Tag: Cryptocurency

A look at Space ID, the project behind the $2.4 billion launchpad

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Over the last few years, several projects have chosen the Binance Launchpad to bring their tokens to the market. Many of these coins have gone on to achieve a fair deal of success, including STEPN, Polygon, Axie Infinity, The Sandbox, etc. The latest project to join the ranks is Space ID, whose launchpad received more than $2.4 billion in BNB commitments. But what is Space ID and why is it attracting so much attention? Tag along to find out.

What is Space ID?

Space ID is a universal name service network. It allows users to convert their long, complex, alpha-numeric crypto addresses into human-readable domain names. For instance, an Ethereum-based wallet address such as ‘0x298952FB0C5052bb09808794150BE5FA5f57f946’ can be represented by a domain name as simple as sam.eth.

Also Read: Bitcoin tops $28,500 – experts predict where BTC is going next

Space ID plans to offer this service for multiple networks, including Ethereum, the BNB Chain and Arbitrum. Therefore, Space ID offers a similar service to Unstoppable Domains and ENS. However, unlike its counterparts, Space ID aims to be a “multi-chain name service.” As such, it promises to be the “only service you need to integrate all web3 name services, including .eth, .bnb, and .arb,” according to the project’s website.

These domain names are nothing but NFTs, which can also be bought, sold or traded on an NFT marketplace. And Space ID allows you to find, register, manage and trade domain names on the platform itself. However, in the case of ENS or Unstoppable Domains, users may have to use separate marketplaces to trade their web3 domain names.

Besides .eth, .arb, and .bnb domain names, Space ID also offers customisable domain names for communities. It also provides sub-domain management, which can be ideal for businesses with multiple services/products and a corresponding number of wallet addresses.

How does it work?

Simple, users can simply link their wallets to the platform and scroll through the available domain names. Users can also search for particular keywords they want their domain name to contain. The search result will show exact matches and related keywords too.

Once a user has found the right domain name, they need to request the number of years they wish to own the domain name. Based on the number of years selected, the platform will provide a price estimation. The minimum duration is one year. Once the user is satisfied, they can proceed to register the domain and pay the corresponding fees. In the future (when Space ID 2.0 is released), there would be an option to add multiple domain names to a cart and register them in one go.

Also Read: Five recent crypto attacks with links to North Korea

Space ID 2.0 will also allow users to trade domain names. The platform will aggregate NFT domain names from several leading marketplaces, including OpenSea, Element and ENSVision. Users can browse through the available options and place bids on the domain names they are interested in. Conversely, users can also list their domain names and specify a price they wish to sell it for.

The ID Token and its tokenomics

The ID token is the native governance token of SPACE ID and plays an important role in the decision-making process of the project, such as casting votes on Space ID DAO proposals. Users can stake ID tokens to receive discounts on the trading fees of Space ID domain NFT marketplace and can also enjoy discounts on web3 domain registration. Moreover, ID tokens can also be utilized to make payments within the Space ID ecosystem.

In all ID has a max supply of 2 billion. Out of this, 100 million was allocated for the launchpad token sale. Another 10 percent of the tokens will be airdropped, and the rest will be distributed amongst advisors, the core team and the Space ID foundations. Marketing and ecosystem development will also receive 13 percent and 10 percent of the token supply respectively.

Space ID’s Binance Launchpad

Space ID received over 8.4 million BNB commitments from 99,000 holders in just 48 hours in its token sale, which took place from March 17th to March 22nd, 2023. The token sale was carried out in Binance Launchpad subscription format. In this format, users commit some amount of BNB towards a token sale, and the new token is allocated based on the ratio of committed BNB to the total committed BNB by all participants.

In the latest token sale, Space ID raked in $2.4 billion in BNB commitments, according to current market prices. However, not the entire amount will be dedicated to ID tokens, as the project’s hard cap for funding is a rather meagre $2.5 million. The launch price of the ID token was set at 0.00007412 BNB, with 100 million ID on sale. At the time of writing, ID was trading at $0.4342, according to the data from CoinMarketCap. That translates to a massive return on investment.

Conclusion

Space ID has positioned itself as a one-stop solution for universal naming services. As it works towards solving the challenges faced by current domain services. In the upcoming months, Space ID plans to launch a merch store, offering exclusive custom merchandise to domain owners. Additionally, a separate launchpad will be available for custom TLD domain names, enabling communities to contribute to the ecosystem and launch their own domains. If achieved, these milestones will certainly elevate the project to the upper echelons, assuming everything goes as planned.

