Solana’s Data Aggregator Step Finance Raises $2 Million in Private Sale

Solana’s ecosystem continues to grow in leaps. One of its projects, Step Finance, saw $2 million infused into the network via a funding round led by Alameda Research.

Step Finance Raises $2 Million In Private Sale

In a press release on Tuesday, Solana-based decentralized finance (DeFi) protocol Step Finance announced that it had raised $2 million in a private sale to scale up its platform.

The project, which was birthed from the Solana hackathon held earlier this year, saw participation from prominent investors.

Among the star-studded roster includes names like Alameda Research, the hedge fund led by pro-crypto investor Sam Bankman-Fried.

Decentralized exchange Raydium (RAY), One Block, 3 Commas Capital, Solidity Ventures, and several new names also placed bets on the project.

Step Finance is touted to be the “front page” of the Solana ecosystem as it enables users to monitor transactions across the Solana network on one interface.

Step Finance is a known competitor to Ethereum’s Zapper as it creates a user-friendly platform for users to monitor all their DeFi transactions.

In speaking on the necessity of the Step Platform to the overall Solana ecosystem and the DeFi world, co-founder of Step George Harrap spoke on the limitations for projects built on Solana.

Harrap argued that most projects on the platform are siloed and separated from one another.

According to Harrap, users cannot verify their token and LP balances, current position sizes, and other tidbits unless they visit each website individually and sign in to understand their portfolio’s performance.

To him, Step Finance is the answer to these disparate efforts.

Step Finance continues to ride on the waves of savvy investors desire to get into a promising project before it grows.

In a blog post, the crypto startup mentioned that it would launch its native utility token $STEP on April 24. According to the development team, the digital token will play a pivotal role in automated strategies, optimal token swaps, yield farming, staking pools, bridges, and data visualization on the Step Platform.

Ethereum Killer Solana

The Solana ecosystem is reputed to be an Ethereum killer by enthusiasts. According to the DeFi project, its high throughput of 50,000 transactions per second (TPS) makes it a suitable replacement for developers looking at an alternative DeFi platform to save and do more efficiently.

The Ethereum network has been working on a transition to a more sustainable consensus protocol.

Its much-anticipated Eth 2.0 is expected to transition to the proof-of-stake (PoS), which will see it address the challenges of network congestion and high gas fees.

But in the interim, many DeFi facilitators like the Solana ecosystem aim to capitalize on these flaws.

The Solana ecosystem has been rapidly onboarding many projects. The world’s largest stablecoin, Tether’s USDt, announced that it had found a home on the Solana network just like USDC. The Graph (GRT), an Ethereum protocol, also said it was adding support for the Solana network.

In a fundraising round, the Solana Foundation raised $40 million from crypto exchanges like OKEx and others to better develop the Solana network software. It also received support from the digital trading platform AscendEX on the Solana Program Library.

At press time, Solana’s native token SOL trades at $25.37 after falling 7% on the 24hr chart.

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Author: Jimmy Aki

Hindenburg Research Shorts Chinese Bitcoin Mining Maker; Ebang Continues its Fundraising Spree

Hindenburg Research Shorts Chinese Bitcoin Mining Maker; Ebang Continues its Fundraising Spree

The short-seller argues Ebang makes “extraordinary claims” to be a market leader, which is “backed by no evidence,” resulting in EBON shares dumping.

Short-seller Hindenburg Research is shorting Chinese Bitcoin mining machine producer Ebang International Holdings. This sent the shares of the company (EBON) down 20% to $5.53. EBON shares have lost 63% of their value since the mid-March high.

Ebang made its debut on Nasdaq in June last year, and during this period, it has made three fundraising rounds, one in November and two in February this year alone, raking in $170 million in the last two.

According to Hindenburg, Ebang “claims” to be a leading bitcoin miner maker, but their research “indicates no evidence backs this extraordinary claim.” It further goes on to the point that ever since releasing its final miner in May 2019, its sales have been dwindling to near-zero, “delivering only 6,000 total miners in 1H20.”

The ongoing bull run has fueled a surge in fundraising in the crypto sector, which raised $2.6 billion in just three months, more than the amount raised in the entire last year.

