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Toncoin (TON) flipped Cardanos ADA (ADA) token to become the ninth-largest cryptocurrency by market capitalization on April 9. Can Toncoin continue its parabolic rise?

Following a 13% daily price increase, TON rose to $6.65 as of 1:45 pm UTC to reach a $23 billion market capitalization, overtaking the ADAs $22 billion market cap, according to CoinMarketCap data.

The rally comes a day after TON Society developers set aside $5 million in Toncoin to incentivize users to verify their identity using palm-scanning technology. The project aims to enable digital identity verification for Telegram users over the next five years and will distribute 1 million TON to users participating in the proof-of-personhood program.

The increased interest in TON helped it outperform ADA. TONs price has surged over 135% during the past month, while ADAs price has fallen 15%.

Zooming out further, TONs price increased 183% year-to-date, while ADA price fell 1.30%.

TON launched a $115 million community incentive program on March 20, with $38 million for token mining and user incentives, $22 million for airdrops, $15 million for The League developer ecosystem, and $40 million for liquidity pool boosts. The program aims to drive more user adoption.

In contrast with Toncoin, ADA saw little interest this year, as investor attention was focused on the United States Bitcoin exchange-traded funds (ETFs) and other major blockchain upgrades, such as Ethereums Dencun upgrade.

Related: With 10 days to the halving, analysts predict $150K Bitcoin top

Toncoins price action has been drastically outperforming Dogecoin (DOGE). TON rose 130% during the past month, while DOGE only gained 14.8%. Year-to-date, TON is up 177%, while DOGE is up 108%, according to TradingView.

While Dogecoins price action is purely based on speculation-driven demand, Toncoins utility within the Telegram messaging app can lead directly to its price appreciation with increasing user uptake.

On the downside, Toncoins token distribution could raise concerns among retail investors. According to CoinCarp data, over 60% of Toncoin is held by the 10 largest holders, while 93% of the supply is held by the 100 richest holders.

Related: Telegram Mini Apps are Trojan horse for mass blockchain adoption TON investments director

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Telegram-linked Toncoin flips Cardano to become 9th-largest cryptocurrency - Cointelegraph

As concerns grow about what a flood of new computers, data centers and artificial intelligence operations means for the electric grid, one industry remains a massive question mark: cryptocurrency.

The U.S. Energy Information Administration estimates that mining for bitcoin and other digital currencies accounts for 0.6 to 2.3 percent of the nations electricity use. But that figure is just an approximation based on worldwide data collected by Cambridge University and publicly available information about 52 crypto mining sites.

A bid to have the agency a nonpartisan data arm of the Department of Energy collect more detailed information on how crypto miners use electricity was stymied by a lawsuit and wont be revived until after a public review. That means regulators, legislators and even power providers dont have detailed data about how an industry that has exploded in just a decade could affect the grid in the future.

Theres just not a lot of transparency, said Ben Hertz-Shargel, the global head of grid edge at consulting firm Wood Mackenzie who focuses on topics such as demand flexibility and a decentralized power system. You can look at the companies that are publicly traded, and theyll discuss plans with estimates of megawatts [consumed]. But actual demand may be very different, so you only have partial clues.

Conditions on the U.S. grid may become increasingly tight. A December 2023 report from the consulting group Grid Strategies found that the forecast for electricity demand over the next five years nearly doubled over the past year, thanks to commitments for new industrial sites, data centers, extreme weather, and the electrification of homes and cars.

The EIA estimates that U.S. electricity demand could increase as much as 15 percent by 2050, numbers that Energy Secretary Jennifer Granholm has said literally keep her up at night.

Crypto companies acquire virtual coins by solving a series of computational puzzles, a mining process that requires computers to run for hours on end. Because electricity is essentially the only expense and the price of a digital coin is the source of revenue, the industrys electricity use is typically dependent on bitcoin prices.

Right now, thats a bull market. The price of bitcoin, the largest cryptocurrency, has increased nearly 2.5 times since the end of September. That could grow after the Securities and Exchange Commission approved 11 bitcoin funds for trading on U.S. markets, which makes the assets more accessible.

