LIVEKamran Asghar
@Kamran_Asghar
Passionate about blockchain and cryptocurrencies. Sharing my thoughts and insights on the latest news and trends in the crypto space. Let's connect and learn💯
A seguir
Seguidores
Gostaram
Partilharam
Just started to learn from binance acadmy here is my first lesson
LIVE
Binance Academy
--
What Is Tokenomics and Why Does It Matter?
TL;DR
Tokenomics is a term that captures a token’s economics. It describes the factors that impact a token’s use and value, including but not limited to the token’s creation and distribution, supply and demand, incentive mechanisms, and token burn schedules. For crypto projects, well-designed tokenomics is critical to success. Assessing a project’s tokenomics before deciding to participate is essential for investors and stakeholders.
Introduction
A portmanteau of “token” and “economics,” tokenomics is a key component of doing fundamental research on a crypto project. Aside from looking at the white paper, founding team, roadmap, and community growth, tokenomics is central to evaluating the future prospects of a blockchain project. Crypto projects should carefully design their tokenomics to ensure sustainable long-term development.
Tokenomics at a glance
Blockchain projects design tokenomics rules around their tokens to encourage or discourage various user actions. This is similar to how a central bank prints money and implements monetary policies to encourage or discourage spending, lending, saving, and the movement of money, Note that the word “token” here refers to both coins and tokens. You can learn the difference between the two here. Unlike fiat currencies, the rules of tokenomics are implemented through code and are transparent, predictable, and difficult to change.
Let’s look at bitcoin as an example. The total supply of bitcoin is pre-programmed to be 21 million coins. The way bitcoins are created and entered into circulation is by mining. Miners are given some bitcoins as a reward when a block is mined every 10 minutes or so.
The reward, also called block subsidy, is halved every 210,000 blocks. By this schedule, a halving takes place every four years. Since January 3, 2009, when the first block, or the genesis block, was created on the Bitcoin network, the block subsidy has been halved three times from 50 BTC to 25 BTC, 12.5 BTC, and 6.25 BTC currently.
Based on these rules, it’s easy to calculate that around 328,500 bitcoins will be mined in 2022 by dividing the total number of minutes of the year by 10 (because a block is mined every 10 minutes) and then multiplying by 6.25 (because each block gives out 6.25 BTC as rewards). Therefore, the number of bitcoins mined each year can be predicted, and the last bitcoin is expected to be mined around the year 2140.
Bitcoin’s tokenomics also include the design of transaction fees, which miners receive when a new block is validated. This fee is designed to increase as transaction size and network congestion rise. It helps prevent spam transactions and incentivizes miners to keep validating transactions even as block subsidies keep diminishing.
In short, the tokenomics of Bitcoin is simple and ingenious. Everything is transparent and predictable. The incentives surrounding Bitcoin keep participants compensated to keep the network robust and contribute to its value as a cryptocurrency.
Key elements of Tokenomics
As a catch-all term for a wide range of factors influencing a cryptocurrency’s value, “tokenomics” refers first and foremost to the structure of a cryptocurrency’s economy as designed by its creators. Here are some of the most important factors to consider when looking at a cryptocurrency’s tokenomics.
Token supply
Supply and demand are the primary factors impacting the price of any good or service. The same goes for crypto. There are several critical metrics measuring a token’s supply.
The first is called maximum supply. It means that there is a maximum number of tokens coded to exist in the lifetime of this cryptocurrency. Bitcoin has a maximum supply of 21 million coins. Litecoin has a hard cap of 84 million coins, and BNB has a maximum supply of 200 million.
Some tokens don’t have a maximum supply. The Ethereum network’s supply of ether increases every year. Stablecoins like USDT, USD Coin (USDC), and Binance USD (BUSD) have no maximum supply as these coins are issued based on the reserves backing the coins. They theoretically can keep growing without limits. Dogecoin and Polkadot are two more cryptos with uncapped supply.
The second is circulating supply, which refers to the number of tokens in circulation. Tokens can be minted and burned, or be locked up in other ways. This has an effect on the price of the token as well.
Looking at the token supply gives you a good picture of how many tokens there will be ultimately.
Token Utility
Token utility refers to the use cases designed for a token. For example, BNB’s utility includes powering the BNB Chain, paying transaction fees and enjoying trading fee discounts on the BNB Chain, and serving as community utility token on the BNB Chain ecosystem. Users can also stake BNB with various products within the ecosystem to earn additional income.
There are many other use cases for tokens. Governance tokens allow the holder to vote on changes to a token’s protocol. Stablecoins are designed to be used as a currency. Security tokens, on the other hand, represent financial assets. For instance, a company could issue tokenized shares during an Initial Coin Offering (ICO), granting the holder ownership rights and dividends.
These factors can help you determine the potential use cases for a token, which is essential in understanding how the token’s economy will likely evolve.
Analyzing token distribution
Aside from supply and demand, it’s essential to look at how tokens are distributed. Large institutions and individual investors behave differently. Knowing what types of entities hold a token will give you insight into how they are likely to trade their tokens, which will in turn impact the token’s value.
There are generally two ways to launch and distribute tokens: a fair launch and a pre-mining launch. A fair launch is when there is no early access or private allocations before a token is minted and distributed to the public. BTC and Dogecoin are examples of this category.
On the other hand, pre-mining allows a portion of the crypto to be minted and distributed to a select group before being offered to the public. Ethereum and BNB are two examples of this type of token distribution.
Generally, you want to pay attention to how evenly a token is distributed. A few large organizations holding an outsized portion of a token are typically considered riskier. A token held largely by patient investors and founding teams means stakeholders' interests are better aligned for long-term success.
You should also look at a token’s lock-up and release schedule to see if a large number of tokens will be placed into circulation, which puts downward pressure on the token’s value.