Hindenburg has also been short on another Chinese blockchain company and took short positions in electric vehicle companies, including Nikola Corp, Lordstown Motors, insurer Clover Health, and Kandi Technologies Group Inc in the past year.

According to the firm, its research revealed that instead of using the capital proceeds to develop its business, Ebang has been moving the cash out of the company through “a series of opaque deals with insiders and questionable counterparties.”

Interestingly, this week, Ebang also announced the closing of its previously announced best-efforts follow-on public offering for the sale of 14 million units at a purchase price of US$6.10 per unit, for aggregate gross proceeds of approximately US$85.4 million.

The company intends to use its net proceeds to expand its crypto mining business and for the establishment and operation of the mining farms, crypto exchange, and general corporate purposes.

As we reported, Ebang announced the launch of its cryptocurrency exchange just this week, which Dong Hu, Chairman, and CEO of the company, said, “will not only expand the revenue sources from our cryptocurrency business but also optimize the development of our blockchain industry chain.”

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Author: AnTy

Bitcoin and Ether Kimchi Premium Picks Up as Bulls Reappear

As the price of Bitcoin continues to climb up, so does the popular Kimchi premium.

As of writing, the price of Bitcoin is $59,063 on Binance and $59,087 on Coinbase Pro, but the highest price of BTC is on South Korean exchanges, which is up more than 5.5% than other platforms.

$62,368 is the highest on Upbit, on Coinone BTC price is $62,022, $61,738 on Bithumb, and $61,628 on Korbit, as per CoinMarketCap. The same is the case for Ether which is firmly trading above $1,900 on South Korean crypto exchanges as high as $1,941 compared to $1,844 on Coinbase.

The premium on both Bitcoin and Ethereum was first seen during this bull market earlier in 2021, and it continues to soar as prices go higher and higher.

“Korean premiums in both BTC & ETH surged to 2021 highs on the dip below $54k last week. As prices plummeted, Asian investors aggressively scooped up Bitcoin & Ethereum, creating near record-breaking 9.48% & 9.61% premium percentages over Western exchanges year-to-date,” noted The TIE.

However, the South Korean market’s capital controls are making it hard to capitalize on this arbitrage opportunity.

In an interview with The TIE, Alex Friedberg and JJ Petersen, co-founder at BXB Capital, shared the situation around the Kimchi premium and how they managed to make more than $1 million a day in 2017 because of this.

“Korea is a very capital control heavy country,“ said Friedberg noting how if you are a Korean, there are limitations and a lot of restrictions on money that you can wire outside of the country.

“Korea is a very isolated ecosystem, and so if you’re trying to connect the global crypto ecosystem or even global financial services, there are very strict and few routes that you can go through.”

While in 2017, when the premium first came into the scene, they were able to make a fortune on it, at the beginning of 2018, a lot more guidelines from the Korean Financial Intelligence Unit (FIU) have been introduced. Banks were also asked not to process any types of crypto-related transactions.

“So, there’s a lot of government pressure to tighten up the capital controls again because it just got so blown out crazy,” and it made arbitrage really difficult.

Also, with everyone from uncles and aunties getting in crypto, and because Korea is very protective of their citizens in terms of investment losses, authorities wanted to curb all the craziness through more tightening of restrictions and policies on the exchanges.

Last year, new legislation was introduced to provide a framework for the regulation and legalization of crypto, and exchanges were also passed.

Crypto activity that has been subdued has also started to reemerge this year. Just a couple of weeks back, South Korean crypto volume beat its stock market numbers. Also, there have been reports of Morgan Stanley participating in the acquisition of Bithumb.

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Author: AnTy

‘Too Much’ Bitcoin Supply Is In Search of Yield Reveals True Inherent Yield on Crypto Assets

Decentralized Finance (DeFi) continues to attract not just degens and crypto enthusiasts, but as we have been seeing, government authorities are also getting interested.

As we reported recently, the US Federal Reserve published a paper on DeFi, and now the Fed is interested in knowing more about the revolutionary and burgeoning sector that, according to the crypto market, could one day in the future replace banks and traditional finance.

“Today, I had the opportunity to present DeFi and Compound Finance to the Federal Reserve staff. Eventually, the banking system will run on shared, open ledgers. Each day, we get closer,” tweeted Robert Leshner, founder, and CEO of lending protocol Compound.

