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Ethereum Scaling Solution zkSync Unveils Latest Prover Tech Boojum – Decrypt

zkSync is taking yet another step to decentralize.

Named after a mythical creature found in Lewis Carrolls poem The Hunting of the Snark, the team behind zkSync has launched the latest upgrade to the speedy layer-2 network.

The launch is in so-called mainnet shadow mode, per the team, as part of the launch's phased rollout. This mode is a testing zone that runs in parallel to the mainnet.

zkSync is a novel scaling solution for Ethereum and one of the few that use zero-knowledge (zk) rollups to do so. Rollups come in two varieties: zk and optimistic. Both batch transactions off of the mainnet, roll them up into even smaller bundles, then those bundles are compressed into a proof, and settled on Ethereum.

Part of that process involves a prover. This piece of technology is what does the compressing and packing of all those transactions. It's the cryptographic equivalent of a trash compactor, except it's not trash but potentially thousands of dollars in crypto activity.

Given the high computing power needed to generate those proofs, however, the barrier for users to participate is quite high.

The latest upgrade will address precisely this.

Called Boojum, which, per Carroll, is the most dangerous variety of Snark (itself a fictionalized creature), the tech will lower the hardware barrier to help secure zkSync.

The new prover can be operated with as little as 8 gigabytes of hardware, whereas the average prover demands roughly 500 gigabytes on average, said zkSync CEO Alex Gluchowski.

So far, we've seen the benchmark competitors indicating something like north of 500 gigabytes of RAM for a prover, he told Decrypt. And as you can only run it on the cloud, it's not ready for this [wide adoption]. Our prover requires only eight gigabytes of GPU RAM and it can run on GPUs that are compatible with gaming computers.

Along with lowering the hardware demands, Boojum is also doing all its transaction compressing for much cheaper, too. Cutting costs here is crucial, even if it's only pennies.

Just because a single transaction costs $1 to produce, or even 10 cents, or even less than that, getting through hundreds of thousands of transactions per second would mean massive expanding, and you will probably not have enough of the hardware in the vulnerable clusters to produce and sustain this load, said Gluchowski.

Instead of several large data centers supporting a blockchain network, especially one executing such taxing computations as generating cryptographic proofs, the upgraded prover will make it accessible to anyone.

Just like miners on Bitcoin and validators on Ethereum are paid for securing their networks, so too would provers on zkSync, he said.

The zkSync CEO even argued that it could be a viable way to repurpose the mining industry.

I personally don't think the proof of work will be a sustainable source of business, he told Decrypt. They will have to shift to something that actually provides normally redundant value, not like waste kind of work. Actually like doing some useful work.

With this step in the decentralization step executed, Gluchowski said that the next step is to decentralize zkSyncs sequencer. This piece of a blockchain is responsible for ordering transactions in each block.

Executing this step also suggests a token launch in the future, he told Decrypt.

When you decentralized the sequencer, you will need some way to permissionlessly verify transactions, said Gluchowski.

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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC to breakout as volatility sinks – FXStreet

Bitcoin (BTC) price continues to move sideways with no signs of directional bias, leavingtraders guessing. The pioneer crypto's rangebound movementsuggests that volatility has dropped, which has held a majority of altcoin ecosystem hostage, including Ethereum (ETH) and Ripple (XRP) prices.

Also Read: Whales are secretly accumulating these two DeFi coins: LINK, UNI

Bitcoin (BTC) price shows a shrinking volatility, suggesting a big incoming price change to either upside or downside. The price is moving within a short leash, capped at $31,500 and $29,872 to the upside and downside, respectively. A decisive break and subsequent candlestick close above or below the range will decide the next direction.

With momentum indicators pointing to declining buying pressure, Bitcoin price could break below the lower support level at $29,872. Notably, much uncollected liquidity is underneath this level, which acts as a downside pull for BTC as traders wait for ideal entry positions.

