Blockchain firm JVH acquires crypto platform NFT Inspect

  • NFT Inspect is a web-based app and browser extension for Web3 and NFTs.
  • JVH Technology Inc. has acquired full ownership of the Social Intelligence application.
  • Co-founder Stefan Mai and Evan King have left the project to pursue other interests within the industry.

Blockchain technology firm JVH Technology Inc. has acquired web-based app and browser extension NFT Inspect, continuing its focus on advancing adoption of NFTs despite negative market conditions.

The acquisition marks a new chapter for NFT Inspect, with a new team taking over just over three months after the platform put brakes on plans to shut down amid the crypto winter. NFT Inspect teased the acquisition in a tweet on Monday.

JVH to promote Web3 and NFTs adoption

NFT Inspect is a top Web3 social intelligence application and NFT hub with over 100,000 users, attracting a growing community as more people seek to tap into revenue-generating protocols.

“We are thrilled to have acquired such a remarkable and popular Web3 project,” said JVH Head of Business Allan Satim.

“Inspect has already established an exceptional community, and we are excited to integrate additional resources into the Inspect ecosystem while placing strong emphasis on community involvement and the fundamental principles of Web3,” he added in a press release.

Satim noted that Inspect is a major player within the NFT and SocialFi ecosystem, and the acquisition is an opportunity to expand on its growth. JVH plans to integrate other crypto, SocialFi and Web3 projects, bringing new revenue-generating opportunities and giving more value to the community.

According to the JVH, NFT Inspect founders Evan King and Stefan Mai will be transitioning to new projects.

The post Blockchain firm JVH acquires crypto platform NFT Inspect appeared first on CoinJournal.

Initial Coin Offerings (ICO) in 2023. What Are the Best Crypto ICOs To Buy Now?

As the cryptocurrency market evolves and matures, many investors seek the next big Initial Coin Offering (ICO) that could offer significant returns. But with so many popping up all the time, which are the best crypto ICOs worth investing in? In this article, you’ll find 12 hand-picked ICOs with promise. From AI-based projects to layer-1 solutions, you will find something that catches your eye.

Coin List

  1. Metacade (MCADE)
  2. AltSignals (ASI)
  3. ALINK AI (ALINK)
  4. Vivi (VIVI)
  5. OptionBlitz (BLX)
  6. ASTL (ASTL)
  7. Kryptview (KVT)
  8. Minima (WMINIMA)
  9. Brickken (BKN)
  10. EasyFeedback (EASYF)
  11. WeSendIt (WSI)
  12. Mintera (MNTE)

1. Metacade (MCADE) – Playing a Vital Role in the Play-To-Earn Movement

What is Metacade?

Metacade is a play-to-earn (P2E) community hub aiming to shake up the GameFi landscape with its initial coin offering. It’s an all-in-one solution where gamers, crypto enthusiasts, and developers can team up and explore the rapidly-expanding world of P2E gaming. While it’ll have everything you’d expect from a gaming hub, like sub-communities, spaces for real-time interaction, and game leaderboards, it’s harnessing the power of blockchain technology to take things to the next level. 

For instance, to encourage the top minds in P2E to flock to the platform, it rewards anyone sharing reviews, tips, and other helpful content with MCADE tokens. Advanced players can earn by helping others find their GameFi edge. Meanwhile, players new to the P2E space can open up another source of income by sharing their thoughts on a new title they’ve been playing.

There are also plans for regular tournaments, prize draws, and competitions where gamers can test their luck alongside other community members. Metacade intends to introduce a job and gig board in 2024, where users will discover roles ranging from casual game testing gigs to full-time salaried positions with Web3 and gaming leaders. 

Most excitingly, Metacade is introducing the Metagrant scheme. Metagrants are expected to play a pivotal role in shaping the future of the P2E industry. They allow the community to vote and direct funds to the very best P2E titles in development. 

Developers will submit their ideas to a pool of competing proposals, and MCADE holders will vote on their favorite. The one that wins is awarded financing from the Metacade treasury, with the final game being added to the platform’s virtual arcade for anyone to log on and play. Not only does this foster a unique sense of community engagement, but it also has the potential to make Metacade a household name with P2E gamers. 

Combined with other impressive aspects, like a planned decentralized autonomous organization (DAO), staking, a token buyback and burn program, and features in several well-respected media outlets, Metacade looks to be the best ICO to invest in right now. Considering it’s raised over $14.6m, with each stage selling out faster than the last, it seems the crypto investor community agrees too. 

