Autor Cointelegraph By Tom Mitchelhill

Vitalik: Centralized USDC could decide the future of contentious ETH hard forks

Vitalik: Centralized USDC could decide the future of contentious ETH hard forks

Uverejnil používateľ | aug 5, 2022 |

Ethereum co-founder Vitalik Buterin says that centralized stablecoins such as Tether (USDT) and Circle USD (USDC) could become “a significant decider in future contentious hard forks.”Buterin was speaking at the BUIDL Asia conference in Seoul on Aug. 3, along with Illia Polosukhin, the co-founder of Near Protocol (NEAR) to discuss Ethereum’s upcoming Merge. The Ethereum co-founder argued that centralized stablecoins could be a “significant” decider of which blockchain protocol the industry would “respect” in hard forks. A hard fork occurs when there is a radical change to the protocol of a blockchain network that effectively results in two versions. Usually, one chain ends up being preferred over another. “At the moment of the merge, you will have two [separate] networks […] and then you have exchanges, you have Oracle providers, you have stablecoin providers that are kind of deciding in a way, which one they respect.”“Because at that point, you’ll have 100 billion of USDT on one chain and 100 billion of USDT on the other chain, cryptographically — and so, they [Tether] need to stop respecting one of them,” explained Buterin.However, Buterin stated he “had not seen any indication” that such a contention would be an issue in Ethereum’s upcoming Merge, noting that the centralized stablecoin issue is more of a concern for future hard forks. “I think in the further future, that definitely becomes more of a concern. Basically, the fact that USDC’s decision of which chain to consider as Ethereum could become a significant decider in future contentious hard forks.”He added that in the next five to ten years, Ethereum may see more contentious hard forks where centralized stablecoin providers could carry more weight. “At that point, maybe the Ethereum foundation will be weaker, maybe the ETH 2 client teams will have more power, and maybe someone like Coinbase, would both run a stablecoin and have bought up one of the client teams by then […] like lots of those kinds of things could happen,” he said. As a potential antidote to centralized actors, Vitalik proposed opting for different kinds of stablecoins:“The best answer I can come up with is to encourage the adoption of more kinds of stablecoins. Basically, you know, people could use USDC, but then they could also use DAI and like, at this point, I mean, like DAI has taken this kind of very decisive route of saying ‘we’re not going to be purely crypto economic we’re going to be a wrapper for a whole bunch of real world assets.’” Related: Ethereum Merge: How will the PoS transition impact the ETH ecosystem?The Merge is one of the most crucial technical updates to occur with Ethereum since its inception, as it moves from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.The Merge is slated to go ahead following the successful integration of the Goerli test net in mid-August, with Ethereum developers targeting Sept. 19 as the perpetual date for the merger of the current PoW chain to the PoS chain.

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Solana-hacked crypto could be claimed as a tax loss: Experts