Also Read: A look at the key highlights from the Paris Blockchain Week 2023

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Everything you need to know about CryptoGPT and its native token $GPT

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Artificial Intelligence (AI) has become the catchphrase for 2023. Chatbots have shot to popularity and developments from the AI space are coming thick and fast. AI tokens have also piggybacked on the trend, registering massive gains over the last few months. For instance, at the time of writing, big data and AI projects like SingularityNET, Fetch.AI, The Graph, Render Token, etc. had experienced 918 percent, 328 percent, 230 percent and 166 percent gains since the start of the year, respectively.

Now, a new project that’s looking to get in on the action is CryptoGPT (GPT). The newly-launched protocol is looking to combine blockchain technology, artificial intelligence and data monetisation to provide value and utility for all its ecosystem participants. As such, the platform’s native token has also been posting sizeable gains since its launch. But what is CryptoGPT and how does it work? Tag along to find out.

What is CryptoGPT?

CryptoGPT is an Ethereum layer-2 scaling solution that uses zero-knowledge (ZK) rollups to increase throughput. ZK-rollups use unique validity proofs to validate off-chain transactions. These transactions are then bundled together and sent back to the mainchain to be stored. This mechanism of validating transactions and bundling them together off-chain helps reduce congestion on the main chain. Therefore, these layer-2 solutions can take on additional transaction volume without affecting the transaction processing times and fees of the main chain. That’s why they are called layer 2 scalability solutions.

Now coming to the goal of CryptoGPT. According to its website, the project is looking to “turn data into a valuable asset used in AI models to power value creation in many industries.” Big tech firms have been monetising user data for years now, without providing any real benefits or rewards to the users.

Also Read: Bitcoin soars to 9-month high as bank turmoil sparks rally

Data is expected to become more valuable with the boom of AI. The machine learning algorithms that power AI systems are heavily dependent on data. CryptoGPT will use a data-to-AI engine model that will collect, process, encrypt and package data for commercial use.

In a nutshell, CryptoGPT will record, encrypt and anonymise user data using zk roll-up technology. This data is the product that can be used to strengthen AI and machine learning platforms.

Users can use the various apps existing on the CryptoGPT network. Their activity data will be stored as encrypted NFTs which can be sold to other AI and machine learning platforms. The difference is that all this is done with the user’s permission, and for the amount of money they want. Users can sell their data and receive GPT tokens every time a platform uses it.

Apps look to come on board as they can collect data with consent from users. They can then sell this encrypted data to hundreds of businesses globally. Users join the network to use its native apps and get paid while doing so. And finally, CryptoGPT will collect transaction fees from all the network activity. The network already has a handful of apps in fitness, dating, games and education which have drawn in over 2 million ecosystem users.

The GPT token

The GPT token is at the centre of the CryptoGPT ecosystem. It will be used to pay gas fees on the network. It can also be staked to earn validation rights. Most importantly, users will be paid in GPT tokens for their activity data. Holders of the GPT token will also earn voting rights on various proposals on the platform’s DAO.

Also Read: Five recent crypto attacks with links to North Korea

The platform will have a maximum supply of 3 billion GPT tokens. Of this total supply, 20 percent will be reserved for a public sale, another 20 percent will go towards staking, and 25 percent will be distributed to users who provide their data. The remaining tokens will be distributed to the team, used for marketing, and reserved for future development.

GPT is already listed on several prominent exchanges, including ByBit, Huobi, MEXC Global, Bitget, Gate.io, Uniswap and PancakeSwap. The token has also registered sizeable gains since its launch. It jumped from $0.0534 on March 10 to $0.1030 at the time of writing, according to data from CoinGecko. That presents a 92 percent gain in less than two weeks.

Conclusion

Artificial intelligence is the next big thing in the tech space. As such, there is real momentum backing AI crypto projects, as evident from the skyrocketing prices of their native tokens. CryptoGPT is no different. The platform offers value and utility to users and developers on the network. As such, it could see significant growth in the future. However, cryptocurrencies are highly volatile and their prices can tumble despite the strongest indicators. Therefore, it is extremely important to do your own research and invest only as much as you can afford to lose completely.

