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While Bitcoin’s Price Slumps the Network’s Mining Difficulty Reaches a Lifetime High

While Bitcoin's Price Slumps the Network's Mining Difficulty Reaches a Lifetime High

After bitcoin prices took a hit following Tesla’s recent u-turn, Bitcoin’s mining difficulty jumped over 25 trillion, the highest the metric has seen during the protocol’s lifetime. The mining difficulty spike follows the recent 12% difficulty drop the network experienced two weeks ago.

Bitcoin’s Mining Difficulty Jumps to 25 Trillion, Could Hit 30 Trillion in Two Weeks

After some issues with the Xinjiang grid in China three weeks ago, the overall SHA256 hashrate used by the Bitcoin (BTC) network dropped considerably. This in turn caused the BTC network’s mining difficulty to drop 12.6% when the hashrate lowered.

Essentially, BTC’s mining difficulty is the measurement of how difficult it is to find a hash below a given target. The more hashpower there is, then the more the difficulty increases, and when the hashrate lowers, the difficulty drops as well. The difficulty system Satoshi Nakamoto crafted is meant to keep equilibrium within the mining system and fairly consistent 10-minute block intervals.

While Bitcoin's Price Slumps the Network's Mining Difficulty Reaches a Lifetime High
BTC Mining difficulty on May 13, 2021.

On Wednesday, BTC’s mining difficulty jumped to 25.05 trillion and this metric is the highest the difficulty has ever been. This means it is harder than ever before to find a Bitcoin block and reap the coinbase rewards and fees.

BTC’s hashrate has been chugging along much higher since the issues in China and on May 9, 2021, it tapped 214 exahash per second (EH/s). However, since the difficulty increased and the price dropped from Tesla’s announcement, hashrate has also dropped.

ASIC Mining Rigs Still Profitable Under Current Elements, Antpool Takes the Hashrate Lead

At the time of writing, the Bitcoin network hashrate is around 170 to 180 exahash per second according to daily onchain statistics. Further, in 13 days if the hashrate was to remain at current levels, another increase could happen. BTC’s network difficulty could jump to 30.30 trillion in less than two weeks’ time.

Still, at current BTC prices and with the 25.05 trillion difficulty jump, most ASIC mining rigs are still profitable at $0.12 per kilowatt-hour (kWh). A 100 terahash ASIC mining rig still can get between $30 to $40 per day, with current difficulty metrics and $0.12 per kWh.

On May 13, 2021, there are approximately 18 mining pools dedicating hashrate to the BTC chain. Interestingly, for months on end, F2pool was the top mining operation with the most hashrate, but Antpool has recently taken the lead.

Poolin follows Antpool at the time of writing and F2pool is now the third-largest mining pool on Thursday afternoon. Bitcoin proponents and investors will be watching the hashrate and mining difficulty very closely, as many believe that the hashrate follows BTC’s price and vice versa.

What do you think about the recent mining difficulty spike on Wednesday? Let us know what you think about this subject in the comments section below.

Source: Bitcoinnews.com

Buy the Dip: Microstrategy Grabs $15 Million More Bitcoin — Now Holds 91,850 BTC in Treasury

Buy the Dip: Microstrategy Grabs $15 Million More Bitcoin — Now Holds 91,850 BTC in Treasury

Nasdaq-listed Microstrategy has bought the dip and purchased $15 million more bitcoins, taking advantage of the falling price for the cryptocurrency after Tesla CEO Elon Musk revealed that his company has suspended accepting bitcoin for payment. Microstrategy now holds about 91,850 bitcoins.

  • Microstrategy announced Thursday that it has purchased $15 million more in bitcoin. CEO Michael Saylor tweeted:

Microstrategy has purchased an additional 271 bitcoins for $15.0 million in cash at an average price of ~$55,387 per bitcoin.

