Blockchain Technology is a Solution to Bank Fraud, According to Koibanx

Audy Castañeda
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Blockchain Technology is a Solution to Bank Fraud, According to Koibanx

Koibanx noted that Blockchain technology would help reduce bank fraud in Latin America. The CEO and founder of Koibanx said that more banks have used Blockchain as an alternative to increase their security. Banco Macro of Argentina, Banco Davivienda of Colombia, Grupo Salinas of Mexico, Banco Cuscatlán in El Salvador, are those who explore Blockchain.

The CEO and founder of the platform that offers Blockchain-as-a-Service (BaaS) services, Koibanx, Leo Elduayen, pointed out that Blockchain technology would help reduce bank fraud. The technology has increased its adoption in the Latin American banking system, according to an analysis.

Elduayen said that Blockchain has caused more banks to use the technology as an alternative to increasing their security in handling customer data. In Latin America, financial institutions use Blockchain to innovate in security.

Koibanx: Latin American Banks Explore Blockchain Technology

Last December, Koibanx launched a low-code beta version that will allow developers to design financial products based on Blockchain technology without necessarily having to be programming experts. The low code would be used by companies, organizations, and financial companies, that developed tokenizable functions.

On this occasion, the CEO and founder of Koibanx, Leo Elduayen, stated the following to Reseller:

“The Blockchain also enhances the traditional banking core and speeds up international transfers by making them directly, that is, without intermediaries. This greatly reduces costs, automates financial reconciliations, and even allows controlling the use of subsidies by specifying in which businesses they can be used.”

The CEO of Koibanx explained that Blockchain technology is being used or explored by the most important banks in the region, who are carrying out projects in this regard. Among the banks are: Banco Macro of Argentina, Banco Davivienda of Colombia, Grupo Salinas of Mexico, Banco Cuscatlán in El Salvador, among others.

Koibanx tweeted the following on July 24:

“Our CEO, @leoelduayen , commented on @CIOMexico [that] we are seeing in the region this leap in innovation that banks want to make since they find many advantages in taking part of their transactional processes to Blockchain or Web3.”

Last year, Koibanx was one of the pioneers in joining salary payments with cryptocurrencies in Colombia. At the time it was reported that for the company, “everything was born from the interest of the company.” And he continued: “The interest arose from promoting the use of cryptocurrencies in everyday life.”

Blockchain is an Innovation Alternative for Latino Banks, According to Koibanx

Regarding the inclusion of Blockchain in the financial system, Leo Elduayen gave the following opinion to Reseller:

“In Latin America, this leap in innovation by banks is due to the fact that they find many advantages in taking part of their transactional processes to Blockchain protocols. We understand this need that they bring us and we see excellent results in the implementations that we carry out.”

In 2022 Koibanx and Algorand led the Green Awards, in which they gained visibility and created networks among the best 500 social and environmental projects in Iberian America. In a festival, they sought to boost the green economy by exhibiting regional initiatives in eight categories aligned with the Sustainable Development Goals (SDGs).

By Audy Castaneda

Why Paraguay Continues to Attract More Bitcoin Miners

Audy Castañeda
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Why Paraguay Continues to Attract More Bitcoin Miners

Paraguay, one of the countries with the lowest HDI in the region, has emerged as an attractive hub for Bitcoin miners. Hydroelectric power is the fundamental pillar of the Paraguayan energy economy. One of the main obstacles is the lack of a clear and defined regulation for cryptocurrency mining.

Against the backdrop of the dizzying growth of the mining industry in Latin America, Paraguay has emerged as an attractive hub for Bitcoin miners.

This country, with an HDI lower than the average of the countries in the region, has experienced a significant increase in Bitcoin mining activity thanks to its energy surplus. Added to this are recent legislative efforts to regulate and promote this emerging industry.

Energy Surplus as an Engine for Bitcoin Mining

Hydroelectric power is the fundamental pillar of the Paraguayan energy economy. The famous Itaipu dam, located on the Paraná River, generates a staggering 14 gigawatts (GW) of electrical power. But most importantly, it represents more than 99% of the country’s energy supply.

In addition to Itaipu, Paraguay has two other important dams, Yacyretá and Acaray, which also contribute to the country’s energy surplus.

Itaipu Binacional, in operation since 1984, held the prestigious title of “the largest energy producer in the world”, having produced a record figure of 103,098,366 MWh in 2015. It is also recognized as the dam with the highest accumulated production, reaching 2.5 billion MWh since it began operations.

With an impressive electro-hydraulic generation capacity of 14,000 MW, Itaipu has 20 generating turbines of 700 MW each. Building this colossal dam required an investment of 36 billion dollars, shared between the two partner countries.