According to the University of Cambridges Centre for Alternative Finance which models bitcoin electricity consumption based on factors like prices, mining equipment and energy efficiency power demand for crypto mining has also risen over six months, from an estimated 14,000 megawatts daily at the end of September to more than 19,000 MW last week.

That means utilities could see a massive load shift based on economic factors, not weather or population growth.

A February 2023 BloombergNEF report examining the main power market in Texas concluded that peak energy prices could increase by 30 to 80 percent based on the influx of cryptocurrency mining. Power prices, the report found, will be a function of new bitcoin mining facilities.

That variability a load that could shift based on market prices, not on more predictable factors like weather or population growth has led to increasing calls for transparency. Eight Democratic lawmakers, including Sen. Elizabeth Warren of Massachusetts, wrote in a February 2023 letter to DOE and EPA that a mandatory disclosure regime is critical. That letter predated the EIAs survey request.

Every day is urgent, said Mandy DeRoche, a deputy managing attorney of the clean energy program at the environmental group Earthjustice. The incentives for mining are getting so much higher. Between the price of bitcoin and extreme weather, the combination is a danger to our grid and a danger to externalizing costs on other ratepayers and on the environment.

But even some in the industry say more transparency around electricity is necessary and could help miners play a key role in protecting the grid. Cryptocurrency miners can soak up excess electricity and can ramp down quickly to reduce demand at times when the grid is at risk.

We want to supply some of this information, especially about how the industry can curtail and actually benefit grid reliability, said Tom Mapes, president of the Digital Energy Council, which advocates for cryptocurrency mining. Theres an opportunity for us to show how we can be flexible.

The EIAs request seemed simple: Have 82 mining companies report the electricity used at their 150 mining facilities, as well as the electricity sources they rely on.

It was made in January under an emergency order approved by the White House, with EIA Administrator Joe DeCarolis saying the industrys rapid growth and existing strain on the grid created heightened uncertainty for power markets.

The industry, however, protested. A lawsuit filed by the nonprofit Texas Blockchain Council and Riot Platforms, a large mining company, said the agency had not properly sought public comment and wouldnt commit to protecting proprietary information. They charged that the legally defective survey would pose a risk to their operations.

Thats in line with comments Riot made in a February filing to the Securities and Exchange Commission, where the company warned that bitcoin mining will be a focus for potential increased regulation in the near- and long-term.

The company added that it was possible the planned EIA survey or similar data collection would be used to generate negative reports regarding the Bitcoin mining industrys use of power and other resources, which could spur additional negative public sentiment and adverse legislative and regulatory action against us or the Bitcoin mining industry as a whole.

An agreement with the companies resulted in EIAs move to pull the emergency survey and committing to seek public comment before launching another survey. EIA spokesperson Chris Higginbotham said last month that there was no update on the timing of the survey.

Other grid watchdogs are also closely watching how cryptocurrency grows. In its 2023 Long-Term Reliability Assessment, the North American Electricity Reliability Corp. wrote that the unique characteristics of cryptocurrency mining mean that potential growth can have a significant effect on demand and resource projections as well as system operations.

The watchdog organization said it had not previously covered cryptocurrency in its long-term projections but that the industry could impact load forecasting methods because of its flexibility.

Wood Mackenzies Hertz-Shargel also said it would be important to know how mines work on an hourly basis in response to fluctuating power prices or other factors that regulators may not have considered. Spikes at certain times of day, for example, could mean utilities have to plan different power sources or anticipate systemwide peaks at unusual times.

Thats different from data centers or certain industrial users, which typically run 24 hours a day on end and arent in a position to turn up or down based on grid demands. Many data centers are also backed by large technology companies that have their own internal climate goals and have the financing to link their operations to new renewable energy projects.

Crypto companies, which are newer and whose profitability fluctuates based on the currency, typically dont have the same heft as those tech giants to establish their own renewable power and are left to pull electricity from the grid.

