SINGAPORE — 25 August 2023 — TOKEN2049, Asia’s premier Web3 and crypto conference, announced an international DJ line-up for AFTER 2049, the official closing event of its upcoming Singapore edition. Headlined by award-winning DJ and producer Shimza, house icon Enzo Siffredi and Hong Kong’s Leon, Milam and Mo-Shi, AFTER 2049 takes place on Friday, 15 September as the largest Formula 1 Singapore Grand Prix pre-weekend party of the year.
Taking over the 57th floor of Singapore’s most iconic building, Marina Bay Sands, AFTER 2049 will occupy both the expansive rooftop observation deck alongside celebrated nightlife institution CÉ LA VI. Featuring unparalleled views of the famous Garden City skyline, AFTER 2049 will be hosted in tandem with the practice rounds of the Formula 1 Singapore Grand Prix — located right at the heart of thrilling night race action and entertainment.
Raphael Strauch, Founder of TOKEN2049 said: “We are thrilled to once again be hosting AFTER 2049 at the iconic Marina Bay Sands rooftop. We have carefully curated a unique DJ lineup which features some of the largest names in electronic music, alongside a specially crafted stage and set-up to create an atmosphere that’s simply unmatched. We expect AFTER 2049 to be an absolute highlight.”
A limited number of tickets for AFTER 2049 will be sold via Resident Advisor from 29 August onwards.
TOKEN2049 Singapore marks the conference’s largest edition ever with over 10,000 attendees, which runs from 13 to 14 September 2023, ahead of the Singapore Grand Prix race weekend. Sponsors of AFTER 2049 include innovative digital ecosystem for blockchain and banking solutions CrossFi;a globalized interactive platform for digital assets BIB Exchange; The Open Network (TON), building a Web3 ecosystem on Telegram; Zetrix, public infrastructure for governments and cross-border trade; Smobler, a turnkey metaverse architect focused on gamefi, phygital engagement and education;global market-making and algorithmic trading firm Auros;blockchain for better — vechain; the global leader in residence and citizenship by investment Henley & Partners; global crypto derivatives exchange and home of the OX community OPNX and the leader in blockchain security, Quantstamp.
Attendees will be able to hear from some of the industry’s foremost pioneers, prolific thought leaders and founding innovators on all aspects of the broader Web3, blockchain and crypto arena, as it continues to redefine the world of traditional finance and banking. As part of TOKEN2049 Week, attendees can expect to be treated to a full line-up of 300+ side events, conferences, networking events, workshops, and parties taking place throughout 11-17 September across the city-state.
Decentralized Exchanges (DEXs) use Automated Market Makers (AMM) to execute trades autonomously.
Here the user trades against liquidity pools, which are provided by liquidity Providers (LP). Liquidity pools are primarily in pairs e.g. ETH/USD.
Trading fees generated by the DEX incentivize liquidity providers
Providing liquidity for DEXs is a type of yield farming and some investors see it as more profitable than just buying and holding because LPs receive rewards from trading fees.
However, LPs lose money due to Impermanent Loss (IL).
What is Impermanent Loss?
This occurs when LPs deposit into a liquidity pool and the price of the tokens change.
The larger the change in price of the tokens compared to when they were deposited the larger the loss.
For example:
Luke is a liquidity provider who wishes to commit $200 to a liquidity pool that contains ETH/USDC pair.
This is a 50/50 pool which means that both tokens in the pair must be equivalent in value.
If 1 ETH is $100 and 1 USDC is $1 therefore 1 ETH is 100 USDC. Luke will commit his $200 to the pool by 1 ETH/ 100 USDC.
Now there is a total of 10 ETH/10,000 USDC in the pool deposited by other LPs Luke is therefore entitled to 10% of the liquidity pool.
After Luke commits his $200 the price of ETH rallied to $400 this creates a discrepancy in the price of ETH in the pool and the price of ETH in the market (other exchanges). As ETH in the pool is cheaper than ETH in the market.
This creates an arbitrage opportunity, arbitrage traders will add USDC to the pool to get ETH until the ratio reflects the current price of ETH.
Now the ratio between ETH/USDC in the pool has changed and there is now 5 BTC and 2,000 USDC in the pool.
If Luke withdrawal his 10% from the pool he will now get 0.5 BTC and 200 USDC both will give him $400
He made a profit right? Well if Luke had just simply used $100 to buy BTC and USDC and hodl he would have now had $500 in total.
So this difference of $100 is his impermanent loss the opportunity cost of him providing liquidity instead of holding.
Well technically the loss becomes permanent if Luke exits the pool but if he does not withdraw his deposit from the pool, there is a chance that the price of BTC will return back to 100 USDC hence why it is called impermanent loss.
So in other to not end up like Luke in this example and the other 50% of LPs who are losing funds here are ways to avoid and mitigate impermanent loss.
Provide Liquidity for Stablecoins
Remember in the example change in price (volatility) create arbitrage opportunity so it is wise to provide liquidity for stablecoin pairs where is hardly any price movement which reduces the risk of IL.
Provide liquidity for tokens that move hand-in-hand
One way to mitigate impermanent loss is by providing liquidity for tokens whose price action correlates i.e. they move the same way. This will make it hard for the changes in price to be taken advantage of by arbitragers.
Provide liquidity for one-sided pools
Some protocols like Bancor allow users to provide liquidity for one-sided pools, here a token is not paired with another and they earn fees for the LP for committing his token to the protocol.
But beware of the volatility of that token quick example:
If Luke commits 1 BTC to a protocol that offers a 10% reward in fees annually and 1 BTC is worth $100 all things being equal at the end of the year Luke will have 1.1 BTC worth $110.
But if the price of BTC falls to $50, Luke will still get his 10% reward which will amount to 1.1BTC but will only be worth $55 this is a loss.
Provide liquidity in pools that are not in a 50/50 ratio
Generally, liquidity pools offer a 50/50 ratio as they prioritize creating a balance pool and the chance of impermanent loss is higher with this ratio.
Some DEXs like Balancer allow Liquidity providers to commit their funds to different ratios like 80/20 or 70/30
This way the more volatile of the pair will be in a small ratio helping LP mitigate against IL.
Provide liquidity into reputable DEXs
Apart from impairment loss LPs can also lose funds to malicious actors who pose will pools will high returns also for liquidity providers only to get rug pulled as malicious developers drain the liquidity within the pool causing LP to lose their deposit.
The Bottom Line
All in all, when looking to provide liquidity you should be looking for tokens with low volatility in such a way that in the face of price changes, the trading fees paid to LPs will outweigh the impermanent loss and you will still be in profit.
Tako Protocol has raised a $2 million Pre-Seed round from Mask Network, DWF Ventures, UOB Venture, Signum Capital, AC capital, SmrtiLab, HashBrown Research, RSS3 and other angel investors.
Tako Protocol aims to build an open social recommendation infrastructure protocol for Web3 social networks. Developers can leverage Tako to create dApps featuring recommendation algorithms, advertising systems, curation mechanisms, and referral economies more efficiently.
This facilitates users in participating within decentralized social networks, enabling them to generate, share, discover & match value. Tako Protocol has fostered strategic collaborations with major Web3 social networks like Lens protocol and Farcaster. In the coming month, Tako will initiate product testing in partnership with each of these social networks.
About Tako
Tako Protocol is building an open social recommendation layer in Web3, an innovative layer that will play a key role in distributing recommended content across various protocols and ecosystems! Tako Protocol aims to enhance the sense of use for Web3 Social users, create a seamless interaction experience, and facilitate valuable content discovery.
Do you recall the once famous Daniele Sesta and his Wonderland Money? It was the largest fork of Olympus DAO that amassed a whopping USD 1.8B in Total Value Locked (TVL) and had an astounding 80,000% APY!
From its peak price of USD 10k per token, the price of Wonderland’s native token $TIME has declined to just under USD 20.
As for this once popular Play-to-Earn (P2E) game Axie Infinity that boasted more than 2.3M daily active players, there are currently only 255k daily players!
Wonder why? In this article, we will uncover the top 3 crypto trends that faded away, why they lost steam and examine if they are likely to make a comeback.
Top 3 Crypto Trends That Faded Away
Yield Farming with high and unsustainable APYs
Yield farms, once touted as the rocket fuel of DeFi, have fallen out of favour with crypto investors as the yields offered have dramatically fallen.
In early 2020, Compound Protocol first began issuing its native $COMP tokens to reward early users of the platform.
Since then, it sparked off hundreds of yield farms randomly named after food and animals on many L1 blockchains that offered insanely high APYs for staking Liquidity Provider (LP) tokens and the projects’ own reward tokens.
The main problem lies in the lack of utility for the reward tokens, this led to excess supply of tokens which ultimately led to the collapse in prices of these rewards tokens.
Worth the risk now?
Traditional Profile Picture (PFP) NFTs
CryptoPunks, Bored Ape Yacht Club, Azuki, Doodles and Moonbirds are arguably some of the top PFP NFT projects around.
It takes at least a decade to build a recognizable brand and global community. These projects do have a real shot at proving their staying power and popularity over the longer term.
Beyond airdrops, they are focused on executing and delivering exclusive experiences for their respective communities based on a solid roadmap.
However, many of the PFP NFT collections that followed are mere derivatives of these projects that lack any form of utility.
The floor prices for many of such projects are unlikely to recover and we will probably not hear of them in time to come.
NFTs are not dead, but PFP NFTs are losing their appeal, most are controlled by a centralized group or “founder” and offering more than a hoodie/ staking is needed to maintain long term interest imo
Innovative tech and finding solutions for things we didn’t know we need will…
The number of unique active gaming wallets provides great insight to the state of the blockchain gaming industry.
Since 2022, the number of wallets that interacted with blockchain games have declined significantly from its peak of more than 1.2M wallets to around 200k wallets. This represents a 83% decrease in unique active gaming wallets!
So what went wrong? In order to examine why most P2E games faded and died off, it is crucial to first understand how and where the money or tokens earned by players is derived.
Resembling that of a ponzi scheme, money is pumped into the ecosystem by new players. For example, in the case of Axie Infinity, players must first pay to buy an Axie, a character used in the game. The money invested by new players is used to fund existing players when they cash out. Many other games such as Aavegotchi, STEPN and Sweatcoin adopt such a model.
They need to consider introducing and diversifying revenue streams such as having advertisements that raise monthly revenue and channel these funds to rewarding skilled players.
What do traditional games such as World of Warcraft, Call of Duty and League of Legends have in common? These games are actually fun to play! This is in stark contrast to games such as CryptoKitties, Splinterlands and DeFi Kingdoms that lack functionality and a captivating gaming experience.
Can These Crypto Fads Make A Comeback?
The popularity of these 3 crypto trends were purely driven by hype, founders of many of these projects capitalized on the bull run to attract many users but failed to provide any unique value proposition.