An increasing number of cryptocurrency firms are also offering banking features.

This week, Abra announced the launch of its new crypto banking feature, Abra Borrow, that will enable customers on the Abra Mobile App globally and in 35 U.S. states to borrow against their crypto holdings.

“Abra already has a critical mass of over 1,000,000 users, and we’re excited to roll out our new Borrow feature by popular customer demand,” said Bill Barhydt, Founder, and CEO of Abra.

“By allowing people to borrow US dollars against their digital assets, users can immediately tap into their crypto price gains without selling their crypto or forgoing future price gains.”

What’s the Point?

Amidst this growing interest in banking features, BlockFi made waves in the industry by slashing the interest rates so much that the rate on the highest amount of BTC and ETH has been brought down to the rates offered by the banks.

This has the community dragging BlockFi through the mud and arguing what’s the point of lending your crypto assets for such a meager amount of rates.

“Blockfi is now reducing their yield on BTC in ranges down to 0.5%. I can make more money from my non-custodial Lightning nodes than I can with them, and peers don’t even send me complaints if I fund a channel via a CoinJoin. I’ve pulled my BTC from BlockFi and reallocated it to LN,” commented Alex Bosworth, Lightning infrastructure Lead at Lightning.

It was “Long Overdue”

BlockFi had clarified that it is because of the market conditions, the supply and demand of the lending in crypto.

Matthew Ballensweig, the head of lending at competing firm Genesis Trading, who previously worked at Bridgewater Associates, also chimed in on BlockFi’s defense, saying,

“Crypto rate markets, like most markets, aren’t static. BlockFi cutting rates is just a supply/demand lever. There is simply too much BTC supply in search of yield relative to institutional demand for that BTC.”

He explained that Bitcoin “borrow demand is a function of the risk-adjusted return opportunities in the market and right now they are limited.”

Not only is public shares vs. private placement arbitrage backward, but futures markets are also in heavy contango. With limited ways to deploy BTC, the yields are contracting fast.

“You either grow your user base by offering generous yields on assets, or you focus on profitability and optimize your business for net interest margin,” he said. It was basically inevitable and “long overdue,” and these rates, according to him,

“represents a much truer picture of the inherent yield on crypto assets in this market.”

While the BTC deployment opportunities would arrive as markets ebb and flow, right now, “it pays to have cash in this market, not crypto,” he added.

Fiat-Backed Cryptos Leading

Cash may not be the king in the traditional space, but fiat-backed cryptocurrencies are immensely useful and popular in the crypto market.

That is why Ballensweig doesn’t see the same drop in stablecoin rates coming as Bitcoin BTC 6.10% Bitcoin / USD BTCUSD $ 55,137.57
$3,363.396.10%
Volume 56.67 b Change $3,363.39 Open $55,137.57 Circulating 18.67 m Market Cap 1.03 t
8 h ‘Too Much’ Bitcoin Supply Is In Search of Yield Reveals True Inherent Yield on Crypto Assets 10 h ‘Nothing has Really Changed’ in the Crypto Market, Despite the Weak Price Action 10 h Microsoft Deploys V1 of Decentralized Identity Platform ‘ION’ on Bitcoin Network
and Ethereum ETH 7.14% Ethereum / USD ETHUSD $ 1,703.04
$121.607.14%
Volume 22.55 b Change $121.60 Open $1,703.04 Circulating 115.21 m Market Cap 196.21 b
4 h Alonzo Hard Fork to Bring Smart Contract Compatibility to Cardano (ADA) In April 5 h SushiSwap Launches A ‘Game-Changer;’ BentoBox’s 1st DApp Is Kashi Lending & Margin Trading 6 h Ethereum Layer 2, Optimism, Delay’s Mainnet Roll Out to July; Doesn’t Want to Rush ETH Community
; it’s the opposite, actually. Cash provides you with leverage and the ability to capture the basis between BTC futures and spot markets.

“You can take your cash or USDC and long spot, short June BTC future and capture roughly 22% ann implied on FTX Official right now,” he stated.

However, according to data provider, Skew, demand for stablecoin borrowing is cooling off after seeing a big spike in Feb.