  • In the company’s filing with the U.S. Securities and Exchange Commission (SEC), Microstrategy declared that as of May 13, the company holds about 91,850 bitcoins that it acquired for approximately $2.241 billion at an average price of about 24,403 per bitcoin.
  • The price of bitcoin is currently $50,250 based on data from markets.Bitcoin.com. It plummeted Wednesday evening to a low of $45,700 but regained some of the losses after Elon Musk announced that Tesla has suspended accepting bitcoin payments.

What do you think about Microstrategy loading up more bitcoin? Let us know in the comments section below.

Source: Bitcoinnews.com

Facebook-Backed Crypto Project Diem Moves to US, Unveils New Launch Plan

Facebook-Backed Crypto Project Diem Moves to US, Unveils New Launch Plan

Facebook-backed cryptocurrency project Diem, formerly Libra, is moving from Switzerland to the U.S. In collaboration with Silvergate Bank, the association, which oversees the development of the diem cryptocurrency, has unveiled a new launch plan.

Facebook-Backed Stablecoin Has New Launch Plan

The Diem Association announced Wednesday a partnership between Diem Networks U.S. and Silvergate Capital Corporation (NYSE: SI). Silvergate is a California state-chartered bank and a member of the Federal Reserve. Diem Networks U.S. is a wholly-owned subsidiary of the association. It plans to register as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

The 26-members association explained that “Under this partnership, Silvergate Bank (‘Silvergate’) will become the exclusive issuer of the diem USD stablecoin and will manage the Diem USD reserve,” adding:

The Association is also announcing a strategic shift to the United States, resulting in a move of diem’s primary operations from Switzerland to the United States.

Diem Networks U.S. will run the Diem Payment Network (DPN), a permissioned blockchain-based payment system that facilitates the real-time transfer of Diem stablecoins among approved network participants, the announcement details. The project has the backing of social media giant Facebook.

The DPN “will be accessible to anyone with an entry-level smartphone and data connectivity,” the association’s website details, adding that “Diem Coins are backed by a reserve of assets made up of cash or cash equivalents and very short-term government securities.”

Silvergate CEO Alan Lane commented:

We believe in the future of U.S. dollar backed stablecoins and their potential to transform existing payment systems.

The Diem association emphasized that the project will operate fully within the U.S. regulatory perimeter so it no longer requires a license from the Swiss Financial Markets Authority (FINMA). Therefore, its application for a payment system license from the agency will be withdrawn.

What do you think about the Diem project moving from Switzerland to the U.S.? Let us know in the comments section below.

Source: Bitcoinnews.com

What Is Nano? Fee-Free Crypto Asset Gains 60% Intraday

What Is Nano? Fee-Free Crypto Asset Gains 60% Intraday

Nano, a relatively obscure cryptocurrency, managed to catch the spotlight yesterday due to its singular transactional proposal. But, what is Nano really, and why did the token manage to skyrocket more than 60% in just a few hours?

Nano and Its Fee-Free Approach

Nano, a fairly unknown cryptocurrency for people not directly related to the crypto world, that features a fee-free transactional method, managed to catch the spotlight yesterday. Nano’s price raised more than 60% in just a few hours, surprising investors who normally don’t take it as a particularly important currency for speculating. But what is nano (NANO) and why it experienced this price intense fluctuation?

Nano is a cryptocurrency created in 2015 by Colin Lemahieu, that has its own blockchain structure called “block-lattice,” where each wallet has its own blockchain, constituted by the ledger of transactions. However, blocks are not mined, because Nano uses proof-of-stake (PoS) as a consensus algorithm, and transactions are resolved via delegated voting.

Unlike most of the PoS-based cryptocurrencies out there, the distribution of nano was made online. People could receive it by just solving a captcha on a web page, which made it relatively popular for newcomers in 2017. Due to its nature, nano transactions don’t pay mining fees, and the system is optimized to run in low-end computing equipment.

Why Is Nano Pumping?