Also Read: Helium (HNT) drops more than 30% percent over the week, here’s why

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Are women better crypto investors? Here’s what the data says

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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By the end of 2021, there was a very apparent gender gap when it came to crypto adoption. A study by WazirX, one of India’s leading crypto exchanges, showed that only 15 percent of the platform’s trading volume came from women. However, this figure increased by 3.30 percent in just one year, touching 18.57 percent by the end of 2022.

A report by CoinDCX, another Indian crypto exchange, provided similar findings. It showed that women comprised only 15 percent of the platform’s user base in the year 2021. However, at the same time, the report predicted this number to grow to 20 percent by August 2023.

These aren’t the only strides that women are making in the cryptoverse. Recent studies show that women are proving to be better crypto investors than men. Here are some facts and figures to support this notion.

Women investors are in it for the long run

HODLERs are those investors who hold on to their crypto assets regardless of the price increasing or decreasing. This is because they believe in the long-term value of their investments. According to a recent study by KuCoin, it turns out that women crypto investors are predominantly HODLers.

Also Read: All you need to know about account abstraction and how it can help crypto mass adoption

The report states that 52 percent of female crypto investors believe in HODLing. The same figure for men stands at 38 percent. This shows that women have “diamond hands” – they hold onto their assets and add stability to the crypto market. On the other hand, men generally have “paper hands” and sell at the first sign of trouble.

Another study backs this notion

A study by Finder.com, a leading comparison website, showed that women check on their crypto investment less regularly than men. According to the report, a majority of women (21 percent) check their crypto portfolios once every month. On the other hand, most men (28 percent) check their crypto portfolios every week.

Continuously checking crypto portfolios can lead to panic selling/buying, which is never advised. Investors can make mistakes when making hurried decisions. “Women are apt to stay calmer than men in down markets,” said Marissa Greco, a financial planner at Greco-Nader Wealth Navigation, while speaking with Forbes.

“Men trade 45 percent more often than women do, and although men are more confident investors, they tend to be overconfident. By trading more often, and without enough research, men reduce their net returns,” she added.

Women make well-informed decisions

Research-driven investment decisions are extremely important when it comes to cryptocurrencies. It allows crypto users to make well-informed investment decisions. In this regard, 58 percent of the women who participated in KuCoin’s survey said that they make crypto investment only after doing their own research. This is a much better practice than trusting in friends or blindly following the market.

Women invest less frequently but put more on the line

A study by BTC Markets, an Australian crypto exchange, showed that women invest less frequently, but their initial deposits are much larger than their male peers. As per the exchange’s report, the average initial deposit in 2020-2021 for female crypto investors was $2,381. This is much which is higher than the $2,060 among male crypto investors.

The WazirX report provided similar findings, stating that, on average, women on the platform held assets worth Rs 9,650. This is more than 30 percent higher than men, who, on average, hold crypto assets worth Rs 6,676 on WazirX. Therefore, not only do women hold their assets for the long run and promote stability in the cryptoverse, but they also pump more money into the space than men.

Women spread the word better

Mainstream adoption is extremely important for cryptocurrencies. As more people use these digital assets, the market will see more stability and perhaps better returns. In this regard, women are doing an amazing job at bringing their peers into the crypto fold.

According to the KuCoin report, 40 percent of female crypto investors believe in bringing more women on board in the crypto space, while 37 percent think that women taking part in community interaction can help the industry become more women-friendly. When compared to their male peers, these figures stood at 20 percent and 32 percent, respectively.

Conclusion

The research-driven and pragmatic approach to investments has already seen women outperform men in the traditional finance industry. However, the study by WazirX shows that women have come to prefer virtual digital assets over traditional finance in recent years. Lower entry barriers, better access and inclusion could be the reasons for this trend.

This growing popularity of cryptocurrencies amongst women is evident from the 3.3 percent spike in WazirX’s female user base in 2022. This increase is extremely impressive given the disastrous events and the strict tax norms levied on VDAs last year.

Therefore, as the crypto market inches toward recovery, we can expect even more women to enter the cryptoverse. “My assumption is that since women control 80 percent of retail spending and only 1 in 7 bitcoin wallets are currently held by women, that the dam is about to break,” said popular crypto proponent Tim Draper. And this increased adoption can and will spell nothing but good news for the digital asset industry.

Also Read: India imposes money laundering provisions on cryptocurrency sector

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

G20 members seek common taxation, systematic classification of crypto asset universe

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is looking to lead discussions on crypto assets during its ongoing presidency of the G20 leadership. India will hold discussions on a unified regulatory policy framework toward crypto assets.