While yield farming with high APYs is likely to resurface in some shape or form in the next bull run due to human greed, there is no doubt that pure PFP NFT projects that rode on the NFT hype in the last 2 years or so will fade into irrelevance.
Only those PFP NFT projects that seek to create a global brand that offer real world utility and experiences are the ones that are likely to make a strong comeback and prove their staying power.
As for blockchain gaming, the key to creating sustainable Web 3 games very much depends on how far these games succeed in creating a compelling storyline, improving the game design and quality of graphics to attract more Web 2 gamers.
In the digital age, Bitcoin has emerged as a trailblazer, leading the charge towards decentralized financial systems. As global digitization accelerates, the appeal of cryptocurrencies, particularly Bitcoin, continues to soar.
Bitcoin mining stands out as a sector witnessing remarkable growth and potential. This article explores the burgeoning fascination with Bitcoin mining companies and their potential to be a cornerstone in your investment endeavors.
The current state and future growth of Bitcoin.
Since its launch in 2009, Bitcoin has carved a niche for itself in the financial world. Its moniker, “digital gold,” aptly captures its essence. Just as gold has been a trusted store of value for millennia, Bitcoin, in its relatively short existence, has garnered trust and recognition.
Its decentralized framework ensures that no single entity has control over it, and its capped supply at 21 million coins ensures scarcity, further solidifying its position as a digital counterpart to gold.
The stance of regulatory bodies plays a pivotal role in the adoption and legitimacy of cryptocurrencies. The former chairman of the SEC’s remarks about the potential approval of the spot ETF is a testament to this — an endorsement from such a significant regulatory body can be a game-changer. It not only provides a sense of security to individual investors but also paves the way for institutional investors, who often tread cautiously due to regulatory uncertainties.
The future trajectory of Bitcoin is a topic of intense debate and speculation. However, several financial entities and experts have weighed in with optimistic forecasts.
Predictions, such as the one suggesting a value of $120,000 by the end of 2024, underscore the bullish sentiment surrounding this digital currency. As more people and institutions recognize its potential, Bitcoin’s journey upward may well continue, solidifying its position as a premier digital asset.
As Bitcoin continues to solidify its position in the global financial landscape, it’s essential to understand the driving forces that could further boost its prominence and value.
These catalysts, rooted in both historical patterns and emerging trends, have the potential to shape Bitcoin’s trajectory in the coming years.
Let’s delve deeper into these pivotal factors that could propel Bitcoin to unprecedented heights.
Bitcoin Halving
The concept of Bitcoin halving is intrinsic to its design. Every 210,000 blocks mined, or roughly every four years, the reward for mining a new block is halved. This mechanism ensures that Bitcoin’s total supply will never exceed 21 million.
Historically, these halving events have been precursors to significant bull runs. For instance, post the 2016 halving, Bitcoin saw a dramatic surge, reaching its then-all-time high in 2017.
The next halving, slated for 2024, is widely anticipated by investors and enthusiasts alike. If past patterns hold true, this event could usher in another period of substantial price appreciation for Bitcoin.
Analysis of the Bitcoin price action timeline with the coming halving
Regulatory Clarity
The world of cryptocurrencies has often been described as the ‘Wild West’ due to its lack of clear regulatory guidelines. However, as the sector matures, there’s a growing need for defined regulations to ensure investor protection and market integrity. The potential approval of the Bitcoin spot ETF is a significant step in this direction.
An ETF, or Exchange Traded Fund, would allow investors to buy Bitcoin without actually holding the cryptocurrency, providing a more accessible entry point for many. This approval would signal a nod of confidence from regulatory bodies, potentially attracting more institutional investors.
For example, when the U.S. SEC approved the first gold ETF in 2004, it opened the floodgates for institutional money, leading to a surge in gold prices.
Mainstream Adoption
Bitcoin’s journey from being a fringe asset to a mainstream financial instrument has been nothing short of remarkable. As more businesses, from tech giants like Tesla to local coffee shops, begin accepting Bitcoin as a payment method, its utility and demand are set to rise.
Furthermore, its role as a ‘store of value’ is gaining traction. Countries like El Salvador have even adopted Bitcoin as a legal tender, showcasing its growing acceptance on a national scale.
As more people become familiar with and trust in the technology, and as infrastructure like Bitcoin ATMs becomes more widespread, we can expect a surge in both individual and business users, driving up demand and, by extension, its price.
Spotlight on profitable Bitcoin mining companies.
Bitcoin mining companies are making waves in the cryptocurrency world. Core Scientific, a leader in this arena, boasts a staggering year-to-date increase of over 1000%. Another notable miner, Clean Spark, has also reaped significant financial rewards. These successes stem from enhanced mining efficiencies and reduced energy costs.
As technology advances, mining operations become more streamlined, and with the global push towards renewable energy, operational costs have decreased.
With Bitcoin’s price on an upward trend, now is a prime time to invest in Bitcoin mining companies. These entities are poised for even greater profitability, making them attractive prospects for investors.
Why these companies present good investment options
In the Bitcoin mining industry, certain companies have distinguished themselves as leaders, consistently outperforming their peers and setting industry standards. Here are three such trailblazers that have showcased resilience, innovation, and impressive returns:
1. Core Scientific
Core Scientific (CORZQ) stands out as a titan in the Bitcoin mining industry. With a year-to-date increase of over 1000%, it’s evident that the company has mastered the art of optimizing its mining operations.
One of the primary reasons behind Core Scientific’s success is its commitment to innovation. The company has invested heavily in state-of-the-art mining equipment, ensuring that they remain at the forefront of the mining race.
Additionally, their strategic partnerships and focus on sustainable energy sources not only reduce operational costs but also position them as a forward-thinking player in a rapidly evolving industry. For investors, Core Scientific offers the promise of high returns combined with the stability that comes from a company that’s leading in its sector.
2. Clean Spark
Clean Spark (CLSK) has made headlines not just for its impressive financial gains but also for its unique approach to Bitcoin mining — its emphasis on clean energy solutions for mining operations sets it apart.
By leveraging renewable energy sources, Clean Spark ensures that its mining activities are both cost-effective and environmentally friendly. This sustainable approach not only reduces operational costs but also appeals to a growing demographic of eco-conscious investors.
Furthermore, Clean Spark’s diversified services, including energy software solutions, provide an added layer of stability to the company’s revenue streams. Investing in Clean Spark means betting on a company that’s not only profitable but also aligned with the future of sustainable business practices.
Clean Spark (CLSK) financial results for Q3 FY2023
3. Riot Platforms
Riot Platforms (RIOT) is another heavyweight in the Bitcoin mining industry. The company’s consistent expansion of its mining capacity showcases its aggressive growth strategy. By continuously updating its mining hardware, Riot ensures that it remains competitive in the ever-evolving mining landscape.
Moreover, Riot Platforms’s transparent operations and regular updates to shareholders instill confidence in potential investors. The company’s growth trajectory, combined with its commitment to operational excellence, makes it a prime candidate for those looking to invest in the promising world of Bitcoin mining.
While the companies highlighted above are exemplary in their operations and returns, there are numerous other Bitcoin mining companies that also offer great value.
The key for potential investors is to identify companies that exhibit core strengths similar to those mentioned above, ensuring a blend of profitability, sustainability, and forward-thinking strategies.
What are the profit prospects from investing in BTC mining companies
The world of Bitcoin mining offers a unique intersection of technology and finance, and the profitability of companies operating in this space is intrinsically linked to the performance of Bitcoin itself.
As the premier cryptocurrency, Bitcoin’s price trajectory can significantly influence the bottom line of mining companies. Current market analyses and expert predictions hint at a bullish future for Bitcoin, which, in turn, paints a promising picture for these mining entities.
As these companies continue to refine their processes, leveraging technological advancements and tapping into cost-effective energy sources, they are poised to see enhanced profit margins. This operational efficiency can translate to increased returns for investors.
However, it’s crucial for potential investors to approach this with a balanced perspective. While the outlook seems favorable, the cryptocurrency market is known for its volatility. Investing in Bitcoin mining companies, like all investments, carries inherent risks and is subject to market dynamics.
It’s advisable for investors to consider these as long-term holds, keeping in mind the cyclical nature of markets and the potential for both ups and downs. Always conduct thorough research and perhaps seek financial advice before making investment decisions.
Closing thoughts
Bitcoin mining companies offer a unique investment opportunity in the ever-evolving world of cryptocurrencies. Their success is a testament to Bitcoin’s growth and the potential of blockchain technology.
While the future is promising, it’s essential for investors to stay informed, understand the market dynamics, and make decisions that align with their financial goals and risk tolerance.
The journey of Bitcoin and its associated industries is a testament to the transformative power of technology and innovation in the financial sector.
Pendle,a decentralized yield tokenization protocol, has integrated support for two titans of the Real-World Assets (RWA) sector: MakerDAO’s Boosted Dai Savings (sDAI) and Flux Finance’s fUSDC. This strategic move enables users to tap into the booming potential of RWA yields, propelling Pendle into the spotlight as a key player in this fast-growing sector.
The fundamental concept behind real-world asset (RWA) tokenization revolves around establishing a virtual investment mechanism on the blockchain that is linked to tangible assets such as real estate, precious metals, artworks, and collectibles.
For DeFi, this would mean on-chain access to traditional finance instruments such as the U.S. Treasury Bonds, and the chance to deploy these tokenized assets for use in Dapps.
TN Lee, the Co-founder and CEO of Pendle, shared, “Fixed Yield and RWA have some of the largest addressable markets that remain untapped in DeFi. I firmly believe these will play a key role in attracting huge, offchain institutional investors onchain. Yes, RWA is already in DeFi, and now Pendle is able to offer a suite of tools that lets you properly hedge or manage these yields. Interest rate derivatives, swaps, fixed income…all these products that TradFi institutions love, they’re already here.”
Pendle’s unique value proposition extends to both retail and institutional clients, offering an easy-to-use platform to manage yields on-chain. These functionalities not only enhance users’ ability to navigate the dynamic DeFi environment, but also unlock the full capital potential of their assets. Now, that support has extended to the burgeoning realm of RWA.
RWA is already making waves, with its growth trajectory pointing skyward. It’s a sleeping giant in the world of DeFi, and Pendle with their strategic maneuvers and forward-thinking approach, is not just ready for it – they’re leading the charge.
Pendle Secures Investment from Binance Labs to scale DeFi Opportunities
Binance Labs, the venture capital and incubator arm of cryptocurrency exchange giant Binance, announced yesterday that they have invested an undisclosed amount with Pendle Finance in order to “Scale DeFi Yield Opportunities and Drive Adoption for LSDfi”
We're excited to announce that we'v invested in @pendle_fi!