Therefore, a decisive break below the crucial support at $29,872 could see Bitcoin price pull lower toward the $27,500 range. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators both point south, suggesting falling momentum.

BTC/USDT 1-Day Chart

The 50-, 100-, and 200-day Exponential Moving Averages (EMA) at $29,235, $28,130, and $26,562 all provide entry positions for sidelined investors or those looking to grow their portfolios. As Bitcoin price slides below the critical support, the ensuing buying pressure from these levels could provide more hind winds for BTC to restore north, potentially shattering the $31,500 level to confirm an uptrend.

Also Read: BTC traders brace for $30K loss Five things to know in Bitcoin this week.

Ethereum (ETH) price is testing crucial support as the downtrend continues. At the current price of $1,907, the largest altcoin by market capitalization is on the brink of breaking below its bullish consolidation along the uptrend line or continuing posting gains above it.

Momentum indicators, comprising the RSI and MACD, point to a drop unless bulls seize the current low-risk buying opportunity to reject the downside. If conservative trading prevails and bulls sit on their hands, a confirmed break below the ascending trendline could open the drains for ETH. This could see the altcoin tag the 50-day EMA at $1,868 or, worse, re-register the July 7 lows around $1,824. This is marked by the support confluence between the 100-day EMA and the horizontal line, making it a robust buyer congestion zone.

ETH/USDT 1-Day Chart

Conversely, buying pressure from the EMAs could facilitate a north swing, sustaining ETHs move along the uptrend line and ultimately breaching the $1,959 resistance level. In highly ambitious cases, the Proof-of-Stake (PoS) token could reclaim the mid-April highs around the $2,120 mark.

Also Read: Why Ethereums EIP-4844 could kickstart bull run for Optimism (OP), Arbitrum (ARB), Polygon (MATIC)

Ripple (XRP) price is filling up a pennant, trading in a steadily narrowing. With neither bulls nor bears giving way to their trading positions, the pennant decides which way this tug-of-war will go.

Notably, however, there are already small spillages below the support offered by the uptrend line of the pennant. This suggests bears might have a better and tighter grip on Ripple price.

This gloomy outlook is reflected by the RSI, showing a bearish divergence against the Ripple price. This comes as XRP records higher highs along the lower boundary of the pennant, while on the other hand, the RSI is showing lower highs.

The odds, therefore, favor the downside suggesting an imminent retest of the mid-July lows around $0.697. A decisive 4-hour candlestick close below this level will confirm the downtrend.

XRP/USDT 4-hour chart

On the other hand, if late investors buy the remittance token, the Ripple price could break the pennant to the north, making a run for the peak of the technical formation at $0.823. Such a move would denote a 15% climb from the current level.

Also Read: XRP ruling puts cryptocurrencies in nuanced position, industry experts weigh in.

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Solana Opens Doors to Ethereum Developers with Neon EVM … – Cryptonews

Solana. Source: Adobe

Neon EVM, anEthereum Virtual MachineonSolana (SOL), will allow developers to buildEthereum (ETH)decentralized applications (DApps) on top of the Solana blockchain.

Neon EVM seeks to bridge the gap between Ethereum and Solana's computing models, opening doors for Ethereum DApps to leverage the efficiency and technical capabilities of Solana for transaction settlements.

By residing on Solana's blockchain, the Neon EVM smart contract processes wrapped Ethereum transactions, combining the robustness of Ethereum's DApp environment with Solana's highly efficient infrastructure.

This innovative design allows developers to deploy Ethereum DApps directly onto the Solana network, minimizing code reconfiguration while taking full advantage of Solana's native functionality, including parallel execution of transactions, according to a press release shared with Cryptonews.com.

"Apply today for the Early Builders Program and be a part of the Neon EVMs mission to revolutionize blockchain technology," Neon said in a tweet earlier this month.

Traditionally, EVM DApps used rollups or sidechains, which are different types of layer 2 solutions, to ensure cost-effectiveness.