This energy surplus has turned out to be the main attraction for Bitcoin miners, who find Paraguay a favorable place to establish their operations. Abundant clean and low-cost energy allows miners to maintain significant profitability in their activities.

Paraguay as a Growth Center for Bitcoin Miners

According to the data analysis carried out by the Hashrate Index platform, Paraguay already hosts more than 1.45% of the total hashrate of the Bitcoin network. Although this may seem like a modest percentage compared to other nations, it is important to note that this growth has been largely driven by the exodus of miners from China in mid-2021.

Furthermore, the number of miners operating from Paraguay is likely to be higher than estimated. This is because many of them use virtual private networks (VPN) to protect their identity and location. This figure may increase in the future as more miners seek to establish themselves in the country.

Legal Challenges for Bitcoin Mining in Paraguay

Although Paraguay shows great potential as a Bitcoin mining hub, it is not without its challenges that need to be addressed to further fuel the growth of the industry.

One of the main obstacles is the lack of a clear and defined regulation for cryptocurrency mining. The absence of solid and secure legal frameworks can create uncertainty for the participants, who wish to operate within a regulated and protected environment.

On the other hand, there is the fiscal aspect, since this activity could be used for tax evasion, not to mention the clandestine farms that maintain a parasitic behavior, causing millions in energy losses to Paraguay’s National Energy Administration.

All in all, the combination of natural resources, infrastructure, and the growing interest in cryptocurrency make the country a promising place for the development of this innovative and constantly evolving industry.

By Audy Castaneda

Three-Quarters of BTC Belong to Hodlers

Marina Meza
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Three-Quarters of BTC Belong to Hodlers

The famous cryptoanalyst @raizteracional shared on Twitter a graph of the supply of bitcoin held by LTH against the total supply available. The analyst pointed out that the current percentage of long-term supply stands at 73.5% and is close to its all-time high since 2015.

Bitcoin is getting more and more rare. In fact, the current level of BTC supply held by long-time hodlers is nearing its all-time high set in 2015. On-chain data shows us that investors are withdrawing their coins at a record pace and moving them into cold wallets.

Historically, this type of situation has been observed at the bottom of macrocycles in the cryptocurrency market. Therefore, the large amount of BTC supply in the hands of long-term (LTH) holders and the upcoming crypto asset halving event could be the catalysts for a new bull market.

BTC Supply and Asset Price

Bitcoin supply is determined by a mathematical algorithm that limits BTC withdrawal to a maximum of 21 million units. New BTC is then awarded to miners who manage to solve a mathematical task to validate the next block in the network chain.

However, the supply of bitcoins increases at a decreasing rate, which is regulated by what is called a “halving”. About every four years, the reward given to BTC miners is literally cut in half. Therefore, fewer and fewer newly mined coins make it to the market.

As a result of this situation and the principle of supply and demand, the price of the largest cryptocurrency in the sector gradually increases (black curve). In short, the limited supply of the asset and the decreasing issuance of new coins contribute to increasing the scarcity of Bitcoin.

Such scarcity, combined with the elements of cryptographic security, durability, and transparency, to name just the most important strengths of the Bitcoin network, raises the price that investors are willing to pay for this digital asset.

Hodlers Offer

Bitcoin long-term (LTH) holders are sometimes called “hodlers” because they follow a simple investment strategy called “HODL” (Holding On for Dear Life). Short-term holders (STHs), in contrast, hold their coins for less than 155 days, after which they transfer them to another address or sell them.

The supply held by LTH has been rising steadily and, at least since August 2022, has consistently recorded new all-time highs (ATH). Current data suggests that 14.532 million BTC is held for the long term. Naturally, these data also partially take into account missing parts.

On the other hand, the inverse correlation is not so clear. In fact, the macroeconomic low in the BTC price has not always been the same as the peak in long-term headline supply.

A Return to the Top of 2015

The last sharp drop in the supply of bitcoins held by LTH was seen between October 2020 and April 2021. This was when the BTC price broke out of the $11,000 zone before finally recording an all-time ATH of $64,500.

Interestingly, neither the 2018 bear market, nor the 2020 COVID-19 crash, nor even the 2022 downtrend resulted in as large a retained supply of LTH as we are seeing now. According to analyst @raizteracional, this indicates that BTC is becoming rarer.

Furthermore, it indicates the great confidence of investors in the industry’s first digital asset. On the other hand, when a new wave of short-term holders wants to acquire BTC, hodlers will reduce their holdings. The Bitcoin price will then be in its expansion phase ahead of its future bull market.