Pendle Finance is a yield derivative protocol that enables users to execute advanced yield strategies, bringing the TradFi interest derivative market to DeFi.https://t.co/CDDXCWRCbQ
The announcement follows Pendle’s successful listing on Binance, which saw the already industry-leading project propelled to new heights.
“Binance Labs is always looking for projects that are spearheading innovation in DeFi sectors that will enable access to a wider audience. Pendle Finance’s focus on multi-chain expansion and innovative yield strategies align with our vision for the future of DeFi. We look forward to working closely with Pendle Finance and supporting their journey of reshaping the DeFi landscape towards a more inclusive ecosystem” commented Yi He, Co-Founder & Head of Binance Labs.
Concurrently, Pendle has since expanded not only to the BNB Chain, but also to the Optimism Network, where they qualified as an Optimism Grants Finalist.
Cryptocurrencies led by Bitcoin have experienced a remarkable surge in popularity and widespread adoption since their inception.
What initially began as a somewhat rebellious alternative to traditional fiat currency in 2009 has grown to the extent of catching the eyes and attention of mainstream corporations and multinational companies.
One of such companies is Paypal, an American multinational financial technology company that enables payments between parties through online money transfers.
PayPal enables digital payments on behalf of merchants and consumers worldwide.
They allow consumers to send and receive payments in over 200 countries/regions and support 25 currencies.
Headquartered in San Jose, California, USA, the company was founded in 1998 and is currently valued at8 billion by market cap, while also serving an extensive user base of more than 430 million accounts worldwide.
Leading the helm as president and CEO is Dan Schulman.
Now for those who use Paypal and utilize their services, here is how to buy crypto on PayPal along with the various cryptocurrencies they currently support.
From its peak of USD 400M in May 2022, NFT sales have fallen dramatically below USD 50M, what might have happened?
The last NFT bull run was primarily driven by speculation, NFT traders boasted about their astronomical gains on Crypto Twitter (CT) through flipping NFTs.
Crypto influencers led their followers to ape into the NEXT BIG NFT project, promising life-changing gains.
However, it is evident that such hype and speculation was unsustainable. The NFT projects poised to survive and thrive are those that provide real-world utility.
How do NFTs confer real-world utility and what are some of these projects that do so?
How NFTs Accrue Value From Real-World Utility
NFTs can confer utility in a myriad of ways, ranging from gym memberships to exclusive dining experiences and enhancement of the gaming experience.
Fitness Fiends
Where NFTs meet fitness enthusiasts, paving the way for fitness in the metaverse!
The Fitness Fiends NFTs serve as membership cards that provide holders exclusive access to real-world benefits.
These include access to a real-world gym in London with state-of-the-art equipment as well as discounts on fitness gear and personalized training programs.
Through the introduction of virtual reality technology, Fitness Fiends also seeks to create an immersive environment for gym-goers from around the world to interact with one another.
Having launched their NFT membership collection back in January 2022, LinksDAO has recently rebranded to the Links Golf Club.
Having sold out all their NFTs and raising USD 10.5M in the process, they seek to unite a community of golf lovers from across 40 countries and have a goal to purchase a Top 100 golf course through crowdfunding.
The membership tiers offered by Links Golf Club can be found here.
The biggest names in golf – One membership
Update your gear, elevate your game, and play the best courses with Links Golf Club. pic.twitter.com/rYLuwqCshL
Fancy a hangout with Gary? A Flyfish Club membership offers you that opportunity!
The Flyfish Club is the world’s very first members-only private dining club where membership is purchased in the form of an NFT.
There are two membership tiers – a regular tier that offers access to the main room of the restaurant and cocktail bar as well as another more exclusive Omakase tier where holders can enjoy an unparalleled culinary experience.
As the first ever real world horse racing NFT game, each Silks horse NFT represents an actual real life thoroughbred race horse.
Players stand a chance to earn rewards and prizes when their race horses win races, they also stand to receive rewards when breeding and grooming the horses.
The fluctuation in floor prices of NFTs is a distraction to the projects’ focus on providing long-term utility to its holders.
The key to the longevity of any NFT project is to build a credible long-lasting brand by providing its holders with exclusive experiences and products, creating a tight-knit community in the process.
Here’s the hard truth that most NFT founders have to eventually learn.
You think you’re selling a product and people are buying it because they love what you’re doing and want to own one.
But 99% are really just speculating/gambling and have no interest in what you’re actually…
The main challenges that lie ahead for NFT founders is for them to stay true to their mission as well as values, to remain steadfast in delivering on their promises according to the roadmaps.
Jam, the first dApp introducing the concept of “Friends Token” to Lens and Farcaster.
Just like Friend.tech, this feature will enable users to purchase and trade shares of content creators and their posts directly within the social dApps. But that’s not all; users will also have the ability to trade shares of the actual content itself.
Launched in 2022, Jam quickly gained popularity and now stands as the second most widely used client on Farcaster, just trailing behind the default client Warpcast.
The whitelist application for beta testing will be open starting from August 28.
Jam Token will be airdropped to foster a thriving creator community, incentivize creators from various communities including Lens and Farcaster.
Friend.tech users will also be part of this airdrop initiative, and other Web3 Social Communities in the future to build a better creator community.
Additionally, Jam will unveil its proprietary DAO token in the future, allowing the community to actively partake in governance initiatives.
About Jam: Jam is a community-driven Web3 Social dApp, with the primary objective of fostering the creator economy, incentivizing content creators within Web3 social networks, and spearheading the advancement and innovation of decentralized social networks.
The importance of increasing safety in the web3 space cannot be overstated.
In 2022, hackers stole an estimated $3.8 billion from cryptocurrency businesses – the biggest year ever for crypto hacking, and it is only going to get worse.
As the crypto market grows, so too will the number of hackers and the sophistication of their attacks. Investors in the space desperately need protection from these risks, and this goes way further than improving the technology.
The question is not whether or not hacks will happen, but rather when.
Crypto insurance solutions promise to be there, picking you up when you fall.
What is Crypto Insurance?
Crypto insurance is a type of insurance that protects investors against losses caused by theft, fraud, hacks, and other events that can result in the loss of cryptocurrency assets.
Crypto insurance is a policy made to protect investors against losses associated with web3 scams.
There are a variety of solutions available, most in the form of platform native solutions. Coinbase and Binance, for example, provide some insurance policies to the digital assets they hold for their customers.
An increasing number of insurance providers are created in the space, however, promising more dedicated, personalized and streamlined solutions.
— inSure DeFi – The Future of Web3 Insurance (@InsureToken) March 16, 2022
As a space, it is receiving increasing attention, and innovation is occurring.
From centralized to decentralized solutions, where web3-native principles such as the right to identity are being utilized, there is movement in the space to meet the urgency.
Artificial Intelligence is now changing our everyday lives, and currently one of the least used sectors to implement it is the insurance industry.
AI in Decentralized Insurance Use Cases
AI can be deployed in any of the Decentralized Insurance processes, including product… pic.twitter.com/lHgXn9Zrd1
This all sounds good, but there is a massive bottleneck. According to this Oliver Wyman report, only 1% of crypto assets are insured.
And this is to be expected. The industry as a whole is very intricate, and a vast lack of familiarity with the inner workings of the sector hold traditional insurance players back from getting involved in the space. Due to its nascency, there is also not much historical data to go off to develop risk models which means that the risk vs reward equation can’t be succinctly developed. As the cornerstone to the strategy of any insurance-based business, this is a major setback.
The lack of regulation of the space, shown by the recent FDE fiasco, makes it impossible to classify crypto assets, and hence horrendously challenging to generate rules around insuring them(underwriting, in insurance industry lingo).
As crypto is not legal tender, for example, it cannot be insured like stocks, bonds, and other financial instruments.
Finally, the anonymity in the space, frequent lack of KYC performed and lack of coherent identity solutions, certainly does not help.
Hot, warm, and cold crypto wallets each have different levels of risk. Did you know that until we did it, there was no standard definition of hot vs. warm? Standards development is one way insurance helps emerging markets mature.https://t.co/5OtqpLa8Oh
Simply being the first to figure out an effective way to insure crypto assets will provide a massive first mover advantage in this blue ocean opportunity. There is huge unmet demand from retail and institutional investors, and whoever figures out how to underwrite prudently for the space and achieve this at scale, will win.
Outside of this, there is a massive potential for web3 tech to revolutionize the space itself. Smart contracts, for example, promise an ability to automate policies for certain types of risk, where third-party data can be used for the real-time evaluation of claims. This could make insurance operations radically more efficient.
Being a lot more customer focused through utilizing web3-native incentives can also rapidly improve the customer experience of many of these firms and lead to macro business-model innovation.
Overall, crypto insurance is a space that many are begging for to grow, and one with many opportunities for both the insured, and the insuring.
A space to watch, and for the chosen, to innovate within.
Crypto assets present “novel and complex risks” to the banking sector that are “difficult to fully assess,” according to the Federal Deposit Insurance Corporation 2023 Risk Review for the banking sector.#CryptoNews#FDIChttps://t.co/qn4QNF2KvN
In an era where Google’s embrace of web3 as a strategic advantage might elicit chuckles from skeptics, a noteworthy shift is underway within the realm of cloud computing giants.
In a recent development, Huawei Cloud unveiled its Web 3.0 node engine for public testing.
This move, aimed at streamlining blockchain network management and authentication, signifies a major tech firm’s foray into the thriving web3 infrastructure landscape. Currently, the engine is compatible with Ethereum and Tron, offering support for Ethereum’s full nodes encompassing execution and beacon nodes.
#HuaweiCloud TechWave #Web3 Day speakers revealed! Check out our speakers who will share their insights and experiences on how Web3 is shaping the future of information technology. Join us on 10th Aug at Cyber Arena, Cyberport for Huawei Cloud TechWave Web3 Day and register now:… pic.twitter.com/r25tdIBP7U
Calling seed to series A Web3 projects & startups:
Want to get up to $200K in credits & exclusive benefits? Gated Discord channel with Google Cloud Web3 product & engineering Early access to Web3 products & roadmap Free advanced Web3 training VIP event access
Huawei, perhaps surprisingly, holds long-term ambitions for the web3 ecosystem. From launching metaverse initiatives to foster adoption in the Asian region to securing partnerships with big industry players like Morpheus labs and Polygon,the tech giant continues to show commitment to the web3 vision.
In the current climate of dwindling trade volume and subdued sentiment, this move might appear ill-timed and anomalous.
This, is far from the case.
Enter the Titans
Dominating the cloud computing arena are the indisputable leaders: Amazon AWS, Microsoft Azure, and Google Cloud, boasting market shares of 32%, 23%, and 10% respectively. All three of these industry behemoths have previously demonstrated interest in the web3 domain, offering web3 builder labs on their existing servers.