>>> You can participate in the Metacade presale here <<<

2. AltSignals (ASI) – Harnessing AI to Transform the Trading Industry

What is AltSignals?

AltSignals is a trading signals provider that has established itself as an industry leader. Launched in 2017, AltSignals has issued over 1,500 calls in the forex, crypto, and stock market to over 1,400 VIP subscribers, with an average accuracy of 64%. It consistently produces outstanding returns each month; its Binance Futures signals for February netted a 2,163% return with a 90% win rate, while January generated 2,480% with 92% accuracy!

AltSignals’ impeccable Trustpilot scores back up these results. It’s garnered almost 500 positive reviews, boasting an average star rating of 4.9/5. It’s all been made possible by AltSignals’ team of advanced trading professionals and the cutting-edge AltAlgo™ Indicator. AltAlgo™ combines over 34 filters and strategies to help the AltSignals team determine the best trading opportunities.

Now, AltSignals is ready for the next step in its journey. It’s launching the ASI token to fund the development of the ActualizeAI algorithm. It aims to leverage a full AI stack to bring the platform’s accuracy rate above 80% while offering some incredible benefits to investors. This AI stack will use the latest developments in AI technology, like machine learning and natural language processing, to upgrade the existing AltAlgo™ algorithm. 

By owning ASI, prospective investors will be granted exclusive access to the ActualizeAI algorithm’s signals, giving them an edge over others in the financial markets. Those purchasing 20,000 ASI tokens or more will be offered lifetime membership to the signals while gaining free access to the existing AltAlgo™ signals service. 

ASI will also offer investors eligibility to join the AI Members Club. This club will allow members to help shape the future of AltSignals and the ActualizeAI algorithm. As members, they can offer feedback, ideas, and contribute to the platform’s development, earning additional ASI tokens as rewards. These tokens can be accumulated to upgrade their membership level, which can unlock even more features of the AltSignals AI ecosystem or be held for potential future gains. 

Finally, ASI acts as a governance token, allowing holders to propose changes and decide on future updates made to the platform. This direct community engagement helps to ensure that the platform’s goals and values align with the traders using its service. After raising $120k just 2 days after launch, it’s safe to say that AltSignals is a crypto project ready for big things. You definitely won’t want to miss out on the ASI token presale!

>>> You can participate in the AltSignals presale here <<<

3. ALINK AI (ALINK) – A Marketplace Ready for the Future of AI

What is ALINK AI?

Following the recent rise of AI applications like ChatGPT, new AI-based crypto projects, and token sales have recently cropped up. One of the premier AI ICO campaigns is ALINK AI, an all-in-one marketplace for AI services. It effectively allows anyone with an internet connection to request and offer services related to artificial general intelligence (AGI) in a blockchain-based marketplace. 

These services range from simple speech or image generation to complex predictive model building and industry-specific solutions. Developers can even launch and monetize self-governing AI software that interacts with other aspects of the ALINK network. 

ALINK also has a data marketplace built-in, where data can be bought, sold, and traded. Data providers can monetize their information by selling it to marketers, data analysts, research companies, etc. As the need for data to feed to AI solutions grows, ALINK will be ready to act as the intermediary between those with the data and those who need it to train their AI models. 

The platform uses its native digital token, ALINK, as a medium of exchange in its marketplaces to raise money and incentivize its users to provide and improve ALINK’s services. While AI tokens have yet to break into the mainstream crypto space, ALINK seems like a promising new cryptocurrency ready to pave the way. As such, it’s one of the best crypto ICOs to invest in right now.

4. Vivi (VIVI) – Decentralized Short-Form Video Sharing That Pays

What is Vivi?

Vivi is a decentralized platform that allows creators to share short videos and earn rewards while offering viewers a way to monetize their time spent on social media. Using its decentralized structure, Vivi ensures its users’ privacy and security while promoting a fair distribution of rewards.

Vivi is akin to a decentralized TikTok. Users can post short videos, like makeup or cooking tutorials, making it perfect for TikTok creators looking to move away from centralized social media platforms while maintaining their style. 

One of the unique features of Vivi is the use of non-fungible token (NFT) glasses. Users get a free NFT glasses when signing up and can use them to earn VRV rewards. Users who continue to watch videos and interact on the platform gain VRV, which can be swapped for the platform’s governance token, VIVI. VIVI enables users to upgrade their glasses to earn even more VRV for their watch time. 

Besides the main Vivi app, there’s also Vivi Live, Vive Spot, and Vivi Academy, which each serve a specific purpose in the live streaming, sports, and educational niches. With the potential to become Web3’s go-to decentralized short video platform in the crypto industry, Vivi is certainly a token sale worth considering.