By Marina Meza

Bitcoin Balance on Centralized Exchanges Does not Stop Falling

Audy Castañeda
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Bitcoin Balance on Centralized Exchanges Does not Stop Falling

For centralized exchanges, the scar from the SEC coup has not healed. The Bitcoin balance on those platforms continues to drop.

Centralized exchanges or cryptocurrency trading platforms are not recovering from the blow they received from the SEC in June. The United States Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase in early June.

Meanwhile, regulators sued them for allegedly illegal trading in securities. Additionally, other lawsuits were filed against Binance. The agency considers many tokens as securities, which are traded on all exchanges apart from the defendants. The response of a large part of investors is to withdraw their funds from these platforms.

Centralized Exchanges Continue to Deflate

June saw a positive surprise regarding BlackRock’s application for a spot Bitcoin ETF. However, that was not enough to regain confidence in centralized exchanges. In this sense, according to data from Glassnode, the balance in BTC continues to plummet.

After the events of FTX and others in 2022, the crypto balance on exchanges suffered a decline. But from February to the end of May there was a notable recovery. By February 7 the balance in BTC was at 2,278 million BTC and at the beginning of May it reached 2,352 million and in June, before the lawsuit, it was at 3,331 million.

It was then that the descent began. Currently, the Bitcoin balance goes back to 2,248 million coins. This is a worrying point for these companies. To get an idea of ​​this setback, it should be noted that it is the lowest since March 2018.

Such a setback occurs despite the fact that the price of Bitcoin managed to improve by approximately 80% in 2023. Withdrawals of coins from centralized exchanges cannot be interpreted in any other way than distrust on the part of users.

ETH Balance Also Crashes

By the beginning of the year, the balance of ETH on the CEX was approximately 20 million coins. Currently, the balance stands at just over 15 million tokens. As far as USDT is concerned, the amount of tokens has been in general decline since the beginning of the year. However, after the lawsuit experiences an increase in its balance.

With these data in perspective, it can be said that the situation of crypto trading platforms is little more than delicate. Everything will depend on the results of the trials that the two trading as mentioned earlier houses will face against the regulators. In the event of a defeat against the SEC, centralized exchanges could be deflated and a significant number of these companies would go bankrupt.

Investors are fully aware of this issue, which has also been expressed in the decline in Ether staking in CEXs. Investors in this token prefer decentralized protocols to avoid a kind of crash like FTX that causes the total loss of their funds. Some exchanges have so-called proof of reserves, but that is not enough to allay mistrust.

Whales’ Signs

During most of 2023, whales moved more coins onto exchanges, but now the trend seems to be changing. A total of 218,176 whale bitcoins moved in all directions last week. 54.06% left centralized exchanges for unknown or accumulation wallets.

According to specialized news portals, in a group of whale entities that have 1,000 BTC or more in their portfolios, the tendency to abandon the exchanges seems to be the same.

By Audy Castaneda

SBF’s Lawyers Want Judge to “Gag” FTX Witnesses

Audy Castañeda
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SBF’s Lawyers Want Judge to “Gag” FTX Witnesses

Sam Bankman-Fried’s lawyers are asking a US judge to restrict witness comments ahead of his trial in October. The defense argues that a New York Times article unfairly discredited Bankman-Fried while pandering to Caroline Ellison. Bankman-Fried has pleaded not guilty and is living at her parent’s home under strict bail conditions.

Lawyers representing Sam Bankman-Fried confirm that he spoke and shared documents with The New York Times for an article on Caroline Ellison last week, but insist he has “done nothing wrong.” Ellison, former CEO of Alameda Research, was the subject of a detailed article in the Gray Lady last week.

US prosecutors later claimed that Bankman-Fried, who faces criminal charges for his failed tenure as FTX CEO, had shared the diary entries with the press in an attempt to “discredit” Ellison, and asked a judge to prevent him from making statements that could potentially interfere with a fair trial.

Sam Bankman-Fried’s lawyers have asked the judge in his criminal case to restrict the comments witnesses can make before the disgraced former CEO’s trial in October. The request comes after the court issued a gag order against SBF for speaking to a reporter about former Alameda Research CEO Caroline Ellison.

The July 22 message from Cohen & Gressler LLP denies that Bankman-Fried tried to discredit Ellison and contaminate the jury, arguing instead that the FTX founder was exercising his right of reply to an article that had been months in the making.

The NYT revealed that Ellisom had been “quite unhappy and overwhelmed” with her role at the trading firm, which was the sister company to the doomed FTX exchange. Her diary entries admitted that she did not feel “right” for the position and had difficulties in areas such as “leadership” and “determination”.