Stablecoins gained traction during the pandemic last year. Demand for them spiked “as crypto users sought to safely park their assets. Then, as markets rallied, the DeFi sector jumped even higher, buoyed by blockchain-based borrowing and lending protocols,” which allowed crypto users to earn eye-popping interest rates on their crypto assets, noted Binance CEO, Changpeng Zhao.

Borrowing and lending protocols that drove the DeFi boom is what offers “an even brighter future for the wider DeFi ecosystem,” he said.

Aiming to defy traditional finance, with its high costs and inefficiencies, “these borrowing and lending protocols offer a proof-of-concept that showcases DeFi’s disruptive potential—and enduring appeal,” Zhao added.

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Author: AnTy

Grayscale Closes Private Placement in GBTC, Which Holds 3.5% of Bitcoin’s Circulating Supply

Meanwhile, the GBTC continues to trade at a discount as Grayscale, which does not have any redemption program, works on converting it into an ETF.

It’s been close to two weeks that Grayscale Investments, the world’s largest digital asset manager, has seen any inflows in its Bitcoin Trust (GBTC).

This is because the fund has closed any private placement for now. The message on the website reads,

“The Grayscale Bitcoin Trust private placement is offered on a periodic basis throughout the year and is currently closed.”

As of writing, GBTC has 655,360 BTC, representing just over 3.5% of Bitcoin’s circulating supply, $37.1 billion worth of total holdings.

This has been while GBTC continues to trade at a discount since late February. Much like GBTC, ETHE is also at a discount of 7%. While Grayscale Ethereum Trust is currently open, it only added 3,769 ETH this month, as per Bybt.

Grayscale’s infamous premium has provided hedge funds an opportunity to arbitrage, who deposit the coin with GBTC in exchange for shares that are worth more than the market value of BTC, and this premium is pocketed by them when they sell the marked-up shares after a six-month lock-up period. Nic Carter, of crypto-focused venture firm Castle Island Ventures, told Bloomberg,

“It became just too popular and there’s only so much demand at the end of the day by retail investors who are using Schwab or using Fidelity or a traditional brokerage.”

“Basically, too many funds plowed capital into this trade thinking it was a slam dunk, and then as that capital matured and the units in the trust became market-tradable, the demand that they expected to materialize wasn’t there from the market.”

Grayscale’s crypto products do not have a redemption program as assets are held in a trust currently; shares can only be created.

And the asset manager halts creations from time to time. “The Trust may, but will not be required to, seek regulatory approval to operate a redemption program,” states the website.

Bitcoin bull Cathie Wood of Ark Investment Management is one of the largest holders of the Trust along with Horizon Kinetics LLC and Churchill Management Corp.

This week, Digital Currency Group, the parent company of Grayscale, announced that it would be buying up to $250 million worth of GBTC shares.

As we reported, Grayscale is working on the process of becoming an exchange-traded Fund (ETF) as it hires several ETF executives.

While the US has yet to approve one, Canada has already seen two ETFs that made their debut last month and saw a great response. The first Purpose Bitcoin ETF (BTCC), has amassed $464 million in assets, while another one, Evolve Fund Group’s Bitcoin ETF (ticker EBIT), has attracted $42 million so far.

In the light of the growing demand for Bitcoin products, now US ETF issuers are getting creative. Simplify US Equity Plus Bitcoin ETF (SPBC) is investing up to 15% of its assets in cryptos either “indirectly and solely” through GBTC, as per a filing. Financial Enhancement Group’s Andrew Thrasher said,

“This fund will appeal to a lot of advisors who have had an interest in getting exposure to Bitcoin or have clients asking for crypto.”

“This gives the potential to have Bitcoin exposure within a traditional custodian account in an ETF wrapper, which hasn’t been done in the U.S. due to SEC resistance to approve a pure Bitcoin ETF.”

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Author: AnTy

Ripple Rolls Out XRP Ledger Updates to Boost Software Efficiency

Ripple Labs has rolled out new upgrades to its asset’s ledger to improve functionality. The company continues to deal with the fallout of the SEC’s probe into its affairs.

Top blockchain company Ripple Labs continues to make progress with its XRP asset and other affiliated projects despite the looming lawsuits against it.

