Oil and Gas Exploration Blocks in the Congo Attract Cryptocurrency Companies to Invest in them

Alexander Salazar
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Oil and Gas Exploration Blocks in the Congo Attract Cryptocurrency Companies to Invest in them

Investors interested in buying auctioned blocks can use the US dollar-pegged stablecoin USDC to make contributions and pledges. Since there is no precedent for placing avoided oil and gas exploration credits, that method may cause companies to face cash flow problems.

Cryptocurrency companies can bid for areas of oil and gas exploration in the Democratic Republic of the Congo.

Western governments seeking to support additional oil production request the African country to raise its production, leading to that auction.

Didier Budimbu, the Hydrocarbons Minister, said the auction of exploration areas could allow them to build schools, offices, and roads. He explained that the priority of the Central African country was to exploit its natural resources to benefit its people.

The Congo focuses its oil and gas operations on exploration blocks, producing around 25,000 barrels daily.

The visit of US President Joe Biden to Saudi Arabia due to the Russia-Ukraine war led the Congo to produce a greater output. Corruption and environmental concerns have prevented the African nation from making further exploration.

However, the hydrocarbons minister says the country will continue auctioning off ecologically significant parcels of land in Virunga National Park.

A DAO May Allow Companies to Bid for an Exploration Block

The auction targets oil and natural gas leading companies, but Budimbu said they would accept bids from carbon credit and cryptocurrency companies.

Adam Neumann, the co-founder of Flowcarbon, is among the companies interested in the project. He said they aim to issue tokens to companies buying carbon credits, which can burn when they withdraw them. In July, they announced a delay in their launch due to the ongoing market conditions.

The developers issue carbon credits to leading companies seeking to reduce carbon emissions. They say that a carbon credit means a commitment that they will remove or prevent one ton of carbon from polluting the environment.

The block auction of the Congo has led Flowcarbon to find staff and resources to run a DAO to buy an auctioned block. Although they hope to raise USD 50 million, they have only raised just USD 2.57 million with USD 74,000 worth of pledges. The investors used the US dollar-pegged stablecoin USDC to make contributions and pledges.

There Might Be Liquidity Problems for the Companies Bidding for Land

There is no precedent for placing avoided oil and gas exploration credits on the market in the Congo. Analysts consider that developing that method may take around two years, while the companies involved face cash flow problems.

In 2021, KlimaDAO and the Toucan Protocol Association began tokenizing carbon credits, creating a supply and demand market with more transparent prices.

The Congo seeks to exploit cryptocurrencies to invest in oil and gas exploration blocks. The decentralized nature of assets facilitates processing contributions made by the interested companies.

Meanwhile, Bitcoin is trading at around USD 24,311 and has accumulated a 4.8% gain over the last week. While its daily trading volume is above USD 28.953 billion, its market capitalization is about USD 464.88 billion, according to CoinGecko.

By Alexander Salazar

The Ethereum Metrics that Could Determine Your Portfolio Value this Week

Audy Castañeda
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The Ethereum Metrics that Could Determine Your Portfolio Value this Week

The number one altcoin has put up a slow day at the office, but still managed more than 12% of the gains for the week.

It is not often that crypto markets are dominated by one altcoin, although this seems to be the crypto climate right now, with Ethereum tearing it apart on the price charts.

The number one altcoin managed more than 12% of the gains for the week. Also, 30-day gains have crossed over 60% for ETH as it stands.

Undeniably, the $2K breakout this week caught many in the crypto community by surprise, after the final testnet came to pass.

The Beginning Draws near

The ETH storm has calmed down. At press time, ETH was trading below the $2k resistance.

Notably, this hasn’t stopped social channels from being flooded with talk about Ethereum and especially the Merge.

Overall, it’s been a bullish week for the 2nd largest cryptocurrency. In fact, ETH outperformed Bitcoin ahead of the Merge event in September.

According to Lunar Crush, Ethereum topped the charts for social activity among the top cryptocurrencies.

The rapid increase in social activity is visible in the Ethereum social volume metric. Ethereum has regularly maintained a high index value in recent weeks.