5. OptionBlitz (BLX) – A Unique Decentralized Derivatives Trading Platform

What is OptionBlitz?

OptionBlitz is a decentralized trading platform built on the Ethereum layer-2 scaling solution Arbitrum. It specializes in derivatives trading, particularly options trading. It uses Arbitrum to achieve fast transaction settlement times at virtually no cost to traders while maintaining complete decentralization. In its whitepaper, OptionBlitz also promises zero slippage and zero spreads. 

Like other decentralized trading platforms, OptionBlitz allows users to lock up their USDC in a liquidity pool to facilitate transactions for other traders in return for a share of the platform’s revenue. OptionBlitz offers traders three distinct products: digital options, classic options, and Turbos, its flagship 200:1 leveraged offering that could be the next step in perpetual futures trading. 

The markets it offers aren’t just limited to crypto. Traders can access forex, commodity, and energy markets products, with pricing determined using the Chainlink decentralized oracle for maximum accuracy. Its options are incredibly flexible, with expiration times ranging from 10 seconds to 24 hours. 

Overall, OptionBlitz is setting itself apart from other ICOs with a tremendously innovative offering. Its potential to become the most advanced decentralized derivatives platform can’t be understated, so it’s one of the best crypto presales to buy right now. 

6. ASTL (ASTL) – Raise Money and Generate Passive Income With ASTL

What is ASTL?

ASTL is a passive income cryptocurrency project that aims to combine AI technology and crypto mining with helping its users generate returns well above what a bank will offer. ASTL uses a fleet of crypto miners, powered by green energy and optimized using AI, to mine the best tokens that maximize user profits. 

Investors simply purchase their chosen number of ASTL tokens and then receive a reward in USDT proportional to their purchase. These returns can be as high as 11% APY, thanks to ASTL’s mining diversification, and can be paid out daily if users purchase enough tokens. 

Effectively, when investors buy ASTL, they buy a portion of the computing power in the project’s mining fleet. Unlike regular cloud mining services, the return from ASTL doesn’t change depending on the current happenings in the crypto market; the primary difference is that it promises a stable return that won’t fluctuate. With its token offering currently underway, ASTL is one to consider if you want to invest in a passive income-focused ICO.

7. Kryptview (KVT) – Pioneering Research-To-Earn With a User-Friendly Platform

What is Kryptview?

Kryptview is a blockchain-based platform that offers a unique approach to community research and insight-sharing on tokens and other cryptocurrencies. It employs a peer-to-peer model that rewards users for generating in-depth fundamental analysis of the latest cryptocurrencies. The data collected is automatically structured, then reviewed by the community, and posted to the platform for all users to take advantage of.

It has built-in fundamental analysis tools that allow users to assign scores to various areas, like a cryptocurrency project’s team, competition, sustainability, and community. The reviews generated by Kryptview users are then used to build an overall score for a given token, which provides an at-a-glance view of which cryptocurrency projects are worth picking up.

The reward model of Kryptview is simple but effective. Analysts are ranked based on the quality of their contributions, which allows them to earn more for sharing analysis as they rank up. Meanwhile, reviewers can earn KVT tokens for reviewing research and validating scores. Contributors can post portfolios and generate KVT if their picks outperform the market. As a result, its upcoming ICO is hotly anticipated by many prospective investors. 

8. Minima (WMINIMA) – A Mobile-Based Blockchain Focused on Freedom

What is Minima?

Minima is one of the latest ICO projects to venture into the layer-1 crypto space. Its goal is to become the world’s first fully decentralized network powered by mobile and Internet of Things (IoT) devices. Minima is designed to be accessible by as many participants as possible, meaning anyone with a mobile phone and an internet connection can run a Minima node. 

Minima states its core purpose is to build a network that offers freedom to all who use it, where users can come together and create without restrictions or censorship. Like other leading layer-1 networks, it allows anyone to launch custom tokens, NFT projects, and decentralized applications (dApps). Minima also claims to have pending partnerships with companies in the automobile, telecommunications, and file-sharing industries. 

While there are fees during periods of high demand on the network, these fees aren’t burnt, meaning the tokens are removed from the hard-capped total token supply. This, in turn, makes MNIMA a deflationary token. Minima’s presale is for Wrapped Minima, a version of MINIMA that can interface with the Ethereum network. 

9. Brickken (BKN) – Taking on Traditional Company Fundraising

What is Brickken?

