Kategorie: Crypto Markets

• FLOKI’s price has rallied by over 100% in the past week.
• It has hit a daily high of $0.00002973 today rallying on the news of the passed proposal.
• The passed proposal will see Floki Inu burn about 4.97 trillion FLOKI tokens.

The Floki Inu DAO has finally passed the “Remove the FLOKI transaction tax and burn the bridge tokens” proposal. As reported in our earlier news, the proposal was opened for voting on January 27 causing significant price movements immediately after it was announced.

The voting proses was concluded on January 29 with 99.97% of the participants voting in favour of the proposal.

What next after approving the proposal?

According to the information provided by Floki Inu, the proposal determined the future of two things for the Floki Inu community which are:

• The original Floki cross-chain bridge.
• The 3% tax on the FLOKI token.

The proposal sought to have the original cross-chain bridge disabled and the tokens in the bridge burned since the bridge posed some vulnerability threats. Floki Inu narrowly dodged a bullet last year when the cross-chain bridge was briefly exploited forcing the team to quickly disable the bridge to limit the exploit’s impact.

Now that the DAO has voted to pass the proposal, the team will go ahead and disable the main cross-bridge and embark on burning the FLOKI tokens that were in the bridge. The 3% buy and sell FLOKI transaction tax will also be drastically reduced to a 0.3% tax which is the default tax/fee on most decentralized exchanges like Uniswap (UNI/USD).

On timelines, the FLOKI transaction tax will be lowered to 0.3% effective 8 PM UTC on February 3, 2023, while the 4.97 trillion tokens will be permanently burnt at 8 PM UTC on February 9, 2023. As of the price of FLOKI today, the planned token burn is worth about $100 million.

The post Floki Inu DAO approves proposal to burn over $100M worth of FLOKI tokens appeared first on CoinJournal.

• Floki Inu will burn 4.97 trillion FLOKI tokens worth over $55 million if the DAO vote passes.
• The meme coin project is also looking to cut transaction tax from 3% to 0.3% and permanently disable the cross-chain bridge.
• The price of FLOKI rose 25% early Saturday to hit its highest level since August.

Floki Inu (FLOKI) holders are voting on a major governance proposal that could see the meme cryptocurrency burn millions worth of the nativ FLOKI tokens, permanently removing them from circulation. 

Floki to burn 4.97 trillion FLOKI and cut tax to 0.3%

Here’s the DAO proposal announcement as posted by the official Floki Inu Twitter account.

#Floki’s latest DAO proposal is live!

If this proposal passes:

– 4.97 trillion $FLOKI tokens (worth ~$54,670,000) in the Floki bridge will be burnt.
– The #Floki buy/sell transaction tax would be reduced to 0.3%.

Read the full proposal and vote here:https://t.co/nmx4cxJ6v1

— FLOKI (@RealFlokiInu) January 26, 2023

Notably, Floki Inu’s maximum supply is 10 trillion tokens, but more than half of it is currently held in a cross-chain bridge created when the mainnet launched on the BNB Chain.

The developer team highlights the security threats posed by this scenario, noting in the proposal that cross-chain bridge exploits have seen over $2.5 billion lost in the past two years.

“In Floki’s case, an exploit on our main cross-chain bridge would have a catastrophic impact on the project since this bridge currently holds 55.7% of what should be FLOKI’s total circulating supply,” the developers noted.

According to the proposal introduced Friday, the goal is to also cut the 3% tax on FLOKI transactions to 0.3%. This will enhance FLOKI’s utility and the Floki Inu ecosystem as one of the top platforms for decentralised finance (DeFi).

If the DAO vote on the two issues passes, 4.97 trillion FLOKI worth over $55 million will be burnt. The team will also permanently disable the cross-chain bridge. As of 9:00 am ET on 28 January 2023, roughly 99.97% of the votes were in support of the proposal.

Voting will end at 9:16 PM UTC (4:16 pm ET) on Saturday, 28th January.

FLOKI price jumps 25% on token burn proposal

As token burns reduce supply of a given token, the expectation is that the price of that token will go up amid the basic principles of scarcity. The outlook is no different for Floki Inu. 

There is excitement about what the future could hold for the FLOKI token, even as the meme coin continues to see upside momentum in 2023.

The price of the Floki Inu utility token surged early Saturday to hit $0.00001715, its highest level since August.  According to data from CoinGecko, FLOKI is currently more than 25% up in the past 24 hours, changing hands around $0.00001643. 

Weekly gains are nearly 50% while the token’s value has risen by 96% in the past 30 days.

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• The Azuki team managed to reclaim the Twitter account shortly after the attack.
• Data shows the hacker was able to steal over $750,000 from one wallet, while several others were drained of ETH, USDC and NFTs.
• The Azuki NFT collection brand has previously been used to lure unsuspecting users via other compromised Twitter accounts.