Google, in particular, continues to aggressively expand its footprint in the web3 sector. With initiatives ranging from a specialized cloud service tailored for web3 developers to the ‘Google for Startups Cloud Initiative’—which offers industry builders up to $200,000 in cloud credits—Google is positioning itself as the premier infrastructure provider for the web3 community.
Lagging behind its two cloud computing competitors, there are reports that Google wants to use the growing developer base of web3 as leverage to catch up.
Calling seed to series A Web3 projects & startups:
Want to get up to $200K in credits & exclusive benefits? Gated Discord channel with Google Cloud Web3 product & engineering Early access to Web3 products & roadmap Free advanced Web3 training VIP event access
But what is the reason for all this interest? With an army of strategic advisors, these companies surely aren’t prodding on a dead horse here, right?
But what drives this enthusiasm? With a cadre of strategic advisors at the helm, it’s clear these companies aren’t chasing after an empty ideal.
Indeed, market potential is a driving force. Last year, Web3 stood only second to Gen-AI as the most significant driver of cloud spending (source).
Outside of diversifying their services and allocating capital to the ‘hot new tech’, however, their initiatives confirm that there is true potential in the tech.
At its core, this strategic push positions these tech giants as the go-to infrastructure providers, aligning with the anticipation of web3’s awaited ‘ChatGPT moment.’ As an industry, they are also uniquely positioned to comprehend Web3’s growth mechanics, having undergone their own period of product-driven expansion.
Cloud infrastructure,for example, existed for years before utility and investment surged—paralleling the current evolution in the web3 landscape.
Still, the narrative extends beyond mere timing.
This March, a Forbes report speculated that cloud computing could be one of the first mainstream industries that will experience drastic disruption due to web3, and vice versa. This space could be the springboard that brings web3 out of this winter.
And the value is real. Decentralization and blockchain pose incredible opportunities for cloud storage tech, emerging from the combination of the security of blockchain with the convenience of the cloud. From better using underutilized computing power, more trusted and transparent execution environments, drastic efficiency improvements and even Chip-to-Cloud tech which could completely revolutionize the IoT space, the potential is endless . Who better than the current tech giants to leverage this opportunity?
A Beware Note
To answer the above rhetorical question, maybe many are.
After all, the web3 space for many is the escape route from the clutches of tech monoliths -a portal to a world where data and privacy needn’t be relinquished in exchange for streamlined services.
To some, the idea of Google and Microsoft becoming the go-to solution for web3 infrastructure just doesn’t ring right.
Undoubtedly, this sparks an important conversation about whether this alignment is truly beneficial. In an industry striving to break free from reliance on tech giants and their data-for-service trade-offs, this shift seems incongruous, to say the least.
Moreover, numerous web3-native companies, like IPFS, Filecoin, and 4everland, are pioneering innovative approaches to cloud storage, offering more ethically aligned alternatives.
Still, the reputation of these industry titans carries inherent gravity, professionalism, and trust—qualities that the industry is currently yearning for. Consequently, many firms seek collaborations with them as a testament to their credibility.
And with many web3 native companies innovating upon cloud storage, like IPFS, Filecoin and 4everland, there seem many more morally-agreeable solutions coming up.
Still, the brand name of these firms comes with inherent gravity, professionalism and trust- key wounds which the industry is suffering from -which poses many firms to seek collaborations with them as confirmations of their legitimacy.
It is definitely a space to watch for its interesting dynamics. And, overall, all this movement acts as hope, that we are posed to see better days in web3, very soon.
Good Morning fam!
New week, new opportunities
Daily News: – Huawei have recently launched a Node Engine Service (NES), which has introduced support for the Ethereum and TRON blockchains. It's good to see big companies like this one getting involved in parts of Web3!
In recent years, decentralized finance (DeFi) has emerged as one of major highlights in the cryptocurrency industry. While DeFi has not quite reached the heights of 2021, the space still shows high potential for growth and expansion.
As of this writing, the entire DeFi industry is valued at roughly $40.59 billion, according to data from DefiLlama. This impressive figure is possible, thanks to the development of various decentralized exchanges (DEXs) and protocols.
As the cryptocurrency landscape keeps progressing, the significance of decentralized exchanges has become more evident. DEXs enable direct cryptocurrency trading without intermediaries, offering a secure and transparent approach to participate in the cryptocurrency market.
Whether you are a seasoned trader or beginner, employing a seamless and data-driven approach to DeFi trading can help you stay ahead of the game and make well-calculated moves. GeckoTerminal emerges as an effective real-time DEX tracker to meet the needs of DeFi enthusiasts or investors.
In this article, we will explore the features, benefits, and significance of GeckoTerminal in the context of the ever-evolving decentralized finance landscape.
What Is GeckoTerminal?
GeckoTerminal is a DeFi and decentralized exchange (DEX) aggregator that provides investors and traders with a comprehensive and user-friendly platform to make informed investment decisions in the cryptocurrency market.
As a specialized DEX aggregator, GeckoTerminal serves as an all-in-one for both basic and expert-level analytical tools and information, enabling you to access real-time trading data, liquidity, and transaction counts across different trading pairs on DEXes.
Top DEXes by 24H Volume Today
In the top 3 spot, we have Uniswap V3 (ETH), Curve (ETH), and Uniswap V2 (ETH)!
One of the highlight features of GeckoTerminal is its capacity to collect data from various decentralized exchanges and display them based on the blockchain network on which they are deployed. This feature allows users to track millions of crypto trading pairs and liquidity pools across more than 520 decentralized exchanges on 96 blockchain networks.
How It Addresses The Need for Real-time Data Tracking
GeckoTerminal caters to traders and technical analysts by harnessing the robust charting capabilities of TradingView. Through this integration, this platform offers interactive charts that can be fully customized to suit your preferences.
As a trader or crypto analyst, you have the flexibility to select focus dates, apply various indicators, and utilize other advanced charting features. This empowers you with a comprehensive view of market trends, allowing you to identify potential trading opportunities with precision and confidence.
GeckoTerminal understands the need for personalization in the crypto space, and as such, it offers users the ability to personalize their experience by tracking their favorite assets. This segmentation allows you to focus on the assets that matter most to you, enhancing your decision-making process.
Furthermore, GeckoTerminal incorporates additional data, such as Proof of Reserves, to ensure users have access to the most reliable and up-to-date information about centralized cryptocurrency exchanges. This data is obtained through on-chain analysis of exchanges’ wallet addresses, providing users with insights into the financial health and transparency of these exchanges.
GeckoTerminal’s API opens up new possibilities for independent projects and developers. By offering access to its database and allowing the extraction of specific data, this platform enables the creation of more specialized applications that can leverage its wealth of real-time data.
Key Features of GeckoTerminal
Here, we’ll be looking at some of the best features on GeckoTerminal, highlighting their functions and how to use them.
Exploring by Network and DEX
GeckoTerminal offers a powerful and user-friendly platform for exploring decentralized exchanges and blockchain networks to track the price and performance of both new and old tokens.
Upon landing on the homepage, you are presented with trending assets and a comprehensive list of tracked blockchain networks. To streamline your search, you can sort and filter data by selecting your preferred blockchain network from the list.
This feature allows you to focus on specific networks that interest you. It provides you with on-chain data on the trading activity for each blockchain network.
Additionally, you can conveniently track the pools and assets listed on each DEX, giving you a comprehensive view of the performance and liquidity of various tokens.
Curve Pools Tracking
The Curve Pools tracking feature allows you to monitor and gain insights into the liquidity pools on Curve Finance. Curve is a decentralized exchange on the Ethereum blockchain and other EVM networks, known for its focus on low-volatility and low-slippage pool systems.
What is Curve Finance?
Curve Finance is a decentralized exchange (DEX) that focuses on stablecoins. It utilizes automated market making (AMM) to offer low fees and high liquidity for stablecoin swaps.
With GeckoTerminal, you can track and analyze the value of assets in each Curve pool, along with daily trade volume and the overall financial viability of the pool. Also, the platform provides information on the individual assets within the pool and their respective percentage of the total pool value.
To access the Curve Pools tracking feature on GeckoTerminal, simply enter ‘Curve’ in the search box or select Curve from the list of decentralized exchanges on the homepage. From there, you can choose the specific pool you wish to track.
Individual Pairs Tracking
GeckoTerminal’s Individual Pairs feature allows you to monitor and keep tabs on any crypto asset listed on a decentralized exchange. Whether it’s a new or existing asset, as long as a liquidity pool has been created for the asset and trading activities have commenced, you can easily track it on GeckoTerminal.
Source: CoinGecko
To track a specific crypto asset, you can either enter the token’s smart contract address in the search box or search for the asset on an exchange where it is listed. This convenient and straightforward process empowers you to stay updated on the performance and trading activities of your chosen assets. Ultimately, this enables you to make informed investment decisions in the dynamic cryptocurrency market.
Filters
GeckoTerminal offers personalized tracking through its filter feature, allowing you to modify the token list based on specific criteria such as price development (top gainers and losers), liquidity pool size, and 24-hour trading volume.
By using these filters, you can streamline your view and rearrange the asset list to focus on the data that aligns with your indicated preferences, enhancing your tracking experience and providing valuable insights for informed decision-making.
Watchlist
One of the key benefits of the watchlist feature is its ability to consolidate the selected assets into a single collection list. This streamlines subsequent searches and provides you with a centralized view of the assets you are monitoring.
Source: CoinGecko
Instead of navigating through various pages or exchanges to check on different tokens, you can access all the relevant data and insights from your watchlist, saving you valuable time and effort.
Token Details
For each tracked crypto asset, the platform offers a wealth of valuable information, enabling you to make informed decisions in the fast-paced cryptocurrency market.
At a glance, traders and enthusiasts can gauge the financial viability of a tracked asset through key data points. Daily trading volume information allows you to assess the liquidity and popularity of the asset, providing insights into its market activity.
On-chain transactions data further complements this view, giving you an understanding of the asset’s transactional behavior on the blockchain.
Interactive Charting Tool
One of the highlight features of the GeckoTerminal is the interactive charting tool. The charting component is conveniently located in the right-hand section of the asset page, allowing traders to easily access and analyze the price movements of their chosen assets.
With this tool, traders can draw up customized charts for the assets they are interested in and apply a wide range of indicators to gain deeper insights into market trends. Moreover, the chart section consists of interactive tools on the left side, including preset trendlines like Fib Retracements and so on.
Conclusion
With its recent upward trajectory and continuous expansion, the DeFi landscape is bound to welcome new projects and tokens. As such, there will always be an abundance of profitable opportunities in the developing world of decentralized finance.
However, you will still need a calculated approach and an informed strategy to become successful in the DeFi market. Analyzing the market requires patience and the appropriate tools.
