Autor Cointelegraph By Brayden Lindrea

Pain ahead for algorithmic and non-cash backed stablecoins: IMF director

Pain ahead for algorithmic and non-cash backed stablecoins: IMF director

Uverejnil používateľ | júl 28, 2022 |

The International Monetary Fund (IMF)’s director of capital markets believes there could be further failures of “coin offerings,” including algorithmic stablecoins amid the ongoing crypto winter.In the interview with Yahoo Finance on July 27, Tobias Adrian, director of monetary and capital markets for the IMF stated that there could be further failures of some coin offerings, in particular algorithmic stablecoins: “We could see further selloffs, both in crypto assets and in risky asset markets, like equities… there could be further failures of some of the coin offerings — in particular, some of the algorithmic stablecoins that have been hit most hard, and there are others that could fail.”The IMF director also noted on Wednesday that he saw  “some vulnerabilities” for certain fiat-backed stablecoins, referencing Tether, which he claims are not “backed one to one” with the United States dollar (USD). Adrian also mentioned that stablecoins need a “global regulatory approach” to better protect investors. Adrian stated that while it would be difficult to assess whether each cryptocurrency constitutes a security or not, regulators should first focus on ensuring that crypto exchanges and wallet providers do their due diligence on coins before marketing them.Terra USD (UST), now known as TerraClassicUSD is the most notable algorithmic stablecoin to have lost its price peg, which wiped out $40 billion in market value in May, and is currently priced at $0.04 USD.Tron’s algorithmic stablecoin USDD also fell to as low as $0.91 in June, however it regained its price peg after $700 million of USDC was added to its reserves. Deus Finance’s DEI stablecoin also collapsed in May and currently sits at $0.18.Related: Algorithmic, fiat-backed or crypto-backed: What’s the best stablecoin type?Earlier this month, the founder of Frax Finance, the company behind the FRAX stablecoin, Sam Kazemian told Cointelegraph that he believes purely algorithmic stablecoins “just don’t work.”Instead, Kazemian stated that “decentralized on-chain stablecoins […] need to have [traditional] collateral”.

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Bitcoin's longest 'extreme fear' streak finally breaks

Bitcoin's longest 'extreme fear' streak finally breaks

Uverejnil používateľ | júl 20, 2022 |

Bitcoin (BTC) on Tuesday finally escaped the “extreme fear” zone after a whopping 73 days, coinciding with a 19% weekly increase in Bitcoin (BTC) as bulls make their way back to the market. The Crypto Fear and Greed Index increased from “extreme fear” to merely “fearful” on July 19, reaching a score of 30 out of 100. It has gained slightly since then to the current index score of 31.The Index analyzes the current sentiment of the overall crypto market, scoring between 0 to 100. The index is based on mainly on Bitcoin market volatility, volume and dominance, social media sentiment, surveys and search trend data. On-chain metrics firm Santiment on Twitter noted that traders are “changing their tune” and are starting to look towards a long-term breakout of the cryptocurrency.According to the firm, BTC’s average funding rate on exchanges has hit its highest levels in the last two months as BTC’s price rises above $23,600 — which could indicate a level of Fear of Missing Out (FOMO) is present. Traders are changing their tune and are smelling a long-term breakout after a dominant #Bitcoin Tuesday. With the #1 market cap asset in #crypto surging, the ratio between $BTC #longs and #shorts is at its highest point since early May. Watch for #FOMO. https://t.co/4PcBhoKywd pic.twitter.com/dSPmazk1S1— Santiment (@santimentfeed) July 19, 2022Galaxy Digital CEO Mike Novogratz continues to tout optimism for the lead cryptocurrency, telling a Bloomberg conference on June 19 that he expects BTC to surge above $500,000 within the next 5 years. “This is a story of two things — it is about adoption and global economics. And while this is a bump in the road in adoption, it is certainly not a U-turn”.”We continue to see institutions […] that haven’t gotten involved yet, who see this as an opportunity,” he added. Novogratz also believes “the worst has happened” and “now we’re rebuilding with a couple good days in a row. He also noted that there is “a good story with Ethereum and the Merge, the global macro markets are at max bearishness.”Related: Is the bottom in? Raoul Pal, Scaramucci load up, Novogratz and Hayes weigh inOn the other hand, Grayscale’s “Bear Markets in Perspective” report suggests that the current bear market may last for another 250 days.Product-comparison platform Finder has made a similar prediction as part of a Bitcoin prediction survey on July 12,  with five Fintech professionals at Finder and 53 industry experts suggesting that BTC will bottom out at $13,676 before making an uptrend towards $100,000 before 2025 and $300,000 by 2030. Bitcoin is priced at $23,318 at the time of writing.