However, with the introduction of Neon EVM on Solana, developers now have an alternative solution that avoids the complexities associated with layer 2 solutions.

Ethereum's average transaction fee sits at around $2, while layer 2 solutions can offer savings of 4-20 times, with transaction costs ranging from $0.5 to $0.1.

In contrast, Solana boasts an impressively low average transaction fee of just 0.00001 SOL (~$0.0002) per transaction, a staggering 10,000-fold reduction in costs.

To confirm the protocol's real-world efficacy, Neon EVM has successfully undergone initial Devnet tests.

We are very excited to see Neon EVM live on Solana Mainnet, said Marina Guryeva, director of Neon Foundation.

Once we repeat these tests in production, we will present the figures based on the real-world data.

Along with the launch, the NEON Decentralized Autonomous Organization (DAO), a community that will play a pivotal role in shaping the future trajectory of Neon EVM, has also been established.

All in all, the integration of Neon EVM with Solana is a significant development for both Ethereum and Solana ecosystems.

Ethereum developers can now tap into Solana's high-performance infrastructure without sacrificing the familiar Ethereum DApp environment.

The integration opens doors to new opportunities, enabling developers to create more efficient and cost-effective DApps while expanding the overall capabilities of the decentralized application space.

NEON is the utility token of Neon EVM and will be used for governance.

The token is currently trading at $0.214499, up by 19.2% over the past day, according to data by CoinGecko.

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Unlocking Wealth In 2023: Ethereum, Bitcoin, & Signuptoken.Com … – Analytics Insight

How can one attain wealth in 2023? In a world where inheritance and exceptional contributions to society may appear to be the main routes to financial success, not everyone has access to these avenues. While becoming an influencer or content creator may seem like a viable option, it may not align with everyones comfort level or skill set.

However, there is another avenue that has proven to be profitable: cryptocurrency, specifically Ethereum (ETH) and Bitcoin (BTC). Investing in these established digital currencies has yielded significant returns for many individuals. Nevertheless, there is a rare opportunity offered by Signuptoken.com (SIGN) to enter the world of cryptocurrency without any risk, akin to the early days of Bitcoin and Ethereum.

The rise of cryptocurrency has transformed the financial landscape, with Ethereum and Bitcoin leading the way. These digital assets have demonstrated their value and generated substantial wealth for early adopters. Recently, Vitalik Buterin, the creator of Ethereum, has been advocating for scaling solutions in the cryptocurrency world. He believes that Bitcoin needs to explore additional scaling options in order to go beyond its current role as a payment system. Ethereum has been at the forefront of experimenting with various scaling solutions, such as Plasma and ZK Rollups, which have successfully increased transaction throughput.

On the other hand, Bitcoin has recently entered a phase of low volatility, reminiscent of previous historic bull runs in 2017 and 2021. This has generated optimism among investors and market participants. The decrease in exchange inflows and the selling of Bitcoin by long-term holders at profitable margins further indicate a positive market sentiment.

While investing in Ethereum and Bitcoin has traditionally required significant upfront financial commitments, there is now an opportunity to explore the world of cryptocurrency without risking your own capital. Signuptoken.com introduces a groundbreaking concept: a risk-free investment opportunity. This platform allows individuals to participate in cryptocurrency investing without any upfront financial commitment.

Signuptoken.com serves as a bridge between traditional finance and the decentralized world of cryptocurrencies. It provides a secure and accessible entry point for individuals who wish to venture into the cryptocurrency market without the pressure of financial risk. By offering a risk-free alternative to Ethereum and Bitcoin investments, Signuptoken.com opens doors for learning, gaining experience, and potentially profiting from the dynamic world of digital assets.

This unique opportunity empowers individuals to explore the cryptocurrency market, regardless of their financial means. The project enables hands-on learning, deeper market understanding, and the potential for financial growth. Signuptoken.com aims to democratize cryptocurrency investing and make it accessible to a wider audience.

