Analyst Says Tezos Could ‘Get Pretty Ugly’ While XTZ Shorts Climb To An All-Time High

  • XTZ up 778% in the past year, surging to a new high of $3.40
  • Baking and stable protocol pushing the prices up but more people entering the market creating a “snowball effect”
  • Baked XTZ has no lock-up period and shorts are climbing to ATH, so a reversal expected that has the potential to get ugly

Tezos has been a hot cryptocurrency since last year where it jumped 778%. So far in 2020, we are up 140% leaving bitcoin’s gains in the dust.

Today has turned out to be yet another amazing day for XTZ as the digital asset jumps over 20%, making a new high at $3.40. In the past month, XTZ surged 94% against BTC and 40% against ETH.

The record ICO making record gains

A record-breaking initial coin offering (ICO) in 2017, the project collected $232 million and officially launched in Sept. 2018. The Tezos blockchain uses a native-middleware called “Network Shell” allowing them to develop a self-amending ledger.

Its blockchain protocol is divided into three layers; the network protocol is responsible for peer broadcasting between nodes, transaction protocol defines the accounting model implemented by the blockchain, and the consensus protocol helps the chain reach agreements on the state of transactions.

Tezos is a Liquid Proof of Stake system which unlike Delegated proof of stake (DPoS) has no hard and fast rule that delegates the selection. The system requires one to stake a certain number of XTZ to participate in the consensus, a process called baking. The bakers or token holders can delegate their validation rights to other token holders as well without transferring ownership but is optional.

Bakers get the block publishing rights based on their stake and successful bakers get a block reward and get to charge transaction fees for all the transactions inside the block.

Stable Protocol and Baking Pushing XTZ Up

Currently, nearly 80% of XTZ is baked with 15% of all XTZ circulating supply held in exchange bakeries. Coinbase is leading this with over 44% share followed by Kraken (22%), and Binance (15%).

Baking has put a constraint on the supply while demand keeps on rising as the operator “needs to continue to buy more as they go.” This has the XTZ price soaring. However, they have no lockup period so these staked XTZ tokens “can be pulled at a moment’s notice.”

Also, with people starting to enter into Tezos due to the appreciating price and the additional stake reward are creating a “snowball effect,” which Mati Greenspan, founder of Quantum Economics notes, says “causing even further momentum on the price.”

While one reason behind this surge is the staking mechanism, the other reason is it protocol that is looking more stable and scalable than some of its competitors, said, former eToro analyst.

But Things Could get Ugly

The price of XTZ can certainly push higher but investor and trader Josh Rager says “based on the chart, I’m not going to FOMO into this (at this point in time). Certainly an asset I’m willing to buy on pullbacks for swing trades.”

Greenspan also issues a word of caution,

“There’s no telling just how high this might go but I have a feeling that when we do finally see a reversal it does have the potential to get pretty ugly.”

Just like Greenspan, these highs certainly had the traders anticipating a pullback as XTZ shorts reached an all-time high. However, trader, Crypto Michaël wishes “everyone all the best shorting this.”

However, the google trends for search term Tezos are looking for another big uptrend which is a bullish signal.

Source: Google Trends

XTZ is currently fast approaching $3.50 while leading the market gains. But while the shorts are on the rise, so is the trend for the cryptocurrency, now it’s to be known if we will continue this climb or take a break.

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Author: AnTy

TRON Dev Team, TRONZ, Forks ZCash’s Privacy Tech, Zk-SNARKs To Add to MainNet

TRONZ team is set to implement privacy protocol which is poised to be the biggest Multi-party Computation in blockchain’s history. Tron states that a setup ceremony will be held soon claiming that it will become a Guinness World Record.

TRONZ is made up of community developers who have come up with the anonymity protocol found in TRON’s main chain. Now, the team is finally through with public testing as well as testnet and is now set to introduce anonymous transaction in the TRON MainNet. Currently the TRONZ team is looking at the MainNet MPC process and in the coming days it will roll on MPC Torch Project based on the MPC process.

Cointelegraph reports that the project aims at integrating Zk-SNARKs which is the main privacy protocol found in Zcash (ZEC), within the Tron blockchain. Although the team boasted that the implementation of the new technology is the most efficient, there were no technical details given about the protocol.