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DeFi market fell off cliff in Q2 but users haven't given up hope: Report

DeFi market fell off cliff in Q2 but users haven't given up hope: Report

Uverejnil používateľ | júl 15, 2022 |

Despite the decentralized finance (DeFi) market suffering a 74.6% market cap decline in Q2, user activity has remained relatively resilient, says CoinGecko. In a report published by the crypto data aggregator on July 13th, CoinGecko reported that the overall DeFi market cap fell from $142 million to $36 million over the second quarter, due mainly to the collapse of Terra and its stablecoin TerraUSD (UST) in May. CoinGecko also noted a rise in decentralized finance DeFi exploits in the quarter contributed to the fall, including Inverse Finance and Rari which suffered hacks of $1.2 million and $11 million respectively.“These attacks have negatively impacted token prices as investors lose faith in these hacked protocols.”However, CoinGecko also noted that while on-chain activity slowed down, the DeFi industry has managed to retain most of its daily active users. It noted that the number of daily active users in DeFi decreased only 34.5% from 50,000 to 30,000 in Q2, added there were also multiple instances that caused a spike in DeFi activity.The first spike was observed in May following Terra’s collapse, leading to users moving to Curve Finance and Uniswap on mass to sell their falling LUNA and UST. Similarly, another spike in DeFi user activity took place in June according to CoinGecko, when crypto lending platform Celsius enforced withdrawal restrictions citing financial difficulties. Celsius filed for bankruptcy on July 13.“In both events where centralized entities have failed, users have flocked to enjoy DeFi’s permissionless nature.NFT trading volume down The report also found that trading volume for non-fungible tokens (NFTs) fell 26.2.% from its peak in June 2021 to $7.6 billion in the quarter, led mainly by a decline in the trading volume of NFTs offered on the Ethereum network. June 2022 also saw the lowest trading volume in 12 months, with NFT trading volume reaching $830 million, coinciding with a collapse of the floor price of NFTs.Related: Terra crash highlights stablecoin risk to financial stability: ECB

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Polygon selected to participate in Disney’s 2022 Accelerator Program

Polygon selected to participate in Disney’s 2022 Accelerator Program

Uverejnil používateľ | júl 14, 2022 |

Layer-2 scaling platform Polygon has been selected to partake in Disney’s 2022 Accelerator Program to build on Polygon’s web3 technology, which will commence this week.The Ethereum scaling platform is one of six projects to be accepted into the Accerator Program, which is focused this year on augmented reality (AR), non-fungible tokens (NFTs) and artificial intelligence (AI), according to a statement from The Walt Disney Company on July 13. Polygon CEO Ryan Watt noted on Wednesday that Polygon was “the only blockchain selected” to Disney’s prestigious Accelerator program.The hits keep on comin’!@0xPolygon has been invited to @Disney’s prestigious Accelerator program.We were the only blockchain selected. It speaks volumes to the work being done here, and where we’re going as a company.”It’s kind of fun to do the impossible.” – Walt Disney https://t.co/grpPIFz5Tg pic.twitter.com/2NOedF5pUE— Ryan Wyatt (@Fwiz) July 13, 2022He added that being selected “speaks volumes to the work being done [at Polygon], and where we’re going as a company.” Applications for the accelerator program began on April 22, with applications closed on May 13, 2022. At the time, Disney said the accelerator would be looking to attract “growth-stage companies with a vision for making an impact on the future of technology and entertainment.”Two other Web3 projects were selected this year as well, including Flickplay, a web3 application that allows users to discover non-fungible tokens (NFTs) via augmented reality (AR) and Lockerverse, web3 storytelling platform that connects creators and brands. Other companies include AR company Red 6, 3D virtual ecommerce company Obsess and AI-powered virtual character creation company Inworld. Disney’s accelerator program was first launched in 2014, the program allows participants to receive mentorship from the Disney Accelerator Team and guidance from Disney’s own leadership team itself. Participants will reportedly also be provided with additional investment capital and have access to co-working space at Walt Disney’s Los Angeles campus. The program will conclude with an on-campus Demo Day.Polygon, once known as the Matic Network, is an interoperability-focused blockchain framework with a suite of scalability tools used to build Ethereum compatible decentralized applications (DApps). Polygon’s scalability solutions have been constructed to address the limitations of the Ethereum Mainnet, such as slow transaction speed (TPS) and high transaction fees.Related: Even with Ethereum 2.0 underway, L2 scaling is still key to DeFi’s futureFollowing the news, Polygon’s native token MATIC increased 16% over the last 24 hours.

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