Whether you are intrigued by Ethereums scaling solutions or enticed by the bullish indicators observed in Bitcoin, Signuptoken.com is the platform that can assist you in embarking on your cryptocurrency journey. It provides a safe and risk-free environment to gain exposure to Ethereum, Bitcoin, and other digital assets, all without the need for upfront capital.

Embrace the future of wealth creation by taking advantage of Signuptoken.coms risk-free investment opportunity. Discover the potential for financial growth, expand your knowledge in the cryptocurrency realm, and pave your own path to success in the exciting world of digital assets.

Website: https://www.signuptoken.com

Twitter: https://twitter.com/_SignUpToken_

Telegram: https://t.me/SignUpToken

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Ethereum’s Role in NFTs: What You Need to Know – Crypto Times

If youre just stepping into the captivating world of cryptocurrencies and wondering what all the buzz around NFTs is about, youve come to the right place. In this comprehensive guide, well be looking at what Non-Fungible Tokens (NFTs) are and the role Ethereum plays in this exciting space.

Whether youre an artist looking to showcase your work, a collector seeking unique digital treasures, or simply curious about the recent Ethereum DeFi growth, you will need to understand Ethereums significance in the NFT landscape. So, lets get into business!

Lets start right out by showing you what NFT means in the first place. NFT stands for Non-Fungible Token. But unlike cryptocurrencies such as Bitcoin or Ethereum, which are interchangeable and have the same value, NFTs are unique and indivisible.

Think of them as digital certificates of authenticity that prove ownership of a specific item, whether its a digital artwork, a collectible, a video clip, or even virtual real estate.

Imagine owning a one-of-a-kind piece of art that cannot be replicated, forged, or replaced. Thats the power of NFTs. They provide a way to assign and verify ownership of digital assets using blockchain technology, which brings transparency and trust to the equation.

NFTs have gained immense popularity across various industries, from art and music to gaming and virtual reality. They offer creators a new avenue to monetize their work, allowing them to sell and license their creations directly to collectors, fans, and enthusiasts.

Traditional assets like physical artworks or collectibles rely on centralized systems for authentication, ownership transfer, and provenance tracking. NFTs, on the other hand, provide a digital alternative that eliminates the risk of counterfeit or fraud. They introduce a new dimension to ownership, where digital assets can be tokenized and traded freely, while maintaining a verifiable and immutable record of ownership.

In recent years, NFTs have gained significant attention, with high-profile sales and collaborations bringing them into the mainstream. From digital art selling for millions of dollars to iconic moments in sports being tokenized, the market for NFTs has experienced explosive growth.

NFTs are changing the face of the sports world as more and more athletes, clubs, and sports are getting on the crypto collectibles bandwagon. This surge in popularity has been driven by a combination of factors, including increased interest from collectors, artists, and celebrities, as well as advancements in blockchain technology.

Also Read: How NFTs are Benefiting Sportspeople?

Ethereum, the second-largest blockchain platform, has played a pivotal role in the development and proliferation of NFTs. Its flexible infrastructure and robust smart contract capabilities have made it the preferred blockchain for creating, trading, and owning NFTs.

Smart contracts form the backbone of Ethereums functionality. These self-executing contracts enable the automatic execution of predefined terms and conditions, eliminating the need for intermediaries.

In the context of NFTs, smart contracts are responsible for defining the ownership, transferability, and uniqueness of these digital assets. By leveraging Ethereums smart contract capabilities, creators can establish trust and enforce the rules governing the ownership and exchange of NFTs.

One of the key reasons for Ethereums dominance in the NFT space is its support for standards that define the structure and behavior of NFTs. The two most widely used standards on Ethereum are ERC-721 and ERC-1155.

The ERC-721 standard, introduced in 2017, laid the foundation for NFTs on Ethereum. It defines a set of rules and functions that enable the creation and management of unique tokens. Each ERC-721 token represents a distinct asset, such as a piece of art or a collectible, and has its own metadata and ownership information.