If you are in search of a feature-rich data aggregator, GeckoTerminal is undoubtedly worth a try. This platform will allow you to discover tokens – with potential – yet to be listed on CoinGecko.
With the aid of its interactive charting tools, you can also conduct technical analysis on various tokens and pairs, empowering you to make excellent trading decisions.
In the past month, Solana (SOL) has been the topic of widespread discussion, particularly on Twitter, thanks to an unprecedented rally that led to a ~74% surge in its price performance.
According to DeFiLlama, Solana’s Total-Value-Locked (TVL) also surpassed $500 million in the first half of June, returning to its highest levels post-FTX crash.
This increase could be attributed to anticipation around the expansive ecosystem developments, alongside the resounding opinions of vocal key opinion leaders and native protocol founders on Twitter.
Well-known investors in the space such as Ansem from TCG Crypto and Arthur from Defiance Capital have publicly declared their bullish sentiments on the Solana ecosystem. Arthur0x even showcased his enthusiasm by adopting a Mad Lad as his Twitter profile photo – a notable project in the Solana NFT landscape.
Dear Solana DeFi team,
Please add support for Wallet Connect if you want Solana DeFi summer to take off. Else institutions will be restricted from using it without the support of an institutional-grade MPC wallet.
Sincerely, A guy that want Solana DeFi summer to happen
Despite the bear market’s numerous adversities, including multiple native network downtimes (i.e., Feb. 25, 2023), the sunsetting of various protocols such as Friktion, and the decline of FTX – Solana’s biggest backer, many may wonder about Solana’s sudden surge of popularity this summer.
In this article, we’ll delve into a few of the ecosystem’s developments and also explore upcoming advancements.
Brief introduction
Solana is an open-source, layer-1 blockchain developed in 2017. It’s designed to support decentralized applications and cryptocurrency projects, emphasizing speed and scalability.
The network implements a combination of Proof-of-History (PoH) and Proof-of-Stake (PoS) consensus mechanisms, theoretically allowing for more than hundreds of thousands of transactions per second. Its native cryptocurrency, SOL, is utilized for gas fees, running custom applications, and incentivizing network participation like staking.
Development of existing Decentralized Finance protocols
Within the Solana ecosystem, existing Decentralized Finance protocols have been continually pushing out new updates despite the turbulent times.
One example of this is from MarginFi, a Decentralized Finance lending platform on Solana. The team recently launched a unique loyalty points-based rewards system to incentivize user activity.
Here’s how it works: borrowers receive 4 loyalty points per dollar deposited, while lenders receive 1 loyalty point per dollar. The longer a user engages with the protocol, the more points they accrue.
The results of the program have been striking. In just 2 weeks since its inception, the program has nearly quadrupled MarginFi’s Total-Value-Locked, pushing it past the $10 million mark as seen in the graphic below. These effects have also trickled down to an increase in the deposit of liquid staking tokens on the blockchain, as users seek to earn attractive yields alongside the point system.
While the sudden growth can be attributed to a potential rumored token airdrop for MarginFi through these points, it highlights the active community that remains in the scene today and can be activated easily again through good incentive-alignment mechanisms.
Zeta Markets, the network’s leading perpetual exchange platform, also recently collaborated with MadLadsNFT to launch Mad Wars.
Mad Wars is a team-based trading competition for both holders and non-holders of Mad Lads NFTs, with many prizes up for grabs. So far, the volume generated has managed to outperform expectations, propelling Zeta to the top spot for perpetual exchanges on the network.
Holy crap we just cracked $7M daily volume on @ZetaMarkets !
That makes Zeta the #1 volume perp exchange on @solana
Growth of LSDs: JitoSOL, Solana’s first Maximum Extractable Value (MEV) powered liquid staking derivative, has already achieved a significant milestone with a Total-Value-Locked (TVL) of over $20 million.
With the continuous addition of new partnerships such as Kamino Finance’s recent JitoSOL-bSOL vault, the 1 million mark in SOL tokens does not seem too far from reality.
New Decentralized Finance primitives
New and promising entrants are also soon making their mark in the Solana ecosystem. Here’s a brief look into some of these protocols:
Phoenix is a DEX that utilizes a limit order book design that combines the transparency of Decentralized Finance with the efficiency of a CEX. It pioneers an Instant Settlement feature that deviates from traditional designs, facilitating immediate trade settlements and establishing itself as a robust liquidity hub.
Lulo, one of the winners under the Decentralized Finance Track section in the 2022 Solana Summer Camp Hackathon, is a decentralized order book lending protocol. It will allow anyone to create a lending or borrowing order at their desired specific rates.
Flash Trade is a perpetual exchange that introduces an innovative pool-to-peer trading model that ensures constant liquidity and safeguards liquidity providers from harmful arbitrage transactions.
Clone introduces synthetic derivative assets through ‘clones’ known as onAssets. With its Comet Liquidity System, Clone can help develop highly liquid markets with minimal capital requirements, presenting users with diverse trading opportunities.
Symmetry focuses on decentralized crypto indices and infrastructure for actively managed funds. Its Symmetry Engine allows both users and projects to create, manage, buy, and sell funds while facilitating liquidity provision.
Sujiko Protocol offers a DEX that allows perpetual trading for NFT collections with up to 10x leverage, enabling speculation on high-value NFTs. The protocol also maintains competitive affordable fees ranging from ~0.25 to ~1.5%.
Please note that these are not the only protocols in the ecosystem scene, as highlighted in this tweet below.
is it just me or is solana defi sneakily coming back?
With advancements coming hot in both the native Decentralized Finance and the NFT landscape, Solana is proving its capacity as a strong contender in the cryptocurrency market.
Despite past challenges such as the meltdown of FTX and broader macroeconomic movements, Solana’s growing rally and resilience provide a compelling testament to its potential. With the rich network of strategic partnerships, a vibrant community, and promising developments ahead, one can expect a new era of opportunities, or what might otherwise be referred to as a “Solana Summer.”
Singapore, known for its technological advancements and progressive outlook, has emerged as one of the largest hubs for the cryptocurrency community in recent times. With the country’s set rules and regulations for the crypto space, it offers an excellent environment for the growth of cryptocurrency and blockchain technology.
Centralized exchanges offer the opportunity for Singaporeans to engage with the cryptocurrency market. Binance, for example, is one of the leading exchanges in Southeast Asia – and the world. According to CoinGecko, Binance is the largest exchange by trading volume.
However, there are other cryptocurrency exchanges in Singapore, offering an alternative solution to cryptocurrency users here. In this article, we’ll explore five of them as well as compare fees, cryptocurrencies supported, and other metrics.
1. Coinbase
Source: Getty Images
Coinbase, a crypto trading platform established in 2012, is one of the best cryptocurrency exchanges in Singapore. The US-based platform is used by over 245,000 ecosystem partners in more than 100 countries across the world. Coinbase Exchange offers products and services that allow users to trade and invest in crypto easily and securely.
Coinbase supports more than 250 cryptocurrencies, including blue-chip assets like Bitcoin and Ethereum. With a simple user interface, traders can conveniently navigate the crypto trading platform.
At the same time, Coinbase boasts several security measures to ensure the safety of clients’ assets. One of these security features is the cold storage facility, which strategically stores a huge chunk of assets offline.
Coinbase charges a fee for the purchase of cryptocurrency on its trading platform. These transaction fees often vary and range from $0.99 and $2.99, depending on the size of the transaction.
Since its establishment in 2016 in Hong Kong, Crypto.com has grown to become one of the leading exchanges in the world, expanding its customer base outside of Asia. Crypto.com features more than 250 cryptocurrencies on its trading platform.
Crypto.com provides a great trading experience, with its intuitive mobile app, which allows users to execute numerous crypto-related transactions. From staking and payments to charting tools, the trading platform offers several exciting functionalities.
Happy 7th anniversary #CROFam!#7YearsStrong of non-stop building, and we’re still just getting started
We’re grateful for your support and are proud to be on this journey with you. pic.twitter.com/P6A9GnSl8i
In terms of security, Crypto.com ranks high amongst the best crypto exchanges in Singapore. The platform safeguards clients’ assets with various security measures, including multi-factor authentication (MFA) and whitelisting. The exchange also uses strong compliance monitoring and stores customer deposits to help prevent hacks and losses.
The fees on Crypto.com are quite reasonable from as low as zero to as high as 0.075%. Owners and users of CRO, the exchange’s native token, get a discount on trading fees.
Bitfinex, established in 2012, has maintained its status as one of the most reputable cryptocurrency exchanges in the world. According to CoinGecko, the crypto trading platform currently ranks second on top exchanges based on trust score. Meanwhile, Bitfinex boasts a 24-hour trading volume of $54,709,741.
Providing you with the best standards of security, high throughput, and safety in a low latency environment so traders can access our highly liquid markets.
As of now, more than 170 cryptocurrencies, including Bitcoin, Ethereum, Solana, Ripple, and so on, are available for trading on the Bitfinex exchange. The trading experience on Bitfinex is user-friendly, with numerous functions and features for both experienced and novice traders. In case you want to test the waters, the trading platform offers a demo account that enables users to test their strategy before investing real money.
Furthermore, Bitfinex’s fee schedule is one of the exchange’s major highlights. Although the fees may vary – depending on the transaction type and volume, most transactions often cost no more than 0.2%.
4. Gemini
Gemini, established in 2015, is one of the most popular crypto exchanges in the city-state of Singapore – and even in the world. The crypto platform ranks high amongst other exchanges for its strong security, with several security measures and insurance efforts to ensure the safety of users’ assets.
1/ We’re expanding in the Asia Pacific region!
Our Singapore office will serve as a hub for our larger APAC operations and we plan to increase our headcount to 100+ in Singapore pic.twitter.com/4fo06cKiLb
Gemini supports roughly 100 cryptocurrencies on its platform, which is quite underwhelming compared to other exchanges. However, several popular crypto assets, such as Bitcoin, Ethereum, Dogecoin, Cardano, etc., are available on the exchange.
Similar to Coinbase, Gemini offers varying fees, depending on the volume of the transactions. Fees can range up to $2.99 for transactions below $200 and above $50. For transactions above $200, a 1.49% charge is usually attached.
5. Kraken (Update November 2023: Kraken accused by SEC of operating unregistered platform and improperly mixing customer funds)
Founded in 2011, Kraken is one of the oldest cryptocurrency exchanges in the world. This platform supports individual and institutional investors in more than 190 countries, including Singapore, with competitively priced cryptocurrency trading.
Kraken provides its customers with two trading platforms: Kraken and Kraken Pro. Compared to the main platform, Kraken Pro has lower prices and is only available to customers who have a Kraken account. While advanced cryptocurrency traders may prefer the Kraken Pro platform, beginners should stick to the main Kraken platform.
