Crypto Guides, Knowledge & Insights

Chainalysis Reveals That Web3 DAO Ownership Is Not Decentralized

Chainalysis presented a study that found that, while decentralized autonomous organizations (DAOs) have emerged as the future of decentralized corporate governance, they have significant flaws in their operation.　　DAOs, according to the study, are the foundation of many blockchain and Web3 projects. DAOs, which are internet-native and blockchain-based, are designed to provide a new, democratized management structure for enterprises, projects, and communities, allowing any member to vote on organizational decisions just by investing in the project.　　Voting Power Concentration　　However, according to the most recent Chainalysis analysis, while the manner by which DAOs operate is generally touted as a way to decentralize power, DAO ownership is highly centralized.　　Chainalysis examined the operations of ten large DAO initiatives and discovered some compelling evidence that DAOs are not as decentralized as envisioned. According to the report, voting power in DAOs is highly concentrated.　　On average, less than 1% of all members have acquired more than 90% of total voting power. To put it another way, less than 1% of all members in big DAOs have 90% voting power.　　This indicates that a significant amount of authority has been concentrated in the hands of a small number of founder members, a problem that DAOs were designed to address. This

2022-06-30Deep Dive

Only1 Introduces the First Web3.0 Social NFT Platform Based on Solana

Only1 Limited, a Hong Kong-based software development corporation, has announced the debut of its web3.0 social network named Only1.　　The web3.0 platform includes a 360° social network with user profiles, messenger, Superfan NFT, Creator Staking Pools, NFT marketplace, and NFT Launchpad, among other features.　　In this way, the platform is focusing on empowering creators to engage viewers and monetize their content in previously unseen ways.　　Only1 is aiming to redefine the relationship between creators and their followers by offering rewards and benefits to both creators and their fans at the same time through tokenization of social impact.　　Leon Lee, Founder s first one-stop shop for users to use SocialFi capabilities by posting content and engaging with other users to start earning rewards.　　“By making it simple for creators to monetize content, Only1 opens up Web3.0 to new audiences and power the future of decentralized content and community ownership,” Leon further said.　　Only1s all-in-one solution guides creators through the whole Web3.0 journey, from the production of their NFTs for a gated community to the selling of their original content in the digital economy. Creators are expected to focus solely on producing high-quality content and growing their walled community.　　During its initial debut, the web3 platform, which is supported

2022-06-30Deep Dive

After $625m Hack, Axie Infinity's Ronin Bridge Reopens

The Ronin Bridge of Axie Infinity has reopened months after it was plundered of $625 million by an exploit in March.　　As the protocol revealed on Tuesday, all users cash have now been refunded on a 1:1 basis, as promised by Sky Mavis.　　According to the Ronin team, users can now conduct transactions using wETH and USDC because the founding team has sufficiently addressed liquidity difficulties with the help of industry partners. The protocol originally hinted at reopening the Ronin Bridge last week, and it has since stated that it has implemented a number of changes to avoid further attacks.　　Prior to this re-opening, the Ronin process completed three distinct audits, one launched internally and two conducted outside. CertiK and Verichains performed the external audits, respectively. Sky Mavis, the blockchain firm behind the Axie Infinity Play-2-Earn game, reportedly launched the audits, which enabled the team to “find and implement a number of chances for improvement.”　　The Established Modifications　　Other recent implementations include a new governance mechanism, which would close any gaps, further protecting the protocol.　　“Going forward, the governance process will be conducted via a decentralized voting mechanism. The governors will be empowered to vote for changes such as: adding/removing validators, upgrading contracts, changing thresholds, etc.