Nano proponents have always raved about the ecological character of their favorite cryptocurrency and how it is very light on the environment. The whole network spends a negligible amount of energy to work, unlike its proof-of-work-based counterparts. But this had fallen on deaf ears, at least until yesterday when Tesla announced it was withdrawing bitcoin (BTC) as a payment method citing environmental issues. Elon Musk doubled down on the subject today, tweeting a graphic that shows the enormous energy consumption spike that the Bitcoin network has experienced since its inception.

But, more importantly, the company declared it was looking for other cryptocurrencies that use less than 1% of Bitcoin’s energy per transaction. While no one really knows what this means, the market surely took it as a signal that a cryptocurrency like nano, which has always promoted its green and ecologic premise, could be favored in the short run by the company. Some speculators considered it could be chosen as a possible replacement for bitcoin as the preferred crypto alternative to pay for Tesla vehicles.

This sent nano prices through the roof, going from eight dollars to more than $17 after the announcement. Since then, however, nano prices have dropped a few percentages. If the narrative changes and the ecologic PoV manages to take the center stage, nano (NANO) and other proof of stake-based currencies could grow even more.

What do you think about the recent Nano price pump? Let us know in the comments section below.

Source: Bitcoinnews.com

Student Coin (STC) Token Is Now Listed on Bitcoin.com Exchange

PRESS RELEASE. Bitcoin.com Exchange is thrilled to announce the listing of STC, being available to trade on the 13th May 2021 at 10:00AM UTC. STC was created by the Student Coin team, as the reference currency for all tokens created on its terminal. STC will start trading with USDT, BTC and ETH pairs.

What is Student Coin?

The aim of the project is to put the tokens and blockchain into the mainstream. Student Coin is the first platform that allows to perform the wide-scale tokenization for people, organizations, corporations, startups and decentralized finances (DeFi). Wide-scale tokenization is a process that needs an easy-to-use and universal ecosystem that is constructed by the Student Coin. With the STC ecosystem, everyone will be able to easily create any kind of token and develop it in the long run. Student Coin will allow for tokenizing people, firms and organizations, as well as, manage token utilities, perform crowdfunding and easily list new projects.

University is an environment for innovation, new technology research, and the source of great ideas. Moreover, universities around the world are now more connected than ever before and have a lot of external value transfers. Finally, the global educational market is one of the fastest-growing sectors, creating a great environment to build disruptive blockchain-based solutions such as the Student Coin. These three factors made universities a perfect place to create the first wide-scale tokenization platform, similar to how the Internet and social media began.

Student Coin is run by students, faculties, and entrepreneurs from over 20 universities, including the Kozminski University, New York University, and Harvard University. The global educational market is one of the fastest-growing sectors, creating a great environment to build the first wide-scale tokenization platform, similar to how the Internet and social media began.

What is the STC token?

The blockchain-based Student Coin ecosystem has its own currency – STC Token. The utility and the usage of the STC Token are corresponding to the amenities of blockchain technology and tokenization. STC works as a reference currency for the equity flow in the whole ecosystem, powering the STC Terminal usage, STC Exchange trading and STC App applications.

The key role of the STC Token is being the reference currency for all of the tokens ever created at STC Terminal, the personal, DeFi and startup tokens will be traded at STC Exchange only to STC, making it the measure of the worth. It means that by holding STC Token, investors are also holding the part of the whole ecosystem and a part of all the tokens created with Student Coin- giving it a great value growth mechanism.

The second main utility of the STC is the staking option that will create the passive income from STC Exchange fees, so by staking STC, investors will receive part of the income generated from STC Exchange trading and Crowdfunding.

The last major STC utility is the ecosystem governing, by holding STC, investors can vote in the project development and grant the most interesting projects built in the STC ecosystem.

Strong Endorsement

Danish Chaudhry, CEO of Bitcoin.com Exchange, shared his views on Student Coin, and their respective token: “I’ve always strongly believed an educational approach is the only way to reach mass adoption, the team at Student Coin have finally found a way to target not only the crypto community, but also students. Allowing the minds of the future to learn more on the technology, cryptocurrency markets, exchanges, and DeFi. I believe this gives their platform the fundamentals to gain market share and possibly build further adoption.”