Examining token burns
Many crypto projects regularly burn tokens, which means pulling tokens out of circulation permanently.
For example, BNB adopts coin-burning to remove coins from circulation and reduce the total supply of its token. With 200 million BNB pre-mined, BNB’s total supply is 165,116,760 as of June 2022. BNB will burn more coins until 50% of the total supply is destroyed, which means BNB’s total supply will be reduced to 100 million BNB. Similarly, Ethereum started to burn ETH in 2021 to reduce its total supply.
When the supply of a token is reduced, it’s considered deflationary. The opposite, when a token’s supply keeps expanding, is deemed inflationary.
Incentive mechanisms
A token’s incentive mechanism is crucial. How a token incentivizes participants to ensure long-term sustainability is at the center of tokenomics. How Bitcoin designs its block subsidy and transaction fees is a perfect illustration of an elegant model.
The Proof of Stake mechanism is another validation method that is gaining prevalence. This design lets participants lock their tokens in order to validate transactions. Generally, the more tokens are locked up, the higher the chance to be chosen as validators and receive rewards for validating transactions. It also means that if validators try to harm the network, the value of their own assets will be placed at risk. These features incentivize participants to act honestly and keep the protocol robust.
Many DeFi projects have used innovative incentive mechanisms to achieve rapid growth. Compound, a crypto lending and borrowing platform, lets investors deposit cryptos in the Compound protocol, collect interests on them, and receive COMP tokens as additional reward. Moreover, COMP tokens serve as a governance token for the Compound protocol. These design choices align the interests of all participants with that of Compound’s long-term prospects.
What’s next for tokenomics
Since the genesis block of the Bitcoin network was created in 2009, tokenomics has evolved significantly. Developers have explored many different tokenomics models. There have been successes and failures. Bitcoin’s tokenomics model still remains enduring, having stood up to the test of time. Others with poor tokenomics designs have faltered.
Non-fungible tokens (NFTs) provide a different tokenomics model based on digital scarcity. The tokenization of traditional assets such as real estate and artworks could generate new innovations of tokenomics in the future.
Closing thoughts
Tokenomics is a fundamental concept to understand if you want to get into crypto. It’s a term capturing the major factors affecting the value of a token. It’s important to note that no single factor provides a magical key. Your assessment should be based on as many factors as possible and analyzed as a whole. Tokenomics can be combined with other fundamental analysis tools to make an informed judgment on a project’s future prospects and its token’s price.
Ultimately, the economics of a token will have a major impact on how it is used, how easy it will be to build up a network, and whether there will be much interest in the use case of the token.
Tokenomics is a term that captures a token’s economics. It describes the factors that impact a token’s use and value, including but not limited to the token’s creation and distribution, supply and demand, incentive mechanisms, and token burn schedules. For crypto projects, well-designed tokenomics is critical to success. Assessing a project’s tokenomics before deciding to participate is essential for investors and stakeholders.
Introduction
A portmanteau of “token” and “economics,” tokenomics is a key component of doing fundamental research on a crypto project. Aside from looking at the white paper, founding team, roadmap, and community growth, tokenomics is central to evaluating the future prospects of a blockchain project. Crypto projects should carefully design their tokenomics to ensure sustainable long-term development.
Tokenomics at a glance
Blockchain projects design tokenomics rules around their tokens to encourage or discourage various user actions. This is similar to how a central bank prints money and implements monetary policies to encourage or discourage spending, lending, saving, and the movement of money, Note that the word “token” here refers to both coins and tokens. You can learn the difference between the two here. Unlike fiat currencies, the rules of tokenomics are implemented through code and are transparent, predictable, and difficult to change.
Let’s look at bitcoin as an example. The total supply of bitcoin is pre-programmed to be 21 million coins. The way bitcoins are created and entered into circulation is by mining. Miners are given some bitcoins as a reward when a block is mined every 10 minutes or so.
The reward, also called block subsidy, is halved every 210,000 blocks. By this schedule, a halving takes place every four years. Since January 3, 2009, when the first block, or the genesis block, was created on the Bitcoin network, the block subsidy has been halved three times from 50 BTC to 25 BTC, 12.5 BTC, and 6.25 BTC currently.
Based on these rules, it’s easy to calculate that around 328,500 bitcoins will be mined in 2022 by dividing the total number of minutes of the year by 10 (because a block is mined every 10 minutes) and then multiplying by 6.25 (because each block gives out 6.25 BTC as rewards). Therefore, the number of bitcoins mined each year can be predicted, and the last bitcoin is expected to be mined around the year 2140.
Bitcoin’s tokenomics also include the design of transaction fees, which miners receive when a new block is validated. This fee is designed to increase as transaction size and network congestion rise. It helps prevent spam transactions and incentivizes miners to keep validating transactions even as block subsidies keep diminishing.
In short, the tokenomics of Bitcoin is simple and ingenious. Everything is transparent and predictable. The incentives surrounding Bitcoin keep participants compensated to keep the network robust and contribute to its value as a cryptocurrency.
Key elements of Tokenomics
As a catch-all term for a wide range of factors influencing a cryptocurrency’s value, “tokenomics” refers first and foremost to the structure of a cryptocurrency’s economy as designed by its creators. Here are some of the most important factors to consider when looking at a cryptocurrency’s tokenomics.
Token supply
Supply and demand are the primary factors impacting the price of any good or service. The same goes for crypto. There are several critical metrics measuring a token’s supply.
The first is called maximum supply. It means that there is a maximum number of tokens coded to exist in the lifetime of this cryptocurrency. Bitcoin has a maximum supply of 21 million coins. Litecoin has a hard cap of 84 million coins, and BNB has a maximum supply of 200 million.
Some tokens don’t have a maximum supply. The Ethereum network’s supply of ether increases every year. Stablecoins like USDT, USD Coin (USDC), and Binance USD (BUSD) have no maximum supply as these coins are issued based on the reserves backing the coins. They theoretically can keep growing without limits. Dogecoin and Polkadot are two more cryptos with uncapped supply.