Hackers stole thousands of dollars’ worth of digital assets and NFTs after compromising the Twitter account of anime-inspired non-fungible token collection Azuki.

The incident, which happened on Friday, 27 January, saw the malicious actor(s) post a fake link regarding a land mint in Azuki’s The Garden metaverse.

1/ The @AzukiOfficial Twitter was compromised today. A series of malicious tweets were posted during the morning of Friday, Jan 27th (Pacific Time).

The team has regained control of the @AzukiOfficial Twitter.

Details below 👇

— Azuki (@AzukiOfficial) January 27, 2023

Hacker drained over $750,000 from one wallet

According to on-chain data from Etherscan, the result of the attack was the loss of over $752,000 from one wallet. Blockchain data also shows the attackers drained 751,321.805231 USD Coin (USDC), or $752,073 from the unsuspecting Azuki fan to the attacker’s wallet.

Users who clicked on the malicious link also helped the hackers steal 11 NFTs, 3.9 Ether (ETH), and over 6.7k USDC.

While Azuki quickly reclaimed control of the Twitter account, users have been asked to be vigilant. The team has advised that the community ensures the announcements they respond to are those “simultaneously” posted on multiple Azuki channels, including Twitter, Discord and the Azuki website.

Notably, the Azuki name and NFT brand has previously been used to propagate a similar Twitter account attack. The Twitter account of India University Grant Commission was compromised in April last year, with the hackers using it to promote a fake Azuki NFTs airdrop.

The post Hackers steal $750K after fake NFT link on Azuki’s Twitter account appeared first on CoinJournal.

• Silvergate Capital Corp suspends dividend on its preferred stock.
• Wedbush Securities analyst reiterates his neutral rating on “SI”.
• Silvergate stock is currently down over 85% since mid-August.

Silvergate Capital Corp ended 5.0% down on Friday after the crypto bank suspended dividend on its preferred stock.

Silvergate is trying to preserve capital

The embattled digital currency services company is cutting back on the payout to preserve capital. Its press release reads:

This decision reflects the Company’s focus on maintaining a highly liquid balance sheet with a strong capital position. Company continues to maintain a cash position in excess of its digital asset customer related deposits.

The California-based company also confirmed that its Board will re-evaluate the quarterly payment once market conditions improve.

Silvergate stock has lost over 85% since mid-August, related partially to the FTX collapse. Consequently, billionaire investor Cathie Wood almost entirely pulled out of it at the start of the new year.

Is Silvergate stock a buy?

According to a Wedbush Securities analyst, suspending Series A preferred stock dividend will make things more difficult for this financial infrastructure solutions firm in the long run.

Reiterating his “neutral” rating on the Silvergate stock on Friday, David Chiaverini said:

We believe this move could raise Silvergate’s cost of capital down the road when Silvergate attempts to tap the capital markets for a future capital raise. Any new fixed income or preferred issuance will require a higher coupon.

His $13 price objective on the stock suggests it lacks any upside whatsoever. Earlier in January, Silvergate Capital Corp said average deposits from digital asset customers tanked 39% to $7.3 billion in its fourth quarter as Coin Journal reported here.

The post Is Silvergate stock a ‘buy’ after it suspended preferred stock dividend? appeared first on CoinJournal.

• Crypto-friendly bank Silvergate announced its suspended payment of dividends on its series A preferred stock.
• The company’s shares fell more than 11% pre-market after the announcement.
• Silvergate reported a $1 billion loss in the fourth quarter and also cut its staff by 20% amid the crypto bear market and impact of FTX collapse.

Silvergate, a crypto-friendly bank that’s lately hit a rough stretch following the collapse of crypto exchange FTX, has suspended dividend payment on its preferred stock.

Specifially, the crypto bank says it is suspending payment of dividends on the its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A. The US-based company is taking the move to help preserve capital following the effects of recent turbulence across the crypto ecosystem.

“This decision reflects the company’s focus on maintaining a highly liquid balance sheet with a strong capital position as it navigates recent volatility in the digital asset industry,” the firm said in a press release.

According to the news release, the Board of Directors will re-examine the company’s payment of quarterly dividends at a later date, with this dependent on how “market conditions evolve.”

Silvergate shares fall sharply

Following Friday’s news, shares of parent company Silvergate Capital (NYSE:SI) fell more than 11% in early morning trading, hitting lows of $12.55.

Despite a decent run for crypto in the last few weeks, where Bitcoin broke above $23k, Silvergate’s shares have struggled amid negative sentiment.

At the time of writing, the shares were trading at around $12.93, still more than 8% down on the day. The company’s stock is down nearly 27% year-to-date, with the losses coming on the back of a brutal bear market for the broader cryptocurrency industry.

As previously highlighted, Silvergate reported a $1 billion loss during the fourth quarter and moved to slash its workforce by 20% as the negative impact of FTX’s implosion hit the company. 

The crypto bank also reported that customer digital assets deposits had fallen significantly as uncertainty swept through the crypto market.

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