The main aim of the TRONZ is to launch the privacy protocol to enhance Tron smart contracts which will enable developers to roll on private data within the smart contracts. Also, the team looks forward to provide blockchain-based MPC solution to enhance private computing needs.

An analysis of Tron GitHub page indicates that different repositories were directly forked or copied from the source code of Zcash. Most of the repositories meant for privacy looks like they have not been updated for a couple of months. The MPC code was also directly copied from Zcash. However it is probable that the TRONZ team was more concerned with the original Tron repositories meant to integrate the privacy protocol.

Meanwhile, according to Utoday, Tron has surged into the top ten following the announcement of the new developments. In addition, Tron’s founder Justin Sun has also said that the firm is working on a decentralized stablecoin which will be based both on TRX and BTT.

The surge could also have been brought by the recent rallying of cryptos where TRX is now back to top 10 as per the CoinMarketCap scale having being absent for almost a year.

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Author: Joseph Kibe

Ethereum Classic Agharta Hard Fork Rolls Out In 36 Hours, Only 50% of ETC Nodes Ready

The Agharta upgrade is slated for the Ethereum Classic (ETC) protocol, but it will not divide the chain or produce a new cryptocurrency. Agharta is only a standard upgrade for the ETC protocol, so all software will need to be updated by all node operators on or before January 12th, as it will no longer work after the upgrade.

ETC to Add ETH Constantinople Operating Codes

The network upgrade will be adding Ethereum (ETH) Constantinople fork’s operating code, CREATE2. CREATE2 allows the implementation of EIPs (145, 1014, 1052) to the ETC network that wasn’t possible to be used previously.

However, looking at ETCNodes, 50% of the nodes have updated yet. Node operators must upgrade in order to stay in consensus. As there are still an estimated 36 hours to go, operators still have time. The ETC Cooperative recommends using Hyperledger Besu installer.

Exchanges Are Already Showing Support For Agharta

As far as exchanges go, Coinbase, KuCoin, Huobi, and Bitflyer have announced they’re ready to support the Agharta update, with Binance announcing today that:

“Binance will support the upcoming ETC Agharta Network Upgrade. Deposits and withdrawals of ETC will be suspended starting from 2020/01/11 0:00 AM (UTC). Please note that trading of ETC will not be affected during the upgrade.”

Others that joined them were Bittrex, HitBTC, Bitfinex, and Bibox.

ETC Will Remain True to the PoW Consensus Protocol

James Wo, the founder of ETC Labs said ETC will remain true to the Proof-of-Work (PoW) consensus protocol and doesn’t have any plans to go Proof-of-Stake (PoS) like Ethereum (ETH) 2.0. According to Wo, PoW guarantees a 100% decentralized blockchain, as opposed to PoS, which renders the blockchain in a more centralized manner.

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Author: Oana Ularu

Bison Trails Blockchain Protocol, a Libra Association Member, Secures $25.5 Million in Funding

Bison Trails, a member of The Libra Foundation and blockchain protocol provider, raised $25.5 million in Series A funding.

The round was led by the venture company Blockchain Capital. Other companies that participated in the funding round were Coinbase Ventures, ConsenSys, Kleiner Perkins, A Capital, Sound Ventures and Collaborative Fund.

Bison Trails Raises $25.5 Million

The company was able to secure $25.5 million in order to expand its current blockchain infrastructure offerings for clients. The firm decided not to share further financial terms of this deal.

The Facebook Libra Association was created by Facebook and other financial technology companies around the world in order to be part of the new Libra cryptocurrency ecosystem.

The startup is currently helping customers deploy nodes on different blockchain networks without having to create their own infrastructure and protocol engineering competencies.

Many firms are already entering the blockchain market and there is a higher demand for services related to the industry. Companies such as Bison Trails are expected to play a more prominent role in helping the sector expand.

According to the CEO of the company Joe Lallouz, the firm will contribute to building the new system with Facebook.

Although there is a large interest in the new crypto asset Libra, which is planned to be launched in 2020, regulators around the world have already warned about the effects this cryptocurrency could have in the world economy. At the time of writing this article, the firm is helping more than 20 different protocol projects handle their blockchain initiatives.