The second is circulating supply, which refers to the number of tokens in circulation. Tokens can be minted and burned, or be locked up in other ways. This has an effect on the price of the token as well.
Looking at the token supply gives you a good picture of how many tokens there will be ultimately.
Token Utility
Token utility refers to the use cases designed for a token. For example, BNB’s utility includes powering the BNB Chain, paying transaction fees and enjoying trading fee discounts on the BNB Chain, and serving as community utility token on the BNB Chain ecosystem. Users can also stake BNB with various products within the ecosystem to earn additional income.
There are many other use cases for tokens. Governance tokens allow the holder to vote on changes to a token’s protocol. Stablecoins are designed to be used as a currency. Security tokens, on the other hand, represent financial assets. For instance, a company could issue tokenized shares during an Initial Coin Offering (ICO), granting the holder ownership rights and dividends.
These factors can help you determine the potential use cases for a token, which is essential in understanding how the token’s economy will likely evolve.
Analyzing token distribution
Aside from supply and demand, it’s essential to look at how tokens are distributed. Large institutions and individual investors behave differently. Knowing what types of entities hold a token will give you insight into how they are likely to trade their tokens, which will in turn impact the token’s value.
There are generally two ways to launch and distribute tokens: a fair launch and a pre-mining launch. A fair launch is when there is no early access or private allocations before a token is minted and distributed to the public. BTC and Dogecoin are examples of this category.
On the other hand, pre-mining allows a portion of the crypto to be minted and distributed to a select group before being offered to the public. Ethereum and BNB are two examples of this type of token distribution.
Generally, you want to pay attention to how evenly a token is distributed. A few large organizations holding an outsized portion of a token are typically considered riskier. A token held largely by patient investors and founding teams means stakeholders' interests are better aligned for long-term success.
You should also look at a token’s lock-up and release schedule to see if a large number of tokens will be placed into circulation, which puts downward pressure on the token’s value.
Examining token burns
Many crypto projects regularly burn tokens, which means pulling tokens out of circulation permanently.
For example, BNB adopts coin-burning to remove coins from circulation and reduce the total supply of its token. With 200 million BNB pre-mined, BNB’s total supply is 165,116,760 as of June 2022. BNB will burn more coins until 50% of the total supply is destroyed, which means BNB’s total supply will be reduced to 100 million BNB. Similarly, Ethereum started to burn ETH in 2021 to reduce its total supply.
When the supply of a token is reduced, it’s considered deflationary. The opposite, when a token’s supply keeps expanding, is deemed inflationary.
Incentive mechanisms
A token’s incentive mechanism is crucial. How a token incentivizes participants to ensure long-term sustainability is at the center of tokenomics. How Bitcoin designs its block subsidy and transaction fees is a perfect illustration of an elegant model.
The Proof of Stake mechanism is another validation method that is gaining prevalence. This design lets participants lock their tokens in order to validate transactions. Generally, the more tokens are locked up, the higher the chance to be chosen as validators and receive rewards for validating transactions. It also means that if validators try to harm the network, the value of their own assets will be placed at risk. These features incentivize participants to act honestly and keep the protocol robust.
Many DeFi projects have used innovative incentive mechanisms to achieve rapid growth. Compound, a crypto lending and borrowing platform, lets investors deposit cryptos in the Compound protocol, collect interests on them, and receive COMP tokens as additional reward. Moreover, COMP tokens serve as a governance token for the Compound protocol. These design choices align the interests of all participants with that of Compound’s long-term prospects.
What’s next for tokenomics
Since the genesis block of the Bitcoin network was created in 2009, tokenomics has evolved significantly. Developers have explored many different tokenomics models. There have been successes and failures. Bitcoin’s tokenomics model still remains enduring, having stood up to the test of time. Others with poor tokenomics designs have faltered.
Non-fungible tokens (NFTs) provide a different tokenomics model based on digital scarcity. The tokenization of traditional assets such as real estate and artworks could generate new innovations of tokenomics in the future.
Closing thoughts
Tokenomics is a fundamental concept to understand if you want to get into crypto. It’s a term capturing the major factors affecting the value of a token. It’s important to note that no single factor provides a magical key. Your assessment should be based on as many factors as possible and analyzed as a whole. Tokenomics can be combined with other fundamental analysis tools to make an informed judgment on a project’s future prospects and its token’s price.
Ultimately, the economics of a token will have a major impact on how it is used, how easy it will be to build up a network, and whether there will be much interest in the use case of the token.
What the logic behind this🤔
LIVECrypto dad
--
SEI token removed its liquidity less than three hours after it was created.
Good step taken by the CEO of $FTX
Big profit is waiting for me🥱
Big profit is waiting for me🥱
LIVEBinance News
--
FTX Confirmed FTX 2.0 Plan, FTT Token Rapid Growth 17%
Key Points:
FTX CEO John Ray III considered a plan to restart the bankrupt crypto exchange.
A recent court filing revealed that there is a bidder list that is likely to include investors interested in FTX 2.0.
The bankruptcy exchange’s native token, FTT has surged more than 17% following the latest developments.
The bankrupt crypto exchange FTX has announced it will be relaunched by new management under the leadership of current CEO John Ray III.
According to a filing filed earlier today with the United States Bankruptcy Court for the County of Delaware, John Ray III charged the company’s bankruptcy estate more than $290,000 for his services. In addition, FTX had to pay an additional $1.3 million to other employees in the bankrupt unit that took over the platform.
While the majority of his services involve day-to-day administrative and legal work, some of the activities mentioned in the filing reveal that the CEO is working on a plan to restart FTX 2.0. These plans regarding the possible restart of the crypto exchange were shared by Sullivan & Cromwell in bankruptcy court last month.
