ENS Whales Resurfaces after Almost 3 Years, Claims $74M ETH, What’s Next?

Marina Meza
-
0
ENS Whales Resurfaces after Almost 3 Years, Claims $74M ETH, What’s Next?

The move comes more than two years after ENS founder Nick Johnson revealed that the large stash of ETH had been deposited during ENS’ first two years of operation.

On July 31, an anonymous whale controlling an Ethereum Name Service (ENS) domain resurfaced, claiming 39,712 ETH valued at approximately $74 million. The mysterious whale, identified only through its associated ENS address “darknet.eth”, also moved 63,734 ETH, worth approximately $119 million, to a new wallet address.

Twitter user @lookonchain posted that “After 2.7 years of dormancy, darkmarket.eth reclaim 39,712 $ETH ($74.17M) locked in the ENS auction just now. And transferred 63,734 $ETH($119M) out to a new wallet.”

In 2021, ENS founder and lead developer Nick Johnson tweeted a reminder for “darkmarket.eth” domain owners to reclaim their ETH locked-in ENS deposits for its first two years. The ENS founder also provided a link that would allow those with ETH deposited in ENS auctions to claim their digital assets. However, despite the reminder, the funds were not claimed for two years and five months.

According to Johnson, there are still more than 100,000 titles that remain unclaimed in ENS. The developer of the domain service highlighted that these are worth tens of thousands in ETH and urged users to check their own addresses and claim their funds.

ENS Whale Moves Millions in ETH

ENS was launched in May 2017 by two developers from the Ethereum Foundation, Nick Johnson and Alex Van de Sande. The protocol has gained popularity as a domain name service on the Ethereum mainnet. With easy-to-use naming systems, it makes it easy to map long public addresses used to receive cryptocurrency, including ETH and its tokens.

With the whale activating his address and transferring substantial funds, Nick Johnson directed the anonymous ENS holder to a different domain where he could claim assets worth “tens of thousands of dollars.” Beyond controlling the “darknet.eth” domain, the whale is associated with other domains, such as “pago.eth” and “silkroad.eth.”

However, ENS’s core privacy protection feature ensures that the true identity behind “darknet.eth” remains encrypted and private. According to this feature, it means that even the ENS service implementers cannot figure out the real identity of the whale. Consequently, all activities performed by the whale will remain on-chain and tracked but will remain anonymous unless their details are leaked from centralized outlets like exchanges, for example.

The ENS system consists mainly of the ENS registry, responsible for registering domain names, and the Resolver, which translates these names into machine-readable addresses.

In addition to offering seamless naming solutions, the ENS platform serves as a launching pad for users to build censorship-resistant, decentralized websites, reinforcing the service’s appeal within the crypto community.

ENS Is Popular, Will the Whale Sell ETH?

As of July 31, 2023, the ENS has achieved a major milestone, creating more than 2.7 million unique domain names and integrating with more than 570 platforms. With a remarkable 699,000 domain owners, some people, like the whale that controls “darknet.eth”, manage multiple domain names. Depending on demand, these domains can be auctioned at higher prices, presenting ENS holders with profitable opportunities.

Currently, users can only speculate whether the ENS whale will proceed to sell their coins or engage in other activities, including staking via a public node or liquidity staking platform like Rocket Pool. More and more holders have moved their ETH to staking addresses, noting the sharp rise in coins sitting on the official Beacon Chain deposit address.

By Marina Meza

What is the Progress of CBDCs in Mexico and Brazil?

Audy Castañeda
-
0
What is the Progress of CBDCs in Mexico and Brazil?

Brazil shows significant progress in its CBDC: the real digital, which is developed in partnership with the BRICS. An expert explains that Banxico will not use Blockchain for the CBDC and that it is actually an “extra layer” for the CoDi or SPEI digital collection systems. The source code of the CBDC in Brazil has shown that it can control, pause or suspend transfers from its users.

