, uncovering their symbiotic relationship and potential for digital innovation, with this comprehensive article.

Integrating NFTs into strategies although challenging provides brands with opportunities to connect with consumers explore untapped markets and stand out from competitors. By evaluating the advantages and obstacles discussed earlier brands can make informed choices on how to effectively utilize NFTs and align them with their overall branding goals.

The Future Of NFTs And Branding

As the popularity of NFTs continues to grow and brands explore their potential it is important to look and consider how NFTs can be integrated into strategies, in the future. While NFTs have already proven their ability to enhance brand experiences and engage customers there are opportunities for their evolution and future developments. Here are a few potential trends and possibilities for the future of NFTs and branding;

Incorporating Augmented Reality and Virtual Reality

With advancements in AR and VR technologies brands can take NFT experiences to heights by immersing customers in worlds. By combining NFTs with AR/VR brands can offer experiences where customers can interact with digital collectibles in a more realistic and captivating manner.

Enhancing Cross-Platform Integration

Currently most NFTs are limited to platforms. However, as interoperability between networks improves brands will have the opportunity to expand their reach through cross-platform integration. This would allow NFTs to be accessible and tradable across ecosystems increasing liquidity and potential value.

Learn the essential steps to craft a powerful cryptocurrency brand identity, setting your project apart in a competitive market, with this comprehensive article.

Embracing Interactive NFTs

While static digital collectibles have dominated the NFT market the future could bring dynamic and interactive variations. These dynamic NFTs would have the ability to evolve over time enabling brands to create experiences that constantly change for collectors.

These trends showcase possibilities for how brands can leverage NFT technology within their strategies moving forward.

This evolution could be influenced by real-time information, content generated by humans or user interactions providing opportunities for brand storytelling and engaging with the audience.

Tokenized Loyalty Programs

NFTs can serve as a means to transform loyalty programs into token-based systems. By tokenizing loyalty rewards brands can offer NFTs to their dedicated customers creating a sense of exclusivity and fostering stronger customer engagement. These NFTs can represent membership status, access to events, or unique perks within the brand’s ecosystem.

Social Impact & Charitable Initiatives

Brands can utilize NFTs to drive impact and contribute to causes. By creating limited edition NFTs and donating a portion of the proceeds to organizations, brands can showcase their commitment to social responsibility while involving customers in meaningful ways.

DeFi Integration

Decentralized Finance (DeFi) protocols have emerged as a force within the industry. In the years it’s possible for brands to explore how they can combine NFTs with DeFi applications. This combination would allow NFT owners to unlock value by using their NFTs, as collateral or taking part in yield farming initiatives. By integrating these technologies there is potential for brands to create sources of income and provide incentives for those who hold NFTs.

Learn the ins and outs of crypto payment gateways, including their functionality and significance in digital transactions, with this comprehensive article.

The future of NFTs in the field is still unfolding and with advancements in technology and creative innovations, the possibilities are wide-ranging. Brands that strategically embrace NFTs and adapt to changing trends will be at the forefront of leveraging this technology to enhance their brand worth and engage their audience in captivating ways.

Conclusion

The combination of NFTs and branding offers brands a chance to improve customer experiences and connect with their audience in inventive ways. Looking ahead it’s crucial for brands to stay informed, about emerging trends and possibilities in order to make the most of NFTs within their strategies.

In summary, the future of NFTs within the landscape is still unfolding, driven by technological advancements and creative innovations. Brands that strategically embrace NFTs and adapt to evolving trends will lead the way in utilizing this technology to enhance their brand presence and engage their audience with approaches. By recognizing the potential of NFTs and integrating them into their strategies brands can unlock avenues, for growth and differentiation in today’s digital era.

If you want to become a seasoned crypto trader, you must learn technical analysis through studying the crypto trading patterns. The crypto trading patterns include chart pattern analysis, boosting trend evaluation skills, and determining future market trends. 

Crypto trading patterns embrace the assessment of price charts and technical analysis to make wise choices. Traders apply a set of charting tools determining either trends or support/resistance levels, as well as indicators contributing to strategical moves for winning trades in cryptocurrencies.

What Are Crypto Trading Patterns?

The crypto trading patterns include trends and formations appearing in price charts. The traders decide the right time for selling and buying digital assets by analyzing those patterns.  Chart patterns help investors to forecast future market trends. They decided to buy, sell, or hold the digital assets based on chart pattern analysis.  

Traders are inclined to buy the assets when the price moves upward creating a bullish market trend. In contrast, if the price tends to fall, putting the bearish market trend, the traders are inclined to sell the assets. 

The investors use different crypto trading patterns with unique features and implications. In the 

technical analysis, the traders analyze the price trend during a certain period. Technical analysis and fundamental analysis are very famous crypto trading patterns applied by traders.

Expand your understanding of technical analysis in cryptocurrency.