The security and safety of your funds are our top priority
Our semi-annual Proof of Reserves audits ensure:
More accountability More transparency More security
Furthermore, Kraken offers a wide variety (220+) of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Solana, Polygon, and so on. Moreover, the trading platform supports a good number of stablecoins, including TetherUSD, USDC, DAI, etc.
Kraken offers reasonable fees on its cryptocurrency platform. From as low as 0% to as high as 0.26%, the trading platform allows traders to engage with the market and to drive maximum liquidity.
Conclusion
Indeed, Binance is an excellent crypto trading platform – and one of the best in Singapore. However, this article proves that there is a plethora of decent options when it comes to choosing a suitable cryptocurrency exchange in Singapore.
Whether you are a seasoned trader or a beginner, finding the right exchange is crucial to the success of your cryptocurrency trading. There are a number of factors, such as fees, security, and functionalities, to consider before choosing a trading platform.
Finally, traders are advised to exercise caution and do their due diligence before making a foray into the crypto market.
According to a recent report by MarketsandMarkets, the market for crypto games is skyrocketing at an astounding pace, and expected to record a CAGR of 70.3% between 2022 and 2027 to reach USD 65.7b.
Given such record growth rates, it does seem like crypto adoption has found another frontier. Blockchain-based games could have a real shot in driving mass crypto adoption as crypto drives the in-game ecosystems.
It is also heartening to know that, while early Web 3 games are focused on GameFi, there are increasingly more of such games that focus on fun gameplay.
Before we delve deeper into some of these games, we shall define what constitutes a Web 3 game.
Most Web 3 games often integrate crypto for their in-game payments or allow gamers to own tradable assets and accessories in the form of NFTs within their gameplay.
The use of smart contracts in the games ensures full transparency when trading these in-game assets and fair gameplay.
1. Kuroro Beast Brawl (The Pokémon of Crypto?)
From the gameplay down to the graphics, Kuroro Beast Brawl is a free-to-play turn-based PVP strategy game that draws its inspiration and bears resemblance to the well-loved Pokemon game.
Similar to Pokemon, players can collect a roster of 30 unique beasts, each of these beasts own a combination of 2 out of the 12 available elements. Players can then send these beasts into battle to experience the thrill of strategic combat.
The ecosystem is powered by the $KURO token on the Ethereum blockchain that facilitates the purchase of beasts and customizable traits in the game.
Kuroro Beast just released a Free-to-Play game called Beast Brawls and will airdrop to all gamers playing it
re you an Anime fan? If so, this next game called Stella Fantasy is the Genshin Impact of Web 3 gaming. Stella Fantasy is a Japanese anime-inspired RPG with beautiful NFT waifu characters.
Gamers can gather resources, craft gear, and battle monsters within the treacherous Abyss Rift dungeon in the mystical world of Verania.
Game Spotlight @rStellaFantasy, which won Best RPG Game in our social contest, will be participating in the @3XPgg Web3 Gaming Expo! Stella Fantasy is a high quality character collectable RPG, where adventurers travel the mystical land of Verania. pic.twitter.com/dXlrGWjhut
— 3XP Web3 Gaming Expo – Powered by Game7 (@3XPgg) May 26, 2023
The characters have different classes such as Mage, Range and Healer. Each class has different utilities and skills.
Backed by notable investors such as Animoca Brands and Play Venture, it is currently live on the Binance Smart Chain and has plans to launch on other chains such as the Sui Network as well.
The players purchase valuable in-game items with the Stella Fantasy $SFTY token.
3. Spider Tank by Gala Games
If you are hard-pressed for time, this is the game for you! With the right setup to achieve the goals of the match, you can win this game in 3 minutes!
your knight in shining armor has just landed in the store
Designed and created by renowned Netherlands-based gaming studio GAMEDIA, Spider Tanks is a free-to-play and play-and-earn PVP game where players act as pilots in spider tanks.
Players can customize their tanks with a wide array of parts and weapons before battling it out and earning $SILK tokens in a fast-paced game.
4. Blocklords (The Age of Empires of Crypto?)
Created by the promising MetaKing Studios, Blocklords is a free-to-play turn-based immersive medieval Web 3 based game that is built on the Polygon Network.
They recently released the Community Beta and partnered with @PolygonGaming.
Embark on a journey to establish your own kingdom, raise formidable armies and battle it out with other players in a quest for greater territorial control.
The characters in Blocklords are known as heroes that have limited lifespan, they are minted as digital assets and belong to the gamer upon creation. Each of the heroes have unique traits and attributes.
5. MixMob
Now you may have heard of a card game or a racing game, but have you heard of a card strategy racing game? MixMob is such a game.
Watch & Bet starts in 10 minutes!
Wager SUD$, spectate in LIVE races, and win rewards in bonus raffles.
Built on Solana and developed by a team that worked on FIFA, Nintendo and Disney, MixMob counts big names such as Solana Ventures, DeFiance Capital and Arthur Hayes’ investment fund Ascensive Assets among its investors.
Final Thoughts
As both gamers and developers converge and warm up to the idea of Web 3 gaming, we can expect to see many more of such interesting and fun blockchain games in the coming months and years to come as the industry grows exponentially.
Many of these Web 3 games that have the most traction often resemble the popular traditional games such as Pokemon. In creating new games, game designers and developers draw inspiration from these successful traditional games in terms of gameplay and gaming mechanics.
Although it still remains to be seen as to which Web 3 game or games will dominate the space, this shift from the focus on gamification of finance to building blockchain games that prioritize fun gameplay is a step in the right direction.
Crypto investing is risky. When scouting for new tokens to allocate toward, investors often surf through countless metrics and publications in order to offset some of the volatility.
One metric that often draws parallels with traditional is the “Fees-to-Market Capitalization” ratio. Arguably, a token should perform well when it generates strong revenue whilst being undervalued.
Fees are operational metrics, protocols generate fees as a result of usage and adoption, some protocols might share their fees generated with liquidity providers others with stakers or just token holders this is why some may use fees and revenue interchangeably.
Another factor to consider is that when a protocol starts seeing an increase in adoption and usage fees generated might increase this means higher fees to stakers and liquidity providers, which in turn creates a positive flywheel, leading to more stakers and LPs committing their funds to the protocol.
As more funds are locked in the protocol the total value locked (TVL) will increase and this is an indicator that the protocol is in good health.
Market Capitalization is a valuation metric that tells us the value of all the circulating supply of a token.
Therefore, the “fees to market capitalization ratio” give us an idea of a protocol’s operational profitability, as well as possible payouts, in this case yield, to stakers and liquidity providers.
This means the higher the figure of the ratio the more valuable a token is using this metric because a higher ratio would mean higher fees and this means that the project is a potentially good investment going by this indicator.
Lido Finance (LDO) is a crypto-staking solution available on Ethereum, Solana, Polkadot and Kusama.
The liquid staking solution lets users stake their ETH with no minimum deposits or maintaining of infrastructure whilst participating in on-chain activities, e.g. lending, to compound returns.
Lido Finance issues stETH tokens for ETH staked on its platform on a 1:1 basis. Stakers can use their stETH tokens like regular ETH for trading on crypto exchanges and for various activities across decentralized finance platforms.
The Lido DAO manages the entire staking fund and charges a 10% fee on the earnings which is split between node operators and the Lido DAO.
Lido also supported the staking of SOL, DOT and KSM on their native blockchains.
LDO is the native utility token is used for:
Granting governance rights in the Lido DAO.
Managing fee parameters and distribution.
Governing the addition and removal of Lido node operators.
LDO currently has a market cap of $1,805,394,541 and it’s currently trading at $2.06.
Image Courtesy: Token Terminal
LDO made $48m in fees in March and $49m in fees in April, so far in May LDO has generated $59.7m from fees. The protocol has seen a 63% increase in fees in the past 90 days.
PancakeSwap is the leading decentralized exchange native to BNB Chain. Users can swap their coins for other coins without the input of middleman services although PancakeSwap focuses on BEP20 tokens (a specific token standard developed by Binance).
To those who have been in DeFi for a while, PancakeSwap actually needs no introduction, the DEX is useful not just because of swapping but also because you can:
Stake CAKE in Syrup Pools.
Lend and provide liquidity on the automated market maker (AMM).
Participate in IFOs (Initial Farm Offerings).
Engage in perpetual trading.
Buy or sell NFTs via the NFT Marketplace.
CAKE has a market cap of $309m and a TVL of $1.66B with a market cap to TVL ratio of 0.186, CAKE is trading at $1.53 at the time of writing.
In the last 90 days, PankcakeSwap is among the top 10 protocols that have generated the most fees. Sitting at number 9, PancakeSwap has generated $28.2m in fees in the past 90 days.
Image Courtesy: Token Terminal
YTD, PancakeSwap has generated $45,880,829.5, therefore, the fees/MC ratio is 0.148.
Convex Finance is a DeFi protocol that allows Curve (CRV) liquidity providers to earn a share of trading fees on Curve without staking liquidity there.
Instead, Liquidity Providers can stake with Convex and receive boosted CRV and liquidity mining rewards.
This provides CRV stakers with better capital efficiency and positions.
See how it works in 4 simple steps:
Deposit any amount of CRV tokens into Convex
Receive cvxCRV tokens in exchange for providing CRV
Receive a share of the total CRV rewards
Earn Curve platform trading fees
CVX has a market cap of $339m and a Total Value Locked of $3.25B with a market cap to TVL ratio of 0.104, CVX is currently trading at $4.38
Image Courtesy: Token Terminal
Convex is number 7 among the top 10 protocols that have generated the most fees in the past 90 days. The protocol generated $45.1m in this time frame.
Convex Finance has generated $75,776,192.3 in fees YTD its fees/mc ratio is 0.22.
Sushi is a community-driven decentralized exchange (DEX) built on the Ethereum blockchain. The automated market maker (AMM) DEX, uses a liquidity pool to facilitate trades, users can also partake in yield farming and staking.
Its native token, SUSHI, is used to govern the protocol and incentivize liquidity providers.
Image Courtesy: Token Terminal
With a market cap of $164m, SUSHI is currently trading at $0.852. SushiSwap has generated $14m in fees in the past 90 days
SushiSwap has generated $24,766,726.4 with a fees/mc ratio of 0.15.
GMX is a decentralized exchange (DEX) for trading perpetual cryptocurrency futures with up to 50X leverage on popular cryptocurrencies like Bitcoin, Etheruem and more,the exchange supports low swap fees and zero-price impact trades.
Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading.
The platform launched in September 2021, GMX has a total trading volume of over $130B and 285K total users, making it the leading derivatives DEX on Arbitrum and Avalanche.
GMX has a market cap of $495,618,871 and is currently trading at $56.46
Image Courtesy: Token Terminal
GMX has generated $75,293,824 in fees YTD therefore having a fees/mc ratio of 0.151.