This move came after G20 members expressed concerns over the lack of governance structures around the crypto asset universe. The members have also stressed the need for common taxonomy and a systematic classification of the crypto asset universe.

The country has asked for a joint technical paper from the Financial Stability Board (FSB) and the International Monetary Fund (IMF) on the macroeconomic and regulatory perspectives of crypto-assets. The paper will be presented during the fourth Finance Ministers and Central Bank Governors (FMCBG) meeting, which is set to be held in October 2023.

ALSO READ | Bitcoin hits six-month high as investors gain confidence in economic outlook

The FMCBG meetings will see attendance from delegates of the 19 member countries, the European Union, and various international organisations. The meetings will help in setting the final agendas for the G20 Finance Track for 2023.

India has already asked the IMF to present a discussion paper, which was the topic for the 2nd G20 Finance and Central Bank Deputies (FCBD) Meeting. The meeting was held in Bengaluru on February 23, 2023. IMF’s Tommaso Mancini-Griffolia presented a paper on the effects that crypto assets can have on broader financial systems. The paper was presented during the seminar titled “Policy Perspectives: Debating the Road to Policy Consensus on Crypto Assets”. Mancini-Griffolia highlighted the potential dangers of crypto adoption on a country’s financial systems but also discussed the potential benefits like cheaper and faster cross-border payments, increased financial inclusion, better integrated financial markets and more.

ALSO READ | Crypto crime hits record $20 billion in 2022: Report

Some of the other panellists included Eswar Prasad from Cornell University, Hyun Shin, from the BIS and Hilary Allen from American University among others. They presented that despite its claims of decentralisation, crypto assets are inherently highly centralised due to the nature of crypto platforms. who argued about the highly centralised nature of the crypto universe despite claiming to be a decentralised platform.

Whether crypto assets are viable enough to help solve global financial problems present in the current system was also discussed.

ALSO READ | Ridiculous anyone will buy cryptos, says Berkshire Hathaway’s Charlie Munger

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IMF Paper warns of crypto risks, suggests denying official currency or legal tender status

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The International Monetary Fund (IMF) in a board paper has said that crypto assets should not be granted official currency or legal tender status. In a board paper titled “Elements of Effective Policies for Crypto Assets,” the IMF discussed the significant risks associated with crypto assets, which have emerged while the supposed potential benefits are yet to materialize.

The board paper highlighted several risks, including macroeconomic risks, capital flow volatility, and fiscal risks, which could negatively impact the effectiveness of monetary policy. The IMF also expressed concerns about financial stability, financial integrity, legal risks, consumer protection, and market integrity.

The directors welcomed the proposed framework and its elements, but they also cautioned that the widespread adoption of crypto assets could undermine monetary policy’s effectiveness, circumvent capital flow management measures, and exacerbate fiscal risks. Moreover, the IMF believes that the widespread adoption of crypto assets could have significant implications for the international monetary system in the longer term.

The IMF’s recommendations are critical as the use of crypto assets and blockchain technology continues to increase worldwide. By calling for caution and highlighting potential risks, the IMF is signaling that there needs to be a balance between embracing innovation and protecting the global financial system’s integrity.

Also read: Hong Kong could become the next crypto hub – Here is why

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: ANKR and the reason behind its 200% rally this year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Cryptocurrencies have performed surprisingly well in 2023. Several coins from the top 100 list have doubled and even tripled their valuation since the start of the year, and some have even registered new all-time highs. One coin that has been doing particularly well in recent times is ANKR, the native cryptocurrency of the ANKR protocol. The token is up nearly 56 percent for the week after climbing 33 percent in the last 24 hours alone. But what is ANKR and why is its native token shooting for the moon? Tag along to find out.

What is ANKR?

ANKR is a San Francisco-based decentralised blockchain infrastructure provider. Launched in 2017 by Chandler Song, Ryan Fang and Stanley Wu, the platform was originally designed to provide distributed cloud computing services. Unlike normal cloud computing solutions, which rely on centralised servers, ANKR utilized the spare computing capacity from a network of idle machines spread across the world.

Over time, the firm transitioned from cloud computing to node hosting and blockchain deployment solutions. Under ANKR’s node hosting solution, users can deploy nodes across dozens of Proof-of-Stake (PoS) blockchains and stake their PoS tokens without any prior knowledge or experience in the field. ANKR will handle all the technicalities, including the setup of the node and its maintenance, while users simply enjoy the staking rewards. All the platform asks in return for its services is a simple monthly fee.