Around 130 countries in the world, representing 98% of the global economy, are working on the implementation of a digital currency issued by a central bank (CBDC) and 64 nations are at an advanced stage, that is, in some facet of development, pilot or launch, according to the Atlantic Council. In Latin America, Mexico and Brazil develop their digital and real digital weight.

Brazil works in alliance with the BRICS (Russia, China, Brazil, and South Africa) for the development of the CBDC, since they are interested in using them for cross-border agreements. Meanwhile, Mexico has indicated that it seeks to be a pioneer in the region by encouraging the use of digital currency for the digitization of payments. Both countries plan to launch their CBDC at some point in 2024.

Mexico and Brazil Lead the Development of CBDCs in Latin America

However, CBDCs do not have unanimous support in the market, with only 42% of industrialists, investors, and finance chiefs supporting the launch of a digital currency. Recent data from Statista shows that Canada, the United States, Mexico, and Brazil have “very concrete” plans for a legal framework related to the launch of a CBDC. Like the CFA Institute, Statista agrees that reluctance towards eventual government surveillance, controllable spending, or “controllable anonymity” persists, which upsets citizens and investors.

Mexico

Mexico was one of the pioneers in the region in announcing the launch of a CBDC in 2020, when regulators, Treasury officials, and deputy governors of the Bank of Mexico (Banxico) announced that they were working on a CBDC.

The General Directorate of Payment Systems and Market Infrastructures of Banxico is the area that is developing the CBDC of the central bank, which allocated 10.22 million pesos in 2022 for the development of the digital currency. However, doubts remain as to whether the CBDC will be based on Blockchain, pending confirmation from regulators.

Carlos Valderrama, founder of the legal tech firm Legal Paradox, ruled out that Banxico is integrating Blockchain technology into the new digital currency. The central bank would actually be looking to “add a layer” to its other digital payment tools. Some are SPEI (Interbank Electronic Payment System), CoDi, and DIMo, but not a CBDC with Blockchain technology.

For the specialist (who trained regulators for the Mexican Fintech Law), Banxico’s current monetary law does not stipulate digital currencies. However, the Fintech Law, promulgated in 2018, provided for innovative models via sandbox that would allow financial solutions with other technologies such as Blockchain. However, there is a “lack of political will” to develop such schemes.

Brazil

Brazil appears to be leading the way in CBDC development in Latin America. In March, the Central Bank of Brazil launched the pilot of its CBDC, the digital real in a simulated environment on the Hyperledger Besu platform. At the same time, it is based on EVM (Ethereum Virtual Machine). Among the tests, the following stood out: digital real, tokenized real, and federal public security.

Weeks later, the central bank revealed 14 participants who would test the Brazilian CBDC. They highlighted: Nubank, Microsoft, Santander, Itaú, Visa, Banco BTG, Bradesco, and BBChain, among others. However, the Central Bank of Brazil published the source code of its CBDC on Github, which caused discontent among Brazilians.

The source code of the Brazilian CBDC showed that the digital real pilot included methods to freeze or empty wallets. Likewise, controllable money functions to move digital money, minting or burning funds. The Github also showed a feature called “access control”, increasing and decreasing frozen funds and pausing withdrawals and local or international transfers.

By Audy Castaneda

Uber Will Accept Bitcoin When the Time Is Right, Says Its CEO

Audy Castañeda
-
0
Uber Will Accept Bitcoin When the Time Is Right, Says Its CEO

Dara Khosrowshahi does not rule out accepting Bitcoin as a means of payment at some point. The CEO of Uber expressed his concern about the energy consumption of BTC and its potential environmental damage. Uber does not miss the opportunity to state its opinion on BTC, but they have never ruled out allowing crypto payments.

The CEO of the mobility platform, Uber, Dara Khosrowshahi, declared again that the company is open to accepting Bitcoin payments in the future. He even admitted that company managers have constant conversations on the subject.

