Kategorie: Crypto Markets

Daily headlines and news about crypto markets.

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TrueUSD the first USD-backed stablecoin to use Chainlink ‘Proof of Reserve’ to mint

  • TrueUSD will use Chainlink Proof of Reserve (PoR) in minting the TUSD stablecoin.
  • It is the first stablecoin to use Chainlink PoR in controlling the minting process.
  • The PoR will check the balance between the total supply of TUSD and US dollars held in reserve.

TrueUSD has today announced that it will be using Chainlink (LINK) Proof of Reserve (PoR) to secure the minting of its fully collateralized USD-backed stablecoin TUSD. The news comes after TrueUSD launched TCNH, a TRON-Based stablecoin pegged to offshore Chinese Yuan in December 2022.

This makes TrueUSD the first stablecoin to programmatically control minting using real-time on-chain verification of off-chain reserves. This is a paradigm shift in decentralization, transparency, and independent verification.

How the programmed minting process will work

The TUSD reserve data is aggregated by The Network Firm LLP (TNF), which is an independent industry-specialized accounting firm in the US. TNF will aggregate all reserve data of US dollars held at financial institutions in real-time and serve that information on-chain through Chainlink’s oracle network. This is what is referred to as proof of reserve.

TUSD smart contract will then use this Proof of Reserve data feed to automatically check whether the total supply of TUSD would exceed the total amount of US dollars held in reserve before a new stablecoin is minted.

The automatic workflow is transparent in the smart contract code and supported by open independent data feeds thus affirming TUSD’s commitment to ensuring the stability of the ecosystem and the redeemability of the underlying dollars for clients.

TUSD users can feel confident that they have an accurate and transparent source of information about the reserves backing the TUSD stablecoin.

Commenting on the development, the co-founder of Chainlink Sergey Nazarov said:

“We are proud to support TUSD in its efforts to bring new layers of transparency, risk management, and security to its stablecoin minting process. With Chainlink Proof of Reserve, TUSD is able to provide greater levels of assurance and confidence to its users, and help bring greater stability to stablecoins and the broader crypto industry.”

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Tezos price surges as Google Cloud becomes a Tezos validator

  • Tezos blockchain has partnered with Google to drive Web3 innovation.
  • In the partnership, Tezos will onboard Google Cloud as a validator.
  • Google also partners with Ethereum, Flow, and Solana blockchains.

The price of Tezos (XTZ) is rising following a partnership between Tezos blockchain and search engine behemoth Google. At press time, the TXZ token was trading at $1.32 after surging by 6.32% in the past 24 hours.

The partnership between the search engine behemoth and the proof-of-stake blockchain will drive Web3 innovation on the Tezos blockchain. Tezos Foundation will onboard Google Cloud as a validator.

What it means for Google Cloud users

Following the agreement, Google Cloud users can build Web3 applications and deploy decentralized applications on the Tezos blockchain. They will be able to tap Tezos nodes to develop blockchain applications.

Tezos nodes, just like any other blockchain nodes, function as communication points that allow corporate users to confirm transactions, track the network’s history, as well as run the software needed for Web3 apps among other tasks.

Select startups incubated by Tezos will also have access to Google Cloud mentorship and credits.

The engineering director of Web3 at Google Cloud, James Tromans, commented on the partnership saying:

“At Google Cloud, we’re providing secure and reliable infrastructure for Web3 founders and developers to innovate and scale their applications. We look forward to bringing the dependability and scalability of Google Cloud to power Web3 applications on Tezos.”

Google recently integrated crypto payments on its Cloud services in a partnership with crypto exchange Coinbase. In the partnership, Coinbase is to allow Google Cloud users to settle their payments using digital currencies like Ether (ETH), Bitcoin (BTC), and other eight cryptocurrencies.

The post Tezos price surges as Google Cloud becomes a Tezos validator appeared first on CoinJournal.

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Should you buy Coinbase stock after Q4 results?

  • Coinbase reports market-beating results for its fiscal Q4.
  • Mizuho’s Dan Dolev shares his outlook on Coinbase Global.
  • Coinbase stock is currently up about 90% for the year.

Coinbase Global Inc (NASDAQ: COIN) is trading slightly up in extended hours after reporting market-beating results for its fourth financial quarter.

How is its current quarter going so far?

Also a positive was its update on the current quarter.

Year-to-date, Coinbase said the crypto market cap is up 40% and transaction revenue was $120 million last month. Nonetheless, the crypto company is not very bullish on the rest of the year, as per its letter to the shareholders.

Given the unpredictability of crypto markets, we have limited certainty around the rest of the year.

Coinbase stock is currently up about 90% for the year.

Is Coinbase stock a ‘buy’ now?

Coinbase ended the quarter with 8.3 million monthly transacting users – slightly ahead of 8.2 million that Street had anticipated. Still, Mizuho’s Dan Dolev said on CNBC’s “Closing Bell: Overtime”:

The take rate continues to come down. Interest income is non-core to this business. Retail investors are uninvolved. So, I don’t think it’s much to ride on about.

Dolev currently has an “underperform” rating on Coinbase stock. His $30 price target suggests an alarming 50% downside from here.

Notable figures in Coinbase Q4 report

  • Lost $557 million that translates to $2.46 a share
  • That compares to $840 million of profit last year
  • Revenue tanked about 75% YoY to $629 million
  • Consensus was $2.52 loss on $588 million revenue
  • Trading volume in its Q4 tanked to $145 million

Dolev is bearish on the category

According to Coinbase, its subscription and services revenue climbed 34% in the recent quarter, as per its earnings press release. Still, Mizuho’s Dolev said:

I’m extremely bearish on the overall category. As money becomes tighter and people realise they might be laid off, I don’t think they’ll play crypto. So, I don’t see great things in 2023 for them.