The EIA does survey data centers as part of the Commercial Buildings Energy Consumption Survey, which was last conducted in 2018. Although the data collection allowed EIA to assess how it could publish data center estimates, that survey did not separate out data center use as a separate building type because of a small sample size and low cooperation rate, Higginbotham said.

Accessing crypto data typically means going through filings for companies that are publicly traded or relying on voluntary disclosures. Elliot David, head of climate strategy and partnerships for the Sustainable Bitcoin Protocol, is also working to have miners communicate their energy use and rely more on renewable power where available.

The level of transparency really varies, said David. Its hard to contextualize energy consumption sometimes because theres a whole chain of energy and digital asset structure that needs to be factored in.

Despite the Texas Blockchain Associations role in fighting the EIA survey, the Lone Star State may actually have the most insight into the industry. A 2023 law requires cryptocurrency miners above a certain size to register with the state and disclose their anticipated load to the Electric Reliability Council of Texas (ERCOT), the grid operator for most of the state.

Texas Blockchain Council President Lee Bratcher said in an email that ERCOT can view nuanced and minute by minute energy consumption data for bitcoin miners in Texas. This is essential for grid operations and bitcoin miners are proud to be the most flexible load on the grid.

ERCOT has a large flexible load taskforce to track their impact on the grid and work on ways to better integrate them into the grid.

In a statement, ERCOT said that the grid operator is looking at variables including outside factors tied to global economics that impact the supply and demand curve and in turn the overall cost of electricity and cost to the consumer.

Instances where mines unexpectedly disconnect or display inconsistent behavior during resource scarcity events could represent risks to grid reliability.

Some groups supportive of the EIA survey say the agency was off base in the haste with which it sought the data. The agency said the quick rise in bitcoin and the threat of grid stress during cold weather made it imperative.

Mapes of the Digital Energy Council, who formerly worked at DOE, said he could see that some members might feel unfairly singled out by the rushed process and that it is important to not just cherry-pick certain data points.

The fact that the Biden administration has proposed a 30 percent tax on the electricity used by cryptocurrency miners, including in its most recent budget request, adds to the concerns that the industry could be unfairly targeted.

Groups had also raised concerns about the EIA collecting information on machine types, locations of data centers and energy contracts.

Instead, Mapes said, the industry could tell a compelling story about its unique role in grid planning. Mines can support renewable energy, he said, by soaking up energy that might otherwise be curtailed or by locating with large new energy developments. And by ramping up and down, he said, the projects can help ensure stability on the grid.

A responsible partner could even sacrifice mining at a time when prices are high to accommodate a request to cut back on load, according to Mapes.

Depending on the utility and service area, miners may also be compensated for reducing their load.

Isaac Holyoak, chief communications officer for the Nevada-based cryptocurrency firm CleanSpark, said the company emphasizes open communication with utilities and power providers. CleanSpark, he said, targets communities that have excess energy and then seeks contracts that allow utilities to call on them to curtail it during times of need.

Those instances, he said, are generally infrequent, often representing just a few hours during a year.

Transparency is the most important thing, Holyoak said. Our customers are the utilities. We want a mutually beneficial relationship so we both get something out of it.

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Unsolved mystery: How much power is crypto using? - E&E News by POLITICO

Cryptocurrencies are getting a lot of attention in the Eurozone lately. People are curious about why money is flowing into these digital currencies and what it means for trading. In this article, well take a closer look at why more money is coming in, how people are trading cryptocurrencies, the challenges they face, and what the future might hold.

Lots of money is pouring into cryptocurrency markets in the Eurozone. Why? Well, rules about cryptocurrencies are becoming clearer, economies are changing, and people worldwide are becoming more interested in digital money. This all adds up to more money being invested in cryptocurrencies.

Margin trading is akin to taking out a loan to invest in cryptocurrencies. This approach can potentially boost your profits, as it allows you to trade with more money than you actually have. However, its crucial to grasp that this amplified potential for gains also comes with increased risk. If the market moves against your position, you could end up losing more than your initial investment. Therefore, its essential to thoroughly understand the risks associated with margin trading before diving in.