The Uber CEO maintained that the platform will support the use of cryptocurrencies “until the time comes” by expressing environmental concerns. Uber, like other companies such as Tesla, have expressed doubts about the energy viability of Bitcoin and concerns about the lack of regulation in the use of cryptocurrencies.

Uber “Concerned” about Energy Consumption and Environmental Damage from Bitcoin

Dara Khosrowshahi stated in an interview for Bloomberg TV that Uber is concerned about the energy consumption of Bitcoin and other cryptocurrencies, despite their increasing value. The Uber CEO said his concern centers on the “high ecological cost” of crypto, reminiscent of when Tesla allowed Bitcoin as a means of payment for a short time.

Dara Khosrowshahi further added the following:

“Uber will definitely support crypto when the time comes. We see that Bitcoin and some other cryptocurrencies are very valuable as a store of value. However, barter transactions are expensive and not good for the environment.”

“We will be having conversations all the time,” Khosrowshahi said. “As the exchange mechanism becomes less expensive and more environmentally friendly, I think you will see us lean a little more towards cryptocurrency.”

Currently, Bitcoin is not a reason for discussion about its inclusion as a means of payment in any industry or company, and the debate focuses on Bitcoin exchange-traded funds (ETFs). Currently, the BTC price ranges between $29,400 and $29,235, with a constant 0.12% retracement, according to CoinMarketCap.

Last year, Dara Khosrowshahi revealed that Uber would not accept crypto as a means of payment until they “operate more efficiently.” For the CEO of Uber, crypto must prove its usefulness to preserve its value in the currency exchange, since the average cost of trips in the taxi app is between 15 and 20 dollars.

Bitcoin has been a constant topic on Uber’s agenda, which does not miss the opportunity to state its position. In 2021, Dara Khosrowshahi revealed that Uber “immediately ruled out” the idea of ​​buying BTC with company-owned cash.

Uber Does Not Miss an Opportunity to State Its Position on Bitcoin

For Uber, it has always been more important to keep the company’s finances healthy than to buy Bitcoin, as Tesla did at the time. The company has always stayed away from regulators in the world. He has even complied with the standards and has stayed away from any scandal.

In Mexico, the company received authorization under the Fintech Law to operate an Electronic Payment Fund Institution. It will have a corporate name, “UBR Pagos México,” and become the second institution.

The authorization would allow Uber to launch its own prepaid card or develop a digital wallet. It would be anchored to its mobility app, which would allow users to transfer funds to the wallet account, which would reduce the dependence of users on bank cards (credit or debit).

By Audy Castaneda

Analysts Endorse MicroStrategy’s Bitcoin Strategy

Audy Castañeda
-
0
Analysts Endorse MicroStrategy’s Bitcoin Strategy

MicroStrategy’s all-consuming love for Bitcoin no longer seems to be a drag on its good financial health, at least according to the bullish forecasts of licensed analysts, who are betting on a surge in the MSTR share price.

Long appalled by MicroStrategy’s maximalist bitcoin strategy, financial analysts, at least some of them, now seem conquered by the policy of buying drumbeats led by Michael Saylor since the summer of 2020. A few hours before the quarterly publication of the company’s results, optimism is in order with bullish price targets for MSTR stock.

An Innovative Strategy that Would Pay Off

The company with 152,333 BTC in cash is no longer scary, according to the experts of two investment banks who today applaud the strategic shift taken by MicroStrategy in the summer of 2020. On this date, Michael Saylor, co-founder and then CEO of the software company, began a policy of buying bitcoins to compensate for the devaluation of the dollar. His conviction: to favor digital gold at the expense of a melting currency to maintain, if not increase, his firm’s cash flow.

Unlike other rare companies, such as Tesla, which was satisfied with a purchase, for $1.5 billion all the same, of which it quickly sold part to keep only some $184 million in bitcoins, MicroStrategy continued its acquisitions at a steady pace until very recently, dropping a few bitcoins just in passing for tax reasons.

This accumulation strategy, often deemed foolish by many observers, now seems to be paying off. The company’s stock has risen more than 200% since the start of the year, rising from $139.38 to $475.09 according to data from Boursorama.