Also Read: Explained: Conflux (CFX), the Token that has Spiked Nearly 500% in the Last 7 days

Besides its node hosting service, ANKR also offers several blockchain deployment solutions. It provides SDKs, APIs and several other plug-and-play solutions that help developers build efficient and scalable blockchains extremely quickly. In addition to these services, the platform also offers liquid staking solutions and a multichain blockchain scanner.

ANKR is the project’s native cryptocurrency. It is used to pay for services on the network, including the monthly fees for its node hosting solution. ANKR can also be staked to create a passive income. And finally, it also serves as a governance token. Users can vote on the various proposal put forth by the ANKR community and its development team. The weightage of your vote will depend on the number of ANKR tokens you possess.

But why is ANKR rallying?

On February 21, ANKR announced a partnership with the global tech giant, Microsoft. Through this link-up, ANKR gains access to a massive market of potential customers who are looking to leverage blockchain technology for their businesses.

Microsoft’s previous actions in the blockchain space make its partnership with ANKR even more noteworthy. In May 2021, Microsoft shut down its Azure Blockchain Service without any official explanation. Furthermore, in December 2022, the company banned cryptocurrency mining on its cloud services, citing the need to protect its online services from risks such as cyber fraud, attacks, and unauthorised access to customer resources. Therefore, the newly forged partnership between ANKR and Microsoft makes a lot of sense.

Ankr will provide the blockchain infrastructure and expertise, while Microsoft will simply offer these services through its Azure Marketplace. As such, interested customers will be able to purchase node hosting infrastructure just like any other cloud service.

ANKR’s low-latency blockchain connections for Web3 projects enable developers to scale their applications efficiently. This is a significant advantage in the blockchain ecosystem, where scalability is one of the biggest challenges. ANKR’s technology allows developers to focus on building their applications rather than spending time on scalability issues.

Conclusion

While it’s impossible to predict exactly what the future holds for ANKR and the crypto market as a whole, it’s clear that the company’s recent partnership with Microsoft has given it a significant boost. As more developers and enterprises look to build applications on the blockchain, ANKR’s infrastructure services are likely to become even more valuable, driving the company’s growth and potentially pushing its valuation even higher.

Despite the inherent volatility of the crypto market, ANKR’s recent performance is a testament to the growing interest in blockchain technology and the potential it holds for the future. Whether you’re a seasoned crypto investor or just starting to explore the space, ANKR is a company worth watching. Just remember to do your own research and invest only as much as you can afford to lose.

At the time of writing, one unit of ANKR was changing hands at $0.04685. The token was up 37.93 percent over the last 24 hours and nearly 205 percent since the start of 2023.

Also Read: Explained: NFT fantasy leagues and how they work

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NFT ticketing could change the future of events, here’s how

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The buzz around NFT artworks seems to have died down in recent months. This is evident from declining NFT sales figures towards the end of 2022. However, the technology behind these digital assets still holds plenty of utility. As such, several platforms have been experimenting with NFTs, trying to find new and improved use cases for these unique assets.

Ticketing is one such avenue that holds promise for NFTs. Over the last couple of years, plenty of brands and events have implemented NFTs in their ticketing processes, and the outcomes have been beneficial for customers and organisations alike. But what is NFT ticketing and can it disrupt the future of events? Tag along to find out.

Also Read: Explained: Why is Nat Geo’s NFT collection receiving a massive backlash?

NFT ticketing: What is it and how does it work?

NFT tickets are nothing but blockchain-based versions of physical or digital tickets. They signify proof of payment and the right to entry to events and experiences. The process of issuing NFT tickets is also fairly simple. The event organiser simply mints the required number of NFTs on a blockchain of their choice. While doing so, they can code the cost of the ticket into the NFT’s metadata or they can leave the price open to bidding.

The NFTs can then be posted on the event organiser’s website or an NFT marketplace. Customers can pay for the ticket using crypto or fiat currency and the NFT will be transferred to their crypto wallet. Then, customers need to simply furnish the NFT ticket on entry. After a quick QR scan, the NFT ticket will be verified and the user will be granted entry into the event.

How are NFT tickets different from normal tickets?

Firstly, NFT tickets cannot be faked or forged. This is because they are minted on the blockchain which provides a tamperproof record of ownership. A quick check will help ascertain who is the rightful owner of the NFT ticket, along with the purchase history of the asset. On the other hand, physical or digital tickets can be easily faked or forged. Digital tickets these days are especially prone to photoshopping and forgery.

