Bitcoin 🛫 in Liechtenstein, NFT market needs 🤖 power, MakerDAO launches Spark Protocol 🎊
Daily Crypto, Blockchain & Web3 Update 2023-05-09
CRYPTOCURRENCY
‘Bitcoin is not under attack:’ BTC maxis allay fears of a DoS offensive (3 min read)
A sudden spike in Bitcoin transaction fees and unconfirmed transactions sparked concern on Crypto Twitter over the weekend of a potential Denial of Service (DoS) “attack” on the network.
Some Bitcoin analysts and commentators have been quick to allay these fears from their respective followers.
The surge in activity and block space demand has been attributed to the rise in Ordinals inscriptions. According to analytics provider Glassnode, a total of 75% of Bitcoin on-chain transactions used Taproot on May 7, resulting in a record high.
Bitcoin takes flight in Liechtenstein: Minister proposes government services paid in crypto (2 min read)
Liechtenstein Prime Minister Daniel Risch announced plans to accept Bitcoin as payment for government services. As reported in localnews, the micro-European nation continues toembrace blockchain technologies.
Risch, who also serves as finance minister, is quoted as saying:
“A payment option with Bitcoin is coming.”
However, he did not give a timeframe. Moreover, the principality is unlikely to accept Bitcoin and “hodl” (hold onto) the satoshis it receives. Instead, it will accept deposits in Bitcoin and immediately exchange them for Swiss francs, the national currency. The direct exchange into fiat money sidesteps the currency’s volatility.
The NFT market needs AI power to combat forgery and inflation (5 min read)
Fake NFTs created by copying the image of original art can be difficult to detect in the digital environment, resulting in significant financial losses for buyers.
Without proper tools, NFT collectors can quickly get confused trying to find an authentic NFT on the marketplace and trace its history. Luckily, recent tech developments in artificial intelligence (AI) now allow for the prevention of NFT buyers from investing in fake content. NFT analytics provider bitsCrunch recently launched an AI-powered tool that checks major blockchains and marketplaces for potential copycat or forged NFTs.
Does Bitcoin price risk losing $28K with BTC futures premium at 2-month lows? (5 min read)
Professional Bitcoin traders are favoring sideways price action as the BTC futures premium drops and the options delta skew nears 0%.
For the past 17 days, the Bitcoin price has been trading within a narrow 8.5% range, from $27,250 to $29,550, causing the 40-day volatility metric to drop below 40%. This wasn’t restricted to cryptocurrencies, as the S&P 500 index’s historical volatility reached 17%, its lowest level since December 2021.
There are different factors that can explain why the prices in the risky markets are not changing much. Some factors that contribute to this situation are a potential recession, investors holding off until the Federal Reserve stops raising interest rates, and a growing interest in trades that guarantee a fixed income.
Binance ‘FUD’ meets CPI — 5 things to know in Bitcoin this week (11 min read)
Bitcoin starts a new week at the center of new crypto industry drama as the highest fees in two years pressure price action.
Downside volatility is greeting traders thanks to a full mempool, and explanations point the finger at multiple parties.
The largest exchange, Binance, is adding to the confusion, pausing BTC withdrawals several times over what it calls network “congestion.”
Bitcoin options: How to play it when BTC price moves up or down 10% (4 min read)
Bitcoin’s 40-day historical volatility does not usually remain below 40% for long. That information, coupled with the traditional markets’ stress caused by the regional banking crisis and the debt ceiling discussion, might be brewing the perfect storm for a sharp volatility spike.
While one can benefit from the expectation of higher volatility for the next couple of weeks, most investors are unwilling to take directional bets, meaning they have no confidence in whether the market will move up or down.
However, there is an options strategy that fits this scenario and allows investors to profit from a strong move on either side.
Human ID project ‘Worldcoin’ launches gas-free wallet only for humans (2 min read)
Worldcoin, a project to identify humans and distinguish them from artificial intelligence, has launched a gas-free crypto wallet for verified humans, according to a May 8 announcement.
The new wallet, called “World App,” works on Android and iOS operating systems. It currently runs on the Polygon network, allowing users to hold and transfer United States Dollar Coin, Dai (DAI), Ether, Worldcoin (WLD) and Wrapped Bitcoin (WBTC).
NFTs
MakerDAO launches Spark Protocol, a new DeFi lending solution for DAI users (2 min read)
MakerDAO, a decentralized autonomous organization that operates on the Ethereum blockchain and issues stablecoin DAI, has announced that it has launched the Spark Protocol, a lending solution for DAI users.
According to the Twitter announcement, the first version of the Spark Protocol will act as a “lending marketplace,” providing users with supply and borrowing features for cryptocurrencies such as Ether, staked Ether (stETH), DAI, and staked DAI (sDAI). The platform is specifically designed for DAI and aims to provide users with access to competitive interest rates.
Worth it? Trader spends $120K on gas buying $155K worth of a memecoin (3 min read)
A single trader just spent a staggering 64 Ether — equivalent to $118,000 — in gas fees purchasing $155,000 worth of a memecoin called Four (FOUR).
According to an update from the popular blockchain tracking service Whale Alert, the lone trader paid an astonishing $119,157 in Ether to complete a Uniswap trade that swapped 84 Wrapped Ether (WETH) for 13.8 billion FOUR tokens.
It appears as though the trader voluntarily increased their gas fee to speed up the transaction time to purchase the memecoin. According to pseudonymous Twitter user FlurETH, the trader in question is sitting on 133 ETH ($245,667) in unrealized profit on their investment in the memecoin.
BUSINESS
Bittrex files for Chapter 11 bankruptcy just weeks after SEC charges (1 min read)
Cryptocurrency trading platform Bittrex has filed for Chapter 11 bankruptcy protection in the District of Delaware.
In a May 8 filing in the United States Bankruptcy Court for the District of Delaware, Bittrex estimated it had more than 100,000 creditors, between $500 million and $1 billion in assets, and between $500 million and $1 billion in liabilities as part of bankruptcy proceedings.
The SEC claimed Bittrex, Inc and Bittrex Global operated an unregistered securities exchange. In October, the exchange also received charges pertaining to Bank Secrecy Act violations from the U.S. Treasury's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) and agreed to pay around $29 million in a settlement.
Spotify reportedly deletes thousands of AI-generated songs (2 min read)
The battle between the music industry and artificial intelligence (AI) continues as reports claim Spotify is taking down AI-generated music.
A Financial Times (FT) report revealed that the music streaming platform had removed 7% of songs created by the AI music startup Boomy, amounting to “tens of thousands” of songs.
Spotify is also said to be ramping up its policing of the platform in light of the situation.
This comes after Spotify and other streaming services began receiving complaints of fraud and clutter on the platform.