In this way, the firms do not have to invest financial resources and time in setting up specific in-house security and infrastructure for their distributed ledger technology (DLT) projects.

Until now, the firm’s total funding surpassed $31 million. Although in the future they could raise more funds, the company didn’t provide information about it.

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Author: Carl T

Web3 Foundation’s Polkadot Ecosystem Looks To Implement Kadena’s Pact Smart Contacts

The Web3 Foundation, known for the creation of its Polkadot protocol, is currently studying how to integrate the Pact smart contract programming language created by a startup called Kadena to it. Right now, the two organizations have started a partnership to find solutions for this integration together.

Pact was originally created as a way to make smart contracts easier to execute on different types of blockchains. When the language was created, Kadena hoped that it would be adopted as a standard in the future, just like USB is today.

The founder of Kadena, Stuart Popejoy, revealed the project to the world back in June 2019 and affirmed that it could be used in both private and public blockchains, making it a hybrid language. Also, the project is supposed to be the first smart contract technology that can be read by humans, not only machines, which is also something very important to make it more mainstream.

Kadena’s blockchain platform went live this month after the announcement of a $20 million USD token sale. At the moment, there are ten proof of work blockchains running it and they are supposed to allow data to be shared in several different networks.

As the project created by the Web3 Foundation has the goal of uniting proof of stake protocols, the two companies saw as fit the idea to partner and connect the services that they provide.

The Web3 Foundation was created by one of the co-founders of Ethereum, Gavin Wood. The company has just recently launched its DOT tokens and has a network valued at around $1.2 billion USD but it is not being freely commercialized right now.

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Author: Gabriel Machado

Vega Protocol Gets $5 Million Led By Pantera Capital for Derivatives (Options, Swaps, Futures) Market

A company focused on the creation of a decentralized derivatives market called Vega Protocol was recently able to raise $5 million USD via it’s seed round. According to the official reports, the round was led by Pantera Capital, one of the largest crypto funds in the market. Other important investors were Ripple’s Xpring, KR1 and Hashed.

The goal of Vega Protocol is to create a platform in which people can trade in the derivative markets all around the world. The derivatives include swaps, futures, options and other investments.

According to the founder of the Vega Protocol, Barney Mannerings, there is a lot of value to be discovered on this platform. He also confirmed that the company would release more details about it’s token soon to explain how it would work.

Vega will work as a non-custodial layer 2 solutions. It is an ambitious project, but not properly an exchange, its founder affirmed, only a platform that will connect people who are interested in this market.

Mannerings also talked about how Vega is around 10 to 100 times faster than Ethereum. It is a newer network that uses better technology, so the results are pretty clear. He intends to create a platform in which people can create basically any kind of derivative product using it.

Many securities and other investments will be digitized in the future, so there is a lot of hype around this kind of project. Paul Veradittakit from Pantera Capital affirmed that the team has a good vision of the future. According to him, projects like this are integral to the development of the blockchain ethos and they represent what the company also believes.

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Author: Hank Klinger

Sequoia-Backed Band Protocol Releases New BitSwing dApp Allowing Bitcoin Binary Options Trading

A new blockchain startup called Band Protocol, which was recently backed by Sequoia India has just released its first decentralized application (dapp): BitSwing. According to the company, the new dapp lets the users trade BTC binary options, which are a derivative based on Bitcoin.

The crypto media outlet The Block reported that the users of the company can decide to take both long and short positions on the BTC/USD market and that they can try to predict how prices will be a minute after the bet.

The creator and CEO of Band Protocol, Soravis Srinawakoon, affirmed that the product has been largely successful so far as over 40,000 transactions happened during the week in which the testnet was online.

To be able to use the dapp, the users need to install Metamask and then use the program, which is based on the Kovan testnet. After accessing the app, a person can use ETH to bet on the price of BTC by taking either a long or short position. If the person is correct, you can double your amount of ETH. if you are wrong, you lose it.

Despite the successful launch, the company was already criticized for the short timeframe of the predictions. A single minute is not a lot of time and the CEO affirmed that more options would be added soon.

According to the company, revenue is already appearing. Since the launch of the testnet, the company was able to raise around $12,000 USD. During a whole year, the team expects to raise around $300,000 USD alone from the program.