In a recent update, the company has announced operational developments that will improve its XRP Ledger’s efficiency.

Improved Speed, Reduced Bandwidth

Yesterday, the Silicon Valley firm published a press release confirming the launch of version 1.7.0 of its XRP Ledger. In the release, Ripple confirmed that the updates would go a long way in bolstering the ledger’s security, efficiency, and operational decentralization.

RippleX, Ripple’s open payment integration platform, has been working to improve the XRP Ledger’s resources and compatibility with various server configurations.

David Schwartz, Ripple’s technology chief, was given the most credit for this, following his work to reduce several caching layers. With his move, the payment platform has reduced execution time and memory by 50 percent.

Along with the optimizations, the latest update will also provide enhanced proposal routing, and transaction validation, and validator manifests, which will improve visibility into operators’ work across the XRP ecosystem.

There is also the introduction of forward ledger replay, which will enhance security on the XRP Ledger and improve server synchronization with the rest of the network. This way, the Ledger can reduce bandwidth and work faster.

On its plans, Bharath Chari, a member of the XRP Ledger Foundation, explained that they would be working to support the broader XRP ecosystem even more. For now, their focus will be on expanding the validator list and enhancing the XRP Ledger’s core code.

MoneyGram Joins the Movement to Ditch Ripple

The recent updates show that Ripple Labs isn’t entirely giving up on XRP yet. The company has had a bit of a rough patch over the past few months, following a lawsuit from the Securities and Exchange Commission (SEC) that accused it of organizing an illegal securities offering in its XRP Initial Coin Offering (ICO) back in 2013.

Since the SEC suit came out, Ripple Labs has been faced with significant industry pushback as exchanges, investment firms, and more distanced themselves from it.

Another pushback came earlier this week as payment processor MoneyGram, one of Ripple’s high-profile partners, suspended trading from its end. In its quarterly outlook, MoneyGram reported that it doesn’t plan to see any benefits from its Ripple market development fees in Q1 2021. Due to litigation from regulators, it has chosen to close all Ripple trades for the time being.

The MoneyGram partnership is one of Ripple Labs’ crown jewels. Ripple purchased 10 percent of the company in 2019, while MoneyGram incorporated its on-demand liquidity (ODL) tool to make quicker and safer cross-border transactions. While the relationship appeared rosy, Ripple did sell off a chunk of its MoneyGram shares last November 2020.

Asides from suspending its asset, the payment processor has also reiterated that it never used the ODL tool for direct customer transfers or forex transactions. With MoneyGram further distancing itself from Ripple amid its SEC lawsuit, the blockchain company is finding itself further in need of supporters.

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Author: Jimmy Aki

Mt. Gox Saga Continues: CoinLabs Make Deal with Trustee

Mt. Gox Saga Continues: CoinLabs Make Deal with Trustee

The estate only has 0.23 BTC to give out for each BTC that is locked up in bankruptcy with a claim on it.

After several repeats of the postponement of the Mt. Gox rehabilitation plan deadline, the latest development in this more than the seven-year-old case is CoinLab Inc. coming to an agreement with Nobuaki Kobayashi, the trustee to Mt. Gox bankruptcy, and MGIFLP, a unit of Fortress Investment Group LLC.

As per this agreement, creditors will get the chance to get access to as much as 90% of the remaining Bitcoin lost on the Japanese exchange in 2014.

However, the plan needs to be approved by creditors, said Coinlab in a statement on Friday, adding that investors aren’t obligated to take the early payment and can wait for the lawsuit to settle.

A total of 850,000 BTC belonging to thousands of customers were lost. Since then, the coins that have been found are facing a long and tedious process of reimbursement with no results yet.

According to a CoinLab spokesman, for each BTC locked up in bankruptcy with a claim on it, the estate only has 0.23 BTC to give out. Coinlab’s deal would pay investors from the trust.

Founded in 2012, CoinLab has a $16 billion claim against Mt. Gox. As per the statement, the company is not part of the settlement and will continue its litigation.

“I am thrilled that people are finally getting paid by Mt. Gox,” said Venture capitalist Tim Draper, an original investor in CoinLab.

“As Mt. Gox’s creditors are some of the earliest believers in cryptocurrency, I look forward to getting my Bitcoin as do the tens of thousands of people that have claims.”

