Crypto Guides, Knowledge & Insights

How can a beginner invest in Web3 businesses

Web3, also known as decentralized finance (DeFi), is a rapidly growing sector in the world of blockchain and cryptocurrency. As a beginner, investing in Web3 businesses can seem daunting, but with the right approach, it can be a profitable and exciting opportunity.　　Understand the basics of blockchain technology and DeFi: Before investing in any Web3 business, its essential to have a basic understanding of blockchain technology and how it relates to DeFi. This includes understanding concepts such as smart contracts, decentralized applications (dApps), and non-fungible tokens (NFTs).　　Research different projects: There are many different Web3 businesses and projects out there, so its important to do your research and find the ones that align with your investment goals. Look for projects with solid teams, clear use cases, and strong community support.　　Get a wallet: In order to invest in Web3 businesses, you will need a digital wallet that supports the blockchain and cryptocurrency you are interested in. Some popular options include MetaMask, MyEtherWallet, and Trust Wallet.　　Buy the cryptocurrency: Once you have a wallet, you can buy the cryptocurrency of the Web3 business you want to invest in. This can be done on various cryptocurrency exchanges like Binance, Coinbase, and Kraken.　　Diversify your portfolio: As with

2023-01-17Deep Dive

The $3 billion debt owed by DCG's Genesis to its creditors may require asset sales.

According to the FT, which cited sources with knowledge of the situation, DCG, the subsidiary of Genesis, which also owns the cryptocurrency news organization CoinDesk and the investment adviser Grayscale, has a sizable inventory worth $500 million that it could liquidate to generate money.　　The corporation may need to sell some of its assets, which include 200 crypto-related businesses spanning 35 nations, as a consequence of the firms unsuccessful hunt for new external investment.　　　　The cryptocurrency exchanges Coinbase, Kraken, and Blockchain.com are among its most well-known assets. DCG CEO Barry Silbert stated this week in a shareholder letter that the company also made a $250,000 investment in FTX.　　As Genesis and DCG and the cryptocurrency exchange Gemini, established by Cameron and Tyler Winklevoss of The Social Network fame, continue to spar, the enormous amount due to debtors becomes public.　　Gemini co-founder Cameron Winklevoss has asked that Silbert pay $900 million that Winklevoss believes Genesis owed to 340,000 of the crypto exchanges users in two letters that have been published since the beginning of the year. Later, he demanded Silberts dismissal as CEO.　　The cryptocurrency exchange provided consumers with rewards of around 8% for borrowing their cryptocurrency through Geminis Earn program, which it debuted in 2021.

2023-01-17Deep Dive

LedgerX and Other Properties to be Sold by FTX to Pay back Creditors

The cryptocurrency exchange has been granted permission to dispose of a portion of its assets in order to reimburse creditors by a judge supervising the FTX bankruptcy process. The CFTC-regulated derivatives exchange LedgerX LLC, the stocks trading software Embed Technologies, FTX Japan Holdings, and FTX Europe are among the businesses that will be auctioned.　　　　The duty of starting the sale procedure has indeed been given to investment bank Perella Weinberg. In a court filing on January 8, Perella Weinberg partner Kevin Cofsky stated that roughly 117 entities had shown interest in buying the properties, and they will now have accessibility regarding them as part of their reasonable care.　　In accordance with the document, parties involved have until January 18 for Embed, January 25 for LedgerX, and February 1 for both FTX Japan and FTX Europe to make non-binding preliminary bids for the property they are looking to purchase.　　On December 15, 2022, attorneys for FTX started asking for approval to sell the four companies, citing worries about possible value erosion. The licenses of FTX Europe are already revoked, and corporate revocation orders have also been issued for FTX Japan.　　According to FTX attorney Andy Dietderich, the company has allegedly recovered almost $5 billion in