NFT tickets can also help restore lost revenue from scalpers who purchase tickets in mass, just to resell them to others. In the U.S. alone, this secondary market accounts for upwards of $5 billion. That’s money that’s simply seeped through the cracks.

However, with NFT tickets, the issuer receives a small percentage of every sale amount in the secondary market. This can add up to a significant amount of revenue, especially if the event is in demand. NFT tickets also create fan engagement and loyalty. Brands can extend certain exclusive offers to users who have NFT tickets for certain events. These offers can be increased based on the number of NFT tickets the user has collected over time.

NFT tickets are rising in popularity

Owing to these benefits, several popular brands and events have adopted NFT ticketing. For instance, the world-famous music concert, Coachella, has already issued 10 lifetime NFT passes. These tickets provide users with lifetime access to the concert along with exclusive benefits such as front-row access and celebrity-chef dinners. The ticket also has benefits for Coachella; whenever the ticket is resold, the concert organisers will receive royalty payments.

Also Read: Explained: Why established brands like Porsche are facing criticism for their NFT projects

Similarly, NFT ticketing platform YellowHeart partnered up with MGM Grand Resorts to auction a collection of tickets for a hip-hop dance performance by the world-famous crew, the Jabbawockeez. YellowHeart created 1,100 NFT tickets which sold out pretty quickly. YellowHeart has provided similar solutions for other artists such as Maroon5, Kings of Leon, etc.

In another instance, back in September 2022, Flybondi, a low-budget airline in Argentina offered 2.5 million NFT flight tickets through an NFT marketplace called TravelX.

Risks of NFT tickets

Everything has its pros and cons and NFT tickets are no different. While these assets offer plenty of benefits, they come with some drawbacks too. Firstly, while it is extremely easy to mint NFT tickets, a certain amount of blockchain knowledge is required to ensure a smooth process. Also, users need to have and know how to use crypto wallets to receive and safely store their NFT tickets. Also, since cryptos and NFTs have not yet reached mainstream adoption, users willing to purchase NFT tickets may be limited. Further, there is always the chance of scams, especially with first-time users.

Conclusion

NFT tickets have a lot of scope in the future. They offers several benefits for issuers and holders as well. However, there is a long way to go before NFT tickets see mainstream adoption. Fortunately, with several major brands and events implementing NFT ticketing experiences, the adoption of this technology should see rapid growth in the coming years.

Also Read: Explained: Coinbase transactions and why they are so important for Bitcoin miners

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: Floki and why it could be the next victim of a cross-chain bridge attack

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cross-chain bridges allow for the safe and secure transfer of tokens between different blockchains. As such, they are an essential part of the web3 ecosystem. However, these inter-chain communication protocols have also become easy targets for hackers, with billions of dollars being drained from crypto bridges over the last couple of years.

In fact, a report by TRM Labs states that, as of November 2022, nearly $2 billion have been syphoned from 13 different cross-chain bridges. Now, another cross-chain bridge that could fall into the crosshairs of hackers is Floki Inu’s Ethereum-BNB chain bridge. But what is Floki Inu and why is it a potential target for hackers? Tag along to find out.

Floki Inu: What is it?

Floki Inu (FLOKI) is a meme coin named after Elon Musk’s pet Shiba Inu (named Floki). However, unlike most other meme coin ecosystems, Floki aims to provide utility to its users. Therefore, instead of just being a means to store and transfer value, Floki Inu offers its users a staking interface, metaverse platform, NFT marketplace and a learning portal.

Also Read: 5 coins that have hit their all-time highs in the last couple of months

The platform also partakes heavily in charity, with a vision to build schools in underdeveloped nations. Ironically, Floki Inu has also tied up with the Million Garden Campaign, which is an initiative by Elon Musk’s brother, Kimbal Musk.

The platform’s native cryptocurrency, FLOKI, is a multichain token that is compatible with Ethereum and the BNB chain. Floki Inu uses a bridge to allow users to transfer assets on a 1:1 basis between the two chains. Users on Ethereum need to deposit their tokens into the bridge to receive an equal amount of tokens on BNB and vice versa.

Floki announces $100 million token burn

On January 30, the Floki DAO passed the proposal to take down the project’s Ethereum-BNB bridge. In addition, the protocol will also burn over $100 million worth of FLOKI currently deposited on the bridge.