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Author: Gabriel Machado

New Open-Source Code Vulnerability Was Found and Fixed In Facebook’s Libra

A recently discovered vulnerability on the open-source protocol of Facebook’s Libra was just fixed. The vulnerability was originally discovered by OpenZeppelin, a third-party audit company that is focused on crypto products.

The developers of the company have found some vulnerabilities in the scripting language created by Facebook, which is called Move. According to the company, the vulnerabilities were pretty severe and could lead to huge problems if the code went online before they were addressed.

OpenZeppelin’s CEO Demian Brener affirmed that one of the vulnerabilities allowed hackers to use smart contracts disguised as inline comments and they could use it to steal money. Fortunately, the issues have been patched as soon as possible, so these flaws will never actually see the light of day.

The auditor company was originally created back in 2015 and it has worked with several high-profile initiatives so far, including organizations such as the Ethereum Foundation, Coinbase, and the Brave browser.

The Move script was mostly devised by the developers of Calibra, the company created by Facebook to handle the project. They have defined the most important features of the technology, but since the code is open, anyone can give their opinions on what works or not.

According to Brener, audits are becoming more important to the industry each day. Crypto projects are getting considerably bigger as time passes, so more third-party audits are needed for them to work well, as no team can completely audit them alone.

Libra has a very complex system, just like many other recent tokens. These products will be used to manage a lot of money, so making sure that they work well is needed.

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Author: Gabriel Machado

Gavin Wood Launches Its Experimental Network Kusama, A Testnet For Polkadot

The developers of Web3, the company behind the Polkadot protocol, have recently finished the testnet for the blockchain protocol. According to Gavin Wood, one of the main developers who are working on the program, the project, which is called Kusama, is already available.

Kusama will be an unaudited and experimental version of Polkadot and it was officially launched during the Berlin Blockchain Week.

Wood affirmed that the network needs at least 50 validators to be working properly, so it would be around a month before developers can fully experience the potential of the new testnet. After that, though, the KSM tokens can be transferred.

He also took some time to explain what was already working on the network. People cannot trade yet, but they can already stake their tokens for rewards, start to be validators, set up session keys and claim tokens.

The main difference that will happen once over 50 nodes are set up is that Kusama will stop being a centralized network that and fully become a decentralized proof of stake project, which is the main goal. As soon as this happens, the governance rules that will govern the network will be properly activated and start to be live.

According to the developers, Kusama will only exist while it is needed. The whole idea was to set up something to “step into the unknown” and simply let people play. As the stepping stone for Polkadot, the network will possibly be abandoned after the actual launch of the network.

At the moment, Polkadot is expected to be launched next year, but there is no specific data set yet.

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Author: Gabriel Machado

Sigma Protocol Officially Launches on Zcoin’s Mainnet

Sigma Protocol Officially Launches on Zcoin’s Mainnet
  • The Sigma protocol will replace the Zerocoin protocol.
  • The main purpose of the new protocol is to prevent scammers from creating fake privacy coins.

The Zcash cryptocurrency is known for its anonymity but reports from The Block show that the token is working to expand its platform with a new protocol.

The protocol, which is called Sigma, officially launched on the mainnet today, replacing the former Zerocoin protocol. The anonymity-focused asset was one of the first cryptocurrencies to end up using zero-knowledge proofs.

The implementation of the Sigma protocol is supposed to help with the correction of vulnerabilities that previously existed with Zerocoin. More specifically, it should prevent attackers from inflating the supply through the creation of fake privacy coins, which Zcash has already dealt with this year.

The new Sigma protocol, which continues to use the zero-knowledge proofs, is meant to be the “realization of Zcoin’s vision to improve on privacy coin usability without compromising security.”

According to the official Zcoin website, Sigma is already live, though there will be a maintenance release soon that will resolve some of the bugs discovered on the protocol. To see the progress of the release, consumers can visit the Zcoin GitHub page.

Users that already have Zerocoin protocol mints have the next six months to redeem them for Sigma mints instead.  The official announcement on this launch can be viewed at https://zcoin.io/sigma-is-live-on-zcoin/.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Krystle M