Meanwhile, interest in the proof-of-stake transition continues to attract investors.

Data from CryptoQuant revealed that active ETH addresses climbed to new highs (>400,000 in a day), compared to its previous figures. Additionally, analytics firm Glassnode disclosed that the total value of ETH 2.0 contracts reached an all-time high of 13,302,229 ETH on August 14. This reflects the growing confidence of the crypto community in the most high-profile Ethereum upgrade of all time.

Glassnode added that the profitability in ETH trading has been increasing lately. This is not a surprise as prices have been swinging while recovering from the June low. In fact, the MVRV (1d MA) hit a 3-month high of 1,226 on Aug 14 with a previous similar high seen at 1,225 on Aug 13.

Not everything is changing

That said, a pool of Ethereum miners will continue to work with the proof-of-work mechanism, according to IntoTheBlock, the implied valuation of ETHPow at a price of $114 is well over $10 billion.

This group is sure to face some challenges as Chainlink oracles and Circle USDC have pledged to support ETHPoW.

However, they have convinced exchanges like Huobi, Poloniex, and BitMEX to back their ETHPoW token, which is expected to be 6% of the value of ETH.

ETH looks poised to consolidate near the $2,000 resistance at least until the meltdown.

It will undoubtedly be under the control of most cryptanalysts due to the magnitude of the promised changes.

By Audy Castaneda

Russia to Gradually Implement the Digital Ruble

Audy Castañeda
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Russia to Gradually Implement the Digital Ruble

Russia will start a phased implementation of its digital ruble in 2023. The major bank wants to conduct enough tests with market participants.

Russia’s major bank has revealed that it has started testing its digital ruble project and it will be rolled out with new features in 2023.

According to a document shared by the main bank, the digital ruble would be used as a real money settlement between individuals and companies by 2023.

In 2024, the bank said the project would be used to connect “credit institutions to the digital ruble platform and increase the number of payment and transaction options available using smart contracts.”

The bank said it plans to approach the launch carefully, to avoid missing any vital evidence.

Further Details about the Announcement

The bank’s goal is to make digital currency usable by individuals, businesses, and the government.

The bank noted that “the phased process of introducing the digital ruble will provide market participants with an opportunity to adapt to new conditions.”

In addition, the bank also hopes to extend its use beyond the country. It plans to cooperate with friendly central banks so that the digital ruble can facilitate international transactions.

Banks also want non-bank financial institutions and exchanges to enter the scene in 2025 with offline mode integration.

Russia’s crypto regulatory framework remains confusing. President Vladimir Putin recently signed a bill banning crypto payments in the country.

Governments Adopt CBDCs

While Russia is planning a gradual rollout of its digital ruble, other countries have also made steady progress with their central bank digital currency (CBDC) project.

South Korea began testing its national digital currency in July. According to local media reports, the main bank invited several commercial banks operating in the country to participate in the tests.

The Bank of Korea announced last July that it has been progressing to the next phase of its CBDC development, which is real-world testing. By doing this, the bank intends to onboard commercial banks to test interoperability between the CBDC and their IT systems. At least ten commercial banks have been invited, including Shinhan Bank and NH Nonghyup Bank, according to a report by Ajo Economy News. The test will focus on remittances and payments between individual users, a phase that is expected to conclude at the end of 2022.

Thailand has also recently started a study on a CBDC project. However, the Asian country’s main bank insisted that it is not issuing a retail digital national currency.

In Thailand, CBDC will be tested in cash-related scenarios such as paying for goods and services. This will include 10,000 retail users and will take place in limited areas. Among the companies participating in the experiment, which begins near the end of 2022 and lasts until mid-2023, there are the Siam Commercial Bank, 2C2P, and the Bank of Ayudhya.

By Audy Castaneda

People Need to Know How to Invest in Cryptocurrencies to Be Free

Alexander Salazar
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People Need to Know How to Invest in Cryptocurrencies to Be Free

Observing and analyzing the supply and demand of cryptocurrencies allows investors to make accurate decisions and avoid risking their financial positions. Scammers take advantage of those users who cannot identify that fraudulent crypto assets do not have a concrete white paper or roadmap.