Chaudhry continues on by saying; “We’re very excited to see how Student Coin will continue to empower their vision for the future of wide-scale tokenization, and gain further outreach with our outstanding community at the exchange.”

Wojciech Podobas, CEO and Founder of Student Coin always expressed his enthusiasm, stating: “We are extremely grateful to our community for their great support in executing our development plan. We are confident that listing on Bitcoin.com Exchange and joining this ecosystem will open up even more opportunities and enable us to operate on a much larger scale.”

 

About Bitcoin.com Exchange

The mission of Bitcoin.com Exchange is to empower people from all over the world to trade cryptocurrencies with ease and confidence, from first-time traders to advanced trading professionals. With high liquidity, 24/7 multilingual support and dozens of trading pairs, complemented with a high level of security, we offer an attractive platform for trading any cryptocurrency. Within one year since launch, on average, our exchange has been visited by more than 500K active traders per month, and this number continues to grow as you read this sentence.

 

About Student Coin

Student Coin is an ecosystem built with blockchain technology with the aim of providing users with an alternative to bank loans, among others. The platform was designed to enable individuals and companies to build their own STC-based tokens and sell them through crowdfunding. So you have something to give from the outset. All of the new tokens will be valued based on the STC.

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Source: Bitcoinnews.com

Bitcoin Markets Blood Red After Tesla Announcement, Crypto Economy Sheds Billions

Bitcoin Markets Blood Red After Tesla Announcement, Crypto Economy Sheds Billions

Digital currency markets have seen better days, as billions of dollars were shaved off the entire crypto-economy after Tesla revealed it would not be accepting bitcoin over environmental concerns. The entire market capitalization of all the crypto assets in existence has dipped under the $2 trillion mark, and most coins are down between 5-30% during the last 24 hours.

Crypto Economy Sheds Billions Following Tesla’s Announcement

Bitcoin (BTC) and a large swathe of other digital assets have been under selling pressure ever since the Tesla announcement. The original announcement that took place a few weeks ago, when Tesla said it would accept BTC for payments, initially pushed the price up. The reconsideration and decision to stop accepting BTC over environmental concerns caused prices to slide. On Wednesday evening, bitcoin dropped to a low of $45,700 per unit but quickly regained some of the losses.

Bitcoin Markets Blood Red After Tesla Announcement, Crypto Economy Sheds Billions
Top five coins on May 13, 2021.

At the time of writing, BTC is exchanging hands for $49,722 per coin and is down close to 12% today. Seven-day stats show bitcoin is down 10% but monthly data shows BTC is still up a touch over 5%.

Bitcoin Markets Blood Red After Tesla Announcement, Crypto Economy Sheds Billions
BTC/USD on May 13, 2021, on Bitstamp.

The second-largest market held by ethereum (ETH) is also down over 12% today and but is up 104% during the last 30 days. The two coins’ market caps are more than 60% of the entire crypto-economy with BTC holding 42% dominance and ETH capturing 19.6%.

Bitcoin Markets Blood Red After Tesla Announcement, Crypto Economy Sheds Billions
ETH/USD on May 13, 2021, on Deribit.

The biggest gainers today include hydro (HYDRO), sai (SAI), and bnktothefuture (BFT). Thursday’s biggest losers include tokens like agrello (DLT), latoken (LA), and ripio (RCN). Currently the entire market cap of all the coins in existence is $1.99 trillion down 8% over the last day. The crypto economy currently has $233 billion in global trade volume and the economy’s stablecoins are getting lots of demand.

Short-Term Impact and Environmentally Friendly Consensus

During the course of the evening on Wednesday and into Thursday, a great number of executives wrote to Bitcoin.com News and made statements about Tesla’s recent decision. Stephen Kelso, the head of markets and crypto expert at ITI Capital explained that the decision had a significant impact.