Transaction revenue was down 12% year-on-year in the fourth quarter. Coinbase now has $5.50 billion worth of total dollar resources.

The post Should you buy Coinbase stock after Q4 results? appeared first on CoinJournal.

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Bitcoin “shrimp” addresses surge to all-time high above 43 million

  • Bitcoin “shrimp” wallets, which hold 1 bitcoin recently surged to 43.2 million.
  • Bitcoin addresses with 0.01 BTC or less have also hit an all-time high of 32.6 billion.
  • Data also shows bitcoin wallets in profit have reached 70% after recent price gains.

Bitcoin price recently reached an eight month high when it rallied to highs above $25,000 last week.

Despite this, the latest market data from asset manager CoinShares shows Bitcoin investment products saw outflows of $25 million, about 78% of the $32 million that exited amid negative sentiment. But a new report shared by crypto exchange Bitfinex indicates that Bitcoin still saw massive growth in terms of the address count with one BTC or lower.

Bitcoin “shrimp” addresses hit 43.2 million

According to data shared in the Bitfinex Alpha report published Monday, 20 February 2023, Bitcoin addresses with less than one bitcoin, or “shrimps”, recently jumped to 43.2 million – the highest the count has hit in the flagship cryptocurrency’s history.

No doubt this has been greatly helped by the massive growth in addresses with 0.01 BTC or less. Per the Bitfinex report, and from on-chain data by analytics platform Glassnode, the number of wallets with balances of 0.01 BTC or under recently hit 32.6 million.

Overall, wallet addresses with non-zero balances are at an all-time high, which Bitfinex researchers say is indicative of “an influx of new investors.” 

As CoinJournal recently covered, shrimps actually increased their buying even as prices fell after the FTX collapse. And it is this increase in the number of non-zero wallets that could have fueled Bitcoin’s recent upside momentum, the Bitfinex team noted in their report.

Is it the start of a new Bitcoin bull market?

Bitcoin has been largely upwards in January and February, with nearly 50% in overall gains year-to-date as of 21 February. In fact, as Glassnode data shows, the number of Bitcoin wallets in profit (7-day moving average) has also just hit a 10-month high.

While analysts warn of a potential pullback amid profit booking across crypto, the sentiment is still mostly bullish for BTC in the short term. And the recent growth in shrimp wallet addresses aligns with historical market trends in a bear market.

In this case, bull markets have traditionally been highlighted by wealth distribution, with the entry of new short term holders a metric that helps signal the shift in market direction.

However, as Bitfinex analysts noted in their report, the latest data is only a “snapshot of the current situation.” In short, it is hard to predict where the market goes next at any one given time.

The post Bitcoin “shrimp” addresses surge to all-time high above 43 million appeared first on CoinJournal.

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Toncoin price prediction: TON outlook as validators vote to freeze 20% of supply

  • Toncoin price is around $2.36 as of 9:15 am ET, with TON up only 1.2% in the past 24 hours.
  • TON blockchain validators are set to vote on a propol to freeze up to 1 billion coins.
  • Reducing TON circulating supply could help price momentum in the short term amid fresh buying pressure.

Toncoin price is largely flat on Tuesday morning, with the coin’s value only 1.2% and 2.7% higher in the past week and 30 days respectively.

The price of TON, the native coin on The Open Network (TON) blockchain, was around $2.06 on 10 February, before rising to highs above $2.40 as the broader market rallied this past week. However, today’s price action has seen the coin decline to test lows of $2.34 – again amid a broader market slowdown that has Bitcoin bulls battling to keep BTC above $24,500. 

So, what’s the outlook for Toncoin price?

TON price prediction ahead of key vote on token supply

TON validators are set to vote on a major proposal around Toncoin’s tokenomics, particularly on freezing billions of TON tokens.

This proposal aims at reducing the coin’s circulating supply by 20% if it passes.  If validators adopt the proposal, 1 billion TON tokens will be frozen for the next 48 months. In doing so, the total supply will drop to roughly 4 billion, while circulating supply shrinks from the current 1.47 billion.

TON developers’ proposal targets inactive accounts belonging to the layer-1 blockchain’s first group of miners. The team hopes the move will help bring more decentralisation to the project as freezing the inactive large wallets will ostensibly remove the control of the early whales.

The plan is to have these large whales lock their assets for 48 months through a network of validators, which would still see them earn more Toncoin.  But according to the proposal, only whales holding 300,000 TON or more will be able to lock their coins, which at current prices of $2.36, is equivalent to just over $708,000. 

Large whales who don’t have such holdings can join a pool and stake their TON.

Toncoin price in 2023

As noted below by the trading platform Dash 2 Trade, Toncoin price has not made an explosive start to 2023 as have some of the leading coins in the market. 

But with the locking of 1 billion TON tokens, the short-term price movement could be on the upside. Cutting token supply through various methods as part of the tokenomics is largely seen as a positive for the price.

If this is the case, bulls could be looking at retesting $2.55 and then December highs of $2.66 in the short term. 

However, any upside momentum could also depend on the overall market outlook in coming months. Also key is the locking period for TON being set for 48 months, which could mean prices rise then flip once coins begin to be unlocked.

TON is also 55% down from its all-time high of $5.29 reached in November 2021.

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