This new development in the Mt. Gox saga could be a factor in Bitcoin’s price falling back to $35,550 last night. However, the “move down was already expected from a TA point of view,” noted HXRO Labs. “Objectively, this should be bearish news short term.”

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Author: AnTy

Deeper Pullback in Precious Metals Indicates Flows Are Moving Towards Bitcoin

However, if the dollar rally continues on “that would sink a few boats.”

Cryptocurrencies are already leading the market gains in 2021.

On Friday, Bitcoin price nearly hit $42,000 and is currently holding strongly above $40k with over $14 billion in ‘real’ volume.

This week, BTC started with a dip to about $28,500 and since then has seen a 42% increment in its value.

“The surge in Bitcoin is indicative of froth but not only in that market, in many other areas where risk premiums have come down sharply in the past year despite a recession,” said Kevin Caron, portfolio manager for Washington Crossing. “We view Bitcoin as a proxy for risk appetite.”

Besides Bitcoin, altcoins also enjoyed a good week with notable mentions including Nano (256%), Pundi X (146%), YFL (130%), Stellar (128%), Loopring (126%), ROOK (118%), Nexus (107%), Verge (96%), ALPHA (87%), YFI (82%), SOL (78%), MATIC (67%), KIMCHI (62%), KP3R (60%), IOTA (58%), and Ethereum (58%).

These gains led to the total cryptocurrency market capitalization to climb to $1.09 trillion.

Bitcoin awakening

While cryptocurrencies are enjoying just another green week, the same is not the case for metals.

As we reported, precious metals have been taking a beating for three days in a row. Since Wednesday, spot gold has lost 6.6% of its value and is now seeing a slight relief to $1,847 per ounce. The same is the case for silver, which slid a good 12.8% during the same period.

These losses have been the result of the US dollar index rising and keeping above the 90 level. Unlike the traditional safe-haven asset, Bitcoin and the stock market remained unaffected by the greenback’s strength.

According to Charlie Morris of ByteTree, the deep slide in precious metals could be the result of flows moving towards Bitcoin. “If this continues, expect a dollar counter-rally. That would sink a few boats,” he said.

Much like gold, treasuries also sold off as investors focused on further stimulus. The sell-off in 10-year US Treasuries pushed their yields to their highest levels since March. Despite the UK economy losing 140,000 jobs in December, the first time in eight months. Francois Savary, chief investment officer at Swiss wealth manager Prime Partners, said,

“Investors are buying the end of an erratic Trump administration and looking forward to something new, which is a Biden presidency and the prospect of a significant spending program.”

The Biden administration is expected to be good for cryptocurrencies with the expectations for more stimulus and money printing. Frank Spiteri, chief revenue officer at CoinShares, said,

“It seems like we’re in the middle of a simultaneous awakening among institutions to Bitcoin as an uncorrelated store of value assets with the possibility of serving as an inflation hedge in the face of a highly unconventional monetary policy environment.”

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Author: AnTy

What’s Happening on the Bitcoin Network Amidst The Red Hot Market?

Miners are reaping the fruits of rising BTC price and fees as blockchain activity continues to ramp up.

Bitcoin continues to smash new record highs, the latest one being $35k and nearly $36k. But this has just started and we have a long way to go.

This ATH came after the market had a 20% pullback on Monday providing a ‘buy the dip’ opportunity. “A large pullback of 20% – 30% should be expected, even in a bull market,” noted Arcane Research.

And this drop has been the result of sky-high funding rates and of course an overly confident market that led to $1.2b worth of longs getting liquidated in the BTC futures market — by far the largest daily liquidation since BTC started moving a few months ago.

After normalizing, these funding rates have started rising back up already.

image1

What’s just as interesting is the activity the largest crypto network has been seeing.

This price action has actually been on the back of the strong volume. Leading spot exchanges crushed all the previous records by having three days with over $10 billion in volume.

“$80+ billion in trading volume in the last 24 hrs on Binance. ATH x 2!” resulting in scaling issues, noted the CEO of leading spot exchange, Changpeng Zhao.

In terms of blockchain activity, Bitcoin active addresses grew by 9.3% week-over-week to start 2021, averaging over 1.1 million per day. These addresses are actually near all-time highs.