“Elon Musk has had a significant impact on bitcoin once again, but this time by causing its price valuation to plummet,” Kelso wrote. “This will inevitably lead to some short-term cold feet from the retail investors who were influenced to adopt bitcoin at the behest of Elon Musk’s initial appraisal of the cryptocurrency in the first place. However institutional investors better understand the relevance of time frames when looking at the correlations and covariances within multi-asset portfolios.”

In another note sent to Bitcoin.com News, London-based fintech investor and VP Capital founder Viktor Prokopenya also discussed the Tesla situation. “Tesla’s value has increased more than all the automotive companies in the world, and its founder Elon Musk is now the richest man on earth,” Prokopenya said. “Cryptocurrencies have emissions now; but in the future – when things will move to proof of stake – then it will have zero emissions. It is true that many cryptocurrencies are at the moment based on ‘proof of work’ or mining, and are not using energy very effectively,” Prokopenya added.

The VP Capital founder continued:

However, this will change. One hundred years ago, people made the first car. Those cars had very big carbon emissions, but that did not mean we stopped creating cars – we improved the technology. Society has now created a zero-emissions car, and we are moving towards a world where all cars will be clean.

Another analyst, Etoro’s Simon Peters, gave Bitcoin.com News some more perspective. “Bitcoin, ethereum, and other crypto assets are entering correction territory now, having dropped more than 20% from peak in most cases,” Peters said. “The sell-off is being driven by a number of factors; valuations were at or near all-time highs earlier this month, so there will naturally be some profit-taking, while we are also seeing a general sell-off among risk assets – such as technology stocks – as economies start to unlock post the pandemic and investors fret over potential rate rises and higher inflation.”

Peters added:

However, for many crypto assets such as bitcoin and ethereum, the long-term story has not changed. This emerging asset class continues to revolutionise many aspects of financial services, and while nothing goes up in a straight line, the long-term fundamentals for crypto assets remain as solid as ever.

Overall most are confident that markets will rebound and over the long term cryptocurrencies, in general, will be fine. Elon Musk has become an enigma in crypto circles and there are those that love him and there are those that dislike him a great deal. Crypto community members were pleased, however, that Tesla plans to keep its BTC reserves.

What do you think about all the market action after Tesla’s announcement? Let us know what you think about this subject in the comments section below.

Source: Bitcoinnews.com

Stan Druckenmiller: US Will Likely Lose Reserve Currency Status in 15 Years, Hard to Unseat Bitcoin as Store of Value

Stan Druckenmiller: US Will Likely Lose Reserve Currency Status in 15 Years, Hard to Unseat Bitcoin as Store of Value

Legendary fund manager Stanley Druckenmiller says that he is worried that within 15 years the U.S. dollar will lose its world’s reserve currency status. He said that crypto is a solution to the lack of trust in Fed Chairman Jerome Powell “and the rest of the world’s central bankers.” The billionaire investor further said that it will be very difficult to unseat bitcoin as a store of value.

Druckenmiller on USD Losing Reserve Currency Status and Difficulty in Unseating Bitcoin as Store of Value

Billionaire investor Stanley Druckenmiller talked about the U.S. economy, bitcoin, and cryptocurrencies in an interview with CNBC Tuesday. He said that he has “no doubt, none whatsoever, that we are in a raging mania in all assets.”

Druckenmiller founded Duquesne Capital in 1981. He managed money for George Soros as the lead portfolio manager for the Quantum Fund until 2000. He and Soros made massive profits betting against the British pound in 1992.

He explained that the Fed’s policies and heavy debts and deficits will threaten the dollar’s status as the world’s reserve currency. “I can’t find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one,” he described, adding:

If we’re going to monetize our debt and we’re going to enable more and more of this spending, that’s why I’m worried now for the first time that within 15 years we lose reserve currency status and of course all the unbelievable benefits that have accrued with it.

He also mentioned that five or six years ago, he said that “crypto was a solution in search of a problem.” He emphasized: “The problem has been clearly identified. It is Jerome Powell and the rest of the world’s central bankers. There is a lack of trust.”