2022-06-30Deep Dive

Russia approves tax exemptions for issuers of cryptocurrency

The lower house of the Federal Assembly of Russia approved a draft bill on June 28 that could exempt cryptocurrency issuers from Value Added Tax (VAT).　　Sanctions are hurting “unfriendly nations” more than Russia　　The decision to cut Russia from the SWIFT system in late February put pressure on the Russian financial system.　　However, there is growing evidence that the sanctions are hurting “unfriendly nations” more, especially in the restricted supply of oil, gas, and wheat.　　In addition, Russia defaulted on a $100 million international bond interest payment for the first time in over 100 years on June 27. The Kremlin said it has the means to meet its obligations thanks to oil and gas revenue.　　The Finance Ministry further added that it had fulfilled its duties by depositing money in its onshore National Settlement Depository (NSD). However, sanctions have blocked the payment to recipients, which Kremlin spokesperson Dmitry Peskov said was “not our problem.”　　Russia turns to cryptocurrency　　Before the conflict with Ukraine began on February 24, Russia had adopted a hardline approach against cryptocurrency. In December 2021, the Central Bank of Russia issued a report warning of the risks associated with digital assets, even proposing a complete ban.　　However, after the invasion, Russian officials backtracked their

2022-06-30Deep Dive

Ripple Labs Inc Launches CBDC Innovate Challenge

Ripple Labs Inc, a digital currency payments startup, has announced the CBDC Innovate Challenge, a new hackathon for developers who can create XRP Ledger-powered payment systems based on Central Bank Digital Currency technology.　　With a top prize of approximately $150,000 at risk, the company, known for its cross-border payment solutions, stated that entries must focus on use cases and interoperability related to CBDCs.　　CBDCs are not a new phenomenon; according to a BIS study, around 9 out of 10 Central Banks around the world are now investigating these new forms of money. There will be so many CBDCs around in the next few years that getting them to cooperate with one another will be a major prerequisite for international trade and transactions.　　The Ripple CBDC Innovate Challenge aims to provide insight into innovative solutions that could improve the operation of these new forms of money. According to the firm, developers who want to participate must focus on interoperability solutions, retail-facing technologies, and financial inclusion ideas.　　In terms of interoperability, participants will need to focus on systems that allow CBDCs to communicate with one another, as well as a viable wallet that can carry several CBDCs. The solutions that will be built should have a

2022-06-29Deep Dive

Bybit Introduces Futures Contracts with USDC Stablecoin Settlement

Bybit, a Singapore-based digital asset exchange, has expanded its crypto options trading services to users with the introduction of new futures contracts paid in USDC stablecoins.　　On Monday, Bybit announced the availability of futures contracts settled in the stablecoin USD Coin (USDC) rather than Bitcoin.　　Bybit is introducing futures settled in USDC for the first time, as part of an effort to provide users with consistent rates for the life of contracts.　　The new tool allows customers to trade futures contracts on Bybits derivatives exchange using their balance. Bybits new options contracts allow experienced traders to utilize their balance as collateral and place long or short contracts with up to 100x leverage depending on expiration dates.　　While Bybits portfolio margin account now accepts USDT, USDC, BTC, and ETH as collateral, the company hopes to add more assets in the near future.　　Customers can now trade options using portfolio margin, which uses a risk-based methodology for sophisticated investors to increase capital usage based on underlying price and volatility.　　Bybit customers can use the service to speculate on the future price of an underlying digital asset and settle trades in USDC.　　Ben Zhou, co-founder and CEO of Bybit, commented about the development: “We have been very pleased by the

2022-06-29Deep Dive

What Barriers Will Blockchain Remove from Asset Management?

Global inequality is worse than ever, and with the rising cost of living in many parts of the world as a result of the pandemic and political instabilities, the gap does not appear to be closing anytime soon. The rich-poor disparity has widened substantially in recent years, with the worlds richest 1% (those with more than $1 million in assets) controlling 45.8 percent of global wealth. This inequality is exacerbated by antiquated financial systems, which restrict access to premium systems and services to just those with the most cash.　　As a result, individuals seek alternative platforms that provide more access to decentralized, democratic, and transparent wealth management. To effectively bridge the wealth gap and restore trust in the financial system, new, innovative choices that go beyond standard asset management must be introduced.　　Using technology to its full potential　　Blockchain has transformed our attitude to currency, privacy, and the future of banking in just ten years. Despite the enormous potential for blockchain to disrupt and enhance sectors, few solutions currently employ this technology to democratize wealth management systems.　　To protect wealth management from being exclusive to the wealthiest members of society, a disruptor with the ambition and capabilities to achieve these goals is required.　　By leveraging

