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Vitalik Buterin defends recent ETH sales, says they’re for projects and charity

  • Vitalik Buterin clarifies ETH sales were for projects and charity, not profit.
  • He held 325K ETH three years ago but now holds 240K ETH.
  • Buterin has also defended Ethereum’s support for DeFi amid criticisms from some in the space.

Ethereum co-founder Vitalik Buterin has come out to address allegations surrounding his sales of Ether (ETH), clarifying that these transactions were not driven by personal profit but by a commitment to support Web3 projects and charitable initiatives.

According to a recent post by on-chain analytics firm Lookonchain, Buterin has reduced his ETH holdings by 85K ETH ($209M) in 3 years.

The most recent is the transfer of 800 ETH worth over $2 million to a multi-sig wallet. Lookonchain highlighted that the same wallet address had received 3,000 ETH from Buterin on August 9, fueling concerns about the motives behind Buterin’s sales.

Vitalik Buterin denies selling ETH for profit

In response, Buterin firmly denied any allegations of selling ETH for personal profit. He clarified that he has not sold any Ether for personal financial gain since 2018. Instead, he explained that his ETH sales were intended to support various Web3 projects and philanthropic endeavours.

Buterin’s statement aims to underscore his longstanding commitment to using his resources for the advancement of important causes rather than personal enrichment.

Supporting Ethereum and DeFi

Buterin’s statements also touch upon his stance regarding decentralized finance (DeFi) and the broader Ethereum ecosystem. He has come under fire for Ethereum allegedly not sufficiently supporting DeFi.

Kain Warwick, the inventor behind the concept of yield farming, and MilliΞ a crypto philosopher criticized Buterin for his perceived lack of emphasis on DeFi.

However, Buterin defended Ethereum’s role in DeFi and his position stating that he thinks “DEXes are great, and I use them every week.”

Buterin’s defence reflects his commitment to ensuring that Ethereum continues to support meaningful and sustainable developments within the blockchain space. He has consistently advocated for the importance of long-term value over temporary gains, reinforcing his position that the Ethereum network should remain focused on foundational principles rather than transient trends.

By addressing these allegations and defending Ethereum’s role in DeFi, Buterin reaffirms his commitment to the broader vision of a decentralized and impactful digital future.

The post Vitalik Buterin defends recent ETH sales, says they’re for projects and charity appeared first on CoinJournal.

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Devs demonstrate AI to AI crypto transactions on Coinbase Developer Platform

  • Coinbase saw its first AI-to-AI crypto transaction using AI tokens on its developer platform.
  • The AI agents used crypto wallets to transact with AI tokens, bypassing traditional finance.
  • This marks a step toward autonomous AI-driven economies and AI-enabled checkouts.

This week, the cryptocurrency world took a significant leap forward as Coinbase, a leading cryptocurrency exchange, witnessed its first AI-to-AI crypto transaction.

Overseen by Coinbase CEO Brian Armstrong, this event marks a groundbreaking development where AI agents autonomously executed a transaction using AI tokens. This could pave the way for AI-driven economies, with AI agents performing increasingly complex tasks through crypto transactions.

Successful crypto transaction with AI agents on Coinbase

The transaction, conducted on the Coinbase Developer Platform, involved two AI agents, bots designed to carry out certain tasks, exchanging AI tokens — essentially strings of data that enable learning and task execution.

Armstrong, in his announcement, emphasized the importance of this development stating, “AIs are now paying other AIs with crypto,”  and highlighting how one AI agent used tokens to purchase tokens from another.

This development is more than just a technical achievement; it symbolizes a critical step toward enabling AI agents to complete useful tasks autonomously.

Traditionally, AI agents have faced limitations due to their inability to access traditional financial services like bank accounts or credit cards. These limitations have restricted their capacity to perform tasks that require transactions, such as booking flights, managing ads, or accessing paid APIs.

However, with the integration of crypto wallets, AI agents can now bypass these hurdles. Using USDC on Base, a blockchain developed by Coinbase, AI agents can transact instantly, globally, and free of charge.

This development opens up new possibilities for AI agents to acquire the resources they need to complete tasks more efficiently, without human intervention.

The future of AI-driven economies

The introduction of AI-to-AI crypto transactions could herald a new era in AI-driven economies.

Armstrong has been a vocal advocate for equipping AI agents with crypto wallets, seeing this as essential for their participation in the digital economy. While stressing the need for AI agents to have financial capabilities, he pointed out, “AI agents cannot get bank accounts, but they can get crypto wallets.”

Recent developments by firms like Skyfire and Biconomy further support this vision. Skyfire has launched a platform that allows AI agents to spend money autonomously, while Biconomy’s Delegated Authorization Network enables AI agents to execute on-chain transactions on behalf of users.

These innovations are building a foundation for a future where AI agents can autonomously interact with humans, merchants, and other AI agents, performing tasks ranging from routine purchases to complex operations.

As AI technology continues to evolve, the integration of crypto wallets into AI models may become a standard practice, enabling a robust AI-to-AI economy. Companies are encouraged to prepare for this shift by adapting their services for AI-enabled checkouts, as the potential for an AI-driven economy expands.

The future may very well see AI agents not only contributing to but actively driving economic activities on a global scale.

The post Devs demonstrate AI to AI crypto transactions on Coinbase Developer Platform appeared first on CoinJournal.

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Texas approves debtor-in-possession financing plan for BTC miner Rhodium

  • Rhodium filed for Chapter 11 with debts of up to $100M and assets of up to $500M.
  • The debtor-in-possession financing plan is offered by Galaxy Digital.
  • Galaxy Digital offers Rhodium a $30M loan or 500 BTC with a 9.5%-14.5% interest.

Rhodium Enterprises, a Texas-based Bitcoin mining firm, has recently garnered significant attention following its Chapter 11 bankruptcy filing on August 24, 2024.

With liabilities ranging between $50 million and $100 million, and assets valued between $100 million and $500 million, Rhodium’s financial struggles have highlighted the growing challenges within the cryptocurrency mining sector.

Riot Platforms claims Rhodium owes it $26M

At the heart of Rhodium’s financial distress is its strained relationship with its landlord and power supplier, Whinstone.

This tension contributed to Rhodium defaulting on a $54 million loan in July, shortly before the company raised $78 million in additional lending. The strain has culminated in the filing of a lawsuit by rival mining firm Riot Platforms, which claims Rhodium owes over $26 million in unpaid fees.

Texas approves debtor-in-possession financing plan for Rhodium

Despite these setbacks, Rhodium has secured an unusual debtor-in-possession financing plan approved by a Texas court.

This plan, offered by Galaxy Digital — a blockchain firm led by Mike Novogratz — provides Rhodium with a choice between a $30 million loan with a 14.5% annual interest rate or a 500 Bitcoin loan with a 9.5% interest rate.

Notably, the Bitcoin miner has the option to repay the Bitcoin loan in US dollars, based on market prices at the time of repayment.

The approval of this financing plan is particularly striking given the volatility of Bitcoin price, which adds a layer of uncertainty to Rhodium’s repayment obligations. Over the last month, Bitcoin has seen a nearly 11% decline, reflecting broader market instability.

Rhodium’s struggles are not isolated; they are emblematic of the broader challenges facing the cryptocurrency mining industry. The recent Bitcoin halving has reduced mining rewards while rising electricity costs have eroded profit margins.

As Rhodium endeavours to reorganize and recover, its journey underscores the precarious state of the crypto-mining sector in an increasingly volatile market.

The post Texas approves debtor-in-possession financing plan for BTC miner Rhodium appeared first on CoinJournal.