Bankman-Fried’s Lawyers Accuse Courts of Double Standards

The courts allege that Bankman-Fried’s comments compromised the group of jurors who will participate in his criminal trial in October. In response, SBF’s lawyers argue that the New York Times article unfairly discredited Bankman-Fried while pandering to Ellison. They claim that the courts unfairly targeted their client without censoring the negative comments of other witnesses:

“Indeed, up to this point, the government has shown little concern for pretrial publicity regarding its witnesses, contradicting its now expressed concern for witnesses who might be deterred by the specter of publicity.”

Consequently, they want the court to issue a gag order on other witnesses before SBF’s October trial.

The defense also argued that the documents SBF showed the reporter were obtained before the discovery. As a result, they did not violate the conditions of their bail.

They claim that Bankman-Fried complied with all the rules for visitors, including recording their names in a visitor log and screening for electronic recording devices.

SBF Planned to Run a Secret Lab on a Remote Island

Bankman-Fried was the CEO of FTX before it collapsed in November. US prosecutors initially charged SBF with eight counts of fraud related to money laundering and misappropriation of client funds. He has pleaded not guilty to all charges.

However, Ellison and several other former colleagues have pleaded guilty and will testify against Bankman-Fried when her case goes to trial later this year.

The MIT alumnus has lived at his parents’ home in Palo Alto since he was released on bond. The bail was recognized as 250 million dollars. The conditions of his bond include restricted access to the Internet and a virtual private network.

Recent bizarre revelations surrounding his criminal trial include the purchase of a small island to house a laboratory for genetic experiments.

By Audy Castaneda

Vitalik Buterin Reflects on Worldcoin and the Future of Digital Identity in a Revealing Essay

Audy Castañeda
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Vitalik Buterin Reflects on Worldcoin and the Future of Digital Identity in a Revealing Essay

Vitalik Buterin discusses the launch of Worldcoin and the concept of digital identity in a lengthy essay posted on Twitter.

Noted developer and co-founder of the Ethereum network, Vitalik Buterin, has shared his thoughts on the recent launch of Worldcoin, the Blockchain-based identity verification project.

On July 24, through his Twitter account, Buterin posted a lengthy essay in which he addressed both how Worldcoin works and the broader concept under discussion, that is, proof-of-humanity: “What do I think about biometric proof of personhood?”

In his article, Buterin provided a detailed explanation of Worldcoin and how it is designed to operate.

In addition, he delved into the concept of proof-of-humanity, which is also being explored by other similar identity solutions such as Proof of Humanity, BrightID, Idenam, and Circles. All of these projects share the belief that as artificial intelligence advances, it becomes increasingly difficult to distinguish between humans and machines.

Regarding this fact, he indicated that the philosophy behind the project is simple. And that Worldcoin is unique in that it is based on highly sophisticated biometrics, scanning each user’s iris using a specialized piece of hardware called an “Orb.”

OpenAI CEO Sam Altman Launches Worldcoin: The Revolutionary Iris Scanning Cryptocurrency

Sam Altman, the visionary CEO of OpenAI and creator of ChatGPT, has prepared for an exciting launch in the field of biometric technology. Today, the launch of Worldcoin Token (WLD), the cryptocurrency powering the ambitious iris-scanning project, was officially announced.

The Worldcoin project, which has received backing from prominent investors like Andreessen Horowitz, promises to revolutionize biometric authentication and online security solutions. With iris scanning technology at its core, Worldcoin Token aims to provide secure and trusted identification to users in the digital age.

News of the launch was previously hinted at via the project’s official Twitter account, which posted a mysterious graphic with the enigmatic message: “It’s time.” Since then, the tech community has been eagerly awaiting the arrival of this innovative cryptocurrency.

Each Worldcoin user installs an app on their phone, which generates a private and public key, much like an Ethereum wallet. They then go in person to visit an “Orb”, the user stares into the Orb’s camera, and at the same time shows the Orb a QR code generated by their Worldcoin app, containing their public key.

The Orb then scans the user’s eyes and uses a hardware scan to verify that: The user is a real human and that the user’s iris does not match the iris of any other user who has previously used the system. If both scans pass, the Orb signs a message approving a specialized hash of the user’s iris scan.

Worldcoin (WLD) Makes Spectacular Debut on Multiple Crypto Exchanges

Although the launch on Binance was “tentative,” the exchange announced that it would start trading WLD starting at 5 am EST today. Worldcoin beta participants who received their tokens have also been able to deposit them on Binance, as the exchange enabled this feature immediately.

Apart from Binance, the token also made its appearance on ByBit, another popular exchange. Surprisingly, the starting price of WLD on ByBit was noted to be $0.3 per coin. But, in just fifteen minutes, the value skyrocketed to an impressive high of $2.79. At the time of the last update, the token was trading at $2.42 on the exchange.

By Audy Castaneda

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