2022-06-29Deep Dive

BTSE Introduces BTC and ETH Earnings Products

BTSE, a digital asset exchange platform, has announced the availability of Bitcoin (BTC) and Ethereum (ETH) earn products.　　According to BTSE, after the debut, investors can receive passive income, and the new products contribute to the growing range of alternatives in BTSE Earn.　　According to the release, the products would begin with an annual percentage rate of 4.5 percent and might reach 6 percent. Users can also choose between depositing for 30, 60, or 90 days, with a minimum deposit of 0.5 ETH or 0.03 BTC.　　BTSE retail investors trade more than US$1.5 billion in BTC and ETH futures volume per day, while the company holds more than 99 percent of its customers cash in cold wallets to protect client assets.　　According to BTSE, it does not rely on third-party technology and instead uses self-hosted servers. The organization takes advantage of financial decentralisation to improve convenience, accessibility, and returns.　　“BTSE Earn products make it simple for our users to earn income on their assets.” This new service, which has no minimum investment criteria, no penalty lock-in options, and high returns, will provide customers with much-needed freedom when diversifying their asset portfolios. Given the high annualised interest rates, we anticipate substantial interest in both of our

2022-06-29Deep Dive

CoinFLEX Says 'Bitcoin Jesus' Roger Ver Is Behind Its Withdrawal Troubles, $47M Debt

CoinFLEX—one of many crypto trading platforms to freeze customer withdrawals this month—isnt facing an ordinary liquidity crunch.　　Rather, CEO Mark Lamb claims there is one man responsible for the platforms financial woes, and the reason it now seeks to raise $47 million in token sale to pay off its debt: the longtime Bitcoin evangelist turned Bitcoin Cash promoter, Roger Ver. 　　“Roger Ver owes CoinFLEX $47 Million USDC,” Lamb tweeted on Tuesday. “We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly.”　　Lamb claims that Ver, who earned the moniker “Bitcoin Jesus” as an early Bitcoin adopter and angel investor, has been in default on this agreement and that CoinFLEX has already issued him a notice of default.　　Roger Ver owes CoinFLEX $47 Million USDC. We have a written contract with him obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regularly. He has been in default of this agreement and we have served a notice of default.　　— Mark Lamb ???? (@MarkDavidLamb) June 28, 2022　　The CEO‘s comments confirm rumors initially leaked by a Twitter user known as “FatManTerra”—a member of the Terra Research

2022-06-29Deep Dive

Cathie Wood Says Crypto Revolution Will Not Be Stopped

In a recent interview with CNBC, Ark Invest CEO Cathie Wood sounded upbeat about the future of cryptocurrencies, stressing that they “will not be stopped” in spite of the recent market downturn.　　Ark Invest outlined its three revolutions around cryptocurrencies in its “Big Ideas” report that was published earlier this year.　　The Florida-based investment management firm believes that Bitcoin and Ether represent a “money revolution” by creating the worlds first private digital monetary system.　　Meanwhile, decentralized finance (DeFi) is leading the financial services revolution.　　“We are impressed at how robust the ecosystem has been,” Wood said.　　One of Wall Streets most famous stock pickers says that her team expected the collapse of Terra to cause a severe chain reaction, but the Ethereum blockchain has held up “very well.” In the aforementioned report, the Ark team predicted that the market cap of Ethereum could experience a 50-fold increase over the next decade.　　Ark is also convinced that the Metaverse and non-fungible tokens (NFTs) represent the next generation of the internet. This revolution is still in its infancy, Wood says.　　The investor is convinced that digital property rights provided by NFTs will become “incredibly important.”　　“Were gonna find all kinds of utility, and we cant even think of it right

2022-06-29Deep Dive

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