2023-01-16Deep Dive

Nigerian innovator launches the first Bitcoin lightning node at Lagos

By: Damian Okonkwo　　Nigerias technology landscape is seeing a major development with the launch of the countrys first active Bitcoin lightning node. The node, which was set up by a Nigerian innovator, is a significant step forward for the countrys blockchain and cryptocurrency industry.　　The node which was launched last week currently runs on an old laptop powered by a diesel generator. This is due to the energy and electricity outage within Lagos today.　　Megasley - who operates the first Bitcoin Lightning Node in the country expressed the desire for the country to have a fast payment system that could be both instant and cheap as the major reason for the new technology.　　A lightning node is a crucial component of the Bitcoin network that facilitates faster and cheaper transactions. These nodes are responsible for routing payments through the network and helping to improve the scalability of the cryptocurrency.　　The launch of the first active lightning node in Nigeria represents a significant milestone for the countrys blockchain ecosystem. It demonstrates that the country is actively working towards adopting and integrating new technologies, and is positioning itself as a leader in the African continent.　　The Nigerian innovator behind the launch, who has not been named, has said

2023-01-16Deep Dive

Huobi and Solaris Introduce a Visa-Backed Debit Card in the EU

In order to enable their European customers to make transactions from their cryptocurrency accounts using Visa-backed debit cards, Huobi and Solaris formed a cooperation with Visa.　　As Blockchain technologies advance, creating a variety of payment choices (using both fiat and digital currencies) is becoming a goal for many banking firms. This vision includes Visa, a reputable pioneer in the online payment sector.　　Information About Debit Cards　　A new joint agreement between cryptocurrency exchange Huobi and European financial services company Solaris was recently unveiled. Through their agreement, Visa would introduce a debit card that would enable customers to make crypto-to-fiat money transfers.　　The debit card will be available to customers in the European Economic Area (EEA) in Q2 2023. All of the nations that form up the European Union are a part of the EEA.　　The cooperation was discussed by Solaris chief strategy officer, Andrea Ramiono. He highlighted the possibility of other advancements from their alliance by stating that the innovation is the first stage in the Solaris Huobi partnership. A significant step has been taken in Huobis initiatives to open up the availability of virtual assets.　　In the EU, the Huobi Visa card isnt the first one. A crypto-to-fiat card endorsed by Visa that was introduced

2023-01-16Deep Dive

Ethereum Staking is Now Available on MetaMask

Staking capability for the well-known cryptocurrency wallet MetaMask has now been made available, letting people to start locking up their Ethereum with the new option via Lido or Rocket Pool in exchange for cash rewards.　　This entails that anybody who has a MetaMask wallet may now quickly begin generating yield on every quantity of ETH theyd want right from their wallet, without having to deal with what can frequently be challenging interface design on staking apps. But ought they to？　　Then again, staking involves some risk, and there is currently no way to not stake. However, according to Ethereum experts, this capability will be available soon.　　Staking Service Providers　　Individuals who are not really concerned about taking chances may find success with staking. While the return percentages differ, according to MetaMasks website, customers can invest ETH and receive a dividend of roughly 5.22% per year with Lido and 4.59% with Rocket Pool.　　　　On Lidos homepage, more than $6.9 billion in ETH are presently staked using the service, giving consumers an annual return of about 4.9%. Since Lido is a “liquid staking service,” users that stake ETH through Lido obtain an equal amount of Staked Ethereum (stETH) in exchange for their staked tokens. As a result,

2023-01-16Deep Dive

The NBA powerhouse Miami Heat comes to an end its naming-rights agreement with FTX.

When the basketball team learned of the court decision, they immediately began removing the FTX emblem from their arena. The Miami Heat, among the most profitable NBA teams, ultimately ended its relationship with the cryptocurrency exchange FTX. The basketball juggernauts home court would no longer be known as FTX Arena as a direct consequence.　　Breaking all ties 　　The partnership between Miami-Dade County (the administrative division where the NBA club is located) and FTX was formally terminated by a federal bankruptcy judge. The court ruled that Miami Heat is permitted to take the systems initials out of its building.　　FTX and the basketball team signed a $135 million contract, and their collaboration officially began in March 2021. Miami Heat changed the name of AmericanAirlines Arena, its home stadium, to FTX Arena, and promised to advertise the trading facility while playing NBA games there.　　Nevertheless, the two organizations cooperation ended in November 2022. (after that the trading venue filed for bankruptcy protection). When FTX failed around then, Miami Heat called it “very disheartening” and said it would permanently sever their connection.　　What will become the arenas future name is still a mystery. According to several rumors from the conclusion of the previous year, the adult entertainment