As mentioned earlier, users need to submit their FLOKI on the bridge to receive an equal amount of tokens on the corresponding blockchain. Therefore, there are currently 3.8 FLOKI trillion locked on the BNB Chain, and 1.77 trillion Floki tokens are locked on Ethereum, adding up to 5.57 trillion FLOKI.

However, 600 million of these tokens are funds deposited by the Floki Treasury to kick-start the bridge. These tokens will be returned to the treasury, while the remaining 4.97 trillion tokens, worth around $117 million, will be burned.

But why is Floki burning its tokens?

The simple answer? To ensure they are not stolen by hackers. The 4.97 trillion tokens are not really worth anything. This is because, once they are deposited on the bridge, they are taken out of circulation and simply mirrored on the opposite chain. This keeps Floki’s combined supply on both chains at 10 trillion tokens.

However, simply taking down the bridge without burning these tokens could leave the protocol open to attack. Bad actors who manage to access these tokens may take them off the bridge and use them on either Ethereum or the BNB chain. This would also result in the maximum circulating supply of FLOKI swelling well beyond its stipulated 10 trillion tokens, causing its price to plummet.

As per the project’s proposal to take down the bridge, “FLOKI has had more of a balance in the distribution of tokens between the ETH and BNB chain [….]. As a result of this, while the majority of the supply is still on the ETH chain there is now such a balance that the absence of a bridge would not threaten the stability of the project.”

Therefore, keeping the bridge up could result in a hack at some point in time. As such, the project has voted to take down the bridge and burn the tokens that are deposited on it. The burn is scheduled for 9th February and news of the tokens being taken out of circulation has resulted in 130 percent gains for Floki over the last week. This has pushed the token’s YTD growth to 223 percent.

Conclusion

Back in February 2022, Floki disabled its cross-chain bridge after it discovered an exploit that could put users at risk. Almost exactly a year later, the project is looking to permanently take down the bridge. This is because the project has established a balance of tokens on Ethereum and BNB. Therefore, keeping the bridge up could leave it susceptible to hacks which could lead to significant losses for the Floki Network. However, as long as the bridge is still up, there is always the real risk of an attack.

At the time of writing FLOKI was trading at $0.00002612, up a further 9.3 percent over the last 24 hours. Its price could propel further once the tokens are burned. However, the crypto market is highly volatile, and tokens can defy even the strongest indicators. Therefore, it is important to do your own research and invest only as much as you can afford to lose completely.

Also Read: This is how crypto market reacted to US Fed’s interest rate hike

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: Optimism (OP), how it works and what’s fuelling its 130 rise YTD

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Layer 2 scaling solution, Optimism, is off to a phenomenal start in 2023. At the time of writing, the project’s native token, OP, had risen over 128 percent since the start of the year, coming in 7th amongst the top gainers year-to-date (YTD). The token even hit an all-time high of over $2.50 on Wednesday, January 25. But what is Optimism and what’s fuelling its astronomical rally? Tag along to find out. 

Optimism (OP): What is it?

As mentioned earlier, Optimism (OP), is a layer 2 scaling solution that runs atop the Ethereum network. Its main goal is to reduce the cost and increase the speed of transactions of its layer 1 protocol, which is Ethereum. 

Essentially, what Optimism does is, it rolls up transaction data from the main chain, bundles it into batches, and then settles these transactions off-chain. The final transaction details are then sent back to Ethereum’s mainnet where it is validated as another added data block.

By bundling and settling these transactions off-chain, the transaction fee drops significantly as compared to the cost of settling each transaction on the Ethereum mainnet. Optimism also saves time by assuming all transactions are valid until proven otherwise. Hence the name Optimism. 

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The network also employs ‘fraud proofing’ to challenge the validity of transactions. If any transactions are flagged during the fraud proofing process, Optimism will carry out additional computations to ascertain the validity of the transaction before bundling it into a batch and shipping it off to the Ethereum mainnet. This mechanism results in 10X lower transaction fees. As such, Optimism claims that it has saved users up to $1 billion in gas fees.

But what is fuelling the Optimism rally?

The simple reason behind the Optimism rally is increased demand for layer 2 solutions. Developers no longer favour layer 1 chains like Ethereum due to the high costs and slow transaction speeds. Instead, they are opting for layer 2 scaling solutions as they offer all the same benefits as their layer 1 protocol, while also being faster and more affordable. 