Brickken is a blockchain-based platform that allows enterprises to tokenize their businesses and raise funds using security tokens. Its vision is to help global asset owners use a decentralized funding model, opening up income streams for companies and investors. Instead of going through an Initial Public Offering (IPO) and issuing stock, companies can undertake Security Token Offerings (STOs) to raise capital without intermediaries.

Asset tokenization has been a hot topic amongst crypto investors in recent years. Brickken aims to provide the tools and technology to allow anyone to put their assets on the blockchain, bridging the gap between Web2 and Web3. This is especially important for small-and-medium enterprises (SMEs), which can often only raise funds from venture capitalists. Brickken opens up a world of opportunity for these SMEs, allowing them to tap the vast retail investor market. 

Brickken uses a proprietary dApp powered by smart contracts to issue and manage token securities while ensuring that every investor and securities issuer meets the regulatory requirements through stringent KYC and anti-money laundering checks. BKN, the project’s native digital token, is fuel for Brikken’s ecosystem, being used to invest in ongoing projects and issue STOs.

10. EasyFeedback (EASYF) – Rewarding Users for Their Feedback

What is EasyFeedback?

EasyFeedback is a company using blockchain technology to create the world’s first feedback-to-earn protocol. Established in 2015, EasyFeedback allows anyone to send suggestions, congratulations, questions, complaints, and claims to any business worldwide – for free! It offers a suite of templates that can be adapted to the individual company, with feedback sent directly to company heads. 

With the EASYF token, users sending feedback to companies or institutions can be rewarded based on the feedback’s usefulness. These EASYF tokens can be exchanged for products, services, and gift cards in the EasyFeedback marketplace or held in crypto wallets for future gains. 

Those with relevant expertise can also become jurors, who evaluate the feedback and decide whether it’s worth a reward. These jurors must undergo strict background checks to determine their knowledge and experience in their specialist sector and can earn EASYF tokens for validating feedback. EasyFeedback predicts that the use of its service will increase by 600% following the tokenization of its service, which could bode well for early investors. 

11. WeSendIt (WSI) – Established File Sharing Platform Venturing Into Web3

What is WeSendIt?

WeSendIt is a file-sharing platform that, like AltSignals, has a reputation that precedes its entry into the crypto space. It’s a Swiss company that emphasizes data protection and security while making large file transfers and storage simple. Now, WeSendIt is making its foray into Web3 with a custom-built decentralized solution. 

WeSendIt claims that, through decentralization, it can ensure its clients’ files stay 100% confidential while costing up to 80% less than regular cloud storage providers. Moreover, it says that data is stored redundantly across thousands of availability zones across the globe, meaning that the risk of losing data due to server failure is virtually eliminated. 

Using the WSI digital coin means that users can achieve discounts on its Pro and Premium offers up to 60% cheaper than when paying via credit card or Paypal. Users can also earn WSI rewards for sending data. Finally, there’s even a generous referral scheme that pays users in WSI to recruit more users into the ecosystem!

12. Mintera (MNTE) – A Green Project That Generates Passive Income

What is Mintera?

Mintera is a climate-friendly cryptocurrency project that uses blockchain technology to impact the environment positively. While it believes that the development of blockchain-based projects has a beneficial effect on society, Mintera sees a problem with the waste in the crypto space. As a result, it’s building an ecosystem of sustainable products, billing itself as “the green digital investment bank of the future.”

At the heart of the Mintera ecosystem is the MNTE token, which offers potential investors access to a net-positive range of green investment products, revenue streams, and perks. One of the most exciting aspects of Mintera is the Green Mining Yield (GMY), which promises to return a stablecoin yield to investors through its long-running green mining operation. Mintera mines Chia, which it terms an eco-friendly alternative to Bitcoin. 

Yields depend on Chia’s price, but Mintera claims to offer rates of anywhere between 5% and 100% per year. It also dedicates 50% of its profits to environmental organizations and stashes 6.5 million MNTE to fund green innovation. Overall, Mintera is an excellent choice for any ICO investor investing in a climate-positive project. 

Buying Into an ICO

What To Look For in an ICO

So how do you determine which ICOs are worth investing in? Here’s a comprehensive list of what to consider when identifying successful ICOs. 

  • Legal Elements: Investors should ensure that the ICO complies with relevant regulations in its jurisdictions. Any potential legal risks should also be considered. Some tokens may be regarded as securities by the Securities and Exchange Commission (SEC), which could lead to scrutiny and legal action in the future.

  • Tokenomics: Evaluating the token economics in an initial coin offering is essential, including the token’s supply, distribution, and use case. Pay special attention to how much of the token supply is allocated to the development team: too much or insufficient can be red flags. Around 5-15% is typical.