Solana-hacked crypto could be claimed as a tax loss: Experts

Uverejnil používateľ | aug 5, 2022 |

For unlucky crypto investors looking to turn lemons into lemonade — it turns out that digital assets lost during an exploit or hack can potentially be claimed as a tax loss, provided you live in the right country, experts told Cointelegraph. Following the news that more than 8,000 Solana wallets had been compromised and that an estimated $8 million dollars in crypto had been stolen due to a security breach in Web3 wallet provider Slope’s network, this may be some much-needed consolation. The Solana hack, and it’s possible tax consequences: A thread https://t.co/JnYMrkB8qJ— Crypto Tax Calculator (@CryptoTaxHQ) August 3, 2022In correspondence with Cointelegraph, Shane Brunette, the CEO of Australia-based CryptoTaxCalculator confirmed that crypto lost via a hack or an exploit couldd be declared as a loss for tax purposes in certain jurisdictions. “This means the original amount you paid for the asset(s) can be used to offset other capital gains.”When asked whether there are similar provisions in other tax jurisdictions other than Australia, the country in which the tax software provider is based, Brunette, replied:“Many countries have a provision to allow for these types of tax deductions […] however, you should work closely with a local tax professional and make sure you keep adequate proof of the loss.”Danny Talwar, Head of Tax at Koinly confirmed the same with Cointelegraph, stressing however that in Australia, one must demonstrate evidence that the crypto lost was under their control at the time it was stolen. “To claim a capital loss for hacked crypto, you’ll need to demonstrate evidence to the Australian Tax Office (ATO) that the crypto is lost and it was under your control.”Talwar also stated it was critical that the tax authority has enough evidence that crypto is unretrievable, suggesting the use of blockchain explorer tools like Etherscan and Solscan to legitimate evidence on the destination address of the hacker — which may also provide proof of a large pool of hacked funds. Under Australian tax laws, any evidence of a hack needs to also include dates as to when private keys were acquired or lost and all of the associated wallet addresses.Related: Solana wallets ‘compromised and abandoned’ as users warned of scam solutionsUnfortunately for U.S.-based crypto investors claiming hacked crypto as a tax loss is no longer possible due to tax reform introduced in 2017, according to a blog post by CryptoTaxCalculator. For those living in the UK & Canada, things are a little more complicated but a tax loss claim is possible if investors are willing to go through the unique steps set out by each country’s taxation office. Approximately $2.6 billion in digital assets has been lost to hackers and nefarious actors this year alone, with cross-chain bridge attacks accounting for 69% of the total amount lost.

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Swiping left: Tinder pulls back on Metaverse dating plans

Swiping left: Tinder pulls back on Metaverse dating plans

Uverejnil používateľ | aug 4, 2022 |

Match Group, the parent company of popular dating app Tinder, says it is cutting funding for Web3-related research and development amid disappointing Q2 earnings and the departure of Tinder’scurrent CEO. In a letter to shareholders on Aug. 2, Match Group CEO Bernard Kim revealed that it will be scaling back its Metaverse investments as well as scrapping plans to release an in-app virtual currency called Tinder Coins.The move also comes alongside the resignation of Tinder CEO Renate Nyborg, the company’s first female CEO that had initially set out plans to introduce the “Tinderverse” after acquiring a video-AI and augmented reality company called Hyperconnect in 2021.Nyborg had planned for Hyperconnect to further develop its avatar-based “Single Town” experience as a way for Tinder users to meet and interact with one another in virtual spaces in the future. While Kim did not explicitly state reasons for Nyborg’s departure, he highlighted that Tinder “has not been able to realize the monetization success that we typically deliver” throughout the past few quarters.In his letter, Kim said that Match Group would continue to watch the Metaverse space but would prefer to wait for the “appropriate time.” “I believe a Metaverse dating experience is important to capture the next generation of users […] However, given uncertainty about the ultimate contours of the Metaverse and what will or won’t work […] I’ve instructed the Hyperconnect team to iterate but not invest heavily in [the] Metaverse at this time.”Kim went on to disclose that plans to release an in-app virtual currency, Tinder Coins had also been scrapped due to “mixed results” from testing. “After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue.”“We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder’s next leg of growth and help us unlock the untapped power users on the platform,” he added.Related: Want a compelling use case for privacy blockchains? Look no further than dating“We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”The company reported a 12% year-on-year growth in total revenue in Q2 2022, reaching $795 million, alongside a $10 million operating loss due to impairments relating to its Hyperconnect acquisition. Match Group stock is down 11.39% over the last five days to $63.24 at the time of writing.

