Bitcoin price gained pace after it broke the USD 43,500 level. BTC broke the USD 44,000 resistance and it even tested the USD 45,000 level. The price is currently (04:35 UTC) correcting lower, but the bulls might be active near USD 44,000 or USD 43,500.
Similarly, most major altcoins could correct lower. ETH spiked towards USD 3,175 before it dipped below USD 3,100. XRP is struggling to settle above the USD 1.00 pivot level. ADA could extend its increase above USD 2.35 and USD 2.40.
Total market capitalization
Source: https://www.tradingview.com/
Bitcoin price
After a close above USD 43,500, bitcoin price was able to clear the USD 44,000 level. As a result, BTC extended its increase and tested the next major resistance at USD 45,000. The bears were active near USD 45,000, resulting in a downside correction. On the downside, an immediate support is near USD 44,000. The next key support is now forming near USD 45,500, below which the price could struggle in the coming sessions.
On the upside, an initial hurdle is near the USD 45,000 level. The next major resistance might be USD 45,500, above which the price might test USD 46,200.
Ethereum price
Ethereum price was able to clear the USD 3,150 level, but there was no upside continuation. ETH failed to test the USD 3,200 resistance and corrected lower. It traded below USD 3,100 and it might even revisit USD 3,025. The next major support is near USD 3,000.
If there is a fresh increase, the bulls might gain strength for a test of USD 3,200. To continue higher, the price must settle above USD 3,200.
ADA, LTC, DOGE, and XRP price
Cardano (ADA)settled above the USD 2.20 level and it extended its increase. The price was able to surpass the USD 2.30 level before correcting lower. The next major resistance is near USD 2.35, above which the price could revisit the USD 2.50 level. If there is a downside correction, ADA might find bids near USD 2.20.
Litecoin (LTC) is consolidating near the USD 160 level. An immediate hurdle is near the USD 165 level. A clear break above USD 165 could start a steady increase. The next major resistance is near the USD 175 level, above which the bulls might test the USD 188 level.
Dogecoin (DOGE) is holding gains above the USD 0.220 level. However, it is facing resistance near the USD 0.230 and USD 0.232 levels. A close above USD 0.232 may possibly open the doors for a move towards the USD 2.50 level.
XRP price is struggling to settle above the USD 1.00 level. There is also a key hurdle near USD 1.05. A close above USD 1.00 and USD 1.05 could set the pace for a larger increase. If not, the price could dip towards the USD 0.880 support.
Other altcoins market today
Many altcoins are up over 5%, including REN, RUNE, NEAR, XTZ, ONE, TEL, CRV, GRT, QNT, COMP, and SHIB. Out of these, REN rallied almost 24% and surpassed the USD 1.00 level. Meanwhile, SUSHI, FTM, and HBAR are down by 4%.
Overall, bitcoin price is trading in a positive zone above USD 44,000. BTC could correct lower in the short-term, but the bulls might remain active near the USD 43,500 level.
Hackers took over the Bitcoin.org website and displayed the classic double your money scam for a few minutes today. Apparently, it was a DNS hack. Luckily, the Bitcoin community took notice and alerted Cobra, the pseudonymous website owner, as well as the company that hosted the domain. A few minutes later, Bitcoin.org was down. Sadly, a credulous person was faster than them and sent 0.4 BTC to the scammer’s address… or did he?
The transaction exists, but there’s a rumor that it might’ve been the scammers themselves, trying to make the operation look reputable. Just like a busker who put some change in his hat to encourage others to contribute. However, that’s just a rumor. Someone might’ve been scammed.
In any case, everybody else should thank Matt Corallo, a Bitcoin Core contributor who took it upon himself to contact the domain name registrars and managed to convince them to temporarily take down the site before some catastrophe happened.
What Does The Bitcoin.org Owner Think About All Of This?
When Cobra announced the Bitcoin.org hack, he or she said, “Currently looking into how the hackers put up the scam modal on the site.” So far, there’s no information on that. Cobra also said that Bitcoin.org “May be down for a few days,” but luckily that wasn’t necessary.
https://t.co/OsFgRFRRZb has been compromised. Currently looking into how the hackers put up the scam modal on the site. May be down for a few days.