FTX CEO John Ray III confirms FTX 2.0 plans.
— FTX 2.0 Coalition (@AFTXcreditor) May 22, 2023
These activities include advising cybersecurity firm Sygnia to strengthen its international crypto platform, reviewing the terms sheet for an exchange restructuring plan, exploring the following steps to launch the exchange, and reviewing and finalizing the FTX 2.0 document for distribution to investors.
CEO Ray also reviewed the summary of steps submitted by investment bank Perella Weinberg Partners LP regarding the restart plan. The CEO regularly contacted the investment bank to discuss the restart plan throughout the weekend.
Court filings further reveal that John Ray III reviewed the list of bidders for FTX 2.0. As previously reported, venture capital firm Tribe Capital expressed interest in restarting the bankrupt crypto exchange.
The latest development sent the native token’s FTT price up 17%, reaching a peak of $1.16 before dropping to its current trading price of $1.14.
24h FTT price chart. Source: CoinMarketCap
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
FTX CEO John Ray III considered a plan to restart the bankrupt crypto exchange.
A recent court filing revealed that there is a bidder list that is likely to include investors interested in FTX 2.0.
The bankruptcy exchange’s native token, FTT has surged more than 17% following the latest developments.
The bankrupt crypto exchange FTX has announced it will be relaunched by new management under the leadership of current CEO John Ray III.
According to a filing filed earlier today with the United States Bankruptcy Court for the County of Delaware, John Ray III charged the company’s bankruptcy estate more than $290,000 for his services. In addition, FTX had to pay an additional $1.3 million to other employees in the bankrupt unit that took over the platform.
While the majority of his services involve day-to-day administrative and legal work, some of the activities mentioned in the filing reveal that the CEO is working on a plan to restart FTX 2.0. These plans regarding the possible restart of the crypto exchange were shared by Sullivan & Cromwell in bankruptcy court last month.
FTX CEO John Ray III confirms FTX 2.0 plans.
— FTX 2.0 Coalition (@AFTXcreditor) May 22, 2023
These activities include advising cybersecurity firm Sygnia to strengthen its international crypto platform, reviewing the terms sheet for an exchange restructuring plan, exploring the following steps to launch the exchange, and reviewing and finalizing the FTX 2.0 document for distribution to investors.
CEO Ray also reviewed the summary of steps submitted by investment bank Perella Weinberg Partners LP regarding the restart plan. The CEO regularly contacted the investment bank to discuss the restart plan throughout the weekend.
Court filings further reveal that John Ray III reviewed the list of bidders for FTX 2.0. As previously reported, venture capital firm Tribe Capital expressed interest in restarting the bankrupt crypto exchange.
The latest development sent the native token’s FTT price up 17%, reaching a peak of $1.16 before dropping to its current trading price of $1.14.
24h FTT price chart. Source: CoinMarketCap
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
$HOOK ❤️
LIVE
BSCDaily
--
🎉 Most Traded Highlight #Web3 Projects in #BNBChain Last 24 Hours 🚀
🥇 $HOOK
🥈 $GAL
🥉 $TWT
$KNC
$MBOX
$AXL
$NEXO
$FLUX
$BSW
$SURE
#BNB #bscgem #Web3
🥇 $HOOK
🥈 $GAL
🥉 $TWT
$KNC
$MBOX
$AXL
$NEXO
$FLUX
$BSW
$SURE
#BNB #bscgem #Web3
So time to HODL $BTC 🤔🤔
LIVECrypto Whale
--
Tether To Continue Buying Bitcoin With Profits
The Defiant
Subscribe
Breaking:
New Bitcoin Token Overtakes WBTC on Avalanche
Fed Hints At Pause After Another 25bps Hike
Tether To Continue Buying Bitcoin With Profits
USDT Issuer Held $1.5B Of BTC As Of March 31
By: Owen Fernau 23 hours ago
Tether To Continue Buying Bitcoin With Profits
After its latest attestation report revealed that it was holding Bitcoin in the portfolio backing crypto’s largest stablecoin, USDT, Tether is doubling down.
The company said on May 17 that it would direct up to 15% of its operating profits towards purchasing Bitcoin.
“Tether’s decision to hold Bitcoin is in line with our strategic approach to diversifying our reserves and ensuring their stability,” Paolo Ardoino, the CTO of Tether, told The Defiant. “I would like to emphasize that Tether has no plans to sell its Bitcoin holdings.”
He added that Tether’s excess reserves exceed its Bitcoin holdings, which positions the company well in terms of stable growth.
Tether already owned $1.5B worth of Bitcoin as of March 31, equivalent to roughly 52,600 tokens. If consolidated into one wallet, that would make the company the world’s thirteenth-largest holder of Bitcoin, according to BitInfoCharts.
A major caveat of that ranking is that a single entity can control multiple Bitcoin addresses, making it difficult to determine how much of the digital asset anyone really holds.
Ardoino clarified to The Defiant that Tether had been holding a “significant” amount of BTC in many previous quarters and didn’t acquire the entirety of its stash in Q1 2023 as some on social media suggested.
Sam Kazemian, the founder of Frax Finance, thinks Tether is making a good move by continuing to acquire BTC.
“I think it's extremely smart for stablecoin issuers to put some of their profits (not collateral) into digital assets,” he told The Defiant over Telegram. He added that Frax accumulates ETH, but might buy BTC as well if holders of the project's FXS token vote to do so.
Trillion Dollar Opportunity
Kazemian believes that stablecoins are a huge opportunity in the crypto space. “I think the top stablecoin issuers will be the next Apple, Amazon, and Google of this generation,” he said. In line with Kazemian’s prediction, Tether said in a May 15 post that its Q1 profits exceeded those of established companies like Netflix, Starbucks, and PayPal.
Tether has been enjoying increased profits because interest rates have been rising since March 2022. The company owned just over $53B in U.S. treasury bills as of March 31, a record high. Higher rates have meant that Tether is raking in profits from its fixed-income holdings.
Kazemian sees stablecoin issuers as being win-win businesses if they’re able to reach scale. “If the economy is doing well and rates are low, their investments and their tokens increase in value,” he said. “If the economy is in a recession and rates are very high, they simply get paid by the U.S. government.”
To be sure, Tether has more than its share of detractors — the company isn’t registered with the SEC, John Reed Stark, a well-known cybersecurity expert and lawyer, highlighted on Twitter. This means that the company doesn’t have to adhere to the strict US reporting standards. As such, the reports about Tether’s BTC holdings, as well as assets and liabilities, don’t constitute a full-fledged audit, Stark said.
Despite its increasing dominance, Tether has been embroiled in various legal battles over the years – in 2021, the Commodity Futures Trading Commission ordered Tether to pay $41M for misrepresenting the status of the reserves backing USDT. The Wall Street Journal also reported on the companies behind Tether using falsified documents and shell c
ompanies to gain access to bank accounts.
Subscribe
Breaking:
New Bitcoin Token Overtakes WBTC on Avalanche
Fed Hints At Pause After Another 25bps Hike
Tether To Continue Buying Bitcoin With Profits
USDT Issuer Held $1.5B Of BTC As Of March 31
By: Owen Fernau 23 hours ago
Tether To Continue Buying Bitcoin With Profits
After its latest attestation report revealed that it was holding Bitcoin in the portfolio backing crypto’s largest stablecoin, USDT, Tether is doubling down.
The company said on May 17 that it would direct up to 15% of its operating profits towards purchasing Bitcoin.
“Tether’s decision to hold Bitcoin is in line with our strategic approach to diversifying our reserves and ensuring their stability,” Paolo Ardoino, the CTO of Tether, told The Defiant. “I would like to emphasize that Tether has no plans to sell its Bitcoin holdings.”
He added that Tether’s excess reserves exceed its Bitcoin holdings, which positions the company well in terms of stable growth.
Tether already owned $1.5B worth of Bitcoin as of March 31, equivalent to roughly 52,600 tokens. If consolidated into one wallet, that would make the company the world’s thirteenth-largest holder of Bitcoin, according to BitInfoCharts.
A major caveat of that ranking is that a single entity can control multiple Bitcoin addresses, making it difficult to determine how much of the digital asset anyone really holds.
Ardoino clarified to The Defiant that Tether had been holding a “significant” amount of BTC in many previous quarters and didn’t acquire the entirety of its stash in Q1 2023 as some on social media suggested.
Sam Kazemian, the founder of Frax Finance, thinks Tether is making a good move by continuing to acquire BTC.
“I think it's extremely smart for stablecoin issuers to put some of their profits (not collateral) into digital assets,” he told The Defiant over Telegram. He added that Frax accumulates ETH, but might buy BTC as well if holders of the project's FXS token vote to do so.
Trillion Dollar Opportunity
Kazemian believes that stablecoins are a huge opportunity in the crypto space. “I think the top stablecoin issuers will be the next Apple, Amazon, and Google of this generation,” he said. In line with Kazemian’s prediction, Tether said in a May 15 post that its Q1 profits exceeded those of established companies like Netflix, Starbucks, and PayPal.
Tether has been enjoying increased profits because interest rates have been rising since March 2022. The company owned just over $53B in U.S. treasury bills as of March 31, a record high. Higher rates have meant that Tether is raking in profits from its fixed-income holdings.
Kazemian sees stablecoin issuers as being win-win businesses if they’re able to reach scale. “If the economy is doing well and rates are low, their investments and their tokens increase in value,” he said. “If the economy is in a recession and rates are very high, they simply get paid by the U.S. government.”
To be sure, Tether has more than its share of detractors — the company isn’t registered with the SEC, John Reed Stark, a well-known cybersecurity expert and lawyer, highlighted on Twitter. This means that the company doesn’t have to adhere to the strict US reporting standards. As such, the reports about Tether’s BTC holdings, as well as assets and liabilities, don’t constitute a full-fledged audit, Stark said.
Despite its increasing dominance, Tether has been embroiled in various legal battles over the years – in 2021, the Commodity Futures Trading Commission ordered Tether to pay $41M for misrepresenting the status of the reserves backing USDT. The Wall Street Journal also reported on the companies behind Tether using falsified documents and shell c
ompanies to gain access to bank accounts.
What could be The next move? Keeping in mind this..
LIVEShekar_Official
--
Bitcoin Drops Below $27K as Investors Continue to Weigh Debt Ceiling Talks, Regulatory Actions
Early morning gains for the crypto were quickly erased in Thursday afternoon trading.
Bitcoin (BTC) tumbled back below $27,000, reversing its advance from a day ago as investors continued to weigh the ongoing debt ceiling talks in Washington, D.C. and the latest regulatory moves.
The largest cryptocurrency by market capitalization was recently trading at around $26,700, down 2.1% over the last 24 hours, according to CoinDesk data. BTC had challenged $27,500 Thursday morning, but a quick pullback early in the afternoon took the price down to nearly $26,400.
“Bitcoin is hovering near its recent lows as investors await regulatory clarity and whether Wall Street believes any use-case arguments will be made anytime soon,” Edward Moya, senior market analyst for foreign exchange market maker Oanda, wrote in a Thursday note. “This frustrating trading range has turned off many investors and if the crypto fundamentals don’t improve anytime soon, downward pressure could resume,” he continued.
Over $20 million of BTC futures were liquidated in the past four hours, with 87% of them being long positions, or bets on higher prices.
Ether (ETH), the second-largest cryptocurrency by market capitalization, followed a similar trend, down 1.6% to change hands at around $1,795 on Thursday afternoon.
which measures the overall crypto market performance, was down 2.2% on Thursday.
Equity markets closed higher Thursday afternoon, with a late rally pulling the Nasdaq higher by 1.5% the S&P 500 by 0.95%, and the Dow Jones Industrial Average by 0.35%.
“The Nasdaq and other tech-focused investments have played a little bit of catch-up” this year, he added. “At the same time, we're seeing bitcoin consolidating around [near] between $27,000 to $30,000 level.”
While some analysts argued that the debt ceiling debate could boost “safe-haven” assets such as gold and bitcoin, Tapscott said he’s not convinced that BTC’s price will go up in the event of a government default.
Bitcoin’s 2024 halving cycle
While the market wavers during these debt ceiling talks, Ninepoint Partners' Tapscott suggested that investors will soon be pivoting their attention toward BTC’s 2024 halving cycle that “typically precedes a bull market in crypto.”
Messari Research Analyst Sami Kassab told CoinDesk in an email that when examining price charts from the last three halvings – 2012, 2016, and 2020 – “it becomes apparent that bitcoin has consistently entered a bull market within 12-18 months prior to each halving event.”
#Binance #BTC #crypto2023 #bullmarket
Bitcoin (BTC) tumbled back below $27,000, reversing its advance from a day ago as investors continued to weigh the ongoing debt ceiling talks in Washington, D.C. and the latest regulatory moves.
The largest cryptocurrency by market capitalization was recently trading at around $26,700, down 2.1% over the last 24 hours, according to CoinDesk data. BTC had challenged $27,500 Thursday morning, but a quick pullback early in the afternoon took the price down to nearly $26,400.
“Bitcoin is hovering near its recent lows as investors await regulatory clarity and whether Wall Street believes any use-case arguments will be made anytime soon,” Edward Moya, senior market analyst for foreign exchange market maker Oanda, wrote in a Thursday note. “This frustrating trading range has turned off many investors and if the crypto fundamentals don’t improve anytime soon, downward pressure could resume,” he continued.
Over $20 million of BTC futures were liquidated in the past four hours, with 87% of them being long positions, or bets on higher prices.
Ether (ETH), the second-largest cryptocurrency by market capitalization, followed a similar trend, down 1.6% to change hands at around $1,795 on Thursday afternoon.
which measures the overall crypto market performance, was down 2.2% on Thursday.
Equity markets closed higher Thursday afternoon, with a late rally pulling the Nasdaq higher by 1.5% the S&P 500 by 0.95%, and the Dow Jones Industrial Average by 0.35%.
“The Nasdaq and other tech-focused investments have played a little bit of catch-up” this year, he added. “At the same time, we're seeing bitcoin consolidating around [near] between $27,000 to $30,000 level.”
While some analysts argued that the debt ceiling debate could boost “safe-haven” assets such as gold and bitcoin, Tapscott said he’s not convinced that BTC’s price will go up in the event of a government default.
Bitcoin’s 2024 halving cycle
While the market wavers during these debt ceiling talks, Ninepoint Partners' Tapscott suggested that investors will soon be pivoting their attention toward BTC’s 2024 halving cycle that “typically precedes a bull market in crypto.”
Messari Research Analyst Sami Kassab told CoinDesk in an email that when examining price charts from the last three halvings – 2012, 2016, and 2020 – “it becomes apparent that bitcoin has consistently entered a bull market within 12-18 months prior to each halving event.”
#Binance #BTC #crypto2023 #bullmarket
🥵🤩
LIVECoinFea
--
How to Buy Cryptocurrency in Dubai?
As the popularity of virtual money grows, people become increasingly keen to buy cryptocurrency in Dubai. Cryptocurrencies have risen in importance in recent years, and the number is continuously growing. Crypto operations are delivered and exchanged in the physical world as digital records to an electronic database that identifies transactional data, rather than as traditional monetary operations follow.
Benefits you can get by buying cryptocurrency in Dubai
Buying cryptocurrency in Dubai is a wise move in terms of monetary transaction efficiency. When compared to regular payment institutions, cryptocurrency exchanges are extremely inexpensive. A local wire transfer, for example, is not uncommon to be expensive, while international money transfers may be much more expensive. Transactions using digital money are frequently less expensive.
Unlike sending money from a digital wallet to a savings account, the transaction cost for cryptocurrencies is negligible to none. Transactions may be completed at any time of day or night, and there are no buy or withdrawal restrictions. This motivates people to buy cryptocurrency in Dubai even more. Furthermore, unlike opening a bank account, which requires authentication and other processes, anybody may use cryptocurrency. Transnational digital currency transfers are also more efficient than traditional fiat money transfers. Money is transferred from one area to another by bank transfer in around half a day. Cryptocurrency transactions are carried out in a short period.
The process of buying cryptocurrency in Dubai
If you intend to buy cryptocurrency in Dubai, you need to go to a cryptocurrency exchange. Selecting a trustworthy, well-known provider with a wide currency range will make crypto trading more enjoyable. To complete the registration process and set up an account, the individual must confirm his or her identification. It is preferable at first to finance the exchange fund before purchasing any virtual currency. Researching the options in advance can help you decide which digital currency to purchase. By putting in a purchase requisition for the desired currency, you can receive one or more coins. After the transaction is completed, the individual will possess a digital wallet. The trading system can keep track of users’ crypto wallets.
Can I buy cryptocurrency in Dubai OTC?
To sell and buy cryptocurrency in Dubai, almost everyone utilizes an exchange. OTC trading refers to any such deal, and it is offered through stand-alone trading desks or on exchanges. OTC trading is useful if you want to exchange huge sums of fiat money for cryptocurrencies or significant amounts of cryptocurrency for cash. It is, indeed, the ideal way to trade because it saves you time and money and is significantly more convenient. It has become possible and convenient to make crypto transactions OTC in Dubai recently.
Benefits of buying cryptocurrency in Dubai OTC
There are certain benefits of buying cryptocurrency in Dubai OTC for customers. OTC trading provides lower asset pricing. Because OTC trading primarily uses substantially huge transaction volumes, putting such deals on an exchange can produce significant pricing distortions, resulting in slippage. This can have a substantial impact on the price at which you purchase the item. As a result, the trade is divided into multiple little trades, increasing the cost per trade. Most people convert other cryptocurrencies to USDT (Tether) as its easier and faster to sell USDT in Dubai for cash. OTC trading allows huge deals to be executed at a single price and in a single transaction, making it both easy and cost-effective.
Should I buy cryptocurrency in Dubai now?
If you have a substantial savings account and can afford to buy cryptocurrency in Dubai, now may be a good time to do so. Cryptocurrency is an expensive endeavour, and buying now allows you to acquire it at a lesser cost. Bitcoin, for example, formerly cost about $70,000 per token and is now worth roughly $21,000 per token. Cryptocurrency may be quite volatile, so trying to purchase and sell at the proper time by timing the market is the greatest option. There are no assurances that any virtual currency will prosper in the long run, but retaining your digital assets for the long term is one of the most effective strategies to protect your money.
The post How to Buy Cryptocurrency in Dubai? first appeared on Coinfea.
Benefits you can get by buying cryptocurrency in Dubai
Buying cryptocurrency in Dubai is a wise move in terms of monetary transaction efficiency. When compared to regular payment institutions, cryptocurrency exchanges are extremely inexpensive. A local wire transfer, for example, is not uncommon to be expensive, while international money transfers may be much more expensive. Transactions using digital money are frequently less expensive.
Unlike sending money from a digital wallet to a savings account, the transaction cost for cryptocurrencies is negligible to none. Transactions may be completed at any time of day or night, and there are no buy or withdrawal restrictions. This motivates people to buy cryptocurrency in Dubai even more. Furthermore, unlike opening a bank account, which requires authentication and other processes, anybody may use cryptocurrency. Transnational digital currency transfers are also more efficient than traditional fiat money transfers. Money is transferred from one area to another by bank transfer in around half a day. Cryptocurrency transactions are carried out in a short period.
The process of buying cryptocurrency in Dubai
If you intend to buy cryptocurrency in Dubai, you need to go to a cryptocurrency exchange. Selecting a trustworthy, well-known provider with a wide currency range will make crypto trading more enjoyable. To complete the registration process and set up an account, the individual must confirm his or her identification. It is preferable at first to finance the exchange fund before purchasing any virtual currency. Researching the options in advance can help you decide which digital currency to purchase. By putting in a purchase requisition for the desired currency, you can receive one or more coins. After the transaction is completed, the individual will possess a digital wallet. The trading system can keep track of users’ crypto wallets.
Can I buy cryptocurrency in Dubai OTC?
To sell and buy cryptocurrency in Dubai, almost everyone utilizes an exchange. OTC trading refers to any such deal, and it is offered through stand-alone trading desks or on exchanges. OTC trading is useful if you want to exchange huge sums of fiat money for cryptocurrencies or significant amounts of cryptocurrency for cash. It is, indeed, the ideal way to trade because it saves you time and money and is significantly more convenient. It has become possible and convenient to make crypto transactions OTC in Dubai recently.
Benefits of buying cryptocurrency in Dubai OTC
There are certain benefits of buying cryptocurrency in Dubai OTC for customers. OTC trading provides lower asset pricing. Because OTC trading primarily uses substantially huge transaction volumes, putting such deals on an exchange can produce significant pricing distortions, resulting in slippage. This can have a substantial impact on the price at which you purchase the item. As a result, the trade is divided into multiple little trades, increasing the cost per trade. Most people convert other cryptocurrencies to USDT (Tether) as its easier and faster to sell USDT in Dubai for cash. OTC trading allows huge deals to be executed at a single price and in a single transaction, making it both easy and cost-effective.
Should I buy cryptocurrency in Dubai now?
If you have a substantial savings account and can afford to buy cryptocurrency in Dubai, now may be a good time to do so. Cryptocurrency is an expensive endeavour, and buying now allows you to acquire it at a lesser cost. Bitcoin, for example, formerly cost about $70,000 per token and is now worth roughly $21,000 per token. Cryptocurrency may be quite volatile, so trying to purchase and sell at the proper time by timing the market is the greatest option. There are no assurances that any virtual currency will prosper in the long run, but retaining your digital assets for the long term is one of the most effective strategies to protect your money.
The post How to Buy Cryptocurrency in Dubai? first appeared on Coinfea.
According to Tether, these purchases are part of their new investment strategy. Tether is going to allocate about 15% of the profits of its investments to the purchase of bitcoins, and these bitcoins will be added to the company's surplus stablecoin reserves. $ETH $USDT #BTC
$BTC From this month, Tether will start buying bitcoins to expand its reserves.Tether Holding has announced that it will regularly buy bitcoins with part of its profits to expand its stablecoin reserves from this month.
#BTC #Binance #crypto2023
#BTC #Binance #crypto2023
Growth in the number of transactions on the Bitcoin (BTC) network continues, but there seems to be a decline in active users.
What could be the reason behind this?
#BTC #crypto2023
What could be the reason behind this?
#BTC #crypto2023
US Citizens’ Debt Surpasses $17 Trillion for the First Time Ever
Amid the country’s fragile economic standing, US citizens’ debt has surpassed the $17 trillion mark for the first time ever. Moreover, household debt set a record of $17.05 for Q1, growing by 0.9%, or $148 billion, from Q4 of last year.