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Fed demands Voyager remove ‘false’ claims deposits are FDIC insured

Fed demands Voyager remove ‘false’ claims deposits are FDIC insured

Uverejnil používateľ | júl 29, 2022 |

Cypto lender Voyager Digital has been directed to remove “false and misleading” statements that its user’s deposit accounts are FDIC insured.In a joint letter written on Thursday by Seth Rosebrockfrom and Jason Gonzalez, assistant general counsel at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to Voyager Digital, the authors said the representations “likely misled and were relied upon” by customers who placed funds with Voyager who now no longer have access to it:“These representations are false and misleading and, based on the information we have to date, it appears that the representations likely misled and were relied upon by customers who placed their funds with Voyager and do not have immediate access to their funds.”The Fed and FDIC allege that Voyager “made various representations online, including its website, mobile app, and social media accounts” which suggested it was: “(1) Voyager itself is FDIC-insured; (2) customers who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage for all funds provided to, held by, on, or with Voyager; and (3) the FDIC would insure customers against the failure of Voyager itself.”The letter additionally demanded that Voyager provide written confirmation of its compliance with the regulator’s requests within two business days, and provide a full listing of all statements regarding any reference to FDIC insurance within 10 days.It also warned that even if Voyager met the demands outlined in the cease-and-desist letter, it won’t preclude the regulator from taking further action if deemed appropriate. Voyager’s website currently states that it has worked with the FDIC to update and clarify the language surrounding FDIC insurance on its website in early 2021 and early 2022.Currently, the language surrounding FDIC insurance states that United States dollar in Voyager cash account is held at Metropolitan Commercial Bank (MCB) and is FDIC insured:“FDIC insurance does not protect against the failure of Voyager, but to be clear: Voyager does not hold customer cash, that cash is held at MCB.”Cointelegraph reached out to Voyager for comment but did not receive an immediate response by the time of publication. Only July 6, Voyager Digital filed for bankruptcy, citing debts of up to $10 billion to roughly 100,000 creditors amid market turmoil initially caused by the collapse of the Terra ecosystem and subsequently worsened as Singaporean hedge fund Three Arrows Capital (3AC) defaulted on a $670 million loan on

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Mike Novogratz warns that 200X returns from crypto are ‘not normal’

Mike Novogratz warns that 200X returns from crypto are ‘not normal’

Uverejnil používateľ | júl 22, 2022 |

Mike Novogratz, the billionaire founder of crypto asset management firm Galaxy Digital has warned that making more than 200X returns on crypto investments is simply “not normal.”Speaking at the Christie’s Art + Tech Summit in New York on Wednesday, Novogratz warned listeners about the steep volatility of the crypto industry. “I had friends that had bought lots of crypto, and it had changed their lives — guys who didn’t make a whole lot of money but all of a sudden had a $5 million net worth in crypto,” said Novogratz. “I shook them and I made them look me in the eye, [and] I said, ‘You have to sell half or two thirds of this, it’s not normal to make 200 times your money on things.’”He offered further caution, saying that “not everyone is made to be an investor” because greed too often gets in the way of rational thinking. Novogratz also hasn’t been shy when it comes to handing out criticism of the crypto industry. On Tuesday he vented his frustrations about the ineptitude and poor practices in the sector that have recently come to light to the attendees of the Bloomberg Crypto Summit.“It’s frustrating as heck because at times the whole industry looks like a bunch of idiots,” he said/ His newfound disapproval of certain practices within the cryptocurrency space, comes less than two months after the Terra (LUNA) ecosystem suffered a catastrophic meltdown, shaving off approximately $50 billion from the digital asset space in the process. Following the fallout, Novogratz, a vocal advocate of the Terra project who famously inked himself with a moon-themed tattoo penned an open letter in May, telling his followers that: ​​“My tattoo will be a constant reminder that venture investing requires humility.”I’m officially a Lunatic!!! Thanks @stablekwon And thank you my friends at Smith Street Tattoos. pic.twitter.com/2wfc00loDs— Mike Novogratz (@novogratz) January 5, 2022While Novogratz may seem more pessimistic than usual, especially when combined with the recent market turmoil, he ultimately believes that blockchain-based technology will gradually become a foundational part of the future of the modern world.“Over the next decade, Web3 and blockchains will reshape industries, communities, and the internet as we know it, blurring the lines between our physical and digital realities,” he said.

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