Spanish entrepreneur Gabriel Reyes uses the media to create awareness of the blockchain and help companies raise funds for their projects.

Although the first half of 2022 was difficult for cryptocurrencies, their adoption continues growing globally despite the crypto winter.

While the daily trading volume of cryptocurrencies has increased to USD 93 billion, their global market capitalization exceeds USD 1 trillion. People seek crypto assets to increase financial stability, especially in low- and middle-income regions like Africa, Latin America, and the Slavic countries.

However, an increase in knowledge and literacy does not match this unprecedented growth in adoption. A recent survey reveals that 96% of Americans and 99% of Brazilians and Mexicans failed the basic crypto literacy quiz.

The Importance of Smart Education and Investment

Bitcoin (BTC) was born 13 years ago, but other cryptocurrencies like Ether (ETH) and Solana (SOL) are under ten years old. Although the highest adoption of crypto assets began nearly five years ago, the market is still young and volatile. Since the prices may vary significantly, users need proper education to be unaware of indicators that allow predicting these fluctuations.

Investors can make accurate decisions by observing and analyzing the supply and demand of cryptocurrencies. Other indicators, like regulatory updates, mining status, and market inflation rates, can help them avoid risking their financial positions.

Investors Must Stay Away from Scams

Cryptocurrencies are decentralized assets, as no regulatory agency or institution supervises them to ensure user safety and compliance. The industry is full of scams and fraudulent projects like the squid game token (SQUID), whose creators got away with millions.

Besides not having a concrete white paper or roadmap, the CEOs of those fraudulent crypto assets are anonymous. Scammers use the little literacy of their victims to entice them to invest and steal their money.

Education Is Essential to Get Better Job Opportunities

Cryptocurrencies also relate to next-generation technologies like blockchain, non-fungible tokens (NFTs), the Metaverse, and the DeFi industry. Therefore, crypto literacy may provide users with various opportunities in the innovative spectrum of digital companies.

Education is essential to help people make better financial decisions and protect themselves from scams. In addition, they can increase their security in the cryptocurrency space and access to new business and job opportunities.

Investors Should Receive Organized Training on Cryptocurrencies

First, it is essential to focus on financial education, while setting realistic learning expectations for beginners. Besides the benefits of investing in cryptocurrencies, they must also be aware of their risks. They must learn the economic fundamentals of decentralized assets, how they work, and how the market changes.

Although only 1 out of 3 investors believes buying cryptocurrencies is easy, that perception must change. Organized lessons on how to buy crypto assets may encourage faster adoption of those assets.

Educational media and content in the blockchain and DeFi space overemphasize technical elements. However, it should be enjoyable and accessible to allow learning through significant gamification.

By Alexander Salazar

Tornado Cash TVL Increased Over $140 Million in July, amidst US Treasury Sanctions

Audy Castañeda
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Tornado Cash TVL Increased Over $140 Million in July, amidst US Treasury Sanctions

The cryptocurrency mixer had a TVL of approximately $445 million at the end of July.

Tornado Cash’s TVL saw a boost in July due to renewed interest in decentralized finance (DeFi) and certain areas of the cryptocurrency industry.

Tornado Cash is a platform used to obfuscate crypto asset transfers. The platform’s native TORN asset increased 49% in total value locked in July. On July 1, it had a TVL of around $297.13 million, rising to $445.37 million on July 31.

Announced in December 2020 and launched in February 2021, Tornado Cash is a service that helps cryptocurrency owners protect their anonymity by encoding information tracks on the Blockchain.

Through this decentralized solution, around 40,000 users have been able to hide transactions.

What Contributed to the TVL Increase?

TVL spiked in July due to an increase in value locked across all blockchains where the protocol is implemented. There was an increase in TVL on Ethereum, Binance Smart Chain, Arbitrum, Avalanche, Gnosis, and Optimism within the same period.