The other patterns include reversal and continuation. Some traders prefer another strategy called bilateral patterns. 

The price chart of the cryptocurrency shows two symbols of a trading pair of price tickets. Suppose a crypto trader purchases Bitcoin (BTC) against the United States dollar using the currency pair BTCUSD. So, the first currency, BTC, will serve as the base, and the second currency, USD, will serve as quote currency.  The horizontal price line depicts the most recent trading price of the digital currency. 

The trading task among the two currency pairs causes price fluctuation, creating line charts called Japanese candlesticks. The expert analysts analyze and foresee the possible chart patterns from the movement of lines and candlesticks. The price charts, trade volume, and price changes are basics of technical analysis. 

Why are Crypto Chart Patterns so Important? 

The crypto chart patterns are very important because they help to analyze the past, present, and expected future movements of currencies, including digital assets like Bitcoin. The patterns facilitate the financiers, researchers, and traders to forecast price trends. 

The experts claim that chart patterns help to analyze price trends, trade with profitable currency pairs, and gain more outcomes from digital currency trading. Swing traders must do basic cryptocurrency trading research to gain profit. Scalpers and day traders have too short a time to use the basic cryptocurrency fundamentals properly. If traders analyze the chart patterns carefully, they can successfully get short-term profits. Traders can analyze the patterns in 15 minutes, 4 hours, or daily. 

Moreover, the patterns help the crypto traders to decide the exit and entry locations based on ongoing price chart indications. The future insight helps to understand the future price fluctuation and helps traders’ decision-making.

 How Cryptocurrency is Revolutionizing the Global Financial System: A Journey to Learn.

How to Understand Crypto Charts?

Understanding crypto charts is very important because traders’ wise decisions play a crucial role in trading profits. Any wrong decision may cost a lot in the highly volatile crypto market. However, traders must understand the following patterns carefully to make expert decisions:

Candlestick Patterns

Candlestick patterns show prices at high, open, and low options during a specific period. It highlights current market trends, like bullish or bearish market behavior. 

Trading Pair

Trading Pair shows the market behavior by analyzing the currency pairs like quote currency (USDT) and base currency (BTC) in the crypto market. 

Master the art of technical analysis to enhance your crypto trading strategies and unlock rewarding opportunities, with this comprehensive article.

Current Price

The currency price indicates the price of base currency (BTC) for quote currency (USDT) in an exchange at recent rates. 

24 Hour Volume

It shows the value of Bitcoin or any digital asset exchanged by a trader during the past 24 hours for the particular asset.  The quote currency volume is expressed in USDT.

Time Unit

The traders may choose the time intervals for market analysis. The time interval may range from one minute to one month. 

High/Low

The traders can see the highest and lowest price levels within 24 hours. 

#ORIENTGREEN #GREENPOWER~ Cup & Handle pattern #Breakout on weekly chart~#trading at high of 1.5 years~Possible upside move towards 26~View invalid below 12 on WCB#stocks #investing #BREAKOUTSTOCKS pic.twitter.com/DiVuPuqsIh

— Ashish Raj (@traderashishraj) November 6, 2023

Price

Price depicts the differences in the value of a particular currency in the selected period. Candle shows the best price movement in the crypto space at a given time. The analysis of the candle movement shows the current price trend of the currency. The traders select the period according to their choice. 

Trade Volume

Chart analysis is the best way to analyze the trade volume. The candle movement shows the trade volume of cryptocurrencies. The longer bar indicates the high trade volume, while the green bar hints at a price increase, and the red bar shows a decline.

What are The Most Common Crypto Trading Patterns Found on Charts?

Traders can find many crypto trading patterns on the charts. They must learn the patterns and strengthen their visual depiction for wise trading decisions.

Handles and Cup

The handle and cup chart patterns denote high price movement and show bullish market trends. It starts with a ‘U’ shaped cup showing upward movement and price decline for short-term shaping charts as a handle. There are more bit chances of upward price movement and continuing the previous increase as the handle appears.  

Wedges

If there is a rising wedges movement, it will show bearish market sentiments of two trend lines converging upward and having a sharper upper line than a lower one. Although there are similarities in lines, they differ from ascending triangles to line slope directions. 

If there is a falling wedges movement, it shows a downward slope converging trend and indicates a bullish market trend. If both lines of this pattern slope in the same direction, the lower bar steeps slowly, indicating a bullish market trend. 

Head and Shoulder Pattern

The head and shoulder pattern is very popular in the crypto space. It shows a negative trend and hints at a fall in prices. There are three major indications, “head” indicates a higher main peak, and two lower elevations are called “shoulders”. However, the peak heights, particularly in the shoulders, are precise. 