This ratio can be employed when comparing protocols, especially in the same industry e.g DEXs then it can aid in making informed decision when choosing the project to investing.
One caveat however is that some project might be overvalued this will inflate the market cap that’s why its also important to use other ratios like market cap/TVL to see which ones are over or undervalued.
Most importantly use other metrics like total supply, circulating supply, FDV etc and always do your research before investing.
It goes without saying that crypto have revolutionized the way the world perceives money and finance.
As the industry becomes increasingly popular, numerous opportunities have emerged alongside it. The possibilities are endless; whether you are looking to build a full-time career or simply trying to augment your income through crypto.
If you want to diversify your income streams, there are various crypto side hustles to consider.
From gaming to teaching, blogging to trading, these side hustles offer the potential to earn a significant income, while helping you stay up-to-date with the latest developments in the rapidly-evolving world of cryptocurrencies.
Play-to-earn (P2E) games are one of the biggest innovations in the cryptocurrency space in recent times. As the name suggests, a P2E game is a blockchain-based game in which the players receive rewards and earnings for participating.
These rewards are usually in the form of cryptocurrencies and non-fungible markets, which can be sold on the secondary market.
Playing P2E games is perhaps the most exciting side hustle in the crypto world, as you get to earn some real bucks – all while having fun.
However, there is a catch with most blockchain-based games. You are almost always required to fork out a certain amount as an upfront investment – used for purchasing game characters and items.
That said, you will spend most of your time in the game collecting various digital assets, such as weapons, characters, avatars, etc. These in-game collectibles are often NFTs (non-fungible tokens) and have real-life value, which can be redeemed on NFT marketplaces and exchanges. Notable examples of P2E games include Axie Infinity, The Sandbox, Ember Sword, and Decentraland.
While there is no clear-cut answer to how much a P2E gamer earns, there’ve been multiple reports of people earning thousands of dollars monthly from blockchain games.
2. Cryptocurrency Blogger/ Influencer
As already inferred, the cryptocurrency world is filled and stacked with so much information. For this reason, several finance websites and crypto websites are creating blogs where they can publish articles about digital assets and cryptocurrency as a whole. Interestingly, nothing stops individuals – like yourself – from also starting a crypto blog.
Fortunately, creating a blog has become a lot easier these days. With modern web hosting platforms, even newcomers can install WordPress blogs with one click-install. A crypto blog can help you earn hundreds to thousands of dollars through blog incomes, affiliate marketing, and collaborations; albeit it might take a while before your blog becomes profitable.
Here’s a tip – try focusing on one crypto niche at first, as this would help you build a community of readers more rapidly.
3. Affiliate Marketer
As with several other industries, the crypto industry is leveraging affiliate marketing and other entrepreneurial tools. With affiliate programs becoming increasingly popular on crypto exchanges and protocol, you can now make a passive income by recommending new individuals to some crypto businesses. After all, that is how all affiliate programs work; by actively recruiting new users or customers, you will receive incentives in return.
The more individuals you recommend, the larger the monetary incentive you earn. This program is particularly more beneficial for people with a large audience. For instance, if you have a crypto blog or YouTube channel, you can conveniently market crypto projects and businesses to a large audience of people.
4. Cryptocurrency Tutor
A cryptocurrency tutor is an individual who helps people or clients to understand various crypto-related subjects.
Similar to a crypto advisor, a crypto teacher provides crypto education as a service to help their students comprehend the complexities of cryptocurrencies and digital finance. To provide this service, you can employ different media outlets, such as YouTube, Skype, Zoom, Google Meet, and so on.
As a crypto tutor, you will be tasked with teaching your students how to make healthy, consistent profits in the crypto market.
You will need good skill at creating effective trading strategies. But that’s not all – you must also be able to translate these strategies in your trading, while showing your students how to replicate them in the market.
As a cryptocurrency tutor, you can earn over a thousand dollars every month.
A year ago, Bybit – one of the world’s leading exchanges – launched the second edition of its ‘Teach and Earn With Bybit’ program, which entailed hiring tutors to teach others about crypto. This job offer came with a salary package worth as much as $1,000 per month.
5. NFT Creator or Trader
Non-fungible tokens, popularly known as NFTs, are some of the most sought-after assets in the cryptocurrency space. In 2021, NFT sales volume totalled $24.9 billion, which is a massive improvement from $94.9 million recorded in the previous year, according to data from DappRadar.
While the buzz around these digital assets might have waned in the past few months, there’s no denying that the NFT market will continue to expand.
An excellent way to make passive income in the crypto space is by leveraging on the NFT buzz and launching an NFT collection.
The tools you need to bring your artistic ideas to life are available on various NFT marketplaces, such as OpenSea, Rarible, Nifty Gateway, and so on. The best part is that a successful NFT project can help you earn as much as hundreds of thousands of dollars.
Also, you can become an NFT trader on the secondary market. Similar to cryptocurrency, stocks, and forex trading, this involves buying NFTs at a low price to be sold later at a higher price.
You can make hundreds to thousands of dollars buying and selling NFTs on the secondary market.
6. Discord Community Manager
Discord communities, also known as Discord servers, are online communities on Discord – a Voice over IP and instant messaging social network. These communities serve as a virtual platform where investors, artists, projects developers, and crypto enthusiasts can meet and interact. While you might be familiar with these online communities, a detail people often miss is that these platforms have managers.
Discord community manager is another lucrative side hustle you might want to consider if you are looking to augment your income. As a manager, you will spend most of your time responding to questions, referring community members to the right team members, coordinating the community, and so on. That said, the pay is quite encouraging, as you could earn as high as $95,142annually.
7. Crypto Content Writer
This list would be somewhat incomplete without the role of a crypto content writer. Creating written content for different crypto publications and blogs is a fantastic way to make extra bucks. As a content writer, you will be tasked with researching, writing, and providing valuable information on cryptocurrency to a target audience of crypto enthusiasts.
We’re hiring
Chaindebrief is looking for both full-time and freelance writers!
If you feel like you’d be a good fit on our team, send us your resume at team@chaindebrief.com
To become a content writer, you don’t particularly need many technical skills. However, there are certain things you must master, including how the blockchain works, the ability to perform financial analysis, cryptography and securities, and smart contracts. Also, you must understand how legal regulations and compliance work in the crypto space.
According to data from Glassdoor, the salary for crypto writer roles ranges from $74,000 to $118,000 per year.
Wrap Up
Overall, the world of cryptocurrencies has ushered in several opportunities for people to earn a substantial income through various side hustles.
Whether you decide to become an NFT artist, a content writer, a community manager, or a crypto tutor, you will surely find a crypto side hustle that suits your interests and skillset. As the cryptocurrency industry grows, more high-paying opportunities will emerge. By staying current on the latest trends and technologies, you can capitalize on new opportunities and potentially reach new financial heights.
Bank runs are happening at unprecedented speeds. In just three days, we witnessed two of the largest bank failures in American history. Signature Bank, a New York-based regional bank, shuttered suddenly on Sunday, marking the third-biggest bank failure in U.S. history — just two days after the country’s second biggest failure, Silicon Valley Bank.
Despite this, there is a chorus of voices that want us to believe that all is fine in banking. “Americans can have confidence that the banking system is safe”, said Biden. “There is no systemic risk to our financial system”, said Britain’s Chancellor, Jeremy Hunt.
These reassurances are understandable, regardless of their believability. In 2014, rural banks in China’s eastern city of Yancheng stacked piles of cash in plain view behind teller windows to calm depositors queueing at bank branches for a third straight day — following rumors that they had run out of cash. American banking tycoons Marriner and George Eccles, did something similar during the Great Depression to fend off multiple bank runs.
But history has shown that some skepticism is warranted. “We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system,” declared Federal Reserve Chairman Ben Bernanke in May 2007 — just a year before the Global Financial Crisis — the worst banking crisis since the Great Depression.
While we may not see a wave of bank collapses like in 2008, the rapidity and scale of the run on both Signature and Silicon Valley Bank reveal deep structural flaws with the very design of fractional reserve banking in the internet age.
This is a story bigger than any one bank. Bigger than the failure of risk management. Bigger than economic vulnerability created by the aggressive seesawing between artificially high and low interest rates. It is a story of how fractional reserve banking is fundamentally broken and antiquated.
The Big Con: Fractional Reserve Banking
There is a profound contradiction at the heart of fractional reserve banking. Deposits are liabilities of the bank that must be repaid on demand. But most of those deposits are being loaned out to earn an interest — and those loans have maturities that cannot be recalled on demand. The balance on your bank account statement is an illusion — it isn’t actually there.
Fragility is baked into the very nature of fractional reserve banking, because it creates liquid claims against illiquid assets. Put simply, at any given time banks never have enough money to fulfill their promise to repay all their depositors on demand.
The word “con”, is shorthand for a “confidence trick”. And although we are largely content to forget this inconvenient truth as we go about our daily lives, mere confidence is the cornerstone of banking today.
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve”, explained Satoshi Nakmoto in a forum post announcing the Bitcoin White Paper in September 2009.
For the uninitiated, this is not merely the fringe opinion of a techno-anarchist. “Under a fractional-reserve banking system (the system in operation virtually everywhere in modern developed economies), banks have to hold a fraction of their deposits (a liability for them) as deposits at the central bank (called reserves) (an asset for them), but they can “lend out” the remainder”, wrote Paul Sheard, Standard & Poor’s chief global economist.
One of the first modern scholarly analyses of this fundamental contradiction was a paper titled, “Bank Runs, Deposit Insurance, and Liquidity,” written by Douglas W. Diamond and Philip H. Dybvig, published in the Journal of Political Economy in 1983.
Confidence In An Internet Age?
The fall of Silicon Valley Bank is being described as the fastest bank run in history. This is not a coincidence. The banking environment has changed dramatically, and the current fractional reserve banking is no longer compatible with the rapidity of information dissemination in modern society.
The reserve ratio was a concept first introduced in American banking in 1863 to protect depositor funds from being used by banks in risky investments. Federal deposit insurance was pioneered in America in 1934, in an effort to stop the rampant issue of bank runs. Yet, with each passing decade, the use of these tools appear increasingly inadequate to do their one job — prevent bank runs.
In the past, rumors spread by radio, newspapers and television. To demand for withdrawals, depositors had to physically queue and only during the opening hours of banks’ branches. In the internet age, rallies and crashes in financial markets are not only more extreme in magnitude, but also faster. The diffusion of information (reliable or not) spreads at the speed of a 140 character tweet. Furthermore, internet banking has also dramatically shortened the time it takes for depositors to demand withdrawals from troubled banks.