Druckenmiller explained that the ultimate solution could be “some kind of ledger system invented by some kids from MIT or Stanford.” However, he conceded, “I don’t know what it will be.”

When asked specifically about bitcoin, Druckenmiller first noted that “I’m a 68-year-old dinosaur.” Noting that “Ethereum has the lead in terms of smart contracts, in terms of commerce,” he then opined:

It’s going to be very hard to unseat bitcoin as a store of value asset

In conclusion, he clarified that it is too early to know which currency will replace the dollar, but reiterated that “It will be tough to unseat bitcoin.”

What do you think about Stan Druckenmiller’s comments about the USD and bitcoin? Let us know in the comments section below.

Source: Bitcoinnews.com

US SEC Has Brought 75 Enforcement Actions on Crypto Industry

US SEC Has Brought 75 Enforcement Actions on Crypto Industry

The U.S. Securities and Exchange Commission (SEC) has brought 75 enforcement actions against companies and individuals in the crypto industry so far, according to a new report by Cornerstone Research. The agency also brought 19 trading suspension orders against digital asset market participants, and 43 were litigated in U.S. district courts.

75 Crypto Enforcement Actions by SEC

Cornerstone Research published a report entitled “SEC Cryptocurrency Enforcement” on Tuesday. The report analyzes 75 crypto-related enforcement actions brought by the SEC starting with the first one in July 2013 to Dec. 31, 2020. It found:

During that time, the SEC brought a total of 75 enforcement actions and 19 trading suspension orders against digital asset market participants.

Besides the 75 enforcement actions, the SEC also brought a number of subpoenas and follow-on administrative proceedings on crypto companies and individuals. The first enforcement action was in July 2013 against Trendon T. Shavers and his company.

“Of the 75 enforcement actions, 43 were litigated in U.S. district courts, and 32 were resolved within the SEC as administrative proceedings,” the report describes. “Of all enforcement actions, 21 administrative proceedings and 31 litigations alleged an unregistered securities offering violation.”

US SEC Has Brought 75 Enforcement Actions on Crypto Industry

As for initial coin offerings (ICOs), the report states that “Among these alleged violations under Sections 5(a) and 5(c) of the Securities Act, 39 actions were related to ICOs, which represent 52% of all enforcement actions.”

The report details that out of the 75 crypto-related enforcement actions, “allegations of fraud and unregistered securities offerings were the most frequent.” There were 39 enforcement actions (52%) that contained an allegation of fraud.

“In 52 (69%) of the 75 enforcement actions, the allegation was an unregistered securities offering violation under Sections 5(a) and 5(c) of the Securities Act,” the report notes, adding that “In 28 actions (37%), the violation of an unregistered securities offering was alleged in combination with a fraud allegation.” The entire report can be found here.

What do you think about all these enforcement actions against crypto firms taken by the SEC? Let us know in the comments section below.

Source: Bitcoinnews.com

Funding Roundup: Fresh Capital Aims to Advance Blockchain Product and Service Capabilities

Funding Roundup: Fresh Capital Aims to Advance Blockchain Product and Service Capabilities

Beyond expanding the reach of blockchains’ functionality, projects are striving to improve upon existing technologies with their capital injections to build a more safe, secure, and seamless user experience that will drive the next generation of products and services.

Moma Protocol Receives $2.25 Million to Pursue Infinite Liquidity

As the number of different decentralized finance (defi) lending protocols explodes, Moma Protocol aims to help the ecosystem scale infinitely by bringing aggregating liquidity and markets through its smart contract factory. Part of this undertaking is designed to bring more liquidity to long-tail digital assets and expand the defi ecosystem’s overall appeal.

The latest $2.25 raised by Moma Protocol was led by Fundamental Labs and Sevenx Ventures and joined by 17 other major investors in the blockchain arena. The company intends to leverage these funds to help facilitate infinite expanded liquidity and lending diversity in the defi space. The protocol will officially be launched during the second quarter of 2021, with a beta version currently live.