Ascending and Descending Triangle

The rising trend line and horizontal resistance line mutually create an ascending triangle, resulting in a bullish market trend. If the price resists, it shows buying pressure and a possible breakout. The descending triangle shows a price-falling trend and bearish market sentiments. If the price falls below the support level, check it carefully; it indicates a possible price decline.

Double and Triple Top Pattern

If the cryptocurrency price falls compared to the last peak, the double-top pattern forecasts bearish market sentiments. At the same time, the triple-top method has three peaks preceding the support breach, signaling the downward movement and resulting in the weakening of the bullish market trend. 

Double Bottom

In the double-bottom pattern, the price of an asset creates a W-shaped move. It shows that after two low price movements, there is the possibility of a price increase. It indicates a long-term or intermediate reversal in the overall market trends. 

A double bottom is bullish chart pattern that forms in the shape of a 'W'. Here's how it works pic.twitter.com/2xUPvgOzFr

— Binance (@binance) March 5, 2022

Conclusion

Successful crypto trading is based on a sound understanding of the crypto trading patterns. The article emphasizes the most widely used patterns in the current market. Traders can better forecast the market using crypto trading patterns while selling and buying digital assets. 

Stay ahead in the crypto game by exploring the top 10 analysis tools of 2024 and optimizing your trading strategies with this comprehensive article.

The trading patterns are also helpful during market fluctuation and give better information for future price movements. Moreover, traders must properly understand the trading pairs, candlestick patterns, 24-hour volume, and current prices to enjoy a successful trading experience. 

Decentralized finance (DeFi) has revolutionized the industry by eliminating intermediaries and creating a more inclusive and accessible system for financial services. But as the ecosystem grows rapidly, the security of DeFi has become an issue. With monetary value at stake, it is crucial to address vulnerabilities and risks associated with DeFi platforms. This article thoroughly examines the security aspects of DeFi delving into the challenges it poses, recommended practices for risk mitigation, and potential solutions to establish a trustworthy decentralized financial ecosystem.

To maintain user trust and confidence in DeFi, addressing security challenges is essential. Key management compromises, coding errors, smart contract related risks, rug pulls (exit scams) inadequate regulatory frameworks, reliance on certain centralized components oracle manipulations, and simple human error are among the cybersecurity risks faced by DeFi.

To mitigate these risks within DeFi applications implementing various solutions can be beneficial. These include undergoing audits conducted by trusted parties or experts in the field of cybersecurity, utilizing multi-signature wallets for enhanced protection, enforcing proper access controls to limit unauthorized activities, and adopting secure coding practices to minimize vulnerabilities. To properly assess the security of DeFi it is crucial to evaluate the contracts and conduct audits on the underlying infrastructure and inherited components.

Understanding The Basics Of Security of DeFi

Before delving into DeFi security aspects, let’s first understand the concept of Decentralized Finance.

DeFi stands for Decentralized Finance, a cutting-edge system that operates on a decentralized network often leveraging blockchain technology.

Unlike financial systems that depend on intermediaries like banks or financial institutions, DeFi empowers individuals to directly access financial services without any intermediaries.

One key advantage of DeFi is its permissionless nature. Anyone with an internet connection can participate in DeFi and use a wide range of financial services such as lending, borrowing, trading, and investing. Additionally, the decentralized nature of DeFi ensures that no single entity has control over the system. This makes it resistant to censorship while granting users financial freedom.

At the heart of DeFi lies smart contracts—self-executing agreements with predefined terms written directly into code. Smart contracts automate transaction execution eliminating intermediaries and enabling trustless interactions between parties. This not only reduces transaction costs but also enhances security and transparency within the financial system.

The Risks And Vulnerabilities Associated With Security Of DeFi

Even though DeFi offers an approach to finance, it is not without its fair share of risks and vulnerabilities. Because decentralized finance relies on networks and heavily depends on contracts it becomes susceptible to various security challenges. It is crucial to understand these risks in order to mitigate them and ensure a more secure decentralized financial ecosystem.

Bugs and Vulnerabilities in Contracts

Smart contracts play an important role in DeFi as they automate financial transactions. However, they can still have flaws or loopholes that attackers may exploit. These vulnerabilities can result in losses or manipulation of transactions.

To address this risk developers should prioritize conducting audits and testing of contracts to identify and resolve potential flaws or weaknesses. Additionally adhering to security practices like code reviews and formal verification can enhance the integrity and resilience of contracts.

Hacking Incidents

Usually, DeFi platforms are targeted by hackers as a large amount of funds is involved. These types of attacks can lead to theft, manipulation, or disruptions in services. 

In order to safeguard ourselves against such hacking incidents DeFi platforms should implement security measures like using authentication factors, conducting security audits, and implementing encryption protocols. 

Challenges Related to Regulations and Compliance

As DeFi disrupts systems by operating in an open and permissionless manner it may face regulatory and compliance challenges. Governments and regulatory bodies might try to impose regulations or restrictions on DeFi platforms, which can impact their operations and the privacy of their users.