Earlier in the day, Cobra contacted via Twitter their new hosting company Cloudflare and told them that the website has never been hacked, and now that he moved to their servers, this happened. The company responded, and eventually, the original tweet disappeared.
BTC price chart for 09/23/2021 on Bittrex | Source: BTC/USD on TradingView.com
Does This Have Anything To Do With Craig Wright AKA Faketoshi Nakamoto?
A few months ago, both Cobra and Bitcoin.org made worldwide news. Craig Wright, Australian entrepreneur and Satoshi Nakamoto cosplay artist, got a UK court to order the website to remove the Bitcoin Whitepaper from its servers. At the time, Yahoo! finance informed:
“Cobra, the pseudonymous creator of the Bitcoin.org website, has been ordered by London’s High Court to discontinue hosting its copy of the Bitcoin white paper.
Citing copyright infringement brought forward by nChain Chief Scientist Craig Wright, the judge had no option but to rule a default judgment because Cobra chose not to make an appearance.”
Does the hack have anything to do with Craig Wright? There’s not a single clue to indicate that, but, rumors are flying. He’s the only one incentivized to attack Bitcoin.org, they say. However, 0.4 BTC is a pretty great incentive. Maybe the scammers were just interested in scamming.
In any case, to close all the loops, Yahoo quotes Cobra explaining why he chose not to make an appearance in court:
“Unfortunately the court rules allowed for me to be sued pseudonymously, however, I couldn’t defend myself pseudonymously. So I was put in an impossible situation of losing my privacy or losing the case in a default judgment.”
So, to sum it all up, Bitcoin.org is back up again and no one scammed you. All is well that ends well.
Former Monero developer Riccardo Spagni has been released from a U.S. prison where he reportedly spent “sixty-one days in solitary confinement.” The developer’s release was prompted by the failure of South African authorities “to make a timely submission in support of an extradition request.”
South African Government Fails to Submit Extradition Documents
Spagni was arrested in the U.S. while en route to Mexico. His arrest by U.S. law enforcement had been made courtesy of a request by the South African government, which wants to extradite Spagni.
However, after South African authorities failed to submit the necessary documents for the extradition hearing, the U.S. court subsequently ordered Spagni’s release. With Spagni now out of prison, his legal representatives, according to a report, are now seeking to access the documents that were used to make the arrest.
“Spagni now seeks information already in the possession of the [US] Government, namely South Africa’s submission for provisional arrest,” the legal representatives explained.
Once obtained, the lawyers said this information will be used to “make an informed decision about waiving extradition while out of custody and determine if South Africa’s provisional arrest request cites an arrest warrant within the treaty.”
Spagni Planning to Return to South Africa
Meanwhile, Spagni also confirmed via his Twitter account that he was out of jail and is now working with his attorneys to find a solution for the fraud case. Spagni said in a tweet:
I am very pleased that the U.S. court has released me. I am actively working with my attorneys on a way to return to South Africa as soon as possible so I can address this matter and get it behind me once and for all. That’s what I’ve always wanted to do.
Spagni’s legal troubles started after his former employer, Cape Cookies, accused him of defrauding the company of an equivalent of $98,200. This offense is alleged to have occurred between October 1, 2009 and June 8, 2011, when Spagni was an employee of Cape Cookies.
After some delay, Spagni’s court appearances were finally scheduled for March 24 and April 19, 2021. However, before the commencement of the hearing, Spagni left South Africa for Bermuda, where he briefly stayed before leaving for the U.S. According to a report, Spagni and his wife are believed to have entered the U.S. on April 19, the same day he was scheduled to appear in court in South Africa.
It is this failure to attend a scheduled court hearing that prompted the South African government to lodge an extradition request with U.S. law enforcement.
The decentralized exchange (dex) platform Orca has announced the platform has raised $18 million in a Series A financing round with Polychain, Placeholder, and Three Arrows co-leading the funding. The dex platform is a Solana-based project that aims to be the “go-to swap” platform for Solana.