Moreover, it may well continue to climb. Indeed, TD Cowen analyst Lance Vitanza is looking at a price of $520 for the end of the year, while his German counterpart at Berenberg Bank is setting a slightly lower target of $510 at distance, however, from the $811 of November 8, 2021, when Bitcoin touched $70,000.

Reasons for a Positive Perception of MicroStrategy’s BTC Purchase Policy

The question is to know what this reversal is due to, far from the catastrophic year 2022 when, correlatively to the fall in the price of bitcoin, the MSTR share had largely depreciated following the devaluation of its BTC portfolio. This had not been without consequence, probably leading to the resignation of Michael Saylor, the head of the company, appointed in the process executive chairman of the company’s investment committee.

The change in management did not lead to any modification in the acquisition strategy of MicroStrategy, though, which continued its purchases in BTC, in particular by resorting to the issue and sale of shares and bonds to constantly acquire more of its favorite asset.

In a note to investors relayed by Bitcoin Magazine, he discusses the effectiveness of a “hybrid business strategy” which consists of converting excess income from the core business of software intelligence into bitcoins. A bold choice that, according to the analyst, represents a serious “paradigm shift”.

“This is not a short-term trading strategy, but rather reflects the belief that ultimately bitcoin will prove to be a superior store of value compared to metals and fiat currencies,” Vitanza explained.

This is a perspective that leads him to claim that MicroStrategy is “an attractive vehicle for investors seeking exposure to bitcoin,” an idea of ​​which some are already largely convinced, investing in the shares of the company as if they were buying shares of a Bitcoin ETF.

By Audy Castaneda

Bitcoin Mining Focused on South America this Week, and other News

Marina Meza
-
0
Bitcoin Mining Focused on South America this Week, and other News

Bitcoin mining continues to rise; fees and new projects made South America the global epicenter this week.

This week, South America became the world epicenter for Bitcoin mining thanks to new fees in Argentina. In other parts of the world, there was also a variety of impact news for the sector.

The network is a few months away from entering a stage of volatility, the cause of which will be the expected halving. It is an automatic event of the network, whose objective is to reduce the reward to the miners, and thus generate scarcity and appreciation of the currency.

The great protagonist this week is the increase in rates in Argentina. The South American country is one of the epicenters of business in the region. To this news, others of great interest are added, whose details are presented below.

Argentine Government Raises Miners’ Electric Rates

One of the news that put South America at the center of attention in terms of Bitcoin mining was the increase in electricity rates in Argentina. According to specialized media, the Ministry of Energy of the Latin American nation is applying a substantial increase for companies in the sector.

In this sense, the rate per megawatt per hour would go up to $63.3 dollars. This is the highest band on the Ministry’s scale for energy bills. Buenos Aires has an electricity administration divided between industrial and residential consumption. The second enjoys a subsidy of approximately 70%, so mining from home is a very beneficial option.

With this measure, the invoices for the mining companies based in Argentina are placed at the level of the invoices of the rest of the industrial sectors.

Mining Equipment Flows to Russia Despite Sanctions

Bitcoin mining knows no borders or barriers to its development. The strong sanctions of the West against Russia are not an obstacle for the business expansion in the gigantic Eurasian country. Companies incorporated in that nation experience a great stimulus thanks to the flow of mining equipment.

Manufacturers Bitmain and MicroBT ship large batches to Russian companies, as the United States market would be saturated, according to reports from sources consulted by the outlet. Luxor Technologies COO Ethan Vera said that “More machines are flowing into Russia than anywhere else in the world.”

With this, the Russian Federation remains one of the global epicenters of digital mining, as the huge country is a cheap source of energy and enjoys a cold climate; these are the two essential elements for the industry to flourish.

Halving Will Cause 30% Drop in Bitcoin Hashrate

The Bitcoin halving is expected to have a strong influence on the digital mining business. The halving of miners’ rewards is an event that can cost many small and medium-sized businesses their existence. Thus, the costs of energy and other operating expenses, added to the cut of 50% of the income, can cause turmoil.