Impermanent Losses

Impermanent loss means the decrease in funds that occurs when a liquidity provider adds funds to a pool and the value of those assets changes compared to their deposit value.

To minimize impermanent loss one can consider using stablecoins with fixed values of coins when providing liquidity to pools. Additionally utilizing liquidity pools, with ratios can also help reduce these losses. The term “impermanent” is used because these losses only become permanent when you withdraw your coins from the liquidity pool. However, at that point, the losses do indeed become permanent.

To tackle risks effectively DeFi platforms should collaborate with regulatory bodies proactively while implementing compliance measures. These measures can encompass procedures like Know Your Customer (KYC) money laundering (AML) precautions and ensuring adherence to local regulations.

#Ethereum Virtual Machine has shaped the landscape of #Web3BUTFlaws of #EVM has resulted in the loss of billions of dollars in #DeFi hacksHere are 10 reasons why#blockchains need VMs that can inherently recognise & define assetsfor the real-world adoption of DeFi pic.twitter.com/6ZcRiap4a9

— Sooraj (@SoorajKSaju) August 16, 2023

How To Protect Yourself From DeFi Scams And Hacks

DeFi scams and hacks can be prevented by implementing various security measures.

Here are some best practices to protect yourself from DeFi scams and hacks.

Reentrancy Attacks

Be aware of reentrancy attacks and ensure that your smart contracts are coded correctly. A reentrancy attack is a type of smart contract vulnerability where an exploiter contract leverages the loophole of the victim contract to continuously withdraw from it until the victim contract goes bankrupt.

Wallet Security

Use wallets carefully and selectively. It is important to back up and safely store your seed phrase. Use a hardware wallet for your long-term investments that you make as secure as possible and never save, copy, or use its seed phrase on a device connected to the internet.

Smart Contract Audits

Conduct a thorough smart contract audit before deploying smart contracts on the mainnet. A smart contract security audit examines the smart contracts of a project in depth and is necessary to protect the monies invested through them.

Recognizing Red Flags

Be aware of common red flags that indicate a DeFi protocol might, in fact, be a scam or operate on fraudulent activities. For example, if an offer sounds too good to be true, it’s best to decline to avoid a potential scam.

Bug Bounty Programs

Participate in bug bounty programs to identify vulnerabilities and flaws before deploying smart contracts. Bug bounty programs offer rewards to individuals who identify and report security vulnerabilities in software.

By implementing these best practices, you can protect yourself from DeFi scams and hacks.

The Future of Security of DeFi and Emerging Trends

The global DeFi market size was valued at USD 13.61 Billion in 2022 and is expected to expand at a staggering compound annual growth rate of 46.0% from 2023 to 2030.

Some of the emerging trends in DeFi include the following:

The push toward real-world assets

Greater stablecoin adoption

Focus on layer-2 scaling and ZK technology

Security and compliance 

Privacy-focused DeFi services

Additionally, there is a growing demand for DeFi insurance policies, and the integration of traditional finance in DeFi is expected to enhance the traditional financial system to blockchain networks’ security, efficiency, and transparency.

Conclusion

To sum up, the changing world of decentralized finance (DeFi) has brought about exciting opportunities to reshape the financial industry. At it’s core, DeFi eliminates intermediaries and makes financial services more accessible aiming to create a more inclusive financial landscape. However along with its potential DeFi also faces various security challenges that require attention and has innovative solutions.

Throughout our exploration, we have delved into the realm of security of DeFi. We have examined the core elements of DeFi, understood the risks and vulnerabilities involved, and recognized the importance of security of defi. As DeFi platforms become more intricate so are the risks involved. This emphasizes the need to safeguard investments and maintain user trust.

In order to address these vulnerabilities effectively it is crucial for DeFi platforms to prioritize contract audits conduct thorough testing procedures and establish rigorous security of defi practices. Collaboration with bodies will play a vital role in finding a balance between DeFi’s decentralized nature and regulatory compliance. This will ensure that the ecosystem remains legitimate and sustainable in the run.

Furthermore, as the DeFi landscape continues to expand it is essential for users to adopt best practices to protect themselves from scams and hacks. Staying vigilant in making decisions when participating in DeFi projects or investments is key.

Looking ahead into the future of security of DeFi shows promise. Given the projected growth the industry is set to explore new possibilities by integrating real-world assets improving scalability and privacy and bridging the gap between traditional finance and the blockchain domain. As innovative solutions emerge and the DeFi ecosystem matures the combined efforts of platforms, developers, regulators, and users will shape a financial landscape that is secure, transparent, and prosperous.

As we move ahead, everyone – the platforms, the people who use them, and the people who make the rules need to work together to make sure DeFi stays safe and helps build a better financial world for all.