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VeChain surges modestly despite major chain update

VeChain announced today that its long-awaited VIP-220 feature has finally gone live. The feature is seen as a huge step in VeChain’s effort to achieve the Proof of Authority 2.0 consensus. It is a step closer to making the chain more efficient and less costly compared to other competitors. Here are some of the highlights:

  • VIP-220 began testing on a private test net today

  • The news did not have any big impact on the price, with VET seeing a modest 5% rise.

  • But VIP-220 is huge for the long-term success of VeChain.

Data Source: TradingView 

What will VIP-220 do for VeChain?

VIP-220 is the last part of VeChain’s proof of Authority 2.0 consensus. So far, the first two components which include verified randomness or VRF have already been launched. VeChain is simply getting closer to deploying an elaborate PoA with a small number of validators. 

PoA is seen as an innovative way to scale blockchains, reduce fees, and create a green and energy-efficient decentralized future. Also, VeChain is expected to integrate advanced data security tools to ensure user info is protected. With PoA, the mass adoption of blockchain technology could finally become a reality. 

This will put the chain and its native token VET on the cusp of great success. For now, this news hasn’t really moved VET’s price that much. The coin was in fact up by just 5% at press time. But from a long-term point of view, it’s definitely worth noting.

Why VeChain is not surging

The on-chain news we have seen today should be enough to get VeChain to surge by at least 10%. However, this has not happened and is largely down to the uncertainty in the market. 

For now, many investors are just watching to see how the market will play out. Underlying fundamentals are taking a back seat in favor of overall sentiment.

The post VeChain surges modestly despite major chain update appeared first on CoinJournal.

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Sam Bankman-Fried commits $250M to BlockFi: read the details here

Crypto lending platform BlockFi has secured $250 million in revolving credit from Sam Bankman-Fried’s FTX, the firm said in a press release on Tuesday.

The credit allows BlockFi access to further capital at a time the crypto market has seen a prolonged crash, with several firms sinking into liquidity problems. As such, BlockFi will use the funds to bolster its balance sheet and look to establish long-term stability.

Zac Prince, the CEO of BlockFi confirmed this via a tweet, noting:

He added in a statement:

“This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our continued commitment to the strength and accessibility of cryptocurrency markets.”

FTX CEO Bankman-Fried added:

The credit facility agreement between BlockFi and FTX comes just days after Bankman-Fried said his company (and Alameda Research) would “step in” to help distressed crypto projects as the market reels from a brutal downturn.

It also comes not long after BlockFi said it had been forced to liquidate one of its large clients for failing to meet margin calls.

Celsius Network, Three Arrows Capital and Babel Finance have all hit news headlines in the past week over liquidity issues.

The post Sam Bankman-Fried commits $250M to BlockFi: read the details here appeared first on CoinJournal.

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Compound Price is in Recovery Mode. Is it a Buy?

Compound price jumped sharply on Tuesday as demand for DeFi tokens bounce back. The COMP token is trading at $42.75, which is about 65% above the lowest level during the weekend. Its market cap has risen to more than $290 million.

Why is Compound rising?

Compound is one of the biggest decentralized finance (DeFi) platforms in the world. According to DeFi Llama, the platform has a total value locked (TVL) of more than $2.87 billion, making it the 8th biggest platform in the industry.

Compound is primarily a lending protocol. People deposit their cryptocurrencies in the network and then earn interest from them. This interest comes from its lending services, meaning that it uses the same model as a bank.

Some of the most popular supply tokens in Compound are Aave, Basic Attention Token, Dai, Ether, and Compound Governance token. 

COMP is the governance token for the ecosystem. It simply allows people to take part in the platform’s governance by making decisions. For example, they can vote on whether to join another chain like Solana or how to adjust risk in the network. According to its platform, the top addresses in its governance platform are Polychain Capital, Bain Capital Ventures, a16z, and Gauntlet. 

Learn more on how to trade crypto.

The most recent approved vote was on new collateral assets lik cUSDC, cLINK, cSUSHI, cAAVE, and cYFI. The goal was to adjust the weighting and set parameters to maintain the overall risk of the protocol during the current market sell-off.

The Compound price is rising after Celsius wired $10 million to the platform. The company, which is now going through an existential crisis, made the payment as it tries to stage a comeback. It has already suspended payments to its customers as it works with restructuring experts.

Compound price prediction

The daily chart shows that the COMP price has been in a strong bullish trend in the past three straight days as its demand rises. It is now trading at $43.8, which is much higher than its lowest level last week. It remains below the 25-day and 50-day moving averages while the MACD is below the neutral point.

Therefore, at this stage, the Compound price is still bearish. This rebound could be part of a dead cat bounce, which is usually a temporary rebound after a strong decline. As such, the coin will likely move below $35 in the coming days.

The post Compound Price is in Recovery Mode. Is it a Buy? appeared first on CoinJournal.