After raising $148.24 million, Tornado Cash had the most TVL compared to Quickswap, DefiChain DEX, Benqi, Solend, BiSwap, and Marinade Finance.

TORN Price Reaction

TORN opened on July 1, trading at $20.73, hit a monthly high of $28.38, tested a monthly low of $19.56, and closed the month at $25.09.

Overall, there was a 21% increase between the opening and closing price of TORN in July.

And… Sanctions still Haunting Tornado Cash

Last August 8, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned virtual currency mixer Tornado Cash, presumably because it has been used to launder more than $7 billion worth of virtual currency since its creation in 2019.

The alleged laundered money includes over $455 million stolen by the Lazarus Group, a Democratic People’s Republic of Korea (DPRK) state-sponsored hacking group sanctioned by the US in 2019, in the largest known virtual currency heist to date.

Tornado Cash was used to launder more than $96 million of malicious cyber actors’ funds derived from the June 24, 2022, Harmony Bridge Heist, and at least $7.8 million from the August 2, 2022, Nomad Heist.

As a result of the sanctions imposed by the US, all property and interests in property of Tornado Cash in the United States are blocked and must be reported to OFAC.

In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited, unless authorized by a general or specific license issued by OFAC, or exempt.

The prohibitions involve the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, as well as the receipt of any contribution or provision of funds, goods, or services from any such person.

By Audy Castaneda

EthereumPoW Developers Might Deactivate the Difficulty Pump before the Merge Occurs

Alexander Salazar
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EthereumPoW Developers Might Deactivate the Difficulty Pump before the Merge Occurs

The developers have introduced a code on the network to discourage miners gradually before the Merge scheduled for September occurs. That event aims to reduce the use of power, but it could make expensive mining equipment obsolete.

The developers of the EthereumPoW hard fork reportedly claimed to have given up on the difficulty pump. Vitalik Buterin, the co-founder of the Ethereum network, had previously announced a date for the upcoming Merge.

The transaction verification mechanism on the network will change through the Merge, delegating validators to reduce energy consumption. Instead of using expensive computing power, they will add transactions to a block, thus contributing to a stake of ETH and solving complex math problems.

Locking the ETH allocation and validating the transactions will depend on the user targeting the most tokens, not the one with the highest hash rate.

Ethereum developers have introduced a code called difficulty pump on the network to discourage miners gradually. That is part of the so-called proof-of-work blockchain as the transition to the Merge scheduled for September approaches.

The Developers Think It Is Possible to Do It

Although the Merge aims to reduce power consumption on the network, it could make expensive mining equipment obsolete. Therefore, some miners have decided to deactivate the difficulty pump to protect their income source.

Although their job is hard, EthereumPoW developers believe they can do it. The group recently claimed that it had already overcome significant obstacles, including dismantling the difficulty pump and creating a testnet. The latter is the first private version of a new blockchain on which the application of test apps is possible.

The team responded to an accusation that they had been responsible for developing the Ethereum Classic blockchain in 2015. An attack by the DAO divided the Ethereum community between those believing in immutability and those seeking a new blockchain. Those wanting to continue using the old blockchain called it Ethereum Classic.

Since the developers said their new hard fork was inevitable, Twitter users responded with jokes. The co-founder of EthHub co-founder said the chain would self-destruct, while other critics warned the developers that the project would fail.

An Analyst Considers that Forks Are Short-Sighted

In early August, miner Chandler Guo said a Chinese company making mining equipment contacted him to look into a new hard fork. He reportedly has 60 developers working on it and expects the new blockchain to issue new tokens. Although the upcoming Merge will change the issuance model of ETH, there will not be new tokens.

Vitalik Buterin thinks the new forks would not break the union while the Ethereum Classic community has a superior product in line with its values.

According to Messari analysts, most efforts to create hard forks have been short-sighted and have not considered maintenance and support.

Ether is trading at around USD 2,010 and has accumulated an 18.7% gain over the last week. While its daily trading volume is above USD 11.45 billion, its market capitalization is about USD 241.26 billion, according to CoinGecko.

By Alexander Salazar

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