Monat: Februar 2023

• MakerDAO will set up the Defense Fund with an initial 5 million DAI.
• The fund acts as a self-insurance tool and will only cover legal defense expenses of specific MakerDAO participants.
• Funds will be secured in a multisig wallet, with the Maker Protocol taking control as a beneficiary.

MakerDAO, the decentralized autonomous organization (DAO) that issues the Dai (DAI) stablecoin and governance token Maker (MKR), has announced the launch of a new fund to be utilized in the case of legal or regulatory action involving the DAO’s participants.

The Defense Fund has been created following a governance vote on a Special Funding Proposal, the Maker team said. Accordingly, funds will be added to a multisig wallet for this purpose, with this done in one lump sum, the platform revealed on Wednesday.

MakerDAO’s $5 million defense fund

According to the platform, the fund will initially have a contingency budget of $5 million in the native DAI and be used to reimburse legal expenses incurred by specific community members.

Specifically, the Defense Fund will cover recognised delegates, core unit facilitators and permanent contributors. Active holders of MKR are also part of the primary group of beneficiaries.

The Defense Fund is thus envisaged as “a self-insurance tool for MakerDAO participants.” However, those set to benefit (as listed above) must be facing legal action directly linked to their activities at MakerDAO, the platform added.

“All claims and payouts will be managed by an external technical committee composed of insurance and risk management experts. The committee will issue a recommendation to approve or reject a payout based on a claim,” read part of a statement posted on the Maker Twitter account.

Maker Protocol will control the funds as one of the parties to the Defense Fund multisig wallet.

The post MakerDAO launches $5 million legal defense fund appeared first on CoinJournal.

• The US SEC has accepted that the LBRY Credits (LBC) token is not a security.
• LBC Token shot up to a daily high of $0.03225 after the news.
• At press time, the token was trading at $0.0278.

The price of LBRY Credits (LBC) surged by over 90% earlier today after the US Securities and Exchange Commission (SEC) accepted that the token was not a security. LBC is the native token of Library Credit, a platform that seeks to simplify the way digital content is distributed and accessed by both consumers and producers.

Library Credit has had a long battle with the US SEC and on Monday, a New Hampshire district court judge ruled that LBC token transactions on the secondary market were not securities.

What was the issue between SEC and LBRY?

The US SEC took action against Library Credit in March 2021 accusing it of selling an unregistered security. Library Credit maintained that its token, the LBC, was not a security but rather a digital currency.

In November last year, the case was won by the SEC and Library Credit cited the ruling then as a “dangerous precedent” that could make all cryptocurrencies to be terms as securities.

Library Credit went ahead and filed an appeal, which was heard on Monday (January 30, 2023) with a focus on whether the secondary market sales of the LBC tokens should be included in an injunction the US SEC is seeking the court to approve. If the injunction was to be approved, it would prevent the sale of LBC tokens.

John Deaton, a lawyer who has previously raised issues with the XRP case, appeared as an amicus curie in the LBC case. He was pushing to have the court clarify who would be covered by the injunction that the SEC was seeking determination.

A win for the crypto industry

The new ruling comes as a reprieve for the crypto industry which has faced many similar cases with Ripple versus the US SEC being one of the most followed.

Following the turn of events, the XRP community is hoping for a similarly favourable outcome in its own case against the SEC.

The post LBRY Credits (LBC) shoots up by 90% after being declared not a security appeared first on CoinJournal.

• Crypto investors can still add to the value of their assets even during crypto winter.
• What are the top strategies of earning interest on crypto?
• Example of a cryptocurrency that one can still earn interest from during crypto winter.

A growing number of investors are taking advantage of cryptocurrencies to increase their assets’ value. During the crypto market’s winter, investors who don’t want to sell their holdings can consider interest rates as an alternative.

Earning interest on your crypto holdings is one way to increase crypto assets’ value. You can earn interest on your crypto without doing any additional work by using various platforms and services. How does it work? Let’s find out! 

Decentralized lending platforms

Decentralized lending platforms are a popular way to earn interest on your cryptocurrency. Using decentralized lending platforms, users can borrow or lend their cryptocurrencies at an annual percentage rate (APR). 

Interest is based on the type of cryptocurrency that you hold, as well as how much you lend.

The disadvantage of decentralized lending platforms is that they are vulnerable to impermanent loss, platform hacks, flash loan attacks, and, more commonly called DeFi rug pulls.

Automated crypto trading

Automated crypto trading is a technology-driven method of trading digital currencies on crypto exchanges. Through the use of advanced algorithms, automated crypto trading allows traders to make informed investment decisions without having to spend a lot of time manually analyzing data and events. 

In addition to simplifying operations and ensuring timely execution regardless of market conditions, automation removes much of the subjectivity from decision-making. 

Investors can use crypto trading bots or automated crypto trading platforms to execute trades. The problem with crypto trading bots is that they cannot adapt to market news, which can lead to big losses.  

One way to take advantage of automated cryptocurrency trading is to use platforms like Haru Invest. Algorithms on such platforms are constantly updated based on market conditions. Further information about Haru’s strategies and performance numbers can be found here.

Staking 

Last but not least, many digital currencies offer staking rewards where holders can stake their coins to participate in consensus protocols. 

Typically, stake rewards are paid out as newly minted coins or tokens, which can be sold or exchanged for other digital currencies. For instance, Cardano holders can stake their ADA tokens and earn rewards up to 4-5% annually.

Conclusion

You can increase the value of your crypto assets by earning interest on them without having to do any additional work, especially during crypto winter. You can easily add additional income streams to your crypto investments by utilizing specialized platforms like Haru Invest. It’s never too late to get started earning! You have a variety of options available to you.

The post Earn Interest on Crypto during Crypto Winter: Top Strategies appeared first on CoinJournal.

• Cathie Wood reiterates her super bullish stance on Bitcoin.
• She doesn’t see the recent FTX collapse as much of a threat.
• Bitcoin is currently up about 40% versus the start of the year.

The recent surge in Bitcoin is just a drop in a bucket compared to where the price is headed, says Cathie Wood – Founder of Ark Investment Management.

Wood continues to be super bullish on BTC

Bitcoin was an absolute pain for investors last year but none of it was enough to turn her dovish on the cryptocurrency. Wood still recommends buying BTC and expects it to eventually be priced at half a million dollars.

Even more so after the crypto fallout this past year and collapse in many companies, this idea of transparency and decentralisation is taking hold. Bitcoin and Ethereum are the two best manifestations of that in the crypto world.

The U.S. Federal Reserve is expected to announce its eighth consecutive rate hike on Wednesday, which makes today equally crucial not just for the equities but the crypto space as well.

Year-to-date, Bitcoin is up roughly 40% at writing.

Wood’s take on the recent FTX collapse

The crypto market was particularly spooked late last year following the collapse of Sam Bankman-Fried’s FTX that Coin Journal reported HERE.

But Cathie Wood doesn’t see it as much of a long-term threat for the likes of Bitcoin and Ethereum. This morning on CNBC’s “Squawk Box”, she said:

If you look at what happened to Bitcoin, the network, and Ethereum, the network, they really did not skip a beat at all. Transactions were completed. All smart contracts opened and closed.

Wood has a sizable position in the Grayscale Bitcoin Trust as well that, in 2022, sued the U.S. SEC for blocking conversion of its crypto product to an ETF.

The post Cathie Wood still expects Bitcoin to eventually be priced at $500K appeared first on CoinJournal.