Metis Lands $4 Million to Launch Layer 2 Solution

As the demand for blockchain scalability and cost-efficiency rises further, Metis is stepping up to the challenge with its layer 2 solution known as Metis Rollup. The new layer will enable the development and management of decentralized apps (dapp), especially defi-focused applications, in an environment that is designed to be exceptionally user-friendly and low-cost.

The latest $4 million raised from a consortium of investors including AU21, Block Dream Fund, DFG, Master Ventures, Parsiq, Titan Ventures, community supporters, and many more follows $1 million in funding realized to date through initial seed, angel, and private investors. Metis will initiate an initial DEX offering (IDO) via the IGNITION Launchpad and Gate.io starting May 13th.

QAN Platform Raises $2.1 Million to Develop and Promote its IP

Infrastructure continues to be a serious attraction for investors as QAN Platform’s quantum-resistant hybrid blockchain closes a $2.1 million funding round from Black Dragon, Delta Hub Capital, Fairum Ventures, and Insignius Capital. Investors were selected based on their community-driven focus, which remains a key value supported by QAN Platform’s leadership.

QAN Platform aims to make blockchain technologies more accessible for developers delivering proofs of concept and minimum viable products by emphasizing security, rapid cloud platform deployment, a planned launch of multi-language smart contract development, and its proof-of-randomness (PoR) algorithm. The platform’s native token will be listed on Uniswap starting May 21st.

Shield Finance Closes $780K to De-Risk Defi With Insurance

Defi continues to attract a surge in participation from crypto enthusiasts and investors alike, yet holes in the ecosystem have caused investor losses. Between rug pulls, exploits, and hacks, many risks can capsize a defi portfolio. Shield Finance intends to address these risks through its forthcoming insurance aggregation platform.

After meeting its $780,000 funding hard cap from a group of investors including DAO Maker, GD10 Ventures, Master Ventures, NGC Ventures, PAID Network, Spark Digital Capital, Titan Ventures, and Zokyo, Shield Finance is preparing to launch its platform via IDO. The platform’s two-pronged approach intends to make defi insurance much cheaper and accessible for chains that currently include Ethereum, Polkadot, Binance Smart Chain, and Solana.

Bitrue Unveils $50 Million Investment Fund

Crypto financial services platform Bitrue is rolling out a freshly conceived investment fund to help entrepreneurs and projects seeking the capital needed to realize their goals. The capital will primarily be aimed at initiatives with immense potential to advance the overall blockchain industry, in keeping with the company’s mission to rapidly develop new features needed to provide services to the growing digital economy.

The fund, which is 70% backed by USD Tether (USDT) and 30% backed by Bitrue Coin (BTR), will be accepting pitches from projects alongside nominations from their own community. Moreover, the exchange and financial services platform will also be independently pursuing projects that fit with its mandate. Applications for the fund’s capital will be open for the next three years.

JUR Collects $1 Million Seed Round From Draper Associates

As blockchain seeks to disrupt the multi-billion dollar arbitration industry, one company has already attracted the attention of one of the ecosystem’s most famed investors. Jur, which aims to launch a blockchain-based arbitration platform, has just landed a $1 million fundraising round from Tim Draper’s seed fund ahead of a planned public beta launch scheduled for this summer.

The initiative will focus primarily on commercial and civil disputes ranging from $5000 to $1.5 million. Besides the tapping into an area most arbitrators ignore, Jur aspires to shorten the settlement timeline from an average of 600 days to just 2-3 months, helping parties save immensely on costs. Moreover, by standardizing arbitration settlements according to the UN’s New York Convention, Jur can offer its services in 168 signatory countries, removing many of the geographic restrictions preventing more widespread service coverage.

Jenny Hauls In $7 Million to Support DAO’s NFT Collection

As NFT enthusiasm steadily climbs, one decentralized autonomous organization (DAO) is taking shared ownership of these non-fungible collections to a whole new level. Just ahead of its planned token launch on Unicly beginning May 13th, community-controlled Metaverse DAO Jenny has successfully added another $7 million in capital. The latest round was led by Ascensive Assets, Animoca Brands, Metapurse, and Multicoin.