The ERC-1155 standard, introduced in 2018, expanded upon ERC-721 by enabling the creation of both fungible and non-fungible tokens within a single contract. This standard allows for greater efficiency and flexibility, as multiple tokens can be managed under a single smart contract, reducing gas fees and simplifying development.

If you are also wondering why Ethereum has become the preferred platform for NFTs, you are not alone. Many investors and enthusiasts also always ask the same question. So, heres the scoop!

First and foremost, Ethereum offers a robust and secure infrastructure for creating and trading NFTs. Its blockchain technology provides a decentralized and transparent environment, which ensures the authenticity and ownership of digital assets.

Yes, Ethereum embraces scalability better than most of the other cryptocurrencies, especially Bitcoin. Its new Ethereum 2.0 upgrades have shown to be really promising. They aim to address the networks congestion and high transaction fees. What these improvements will bring is that NFT transactions will become faster and more cost-effective, further cementing Ethereums position as the leading platform for NFTs.

One of Ethereums standout features that made it perfect for NFTs is its support for smart contracts. These are self-executing contracts with predefined rules that facilitate transactions between parties. Smart contracts enable the seamless creation, buying, and selling of NFTs by automating the entire process. This efficiency has made Ethereum the go-to choice for NFT marketplaces and creators alike.

Also, Ethereum has a vibrant and active developer community. This means that there is a wealth of tools, resources, and documentation available for building NFT projects on the Ethereum platform. The communitys innovation and constant improvements contribute to the growth and evolution of the NFT ecosystem.

Ethereums widespread adoption and recognition have led to its integration with numerous wallets, exchanges, and marketplaces. And this interoperability allows for easy access and participation in the NFT market, making it more accessible to both creators and collectors.

Also Read: Top 10 Blockchains for NFTs

While Ethereum has played a crucial role in the development of NFTs, it faces several challenges:

Ethereums transition to a proof-of-stake consensus mechanism with Ethereum 2.0 aims to address scalability and energy efficiency concerns. By replacing mining with staking, Ethereum will become more environmentally friendly and increase its transaction throughput, making it more suitable for handling the growing demand for NFTs.

Several marketplaces have emerged as popular platforms for buying and selling NFTs on the Ethereum blockchain:

Also Read: What Are The Top 10 NFT Marketplaces?

Several notable NFT projects have gained significant attention and popularity on the Ethereum blockchain:

Also Read: Top 10 Most Expensive Non-Fungible Tokens (NFTs)

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Aave Protocol launches stablecoin GHO on Ethereum mainnet, $2M minted – Cointelegraph

Decentralized finance (DeFi) protocol Aave has launched its algorithmic United States-dollar pegged stablecoin GHO on the Ethereum mainnet, with $2.19 million worth of GHO minted so far.

Aave announced the launch of the new stablecoin in a July 16 blog post, describing the new stablecoin GHO as a decentralized, over-collateralized asset. The stablecoin is backed by a multitude of digital assets including Ethereums native currency Ether (ETH) and Aaves native token AAVE (AAVE).

The launch of GHO on mainnet came after a community governance vote, which saw nearly 100% of the 424 participating addresses vote in favor of the new stablecoin.

Unlike centralized stablecoins such as Tethers USDT (USDT), which have drawn some criticism for an apparent lack of transparency around its reserves, the assets backing GHO are transparent and verifiable and can be confirmed by on-chain data, according to Aave.

All transactions are performed through self-executing smart contracts, and all data regarding GHO transactions is available and auditable directly from the blockchain or via numerous user interfaces, Aave wrote.

Additionally, Aave said GHOs revenue would further bolster its DAO treasury, with governance being entrusted to AAVE and stkAAVE token holders.

The GHO stablecoin is currently available to the public:

Related: Circle CEO spells doom scenario for US dollar in warning to Congress

The launch of GHO marks another addition to the growing ranks of DeFi-native algorithmic stablecoins. On May 4, DeFi protocol Curve launched its flagship algorithmic stablecoin crvUSD.