On January 3rd, the 7-day average reached 1.15 million, just shy of the all-time high of 1.18 million set in December 2017. The number of hourly active addresses (24h MA) actually just hit a new ATH.

Network security continues to look strong as well with the hash rate growing by 11.7%, again reaching for a new all-time high.

Bitcoin miners are currently enjoying revenue of $33 million per day, as per data source Glassnode. This has been thanks to the rising BTC prices and the average Bitcoin fees that have yet again surged to $11, moving up since Dec. 13.

Between the last halving and October, the average daily revenue was at around $10 million. It has only been within 5 weeks in late 2017 that this number has been higher.

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Author: AnTy

Ripple’s Trump Card in The SEC’s Lawsuit Against XRP is China

While Ripple CEO Brad Garlinghouse continues his broken record, XRP enthusiasts are left grasping at straws, and the increasing amount of tokens move to exchanges.

Ripple said on Monday that the Securities and Exchange Commission (SEC) is planning to file a lawsuit against the company over the alleged sale of unlicensed securities, XRP. According to Ripple CEO Brad Garlinghouse, the case will also be naming him and co-founder Chris Larsen as defendants.

Garlinghouse took to Twitter on Monday to share this update and yet again continued his broken record of the authorities favoring Bitcoin and Ether to the broad crypto market.

“Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH,” said Garlinghouse.

“The SEC – out of step with other G20 countries & the rest of the US govt – should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China),” he added. “Make no mistake. We are ready to fight and win – this battle is just beginning.”

Garlinghouse characterized this decision as parting shots by Trust administration officials and predicted that the incoming Biden administration might be more favorable to the industry. Meanwhile, Ripple is preparing to litigate, he said.

“I think we have to stand up for all of crypto—and not let the SEC bully the entire industry,” Garlinghouse told Fortune, adding, “We’re going to be on the right side of history.”

An “embarrassment” to the Crypto Industry

“We know crypto and blockchain technologies aren’t going anywhere,” said Garlinghouse on Twitter and added that Ripple would continue to use XRP “because it is the best digital asset for payments – speed, cost, scalability, and energy efficiency” and it is already traded on over 200 exchanges globally.

According to him, XRP “will continue to thrive.” However, that’s not what the crypto industry feels.

“XRP isn’t a cryptocurrency; it’s not meaningfully decentralized, it’s literally a token on a DB maintained by a single entity,” and is in no way comparable to Bitcoin, said Nic carter, founder of Coin Metrics.

XRP’s claimed and “only” use case as a bridge currency for remittances has been made redundant by stablecoins because “no one wants to use a volatile, illiquid, thinly traded asset as a bridge currency,” said Carter.

Calling it a “shallow fraud” and “embarrassment” to the crypto industry, Carter believes it is time to end this madness by making Ripple accountable.

Trying to Find the Silver Lining

“XRP is a fully functional currency that offers a better alternative to bitcoin,” is what Ripple says in its Wells Submission.

Throughout 2020, Ripple’s biggest argument for XRP not being security has been Bitcoin and Ether being Chinese-controlled, which the company says will mean “innovation in the cryptocurrency industry will be fully ceded to China.”

“Looks like the Ripple/XRP team is sinking to new levels of strangeness. They’re claiming that their shitcoin should not be called a security for *public policy reasons*,” commented Ethereum co-founder Vitalik Buterin on this China control.

XRP enthusiasts are now left grasping at straws. One Twitter user pointed out how the big tech giants; Amazon, Apple, Facebook, Google, Tesla, and all the big banks have been sued by the SEC as well, “One could say it’s an interesting path to follow. Every cloud has a silver lining,” he noted.

XRP is currently the biggest loser among the top 40 cryptos, down 18% while trading at $0.463.

In response to this report, not only the social volume for XRP “exploded, but” there has also been an increase in tokens moving to exchanges, per Santiment.

If the SEC sues Ripple, it will take time to conclude as it will involve years of debate between the company and the agency on XRP’s security nature.

In the immediate future, however, the bigger question is “if centralized exchanges delist XRP while the case is pending,” said Jake Chervinsky, General Counsel at Compound Finance.

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Author: AnTy