2023-01-16Deep Dive

Shift toward Liquid Staking Derivatives expected after ETH Shanghai upgrade

The Ethereum (ETH) Shanghai update is set to be released in March, allowing withdrawals from the beacon chain and the unstaking of ETH now staked in ETH 2.0 validators.　　With over 70% of ETH stakeholders now losing money because their ETH is unavailable, the Shanghai upgrade will allow them to access their ETH and decide whether to sell at a loss or retain long-term until they are back in profit.Ethereum: Mean and Median Block Interval – (Source: Glassnode.com)　　Post-ETH merge　　The ETH integration occurred with the Bellatrix upgrade in September 2022. In the process, the beacon chain took over block validation, completing the move from Proof of Work (POW) to Proof of Stake (POS).　　The beacon chain is managed by validators who must first deposit 32 ETH before they can begin operations. With over 16 million ETH committed in the ETH 2.0 deposit contract, the number of beacon chain validators has now hit 500,000, with a recent surge in additional active validators.Ethereum: Proof-of-Stake Change in Active Validators – (Source: Glassnode.com)　　New ETH credentials format　　Validators who want to withdraw their staking rewards must update their withdrawal credentials to the new “0x01” standardized format. Validators who want to stop validating or exit their full balance must meet

2023-01-16Deep Dive

Stablecoin collapse could impact U.S. bond market, economist warns

Economist Eswar Prasad warned that a bank run on Stablecoins could have ramifications in the US bond markets if issuers sell US Treasury bonds to meet redemptions.　　Prasad warned that if a bank run occurs when bond market sentiment remained “extremely weak,” the “multiplier effect” from massive selling pressure on Treasurys might ensue.　　“A big volume of redemptions even in a fairly liquid market might create volatility in the underlying securities market. And, considering the importance of the Treasury securities market to the broader financial system in the United States... ”I believe regulators are correct to be concerned.　　According to USDTs November 2022 report, stablecoins such as Tether (USDT) are backed by billions of dollars in reserves to support mass-redemption eventualities.　　However, Prasad warned regulators that if a large number of users attempted to redeem their Stablecoin for cash, issuers such as USDT would be forced to sell assets in their reserve.　　“A significant surge of redemptions can really harm liquidity in that market.”　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

2023-01-15Deep Dive

Alameda liquidators hit with liquidation for second time in 3 days

In light of recent market movements, Alameda Research liquidators were liquidated for the second time in three days, according to Arkham Intelligence.　　On January 14, Alameda liquidators paid off $15,000 in Curve DAO token (CRV) debt in exchange for 0.83 wrapped Bitcoin (WBTC) — or around $17,600 in collateral.　　According to Arkham Intelligence, Alameda is still short $16,500 in CRV, which is collateralized by $23,000 WBTC.　　Second liquidation in three days　　On December 28, 2022, Alameda liquidators were compelled to become active on-chain after losing over $1.7 million in funds through mixers commonly utilized by hackers.　　Despite the best efforts of Alameda liquidators to collect all funds, Arkham research found that “large 7- and 8-figure sums of capital” remained trapped in Alameda wallets.　　Liquidators attempted to remove assets from a borrow position on the DeFi protocol [Aave] on wallet 0x712.　　Rather than repaying the loan and closing the position, the liquidators chose to remove all extra collateral, putting the position in jeopardy of liquidation.　　When forcibly liquidating the wallets AAVE positions, Alameda liquidators triggered the liquidation of around four WBTC — worth $72,000 — in addition to a penalty shaved from the liquidated collateral.　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of

2023-01-15Deep Dive

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