At the time of publication, MakerDAOs Ethereum-based stablecoin DAI is the largest algorithmic stablecoin in circulation, commanding a $4.28 billion market capitalization according to data from DefiLlama.

However, the total stablecoin market remains dominated by centralized issuers including Tether and Circle.

At current, Tethers USDT and Circles USD Coin (USDC) account for 87% of the total circulating supply of all U.S.-dollar pegged stablecoins.

At the time of publication, GHO is trading slightly below the desired $1 peg at $0.9927 and has fallen as low as $0.9814 on July 16, according to price data from CoinMarketCap.

Cointelegraph contacted Aave for comment but has yet to receive an immediate response.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

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Ethereum stablecoin developer Ethena secures $6 million funding – InvestorsObserver

2023-07-17 14:18:40 ET

Ethena, a blockchain startup for Ethereum -backed stablecoins, has reportedly secured $6 million in a seed funding round.

Axios reported on Monday that the startups funding round was led by Dragonfly Capital, a leading Web3 venture firm. Other prominent investors to back Ethena in the round were crypto platforms Deribit, Bybit, Gemini, OKX, and Huobi. The stablecoin developer also received backing from BitMEX founder and former CEO Arthur Hayes.

The stablecoin industry , like much of the broader cryptocurrency market, is still largely nascent. Also importantly, the wider sector is fast learning from some of the biggest challenges and failures, one of which is the collapse of TerraUSD.

In its approach to the stablecoin space, Ethena has adopted a unique approach designed to ensure its USDe stablecoin maintains its peg. The startup employs a novel technique where it uses collateral from Ethereum derivatives. By employing perpetual swaps and a price hedging mechanism, the platform allows for the shorting of Ether and thus able to keep the USDe value stable. Maintaining that dollar parity is the key to greater adoption of the ETH-backed stablecoin.

Ethena also offers a savings bond that generates yield via staked ETH. In this case, users can deposit collateral in the form of USD, ETH, or some liquid staking tokens and use that to mint USDe and generate yield with liquid staking derivatives (LSD).

They are features that could strengthen Ethenas position in the LSDFi sector of the wider decentralised finance (DeFi) industry. LSDFi unlocks new yield opportunities for LSD tokens.

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Ethereum Slides But Remains Above $1,900; 1inch Network Becomes Top Loser – Benzinga

July 18, 2023 9:38 AM | 1 min read

Bitcoin (CRYPTO: BTC) traded lower, but the cryptocurrency prices remained above the $30,000 level on Tuesday.

Ethereum (CRYPTO: ETH) also moved lower, but remained above the key $1,900 mark this morning.

Sui (CRYPTO: SUI) was the top gainer over the prior 24 hours, while 1inch Network (CRYPTO: 1INCH) turned out to be the biggest loser.

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

At the time of writing, the global crypto market cap fell to $1.2 trillion, recording a 24-hour decline of 0.4%. BTC was trading lower by 0.7% at $30,008 while ETH fell by around 0.5% to $1,905 on Tuesday.

Here are the top ten crypto gainers and losers over the past 24 hours:

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Price: $0.750324-hour gain: 9.3%

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Price: $6.2024-hour gain: 6.1%

Price: $0.03524-hour gain: 5.4%

Price: $0.0541924-hour gain: 4.6%

Price: $0.379724-hour drop: 17.7%

Price: $0.0000880324-hour drop: 7.6%

Price: $25.5524-hour drop: 6.3%

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Price: $72.9524-hour drop: 3.8%

Read This Next: Bank of America, Morgan Stanley And 3 Stocks To Watch Heading Into Tuesday

2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Coinbase Restricts Ethereum, Solana Staking in Four US States – Decrypt

America's largest crypto exchange Coinbase today said in a statement that it stands by staking and that it will fight the service in courtbut would stop staking for new customers in California, New Jersey, South Carolina, and Wisconsin.