This is why layer 2 scaling solutions such as Polygon, Optimism and Arbitrum have seen a sharp increase in daily active users over the last couple of months. In fact, on January 10, Optimism overtook Arbitrum in terms of daily active users. The total value locked (TVL) on Optimism has also seen a gradual uptick this month. The network’s TVL jumped from $500 million on January 1 to $699 million at the time of writing, that’s a spike of nearly 40 percent in just a month. 

Also Read: After posting a 400% gain year-to-date, where is Aptos headed next?

Optimism rally defies 70 percent transaction volume decline

According to Etherscan, Optimism’s daily transaction volume hit an all-time high of 800,000 transactions on January 12. This is more than Ethereum and Arbitrum put together on that day. Most of this surge can be attributed to the network’s NFT incentive program, “Optimism Quests.” This program rewarded users with commemorative NFTs for learning about the apps on Optimism and completing short quizzes.

However, season 1 of this incentive program came to an end on January 17, resulting in a massive reduction in transaction volumes. As per Etherscan data, Optimism’s transaction volume nosedived from its 800,000 level on January 12 to the 165,000 level on Jan 19. However, despite this drop, OP went on to register a new all-time high of $2.50 on January 25. 

The token has retraced its steps since then, currently trading at $2.11. However, registering such a rally even after such a massive reduction in transaction volume is a testament to the demand for the token. 

Where is Optimism (OP) headed next?

Of the 26 technical indicators available on analytics platform, Trading View, 11 labelled OP as a ‘buy’ while 11 pointed to a ‘neutral’ position and only 5 indicators point to ‘sell’. This is a good sign for the token going forward. 

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However, fundamentally, things don’t look so good for Optimism. As mentioned earlier, the network’s trading volume saw a drastic decrease two weeks ago and has failed to make a real comeback. As such, the network’s overall revenue generated has also decreased by more than 70 percent in the last week, as per data from Token Terminal.

Therefore, with contradicting indicators, it’s hard to say where OP is headed next. Moreover, the volatile nature of cryptocurrencies means that token prices can fluctuate wildly in a matter of hours, despite the best indicators. Therefore, it is always advisable to do your own research and invest only as much as you can afford to lose completely.

At the time of writing, OP was trading at $2.11, down 6.81 percent over the last 24 hours. The token’s trading volume stood at $238 million, translating to a decrease of 8.23 percent since the same time yesterday. 

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crypto.com to cut 20% jobs as industry rout deepens after FTX collapse

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Crypto.com said on Friday it would be reducing about 20 percent of its workforce, as cryptocurrency exchanges face industry-wide challenges brought on by the collapse of FTX last year.

The Singapore-based company’s announcement comes amid concerns about reserves and solvency across the sector, and only a few days after rival exchanges Coinbase Global Inc and Huobi announced their plans to lay off about 20 percent of their staff. A source told Reuters last week that Genesis, too, had cut jobs, equating to 30 percent of its workforce.

The layoffs at Crypto.com would be its second in about six months, after it reduced jobs in July last year to weather the macro economic downturn amid rising interest rates.

Also read | Crypto Price Today: Bitcoin continues to be above 18,000, Ethereum and most other tokens move higher

The recent FTX collapse “significantly damaged trust in the industry,” Crypto.com Chief Executive Officer Kris Marszalek said in a statement.

“It’s for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success.”

The collapse of Sam Bankman-Fried’s FTX was the biggest in string of big crypto-related failures in 2022. It sparked a cryptocurrency rout and has left an estimated 1 million creditors facing losses of billions of dollars.

Amazon CEO says not adding cryptocurrency as payment option anytime soon

Amazon.com Inc Chief Executive Officer Andy Jassy said the e-commerce giant is not close to adding cryptocurrency as a payment option to its retail business, in an interview with CNBC on Thursday.

He also said it might be possible to sell non-fungible tokens (NFTs) on its e-commerce platform and expects NFTs to continue to grow “significantly.”

Also read | Explained: Crypto payment gateways and how they work

NFTs, a type of digital asset that exist on a blockchain, have exploded in popularity in 2021, with NFT artworks selling for millions of dollars.

Jassy said cryptocurrencies will become bigger in the longer term, but added he himself does not own any bitcoin.

A growing number of companies have started to accept virtual currencies for payment, bringing an asset class shunned by major financial institutions until a few years ago closer to the mainstream.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow