Polkadot Q2 Assessment and What Q3 Might Be Like

Audy Castañeda
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Polkadot Q2 Assessment and What Q3 Might Be Like

Like funding, Blockchain development activity also declined in the second quarter. Market indicators appear to be bullish on DOT, suggesting further uptrend.

Polkadot is a public Blockchain network whose main objective is to serve as a connection point between different block networks. The project dates from the end of 2016 when Gavin Wood, co-founder of Ethereum and founder of Parity Technologies officially presented the founding document (White Paper) of said initiative.

DOT has been noted for its development activity and its chain guards, which have grown in recent months. In fact, a recent Polkadot Insider tweet pointed out how its R&D funding has been in recent years. However, Polka dot’s last quarter was not the best in terms of price action, as it slumped on the charts.

Polkadot Insider, a popular Twitter handle that posts updates related to the Polkadot ecosystem, recently revealed in a tweet how funding for the network’s R&D activity has increased. According to the same, the funding has registered an increase since the last quarter of 2021. The tweet highlighted that Astar Network, Unique Network and Darwinia received the most funding.

However, while the growth was promising, the graph declined in the second quarter of 2023, which has been concerning. Not only did funding decline in the last quarter, but the same trend was also seen in Blockchain development activity.

Polkadot Investors Have Had a Hard Time

The Blockchain also experienced a decline in popularity in the last quarter, which was evident by its low social volume. Additionally, sentiment around DOT remained mostly bearish, as the sentiment-weighted chart remained mostly on the negative side.

The price of the token registered a similar drop. After reaching the highest level of the quarter in mid-April, the price action turned bearish. At the time of writing, the DOT was trading at $5.49 with a market capitalization of over $6.7 billion. However, the new quarter may look different for the token as its price action has just turned bullish.

According to CoinMarketCap, the DOT price is up more than 4% in the last 24 hours, which looks promising.

Demand for in the derivatives market increased, when its funding rate from Binance turned green. Its 4-week price volatility also rose slightly after a dip, raising the chances of a sustained uptrend.

Will Polkadot Maintain the Uptrend?

A look at the daily DOT chart revealed that the bulls have been stepping up their game. The distance between the 30 day EMA and the 55 day EMA is narrowing, which suggests that the chances of a bullish crossover are high.

The MACD of the token was also in favor of the bulls. However, its Relative Strength Index (RSI) dipped slightly, which could be cause for concern.

According to Changelly, on the basis of the Polkadot price fluctuations in early 2023, the average DOT price is expected to be $4.94 in July 2023. Its minimum and maximum prices can be expected at $4.41 and $4.41. $5.47, respectively.

Additionally, CrytoPredictions forecasts that the DOT price for today (04.07.2023) will be in the range of $4,588 – $6,746. The Polkadot price is forecast to end today at 5,397.

By Audy Castaneda

Bitcoin ETF: BlackRock Partners with Coinbase

Audy Castañeda
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Bitcoin ETF: BlackRock Partners with Coinbase

BlackRock first applied for the spot BTC ETF on June 15.

BlackRock has recently discovered the Bitcoin ETF depository involving Coinbase as a partner for “surveillance sharing”.

Additionally, the application also appears to include a Nasdaq-Coinbase deal to supplement the exchange’s watchdog program, after the SEC raised questions about the filing’s clarity.

Eric Balchunas, Senior ETF Analyst for Bloomberg, tweeted that “BlackRock has re-filed for spot bitcoin ETF, the resubmission was dated 6/29, Nasdaq just posted, though. They just added Coinbase like everyone else.”

BlackRock’s New Bitcoin ETF Partnership with Coinbase

As anticipated, the latest presentation regarding lead asset manager BlackRock’s bid to launch a spot Bitcoin exchange-traded fund (ETF) included a watch-sharing agreement with Coinbase, a well-known cryptocurrency exchange.

Subsequently, the SEC released the filing, which was amended by ARK Investment Management to include a shared oversight agreement with the Chicago Board Options Exchange (CBOE) and an anonymous US-based cryptocurrency exchange.

Initially, the deal was speculated to be with Coinbase, which would create a conflict with BlackRock’s ETF application. However, on June 30, the SEC said crypto ETF filings with the Nasdaq and CBOE were not clear and comprehensive enough, requesting more information on the oversight arrangements.

BlackRock first applied for the spot BTC ETF on June 15. So far, the SEC has not yet approved any spot ETFs related to cryptocurrency investments, despite numerous requests from the market.

Not surprisingly, Grayscale Investments even filed a lawsuit against the SEC after the rejection of its spot Bitcoin ETF in June 2022, saying the regulator had failed to apply consistent treatment to similar investment vehicles.

Coinbase Registers a +12% After Revealing Its Partnership with BlackRock

Based on the latest news, Coinbase has seen a 12% increase in its share price following the disclosure of its partnerships with spot Bitcoin ETFs. According to The Block, the price increase was caused by the exchange’s collaboration with Fidelity and other major players on the introduction of new exchange-traded funds of spot bitcoin.

BlackRock’s filing announcement for a spot Bitcoin ETF started immense competition in the industry. Fidelity, another wealth management giant, also joined quickly.

With numerous other participants, the industry has seen a surge of players from traditional finance looking to enter the market, which has had a positive impact on Coinbase.

Specifically, the recent gains of 12% correspond to an overall increase of 138% since the beginning of 2023. Furthermore, an outperformance of the overall cryptocurrency market has been observed.

When Fidelity filed its spot Bitcoin ETF filing on June 30, it mentioned the important contribution of Coinbase. In particular, the exchange allegedly helped “monitor manipulation in the spot market,” according to The Block.

Previously, Coinbase, one of the leading cryptocurrency exchanges, experienced quite an up-and-down month, with shares heavily impacted by the actions of the US Securities and Exchange Commission (SEC). This has impacted the perception of the exchange across the industry, leading to a decrease in its overall performance.

What Are the Odds of BlackRock’s Bitcoin ETF Being Approved by the SEC?

According to Bloomberg senior analyst Eric Balchunas, BlackRock’s Bitcoin ETF has a 50% chance of being approved by the US Securities and Exchange Commission (SEC). Specifically, Balchunas said the new ETF has a fair chance of getting the coveted approval.

Furthermore, he suggested that this move could be an attempt by the regulator to “save face” by accepting the presence of traditional finance in the cryptocurrency space.

By Audy Castaneda

Israel Seizes $1.7 Million in Cryptocurrency Intended to Fund Pro-Iranian Terror Groups, and Other Crypto News

Marina Meza
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Israel Seizes $1.7 Million in Cryptocurrency Intended to Fund Pro-Iranian Terror Groups, and Other Crypto News

An American firm reported that Israel seized $1.7 million in cryptocurrencies used for terrorism.

In a recent report, US Blockchain firm Chainalysis revealed details about Israel’s confiscation of cryptocurrencies, intended to finance pro-Iranian interests. The firm claims to have worked in collaboration with Israeli intelligence to seize more than $1.7 million worth of cryptocurrency, which was intended for Iranian-sponsored military-political groups.

According to published data, the Quds Force, recognized as a terrorist group in the United States and European countries, was found to be sponsoring the activities of another terrorist organization known as Hezbollah. The financing was carried out through cryptocurrencies, using the informal financial and settlement system known as Hawala, which is based on the compensation of claims and obligations.

Provisional Freedom for the “Sheik dos Bitcoins”

In other news, the businessman Francisley Valdevino da Silva, known as the “Sheikh of the Bitcoins”, has been provisionally released by the Federal Justice, according to reports from G1 Paraná.

Francisley’s arrest took place in Curitiba in November 2022, after he violated the precautionary measures imposed by the Federal Police. Since 2016, he has been under investigation for allegedly running a pyramid scheme disguised as cryptocurrency lending. This would have moved around 4 billion reais (equivalent to approximately $83.5 million at the current exchange rate), according to the authorities.

The allegations against Francisley argue that he used the pyramid scheme to defraud numerous people, promising significant returns in exchange for cryptocurrency investments. According to the investigation, the businessman operated a sophisticated system that involved multiple levels of participants, and used money from new investors to pay off old ones, instead of generating legitimate profits through cryptocurrency investments.

The release permit defines that the defendant is prohibited from leaving the country, must deliver his passport to the Federal Justice, cannot leave the city and, in the event of a change of address, must notify the Court.

“It should be noted, as pertinent, that the prohibition to leave the country and the suspension of financial activities carried out by Francisley, as well as the prohibition of contact with the other investigated participants in the criminal plot, observe the postulate of proportionality, as well as fulfilling the main purpose presented in the police representation, to make it difficult for Francisley to act in charge of the companies that make up the organization, as well as his departure from the national territory,” says the document.

Delio Investigation: Fraud and Embezzlement

South Korean cryptocurrency lending company Delio is under investigation for fraud and embezzlement by the country’s Financial Services Commission (FSC). According to reports from Digital Asset, a local news outlet. The investigation was launched on June 30, after Delio unilaterally suspended user deposits and withdrawals on June 14.

US Court Orders Kraken to Turn Over User Information to the IRS

The United States Internal Revenue Service (IRS) has won a legal victory in its investigation into cryptocurrency-related undeclared taxes. A trial court has ordered popular cryptocurrency exchange Kraken to provide personal information of its users to the IRS.

The ruling was issued on June 30 by Magistrate Judge Joseph Spero, who dismissed Kraken’s efforts to prevent the disclosure of its users’ data. The order requires Kraken to turn over information on all accounts that transacted at least $20,000 in cryptocurrency between the years 2016 and 2020.

By Marina Meza

Bitcoin Mining: Difficulty and Profitability Shake the Industry

Audy Castañeda
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Bitcoin Mining: Difficulty and Profitability Shake the Industry

The drop in profitability, as well as the notable increase in difficulty, were the main topics during this week.

Since the beginning of 2023, mining has emerged from the lows that the market experienced last year. An increase in profitability led to a growing number of miners connecting to the network to take advantage of the rising price of Bitcoin.

However, the increased hashing power of the network led to a flurry of upward adjustments to the difficulty. The latter translates into a drop in profitability for miners. Although the price of the pioneer coin is above $30,000, it is not enough to increase the income of the miners.

Hash Power and Difficulty Hit New Record in June

The increase in the hashing power of Bitcoin is notable. In June, most of the network settings experienced difficulty records due to the rapid increase in new miner connections to the network.

According to data from BTC.com, the network difficulty reached its recent historical peak on June 14, remaining at 52.35 T. In regards to computing power, which is the sum of the computing strength of the total connected miners to the network, it exceeds 360 EH/s.

Said increases came along with a considerable rise in the price of Bitcoin. However, if the price of the coin stagnates, a drop in hash power and difficulty is likely to take place.

Bitcoin Cash Becomes More Attractive Due to Increased Profitability

During the last two weeks, miners have been moving towards Bitcoin Cash mining, thanks to its increased profitability, according to specialized media.

This is due to the increase in the price of the currency, which experiences +182% in that approximate period of one month. This allows the profitability of the miners in it to be considerably higher. By comparison, the Bitcoin network experiences a reverse process, where it is not as profitable to operate on it.

As a consequence, people seem to prefer to dedicate themselves to mining BCH and get better results. This is a valid option for those miners tormented by the increase in the difficulty of the Bitcoin network, which has been hitting continuous all-time highs so far this year.

Hive Mining Revenues Are -50% Off Their Peak

As a result of increasing network difficulty and declining performance, Bitcoin mining companies are feeling increasing pressure. One of them is the Canadian Hive Blockchain Technologies Limited, a company that would have experienced a drop in its bitcoin production of -50%, as compared to its historical peak. According to media networks, the company suffered a net loss equivalent to $236 million dollars.

The drop in half of its revenue occurred during the 2023 fiscal year of this pioneering company on the stock market. The pullback is “mainly due to the fall in the price of Bitcoin and the increase in the difficulty of Ethereum and Bitcoin,” the firm explains in its report.

MicroBT to Manufacture ASIC Equipment in the United States

As a result of a partnership with Riot Platforms, Bitcoin mining equipment maker MicroBT will produce ASICs in the United States. Thus, the main mining company in the North American country makes it possible for the Chinese company, one of the largest in the world, to expand beyond its borders.

In a statement, cited by Bitcoin Magazine, the deal was reported and the opportunity was taken to allay concerns. According to digital mining critics, this is a highly energy-demanding process. However, the companies dismissed those allegations.

By Audy Castaneda

Russian Likely to Face Treason Charges for Allegedly Donating Crypto to Ukraine

Audy Castañeda
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Russian Likely to Face Treason Charges for Allegedly Donating Crypto to Ukraine

According to recent reports, the secret service has arrested a Russian citizen for allegedly donating cryptocurrency to support the Ukrainian military.

According to a press release by the Russian Federal Security Service (FSB), Alexander Vecherko, a Russian citizen residing in the Khabarovsk region, in the Far East of the country, has been arrested and charged with treason.

According to the FSB, the individual sent money to the Armed Forces of Ukraine, which is considered an activity directed against the security of the Russian Federation. Sources speculate that Vecherko donated USDT, which the FSB says allowed the enemy to buy equipment such as night vision goggles, ammunition, and medicine.

Vecherko’s arrest has accentuated the vulnerabilities of social cryptocurrencies, especially in the ongoing battle with Ukraine. Vecherko likely did not make use of privacy-focused pieces like Monero or even ZCash, which integrate obfuscation components to stop third parties, such as police, from tracking offers.

Treason Charges Pressed

As shown in a circulating video, Vecherko’s actions are considered by the FSB as treason, which led to his arrest. He will face legal proceedings and will be tried in a court of law. He is currently being held in Moscow, the capital of Russia. Treason in Russia carries penalties ranging from 12 years in prison to life imprisonment, for which the detainee faces serious legal consequences.

Since Vecherko used a token or currency whose transfers are public and where the identities of the sender and receiver can be deciphered, the FSB was able to track the movement of funds. There may be evidence to suggest that the recipient of the funds served as a conduit for donations intended for the Ukrainian military.

Most public Blockchains, including Bitcoin, Ethereum, and Cardano, operate pseudonymously and transparently. Although transactions are converted into machine-readable code using cryptographic elements, the identities of the participants can be deciphered.

This case again highlights the growing importance of cryptocurrencies in financial transactions and the need to address the security challenges that come with it. The ability to quickly and anonymously transfer funds through cryptocurrencies raises concerns in terms of oversight and regulation by governments.

USDT Trading Volumes Increase in Russia

The token presumably been used, USDT, can be minted on multiple chains, including Tron and Ethereum, both of which are public and allow pseudonymous transfers. Analysts have observed a notable increase in ruble-USDT trading volumes on Binance during the alleged “coup” attempt by Yevgeny Prigozhin, the founder of Wagner, last week. Trading volumes increased from $2 million to $8.5 million.

By contrast, no significant change was seen in the Ruble-Bitcoin pair, indicating that many Russians preferred stablecoins that track the USD in times of crisis.

Since the conflict broke out, Ukraine has received more than $70 million in cryptocurrency donations, with most of these funds being used to support the Ukrainian military as well as provide humanitarian aid.

In addition, the Ukrainian government has established several crypto fundraising platforms to facilitate donations, including the official website of the Ministry of Digital Transformation of Ukraine and the non-profit organization Come Back Alive.

The event emphasizes the importance of anonymity in cryptocurrency transactions and how it can be used for illegal activities. The FSB has not disclosed details about how they tracked the citizen’s transactions, but this highlights the need to take extra precautions to protect privacy and security when using cryptocurrencies.

By Audy Castaneda

According to a Survey, 92% Of Global Respondents Have Basic Crypto Knowledge

Audy Castañeda
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According to a Survey, 92% Of Global Respondents Have Basic Crypto Knowledge

The survey, which spanned the Americas, Asia, Europe and Africa and interviewed more than 15,000 people, found that most respondents are aware of cryptocurrencies, with many seeing a bright future for the industry.

Joint research by Consensys and YouGov estimated that 92% of participants are aware of cryptocurrencies. 37% see the asset class as future money, while 26% are in the opposite corner, seeing it as a scam. Residents of the United States and the United Kingdom are more likely to associate digital currencies with fraudulent schemes.

A total of 15,158 people, aged between 18 and 65, from 15 countries in the Americas, Europe, Africa, and Asia, participated in the survey.

Sentiment Towards Cryptocurrencies and NFTs

Nearly 40% of respondents believe the asset class could emerge as the future of money, while 31% see it as the future of digital property. Every quarter gives the sector the evil eye, comparing it to a scam.

Nigerians (65%) and Argentines (56%) are the most motivated to hold digital assets as a means to store value. This could be explained by the instability of its financial system and local currencies.

Nigerians are also the most inclined to associate cryptocurrencies with the future of money. The South Africans and the Mexicans are, respectively, second and third. On the other hand, only 15% of the British and 17% of the Germans agree with this thesis.

Subsequently, the analysis revealed Nigeria, South Africa and Vietnam as the countries that are most familiar with non-fungible tokens (NFTs). 76% of Brits who are aware of digital collectibles have never owned one, compared to 24% of Vietnamese.

A Closer Look at Nigeria and Argentina

The economic turbulence, more specifically the depreciation of their official currencies, could be a major factor in favor of cryptocurrencies for Nigerians and Argentines.

As reported last summer, some residents of the African country began seeking alternative investments such as bitcoin and stablecoins, amid a severe fall in the naira.

Argentines have opened their arms to the asset class due to the political chaos and financial turmoil in the nation. The USDT price measured in Argentine pesos skyrocketed across multiple exchanges in 2022 when Martín Guzmán resigned as Minister of Economy.

From Users to Builders

Exploring topics such as data privacy, the carbon footprint of cryptocurrencies, the recent news cycle, and digital ownership, the survey results reveal that 92% of respondents around the world have some level of knowledge. of cryptocurrencies. More than a third of them expressed the belief that cryptocurrencies have the potential to be the future of money and digital property.

While a significant 70% of respondents believe they should receive a share of the profits generated by companies from their data, only 38% of respondents feel adequately compensated for the value and creativity they bring to the internet.

The survey results shed light on the growing widespread aspiration for greater control over online identity, shared data, and a fairer distribution of profits among those actively involved in building the platform.

Users play a direct role in building communities and improving the ecosystem in which they interact with crypto and web3, be it through software development, crypto asset participation, or the creation and acquisition of NFTs.

By Audy Castaneda

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