  • White Paper: Reviewing the white paper is crucial in understanding the project’s goals, technology, and roadmap. Assess whether the project has a clear and achievable roadmap with realistic timelines before investing in an initial coin offering.

  • Partnerships and Terms: It’s a good idea to evaluate any partnerships or collaborations the ICO company has secured and the terms of those agreements. These partnerships can bring value to the project and help it grow.

  • Team and Advisors: Assessing the team behind cryptocurrency projects is essential, including their experience and credentials in their specialized industry. Investors should also consider any notable advisors that can bring value to the project.

  • Community and Engagement: Evaluating the project’s community, including its engagement and support, is essential. A strong community can make all the difference in whether an ICO is successful or not. 

How Do I Know When New Coins Are Launched?

Staying on top of the latest token sales in the fast-moving world of cryptocurrency and blockchain startups can be challenging. Fortunately, several resources are available that can help investors stay informed. One of the best places to start is on social media platforms such as Twitter and Reddit, where cryptocurrency enthusiasts and industry leaders often post news about new tokens.

Some coins are also launched exclusively on centralized exchanges through Initial Exchange Offerings (IEOs) or on decentralized exchanges with Initial Dex Offerings (IDOs). Lastly, there are many lists of active and upcoming ICOs out there. Search “ICO list” to find websites showcasing the latest token sales. 

Advantages of Initial Coin Offerings (ICOs)

  • Quick Funding: ICOs provide blockchain startups with a relatively fast and cost-effective way to raise funds. Unlike traditional fundraising methods, like IPOs, ICOs allow private companies to reach a global audience of investors without the need for financial institutions. Blockchain startups can raise funds faster and with fewer restrictions, allowing them to focus on developing their products and growing their businesses.

  • Potentially High Returns: Since ICOs often involve investing in new and innovative technologies, investors can benefit from being early adopters of new products and services. This can lead to significant price appreciation in the new tokens they hold, translating to high returns on their initial investment.

  • Community: ICOs typically look to build up a community around their new coins, which can help create a loyal following and promote adopting their new technology. For investors, this can provide an opportunity to connect with like-minded crypto enthusiasts and join a growing community of supporters. 

Disadvantages of Initial Coin Offerings (ICOs)

  • Lack of Regulation: ICOs are still a relatively new fundraising method, so they’re largely unregulated. This can make it difficult for investors to assess the legitimacy of a project and opens up a realm of possibility for projects to misuse funds received or even commit outright fraud, often with little repercussion. 

  • Volatility: ICOs are highly speculative investments. Their potential for returns is usually higher than more established projects, which also comes with increased risk. Like many startups, even the best ICOs may face significant challenges in achieving their goals, and the value of their tokens can fluctuate rapidly due to market conditions or unexpected developments.

  • Technical Risks: ICOs usually involve investing in new and untested technologies, which can present significant technical risks. These risks can include vulnerabilities to hacking or other security breaches and potential flaws or weaknesses in the underlying technology. This can lead to the loss of investor funds and damage the project’s future prospects. 

What Is the Best ICO To Invest in Now?

These handpicked ICOs each hold plenty of promise. ALINK AI could play a vital role in an AI-based future as the go-to data marketplace, while Kryptview is likely to set the standard for crypto research platforms of the future with its community-sourced approach. But it seems evident that the best ICO projects here are Metacade and AltSignals. 

Metacade has already proven itself in presale, raising over $14.6m from thousands of global investors. Its vision to be the go-to spot for P2E gaming in Web3 has attracted attention from gaming enthusiasts and crypto investors alike. Its MCADE token seems destined to be an outperformer throughout the rest of 2023. 

AltSignals, meanwhile, is paving the way for AI-based trading tools, and its proven track record is a strong indication that its ASI token will be a success. Down the line, there are even talks of it partnering with institutions, which could send ASI soaring once news gets out. Either way, you won’t want to miss both of these outstanding projects. 

Related Crypto FAQs

What are cryptocurrencies?

Cryptocurrencies are digital assets that are usually highly decentralized and operate independently of governments and financial institutions. The most valuable cryptocurrency is Bitcoin, which is generally seen as a store of value. The second largest cryptocurrency is Ethereum, which offers smart contracts that can perform incredibly versatile functions. 

What does ICO mean?

ICO stands for Initial Coin Offering. It’s a fundraising method blockchain startups use to raise capital by issuing digital currency, such as new tokens or coins, to investors in exchange for cryptocurrencies or fiat currency.