The network hashrate would plummet between 15% and 30% after the automatic event. The halving is scheduled to take place in 2024, while this year the halving will take place in the Litecoin network, Important movements in that Blockchain are expected, as well as in its native currency, LTC.

So far in 2023, the Bitcoin chain hashrate is constantly increasing and has been reaching all-time highs without interruption. The reason for this was the appreciation of the currency, which increased business profitability and stimulated more equipment connections.

By Marina Meza

TD Cowen: Bitcoin is a Store of Value, Potentially Superior to Other Forms of Money

Audy Castañeda
-
0
TD Cowen: Bitcoin is a Store of Value, Potentially Superior to Other Forms of Money

The American multinational investment bank, TD Cowen, published a recent report on the properties that make Bitcoin a superior store of value.

TD Cowen’s report details Bitcoin’s properties as a store of value. First of all, the firm pointed out that the limited issuance of the cryptocurrency, of 21 million units, makes it a store of value potentially superior to fiat currencies and other forms of money, such as digital. the report points out that cryptocurrency is potentially superior to known reserve assets, including gold and other precious metals.

According to TD Cowen analysts, Bitcoin has exceptional properties, such as durability, portability, fungibility, verifiability, divisibility, and scarcity; It also pointed out that it is transparent and resistant to censorship.

For all this, TD Cowen considers Bitcoin “a superior store of value relative to all other forms of money.”

Bitcoin Is Here to Stay, According to TD Cowen

Despite its short history, compared to other currencies and assets such as the dollar or gold, TD Cowen pointed out that Bitcoin has shown great performance and has managed to attract interest and gain the trust of millions of investors and people around the world. world.

Likewise, small and large companies from different sectors and industries are becoming increasingly interested in and trusting cryptocurrency, the same as local governments and entire countries such as El Salvador, thanks to the history of growth and resistance that Bitcoin has created since its launch in 2009.

According to the firm, although Bitcoin is relatively new, it “has withstood enough market testing to suggest a high probability that it will not disappear as a valuable asset any time soon,” but rather the cryptocurrency is becoming part of the mainstream.

Bitcoin Mining is Energy Efficient

Bitcoin mining was another topic TD Cowen talked about in its recent report. According to Bitcoin Magazine, the firm noted that this activity does not pose a potential risk to the environment. Thus, contrary to what some still believe, TD Cowen pointed out that bitcoin mining is one of the most efficient uses of electrical energy.

“Bitcoin mining is, in our opinion, one of the most efficient and clean industrial uses of electricity and is improving its energy efficiency at a faster rate than most other industries,” the firm noted.

In line with the above, the recent announcement by the Kyrgyz government stands out, which has approved a project to invest $20 million dollars in the creation of new facilities at the Kambar-Ata-2 hydroelectric plant, to take advantage of the energy surplus of this plant in bitcoin mining.

MicroStrategy Strategy with Bitcoin

TD Cowen also highlighted the paradigm shift that Michael Saylor’s business intelligence company MicroStrategy is driving with the Bitcoin-based strategy that it began implementing in August 2020.

MicroStrategy is accelerating shareholder value creation, TD Cowen said. The firm also noted that Saylor’s company is combating “the depreciation of the purchasing power of the US dollar” with Bitcoin.

Michael Saylor reported three years ago that his company would start investing in bitcoins to protect the value of its assets. However, according to TD Cowen, this has quickly become an opportunistic strategy, aimed at accelerating the creation of value for the company’s shareholders. This is why many investors see MSTR as an attractive vehicle to gain exposure to Bitcoin, TD Cowen concluded.

MicroStrategy shares rose 2.66% this week, after the release of TD Cowen’s bullish report on Bitcoin and his cryptocurrency store of value and investment strategy.

By Audy Castaneda

1...445446447...1,654Page 446 of 1,654