These concerns are not new. Industry observers have been sounding alarm bells as early as 2019. “A digital bank run in a hypothetical future would be much more dangerous as it would happen in seconds and minutes when clients could simply use mobile banking apps to transfer money to another account,” said Susanne Chishti, chief executive of Fintech Circle, in an interview given to Raconteur magazine.
Former Canadian central banker Mark Zelmer’s independent review into the UK’s Co-operative Bank, noted that Open Banking “may come at the cost of less stable deposit-taking institutions”. In the report, Zelmer concluded, saying, “I would not be surprised if smaller institutions find their deposit bases become less sticky over time and more likely to run at the first hint of trouble”.
This remark by Zelmer has now become a shocking reality just 4 years later. SVB, the 16th largest bank in America that has operated for 40 years, collapsed in just a mere 48 hours, when the first hint of trouble around its $1.8B losses on securities soon spread like wildfire over social media and online spaces:
Timeline of SVB’s collapse
March 8, 2023: SVB announced that it would sell $2.25B of shares to fix its balance sheet. SVB suffered a $1.8B loss on the sale of long-term bonds, which were decimated in value when the Fed started hiking interest rates, and simultaneously experienced thinning deposits because many startups started withdrawing because of the current macro climate
March 9, 2023: Shares of SVB plummeted 60%. SVB tries to calm venture capital investors, but Pandora’s box has already been opened. VCs urge their portfolio companies to pull funds from SVB, Slacks across startup and tech groups start lighting up, and Twitter grows in full force of FUD. “OK I am hearing from dozens of founders about what to do at SVB. It’s an all out bank run.” wrote Howard Lerman on Twitter.
March 10, 2023: SVB collapsed, shares were halted, and regulators shut down operations.
In comparison, the previous banking crises of Northern Rock (2007), Bear Stearns (2008), and Home Capital Group (2017) all took place over the course of several months. Northern Rock first sought emergency funding from the Bank of England in September 2007, but didn’t ultimately become nationalized until February of 2008. Bear Stearns started struggling in 2007 when the housing bubble burst, but the rumors around its decline and ultimate shutdown did not come until March 2008.
In just 15 years, the time it took for a bank to collapse went from a few months to just a few days. This unprecedented speed of collapse coming from a digital bank run will not be just an anomaly. It will become the new normal.
Our current model of fractional reserve banking is ill-suited to our networked age. Liquidity crises can very quickly become solvency crises — all of which hangs on the confidence of depositors and investors.
Confidence, as we all know, is an incredibly fragile thing in an internet age. Yet, unbelievable as it may sound, it is in this increasingly frail house of cards, this dangerous con — that we are asked to store our entire life’s savings.
Better Banking Designs
The pursuit of more resilient alternatives to fractional reserve banking has been going on for decades. As early as 1933, a group of economists hatched an idea known as the “Chicago Plan”. They hoped to identify the causes of the Great Depression. Among the culprits they identified was fractional reserve banking.
Their solution? A 1:1 ratio of loans to reserves. The Chicago Plan would not only have subjected checking deposits to 100% reserves, but banks could no longer make loans out of savings deposits. To obtain the capital to make loans, they would have to raise money by equity-financed investment trusts.
Despite generating a lot of interest at the time, the plan fell into obscurity. It resurfaced briefly several years later, following the US recession of 1937–1938, and once more in the wake of the 2008 subprime mortgage crisis.
In March 2015, Iceland published the results of an intensive study that explored the viability of ending fractional reserve banking. The report, commissioned by the prime minister, explored alternatives to the fractional reserve system, including a revival of the Chicago Plan.
It proposed the separation of bank deposits into two types of accounts: (i) interest-free Transaction Accounts kept at the Central Bank, which are not available for banks to invest, and redeemable on demand, and (ii) yield-bearing Investment Accounts which are invested by the bank, and only redeemable at maturity, ranging from 45 days to a few years.
Funds can be transferred from a Transaction Account to an Investment Account. Banks can offer Investment Accounts with different risk profiles, maturity and interest rates, catering to different types of savers.
The Smart Contract Solution
Fractional reserve banking is a walking contradiction propped up by mere confidence. Confidence is increasingly fragile in an internet age where both the circulation of information, and the ability to act happens 24/7, at the speed of a click. Deposit insurance, and reserve ratios — the two primary tools developed to shore up confidence in fractional reserve banking are proving to be increasingly inadequate.
SVB and Signature weren’t the first, and certainly won’t be the last internet-fuelled bank run.There are two possible responses: (i) restrict deposit withdrawals in crises, (ii) restrict lending to prevent crises. The first two are highly unpalatable to depositors and banks respectively.
In every crisis from the Great Depression, to the 2008 subprime mortgage crisis, to Silicon Valley bank — robust alternatives to fractional reserve banking have been proposed, but not implemented. Largely because private individuals lacked the tools to build alternatives to commercial banks, or central banks.
Today, the advent of DeFi and cryptocurrency has changed that. We now have in our hands, the tools to seize a historic opportunity to build an on-chain alternative to fractional reserve banking.
This is one example of how a design might work.
This design will eliminate the creation of liquid liability claims against illiquid assets, and prevent bank runs — without having to eliminate banks’ ability to make loans, or impose deposit withdrawal limits in times of crisis.
By separating liquid funds (e.g., “checking account”) that people use for transactions from funds people are willing to risk more for investments, this design provides transparency and assurances that people’s funds are actually safe being kept safe and not being commingled for other purposes. In addition, because liquid assets are being held in self-custody solutions like wallets, there is no need to have trust in another third party like a bank.
All of these features can be automated, and enforced via smart contracts. It removes the need for attestation or independent audits, and minimizes the difficulties of banking supervision and oversight.
Conclusion
What has occurred over the past week with Signature and SVB hopefully will spur a re-examination of our current banking system at a foundational level.
While on-chain finance and DeFi are still in their nascent stages in technology and economic design, they have the enormous potential to solve the deep structural issues of our banking system and create a new one more compatible with our modern digital society.
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
The Real World Assets (RWAs) narrative is heating up, and this could be the pivotal moment for the mass adoption of crypto and blockchain. It is common knowledge that TradFi is plagued by antiquated and fragmented technology, resulting in an inefficient fiat banking and securities system. The inevitable tokenization of real-world financial assets seeks to remedy this long-standing problem as TradFi, and physical assets are represented as digital tokens on-chain.
Asset tokenization represents the conferred rights of ownership to physical and financial assets as digital tokens on-chain. The tokenization of real-world assets enables them to be traded with greater ease, faster settlement and reduced costs with self-executing smart contracts, increased transparency and improved liquidity for traditionally illiquid or semi-liquid financial instruments.
Crypto Narratives Alpha Series 04
The Real-World Asset (RWAs) narrative in DeFi is grossly underrated.
The question is, are you paying attention?
Here's a deep-dive into RWAs, and some emerging players to add to your watchlist: ↓
Notable Protocols that have made significant strides in Adopting RWA
Notable Protocols That Have Made Significant Strides In Adopting RWA
1. MakerDAO
MakerDAO is a blue-chip DeFi project that hardly requires any further introduction. In the past year, MakerDAO has actively worked on diversifying its reserves and establishing other revenue streams. RWAs account for 75% of their revenues and have accumulated over US$600M in RWA collateral.
Key milestones for them include their US$10M partnership with Huntingdon Valley Bank where RWAs are bridged and serve as collateral when lending out DAI, and the recent partnership in December 2022 with Block Tower to fund US$220M of real-world assets via Centrifuge.
2. Ondo Finance
Ondo Finance announced tokenized funds that allow users to be shielded from crypto’s volatility and earn sustainable returns. These tokenized funds enable stablecoin holders to invest directly in TradFi instruments through three separate RWA funds, subject to fees of 0.15%.
The Ondo Short-Term US Government Bond Fund (OUSG) invests in short-term US treasuries through the Blackrock US Treasuries ETF (SHV), the Ondo Short-Term Investment Grade Bond Fund (OSTB) invests in investment-grade corporate bonds through the PIMCO Enhanced Short Maturity Active ETF (MINT). In contrast, the Ondo High Yield Corporate Bond Funds (OHYG) invests in high-yield corporate bonds via the Blackrock iBoxx $ High Yield Corporate Bond ETF (HYG).
Following defaults and a radical overhaul, Maple Finance has distanced itself from uncollateralized lending and leaned towards RWAs to make a comeback.
They removed traditional DeFi over-collateralization thresholds for borrowers as long as they have RWAs to back their debt. Maple has partnered with London-based AQRU to devise new pools that invest in US Treasury bonds and insurance refinancing with yield-generating strategies adopted from TradFi.
Maple provides the blockchain-based technology required to set up and maintain the pool, whereas AQRU is responsible for managing the pool and loan book. For a start, the new pool has a target yield of 10% per annum with a minimum notional of USDC 500k and a 45-day lockup period.
To align with regulatory requirements, the pool will be available only to accredited investors such as asset managers and DAO treasuries that comply with KYC/AML standards.
Phuture Finance is building one of the largest crypto index funds, it leverages traditional index funds to create one of the largest decentralized crypto index funds. Phuture Finance has three core products, Phuture DeFi Index (PDI), Colony Avalanche Index (CAI) and USDC Savings Vault (USV).
Similar to how traditional index funds are structured to provide investors with exposure to a financial market index instead of a single stock to diversify risks, PDI and CAI are market capitalization-weighted indexes that offer exposure to the top DeFi protocols in the Ethereum and Avalanche ecosystems, respectively.
USV is a vault that generates interest on depositors’ idle USDC. $PHTR is the native token primarily used for governance and incentivizing users.
Mass adoption is coming to crypto, but it’s only a matter of when
Indexes are going to be huge and few players are already taking advantage of that.
Backed charges on the issuance and redemption of assets are held in designated collateral accounts with their custodian. Backed serves as a service provider and does not engage in any form of investment activities, their primary target group is also accredited investors.
Backed currently does not have a native token and has no plans to launch one. The platform went live recently and received an overwhelming response for its first token, the Backed Core S&P500 or bCSPX. The tokens are expected to be fully collateralized by the underlying assets and fully transferable.
"DeFi cannot grow its collateral assets by 100x without RWAs. The securities market, which is over a $100 trillion market, offers the potential for much greater growth."
Global institutions such as Goldman Sachs, Siemens and KKR strive to bring traditional real-world assets on-chain. This bodes well for the crypto and blockchain industry, as these assets are worth trillions of dollars. If done right, mainstream adoption of crypto and blockchain is no longer a far-fetched dream.
However, it is noteworthy that TradFi is a highly regulated industry, and greater regulatory clarity is critical to propel financial asset tokenization forward. It is a win-win situation for both TradFi and DeFi, DeFi gains by having another source of collateral option for lending protocols which can, in turn, improve liquidity and mitigate risk, while TradFi benefits from increased liquidity and efficiency as lower operational costs.
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