Bitcoinist offers a comprehensive list of top crypto exchanges with margin trading services. Whether youre a seasoned trader or just starting out, these platforms provide the tools and resources you need to engage in margin trading with confidence. Dont miss out on the opportunity to maximize your trading potential with margin trading.

Trading cryptocurrencies in the Eurozone is fast-paced. People are buying and selling different digital currencies on many different websites. This creates a lot of action in the market, with prices going up and down quickly. Understanding how this trading works is key for anyone getting involved.

But its not all smooth sailing. There are some big challenges. Rules about cryptocurrencies are still uncertain, which makes it hard for investors to feel safe. Plus, there are worries about security, like hackers stealing digital coins. These challenges can make investing in cryptocurrencies risky.

Rules about cryptocurrencies vary from country to country in the Eurozone. Some places have clear rules, while others are still figuring things out. Clear rules could make people feel more confident about investing in cryptocurrencies.

Despite the challenges, the future looks bright. Big companies are starting to get interested in cryptocurrencies, and technology keeps getting better. This could mean more chances for everyone who wants to get involved.

1. What is margin trading, and how does it impact cryptocurrency markets?

Margin trading lets you borrow money to invest in cryptocurrencies, which can help you make more money, but it also means you could lose more if things go wrong.

2. What are some key factors driving capital inflows into Eurozone cryptocurrency markets?

Clearer rules, changing economies, and more interest in digital money are bringing more money into Eurozone cryptocurrency markets.

3. What are the main challenges facing Eurozone cryptocurrency markets?

Uncertain rules, worries about security, and concerns about fair trading are some of the main challenges facing Eurozone cryptocurrency markets.

4. What are the prospects for future growth in Eurozone cryptocurrency markets?

The future looks promising, with big companies getting interested in cryptocurrencies and technology improving. This could mean more chances for people who want to invest in cryptocurrencies.

In summary, cryptocurrency trading is picking up speed in the Eurozone. Understanding the trends, challenges, and future possibilities can help investors make smart decisions in this exciting but sometimes risky market.

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Exploring Cryptocurrency Trading in the Eurozone: What's Happening and What's Next - Modern Diplomacy

The U.S. Treasury Departmentwants more tools to curb terror financing.

Deputy Secretary Adewale O. Adeyemois due to testify before the Senate Banking Committee Tuesday (April 9) and ask lawmakers for greater authority to block terrorist groups and state actors for using things like overseas cryptocurrency exchanges to fund their causes.

Our problem is that actors are increasingly finding ways to hide their identities and move resources using virtual currency, Adeyemo said intestimonyreleased ahead of the hearing.

These groups continually seek new ways to move their resources in light of the actions we are taking to cut them off from accessing the traditional financial system, he added.

Per the testimony, the last year has seen Irans Quds Force send crypto to militant groups Hamas and the Palestinian Islamic Jihad in Gaza. Adeyemo said the Treasury took action against networks that sent smallerdonations to Hamas.

The more effective our targeting has been, the more reason there is for these terrorist groups to look into virtual assets, Adeyemo said. And, to be clear, its not only terrorist groups, but state actors like theDPRK and Russiaas well.

The Treasury department wants Congress to greenlight a secondary sanctions tool aimed at overseas digital-asset providers involved in illicit finance.

While we have had some success in rooting out illicit finance in the digital asset ecosystem, we need to build an enforcement regime that is capable of preventing this activity as more terrorists, transnational criminals, and rogue states turn to digital assets, Adeymo said.

Last month, the Treasury Departments Office of Foreign Assets Control (OFAC) cited 13 Russia-linked FinTechs for allegedly using cryptocurrencyto avoid sanctions.

Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine, Brian Nelson, under secretary of the U.S. Treasury for terrorism and financial intelligence, said at the time.

As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system, he added.

Days later, Bloomberg News reported that authorities in the U.S. and Great Britain were investigating more than$20 billion in cryptocurrency transfersthat moved through an exchange based in Russia.

Originally posted here:
Treasury Asks Congress for Stronger Crypto Sanction Powers - PYMNTS.com