In a Friday statement, the San Francisco-based digital asset company that "Americans in every state deserve access to the same technology and economic opportunities as people everywhere," and therefore it would push back against certain states requiring a staking ban.

But for now, customers in the four states will be unable to stake additional assets through Coinbase while these actions are pending.

"Due to the actions taken by state regulators in California, New Jersey, South Carolina, and Wisconsin, customers in those states will be unable to stake additional assets through Coinbase while these actions are pending," the company said, adding that customers' crypto that was staked before these orders were issued remains unaffected.

The news comes after U.S. Securities and Exchange Commission last month sued Coinbase for allegedly failing to register as an exchange, clearing house, and broker despite providing investors these services.

Wall Street's biggest regulator also alleged that Coinbase offered and sold unregistered securities via its staking service.

Shortly afterwards, a multi-state task force that includes California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, Wisconsin along with Alabama filed charges against the company for violating securities laws.

Staking is the process of "locking-up" cryptocurrency to keep a blockchains network running. Those who hold proof-of-stake assetssuch as Ethereum (ETH), the second largest cryptocurrency by market capitalizationpledge it to the network by sending it to a specific blockchain address and can receive rewards for doing so.

But its a controversial issue: The SEC in February hit American crypto exchange Kraken with a $30 million fine for allegedly failing to register the offer and sale of its crypto asset staking-as-a-service program.

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Why Bitcoin, Ethereum, and Dogecoin All Popped on the Ripple … – The Motley Fool

What happened

The crypto market was on fire on Thursday afternoon after a judge ruled that Ripple (XRP 2.79%) is not a security (in most cases).

The U.S. Securities and Exchange Commission (SEC) has been in a battle against cryptocurrencies this year, but the first case to actually make it to court and nearly to trial is the SEC's suit against Ripple, which was filed in December 2020. There are still questions about how this applies to other tokens and whether the ruling will hold up, but for now, it's a huge win for the industry.

Altcoins are popping the most today, but the big tokens are making nice gains as well. Bitcoin (BTC -1.42%) is up 4.7% in the last 24 hours as of 4 p.m. ET, Ethereum (ETH -0.97%) has risen 7.1%, and Dogecoin (DOGE -2.16%) is up 7%.

The judge's ruling concluded that Ripple was a security when it was sold to institutional investors, who they said were speculating on an asset that they would then sell. But it was not a security on the secondary market because a buyer or seller on the secondary market had no way of knowing who was getting their money.

It's hard to say that this fully clarifies what is and isn't a security in the crypto industry, and it's likely the ruling will be appealed, but for now, the secondary sale of cryptocurrencies appears to be legal. This should help the ongoing trading of existing tokens, and Bitcoin, Ethereum, and Dogecoin are clear leaders from a market capitalization standpoint.

While the secondary trading of cryptocurrencies is legal -- according to this ruling -- the initial sales to institutional investors may not be. That question will go to trial, but that will include hedge funds and venture funds that bought these assets. And it's not even clear how that trial will turn out.

Crypto investors have been looking for some kind of clarity in the U.S. and clearly jumped on it today. However, this is only a district court ruling, and it's the first of many potential rulings. The SEC continues to go after Coinbase (COIN -0.91%), in particular, and dozens of tokens are involved in that case.

I do think this will push both the courts and lawmakers to act to bring even more clarity to the market. Taking loss after loss in court isn't a good look, and almost everyone in the industry is pushing for clarity about what is and isn't a security in the digital world.

This clarity could be good for the value of Bitcoin and Dogecoin, which right now are viewed largely as stores of value or speculative assets, which seem to pass regulatory muster, at least in the secondary market. Ethereum may benefit both from secondary trading and clarity over what can be built with NFTs or other blockchain tools.

At least for today, the crypto market is cheering a judge's ruling, but with the ups and downs we have seen the last few years, the cheering might not last for very long.

Travis Hoium has positions in Coinbase Global and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool recommends XRP. The Motley Fool has a disclosure policy.

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