Are ICOs illegal?

ICOs are not inherently illegal, but most would face scrutiny under securities laws in many jurisdictions, including by regulators at the Securities and Exchange Commission (SEC) in the US. This means ICOs must comply with relevant regulations to avoid legal issues with regulators.

Are ICO coins a good investment?

The potential return on investment for an ICO coin can be high, but it also comes with increased risk due to the lack of regulation and the potential for volatility. Picking the right ICO can be tricky, and an ICO coin’s performance ultimately depends on many factors.

Where can I buy an initial coin offering crypto?

ICOs are usually bought directly from the startup itself or on ICO aggregator websites like Pinksale. Some ICOs take place on exchanges, where they’re termed IEOs or IDOs. 

What are the next big upcoming initial coin offerings in 2023?

It’s difficult to predict the next big ICO for 2023, as the market can be highly unpredictable. However, many of the tokens on this list have a strong chance of performing well, especially Metacade and AltSignals. 

What is the main difference between an ICO and an IPO?

The main difference between an ICO and an IPO is that an IPO is a traditional fundraising method established companies use to raise capital by issuing stocks to the public. In contrast, an ICO is used by startups to generate capital by issuing new tokens.

What happens to an ICO’s funds?

Money raised by an ICO is typically used to fund the development and growth of specific features within the project, including hiring developers and marketing the project. The particular use of funds will likely be outlined in the ICO project’s white paper.

You can participate in the Metacade presale here.

You can participate in the AltSignals presale here.

The post Initial Coin Offerings (ICO) in 2023. What Are the Best Crypto ICOs To Buy Now? appeared first on CoinJournal.

XRP price up nearly 10% as bulls break above $0.50

  • XRP price rose nearly 10% to highs above $0.50 on Tuesday.
  • Ripple is set for a court decision in its battle with the SEC, with social dominance for XRP rising.
  • XRP price is up amid increased volume, with support for the XRP/TUSD pair on Binance added on 29 March.

The price of XRP soared nearly 10% on Tuesday morning to break above $0.50 for its highest level since early November. The XRP price is up 32% this past week.

XRP’s gains came as the broader cryptocurrency market endured yet another slow day, with action muted as the community digested recent news around major cryptocurrency exchange Binance. 

As of 11 am ET on 28 March, the XRP token traded at $0.5045, the highest price for the Ripple cryptocurrency since 5 November 2022 when it sharply dropped from above 50 cents to lows of $0.33.

XRP price outlook amid volume spike

Today’s upside comes after a week of growing positivity for XRP, with expectations over the SEC vs. Ripple Labs case helping return huge volume to the top 10 crypto.

The Commodity Futures Trading Commission (CFTC) terming Bitcoin, Ethereum and Litecoin as commodities in its complaint against Binance has only helped to fuel sentiment that XRP will be declared a commodity and not security when its court battle with the US regulator concludes.

On Monday, John Deaton, the founder of Crypto Law and a blockchain enthusiast, suggested that XRP offers the best risk/reward ratio.

“The Judge’s ruling is coming down w/in the next few weeks (maybe this week). If the SEC wins, what’s the downside from .45? Ripple appeals and we get the status quo. Ripple wins and its made clear XRP isn’t a security? Upside?”

This outlook for XRP has persisted over the past few days, with trading volume spiking as the network experienced increased mainstream interest.

According to on-chain data platform Santiment, XRP’s breakout to a 50-week high coincides with XRP Network’s social dominance bursting to a new year-high level. This has only added to increased crowd recognition, suggesting the cryptocurrency could see further upside volatility as volume spikes.

Binance’s announcement that it will support for the XRP/TUSD pair starting 29 March, 2023 has also contributed the social chatter that’s seeing XRP price look to test new multi-month highs.

However, while bulls might have a chance to extend gains above $0.50, chances of a short term sell-off are likely given the outcome of the SEC case as well as prevailing market sentiment. If profit taking intensifies, its possible XRP could retreat to recent support near $0.36.

The post XRP price up nearly 10% as bulls break above $0.50 appeared first on CoinJournal.

45% of stablecoin balance has left crypto exchanges in 4 months, but where has all the money gone? – A Deep Dive


Key Takeaways

  • $23.6 billion of stablecoins are currently on exchanges, the least since October 2021
  • 45% of stablecoins have fled exchanges in the last four months
  • 61% of USDC has left exchanges in the three weeks since Silicon Valley Bank’s collapse, while 50% of BUSD has evaporated since regulators announced it was to shut down
  • Trend in falling supply of stablecoins has been ongoing since FTX collapsed in November, but has worsened recently
  • Capital is flowing into T-bills, with 5 times the amount of treasury accounts created last year as 2021
  • Bitcoin’s falling price and volumes are more extreme, but liquidity has been siphoned out of the markets at large due to rising interest rates 
  • Federal Reserve is now caught between rock and a hard place, as rising interest rates needed to combat inflation but banking sector wobbles may force its hand

It’s always turbulent in the crypto markets. 