The Federal Reserve Bank of New York reported the concerning figures on Monday. Additionally, it is noteworthy that the debt has surged by $2.9 trillion since the closing months of 2019. Conversely, the debt number arrives as the US government debates a potential increase to its debt ceiling. Confronted by the potential of a worrisome debt default.
The Federal Reserve Bank of New York reported the concerning figures on Monday. Additionally, it is noteworthy that the debt has surged by $2.9 trillion since the closing months of 2019. Conversely, the debt number arrives as the US government debates a potential increase to its debt ceiling. Confronted by the potential of a worrisome debt default.
I think that $PEPE got serious potential to overtake $DOGE next bull run. What do you guys think?
#PEPE #BNB #crypto2023
#PEPE #BNB #crypto2023
Is #Bitcoin the Future of Money?
#Bitcoin has the potential to replace fiat currency because it is decentralized and operates on a peer-to-peer network, meaning that it doesn't require intermediaries such as banks to function.
The supply of #Bitcoin is also limited to 21 million coins, which means that it can't be inflated like fiat currencies. This makes Bitcoin a more stable and reliable store of value over the long term.
#Bitcoin 's security is also a significant advantage. The technology behind Bitcoin, known as blockchain, uses cryptography to secure transactions and prevent fraud. This makes Bitcoin a more secure and trustworthy currency than fiat.
#Bitcoin also provides users with more financial privacy. Because Bitcoin transactions are pseudonymous and not tied to a user's identity, users have more control over their financial data and can make transactions without worrying about their personal information being compromised.
Finally, #Bitcoin is borderless and can be used anywhere in the world. This makes it a convenient and accessible currency for people who live in countries with unstable fiat currencies or limited access to banking services.
While #Bitcoin is still relatively new and has a long way to go before it can fully replace fiat currency, its advantages make it a promising alternative that could potentially revolutionize the way we think about money.
Of course, there are still challenges that need to be addressed before #Bitcoin can become a mainstream currency, such as scalability, usability, and regulation. However, with continued development and innovation, #Bitcoin could become the currency of the future.
#crypto2023
The supply of #Bitcoin is also limited to 21 million coins, which means that it can't be inflated like fiat currencies. This makes Bitcoin a more stable and reliable store of value over the long term.
#Bitcoin 's security is also a significant advantage. The technology behind Bitcoin, known as blockchain, uses cryptography to secure transactions and prevent fraud. This makes Bitcoin a more secure and trustworthy currency than fiat.
#Bitcoin also provides users with more financial privacy. Because Bitcoin transactions are pseudonymous and not tied to a user's identity, users have more control over their financial data and can make transactions without worrying about their personal information being compromised.
Finally, #Bitcoin is borderless and can be used anywhere in the world. This makes it a convenient and accessible currency for people who live in countries with unstable fiat currencies or limited access to banking services.
While #Bitcoin is still relatively new and has a long way to go before it can fully replace fiat currency, its advantages make it a promising alternative that could potentially revolutionize the way we think about money.
Of course, there are still challenges that need to be addressed before #Bitcoin can become a mainstream currency, such as scalability, usability, and regulation. However, with continued development and innovation, #Bitcoin could become the currency of the future.
#crypto2023
The Ethereum Network Recovers from Performance Issues
The Ethereum network experienced technical issues, causing the network to stop finalizing blocks for over an hour on Friday.
This was the second such incident within 24 hours, raising concerns for users of the second-largest blockchain by market capitalization.
However, the network has resumed finalizing blocks, and clients are releasing updates to address the issue, according to Terence.eth, a pseudonymous Ethereum developer.
Finalized blocks play a crucial role in providing proof-of-work validation, making networks like Ethereum easy to trust and reliable to use.
While Ethereum’s performance issues within the past week could potentially affect its credibility in the eyes of builders, the network has historically been viewed as one of the most stable networks in the market.
However, some services built atop Ethereum, such as leading crypto exchange platform DYdX, had to pause deposits temporarily due to Ethereum’s lack of finality.
Despite the hiccup, Ethereum has become an integral part of the blockchain ecosystem, hosting multi-billion-dollar networks of financial infrastructure and other applications.
There is currently over $27 billion in Total Value Locked (TVL) across the Ethereum network, according to data by DefiLlama.
The network’s native token, ETH, is trading at around $1,800, up by 2.0% over the past day but down by almost 7% over the past week.
Superphiz.eth, an Ethereum Beacon Chain community health consultant, advised validators to increase their hardware specs if possible, switch to a minority client, and apply patches when available. He also added that the chain keeps going and eventually finalizes, encouraging users not to worry too much.
#Binance #crypto2023 #BNB
This was the second such incident within 24 hours, raising concerns for users of the second-largest blockchain by market capitalization.
However, the network has resumed finalizing blocks, and clients are releasing updates to address the issue, according to Terence.eth, a pseudonymous Ethereum developer.
Finalized blocks play a crucial role in providing proof-of-work validation, making networks like Ethereum easy to trust and reliable to use.
While Ethereum’s performance issues within the past week could potentially affect its credibility in the eyes of builders, the network has historically been viewed as one of the most stable networks in the market.
However, some services built atop Ethereum, such as leading crypto exchange platform DYdX, had to pause deposits temporarily due to Ethereum’s lack of finality.
Despite the hiccup, Ethereum has become an integral part of the blockchain ecosystem, hosting multi-billion-dollar networks of financial infrastructure and other applications.
There is currently over $27 billion in Total Value Locked (TVL) across the Ethereum network, according to data by DefiLlama.
The network’s native token, ETH, is trading at around $1,800, up by 2.0% over the past day but down by almost 7% over the past week.
Superphiz.eth, an Ethereum Beacon Chain community health consultant, advised validators to increase their hardware specs if possible, switch to a minority client, and apply patches when available. He also added that the chain keeps going and eventually finalizes, encouraging users not to worry too much.
#Binance #crypto2023 #BNB