Jenny will leverage the funds to fractionalize collections of NFTs, and the accompanying community may vote to undergo liquidity events, with proceeds going to a multisignature DAO address to be allocated according to community decisions. Already, 70% of proceeds from existing Jenny token sales have been allotted to acquiring NFTs. The Unicly protocol’s smart contracts will be used to store the NFTs, before being released when the DAO votes to sell or resell works to other parties.

Investors Allocate $1.9 Million to the Dapp List

As blockchain advocates try and eliminate the nefarious actors and initiatives that result in rug pulls and other scams, The Dapp List is attempting to remedy this reality with a module that will empower the community to curate Web3 apps by listing or delisting projects. This planned system will be based on a system of checks and balances accomplished by dividing the community into hunters and voters through the platform’s Explore module.

Fresh off a successful $1.9 million capital raise from a group of investors, including Bitscale Capital, BR Capital, CMS Holdings, Double Peak, Gen Block, LD Capital, and SL2 Capita, the multi-chain ecosystem will allocate these funds towards ecosystem development. Moreover, The Dapp List aims to attract high-quality developers and communities to the ecosystem through the BUIDL module, helping the platform position itself as an effective Web3 adoption hub.

Do you think all this money injected into the “blockchain space” will contribute to wider adoption of the technology beyond crypto? Let us know in the comments section below.

Source: Bitcoinnews.com

Official Remittance Inflows to Zimbabwe Surged to $1 Billion After Covid-19 Restrictions Forced Migrants to Use Formal Channels

Official Remittance Inflows to Zimbabwe Surged to $1 Billion After Covid-19 Restrictions Forced Migrants to Use Formal Channels

Cross border remittances into Zimbabwe surged to $1 billion in 2020, more than a 36% increase from the $636m that was recorded in 2019. This surge in remittances occurred despite the “steep decline in economic activity in host countries, which in turn made it difficult for migrants in the diaspora to send money home.”

Effects of Pandemic on Remittances

According to a report, this increase only applies to money transfers sent via formal channels. The same report also attributes the surge to the mobility restrictions that were imposed in response to the spread of the Covid-19 pandemic. The report said:

The surge in remittance inflows could be a result of many Zimbabweans in nearby countries, such as South Africa, Malawi and Botswana, shifting to formal money-transfer channels owing to the effect of the coronavirus (Covid-19) pandemic, as travel across international borders was curtailed for much of 2020.

Before the imposition of lockdowns, Zimbabweans working abroad would resort to informal remittances channels such as cross border buses, truck haulage trucks, and private couriers when sending money home. However, the closure of border entry points at the start of Q2 of 2020 forced migrants to return to traditional sending channels.

Informal Channels Cheaper

The report also explains why Zimbabweans and other African migrants use informal remittance channels despite these being prone to theft or fraud. According to the report, migrants preferred informal channels because the “service fees (charged) were usually lower than those imposed by the official money-transfer agencies (therefore) making these informal channels more appealing to the diaspora.”

As previously reported by Bitcoin.com News, Zimbabwe is located within a region that has the highest money transfer costs globally and this may partly explain why informal channels are still popular. Meanwhile, also gaining popularity are remittances channels that use cryptocurrency rails. For instance, some Zimbabweans working in South Africa resorted to using BTC when sending money during the lockdown period.

Referring to this use of informal or alternative channels by migrants, the report concludes that Zimbabwe’s “headline figure of higher remittance inflows in 2020 could be a misleading representation of the true picture.” In fact, the report suggests that “actual remittances inflows probably declined from the levels of previous years, owing to the fallout of the pandemic.”

Do you agree that informal remittances into Zimbabwe could be higher than formal ones? Tell us what you think in the comments section below.

Source: Bitcoinnews.com