The waters have been particularly choppy recently with regard to the stablecoin market. There are currently less stablecoins on crypto exchanges than at any point since October 2021. 

But where is all the money going? Into Bitcoin? Hidden away in cold wallets? Away from crypto altogether?

In this piece, we dig into the data to try to ascertain where exactly the money is moving, and why, as well as what it means for Bitcoin and how it all ties back to the Federal Reserve. 

The flight of stablecoins

First things first. Stablecoins are fleeing exchanges at an unprecedented speed. In less than four months, 45% of stablecoins have left exchanges. That is a drawdown from $43.1 billion to $23.6 billion, a pace that has never been seen before. 

The chart shows a clear downward trajectory since the implosion of FTX in November 2022 – with the pace picking up since the turn of the year. 

In the next chart, we focus on the outflows alone, helping us to zone in on the speed of these movementts and how they compares to previous periods of outflows. 

We can see that in terms of precedent, we saw big spikes in outflows in May 2022 (when LUNA collapsed) and May 2021 (when Bitcoin freefall down from $58K to $37K in a week, despite no obvious trigger). But the difference this time is that the elevated pace of withdrawals has continued for a much longer time period, at four months and counting. 

Perhaps layering in price gives more of an indication as to what is happening. In this next chart, we can see big drawdowns in Bitcoin price have coincided with large amounts of stablecoin withdrawals. 

But it brings us to an interesting crossroads: this time seems different. As while FTX kicked off a Bitcoin drawdown to $15,500 from $20,000 in November, since then Bitcoin has increased 80%, back up towards $28,000. And yet, the stablecoin balance has continued downward. 

BinanceUSD and UCD Coin run into problems, but Tether drained too

So why is this time different? Why are withdrawals of stablecoins remaining elevated while Bitcoin surges?

Well, the events around Binance USD and USD Coin are the most glaring. It was announced last month that Binance USD is shutting down due to US securities law (deep dive on that circus here). At the time, the stablecoin had a market cap of over $14 billion, the third biggest behind USDC and USDT. 

In the words of CEO Changpeng Zhao, the developments meant that BUSD will slowly decline to zero.

And that is what has started. 17% of BUSD was immediately pulled from exchanges in the days after the announcement. Today, the supply of BUSD on exchanges is 7.2 billion, 50% below the number upon announcement of the lawsuit. 

But there is more here beyond the impact of BUSD’s regulatory-driven fall. Firstly, BUSD’s supply had been falling since the FTX debacle, when there was $22 billion on exchanges, as the above chart shows. 

But there is also the case of USD Coin, the stablecoin issued by Circle, who kept 8.25% of the backing reserves in the felled Silicon Valley Bank. While deposits were since guaranteed by the US administration, the episode shook the market and sparked outflows that have not reversed. 

On March 10th, as the SVB trouble and hence concern around USDC’s reserves came to light, there was $6.65 billion of USDC on exchanges. Today, less than three weeks later, there is $2.57 billion, a fall of 61% – completely wiping out the increase in the USDC supply on exchanges that had happened in the aftermath of the BUSD shutdown. 

Which brings us to the third member of the three musketeers, Tether. Has the number one stablecoin hoovered (hoover means vacuum, for all you American readers) all the BUSD and USDC supply? Well, no. 

As the world popped champagne on New Year’s Eve, there was $17.81 billion of Tether on exchanges. Today, on March 27th, there is $13.55 billion, a decline of 24%. 

Putting the balance of all three stablecoins on one chart, the below can be seen – clearly, Tether has the lion’s share, but the balance of stablecoins across the board has evaporated. 

“There is a lot of talk about Tether’s rise in market share”, said Max Coupland, director of CoinJournal. “That is a story in and of itself, but to us, the greater effect is the remarkable drawdown in the stablecoin market at large. Tether may have gained market share, but to see an evaporation of 24% of the USDT balance on exchanges is notable – and that it has gained market share despite this drawdown hammers home how stark the capital flight out of the entire space has been”. 

Where is it all going?

So, the natural question is then, where the f**k is all the money going?

Since the start of the year, Bitcoin is up 64%, adding $209 billion to its market cap while climbing from $16,500 to $27,000. So are people just sending all their stablecoins from exchanges into Bitcoin?

That is a difficult question to answer. Looking at the stablecoin supply ratio (SSR), which is the ratio of the Bitcoin supply to the supply of stablecoins, shows that it has risen significantly in the last few months (it had previously done the exact opposite). 

But this doesn’t necessarily mean that stablecoins are flowing into Bitcoin, and concluding that feels like a reach. 

In all likelihood, it simply means that the Bitcoin markets are becoming less liquid as capital is leaving the entire space. This would help explain why the move up this year has been so violent, as less buying power has been needed to move the dial. 

Treasury market holds the answer to the riddle

But let us not forget about where interest rates are right now. 6-month US treasury bills are currently paying close to 5% currently, 3-Month yields are at 4.6%. It’s starting to make a little more sense why there is less money in crypto right now, isn’t it?

In fact, looking at TreasuryDirect.gov, the website where government bonds can be bought, there were 3.6 million accounts created in 2022 as interest rates surged – that is a five-fold increase from the previous year. And extrapolating the accounts created from the first ten weeks of the year, we are on track to see another 1.1 million created in 2023 (although the Federal Reserve’s updated plans may change that). . 

This is what the Federal Reserve wants

And this allows us to circle back to the very crux of the issue. Why is the Federal Reserve raising interest rates in the first place?

The Fed has been raising rates to combat inflation which spiralled far quicker than they imagined. And it wasn’t only the pace, but it was the stickiness of the price rises – the “transient” dream pedalled was nothing more than that, a dream. 

In order to topple that inflation, liquidity needed to be siphoned out of the system. Which, as this piece has demonstrated, is exactly what has happened. Bitcoin is a more volatile and thinner asset than other financial markets, which is why the effect has been so dramatic, but we have seen the price of risk assets freefall across the board over the last year. 

In conclusion, there is nothing surprising about Bitcoin’s collapse in price, nor the flight from the capital market, when viewed in hindsight against the backdrop of the crippling rise in interest rates. 

Of course, hindsight is everything, and investors were caught off guard badly here. Now, as the banking sector wobbles under the weight of these rising interest rates, the Federal Reserve is caught in between a rock and a hard place; it can stop raising rates and be the central bank that failed on the all-important inflation mandate, or it can raise rates further to battle inflation while risking more chaos in the banking sector. 

The market is betting on the latter, that the Fed will move to softer monetary policy, which is why we have seen a rebound in the Bitcoin price. This has been exacerbated by the thin liquidity in the markets. 

If a hawkish tone comes out of the Fed in future however, or the market’s confidence in a pivot drains, you can bet your bottom dollar that Bitcoin’s gains thus far in 2023 will be halted, if not reversed. Whatever happens, it certainly feels like the market and economy is currently at an inflection point. 

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3 German computer scientists bringing scalability to Bitcoin using zk-proofs

  • The three German scientists formed ZeroSync Association to bring Zero-Knowledge Proofs to Bitcoin.
  • The association has received sponsorship from Geometry Reaserch and StarkWare Industries.
  • Geometry Reaserch is a crypto investment firm while StarkWare Industries is the software company behind StarkNet.

Bitcoin currently uses the proof-of-work (PoW) consensus mechanism which in a way limits its scalability. Its rival blockchain Ethereum also used PoW but changed to Proof-of-Stake (PoS) consensus mechanism through the Merge Upgrade.

Three German computer scientists have created a Swiss non-profit association called ZeroSync Association to help bring scalability to Bitcoin using zero-knowledge proofs (zk-proofs), a cryptographic technique whose popularity on Ethereum has surged considerably.

What is Zero-knowledge Proofs?

Zero-knowledge Proofs, commonly referred to as zk-proofs, is a cryptographic technique that uses cryptography to prove the validity of information revealing the information to the public.

By deploying kz-proofs on Bitcoin means nodes will be able to sync almost instantly compared to hours and sometimes days that it takes to download the chain’s current 500GB data.

ZeroSync Association already has a working prototype

At the moment, ZeroSync has already developed a working prototype that allows users to validate who owns what and the transaction history on Bitcoin without having to download the entire chain or using a third party.

The prototype can however only verify Bitcoin consensus rules but not transaction signatures. The prototype is also a bit chunky and still needs to be optimized for security and speed.

When fully deployed on Bitcoin ZeroSync will allow verification of transaction of Bitcoin using cryptographic proof instead of trusting honest nodes as suggested by the Bitcoin founder Satoshi.

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