Solana’s Orca Gets an $18 Million Capital Raise
On Wednesday, the Solana-based decentralized finance (defi) service Orca revealed the team has raised $18 million in a Series A funding round. The investment, Orca says, will “jumpstart our path toward making Orca the go-to swap for the Solana ecosystem.”
Solana (SOL) has seen a massive increase in value gaining roughly 5,184% in 12 months. The Solana protocol has attracted the development of all kinds of defi projects. Defi projects like Serum, Solaris, Parrot, Solrise, Dexlab, Senswap, Spiderswap, Solend, Port, Sypool, Solanax, Hydraswap, and more.
At the time of writing, the Orca defi protocol has $300 million total-value locked (TVL) into the platform. Orca details that the $18 million in financing stems from Three Arrows, Polychain, and Placeholder as the co-leads. Participation also came from firms like Defiance, Zee Prime, Coinbase Ventures, Solana Capital, Jump Capital, Sino Global Capital, and Collab & Currency.
“Not only is Orca responsive and affordable, but it is finance made fun, with a cheery experience, community, and broader values-based mission,” Placeholder partner Chris Burniske said during the announcement. “It’s teams like Orca that will bring crypto to the mainstream and redefine how we think of finance in our everyday lives.”
Orca launched in February 2021, by the Yutaro Mori and Grace “Ori” Kwan and the project started with no outside funding. “Since then, we’ve expanded the core team to 8, spanning three continents, broad professional experience, and many hobbies,” the Orca team said.
Three Arrows Executive: ‘Orca’s AMM Is a Critical Addition to the Solana Ecosystem’
The automated market maker (AMM) also has a native token called ORCA which is used for trading fees and liquidity pools on Aquafarms. Kyle Davies, the co-founder of Three Arrows believes a Solana AMM like Orca is needed.
“Orca’s AMM is a critical addition to the Solana ecosystem,” Davies remarked. “We are excited by the strength of the team, performance, and their community-focused mission,” he added.
While Solana has seen significant gains in 2021 and is now the seventh-largest crypto asset in terms of market cap, the network suffered an outage on September 14, 2021. Solana users were not pleased with the situation and following the aftermath, the Solana project team published an official blog post that discusses the outage in-depth with a detailed timeline of the events.
Dapper Labs has pulled in another $250 million in funding, as the Spanish soccer league plots its own Top Shot-like NFTs.
Dapper Labs helped lead the charge of NFT collectibles into the mainstream consciousness earlier this year with the rise of NBA Top Shot, and now the firm has announced plans to launch another sports-centric NFT marketplace based on one of the world’s leading soccer leagues.
Today, Dapper revealed a collaboration with LaLiga, the top-level Spanish soccer division, and all of its teams—including Real Madrid, FC Barcelona, Atlético de Madrid, and more. Like NBA Top Shot, the marketplace will live on Dapper’s own bespoke Flow blockchain, with plans to launch the project in summer 2022.
Additionally, Dapper Labs has announced a new $250 million funding round led by investment firm Coatue, with participation from existing investors Andreessen Horowitz (a16z), GV (formerly Google Ventures), and Version One Ventures, as well as new investors BOND and GIC.
The latest funding round values Dapper Labs at $7.6 billion, a source close to the company told Decrypt. Dapper previously raised $305 million in March at a reported valuation of $2.6 billion, with investors such as retired NBA star Michael Jordan and current pro Kevin Durant participating in that round.
The new LaLiga project will be functionally similar to NBA Top Shot at its core, focusing on NFT “moments,” or licensed video highlights of top plays. An NFT acts like a deed of ownership for a digital item, and in the case of Top Shot, you’re buying what’s effectively a video-infused digital trading card. The LaLiga marketplace will follow a similar format.
However, soccer doesn’t provide quite the same steady flow of showy, in-your-face plays as basketball does. Caty Tedman, Dapper’s Head of Partnerships, told Decrypt that creating LaLiga NFT moments will require more “finesse,” and require Dapper to be “really conscientious about how we treat content.” On the other hand, there’s a lot more shared history amongst teams in the league, and rivalries can make for compelling content.
“A lot of the things that make sports special are the things that we want to lean into,” she said. “If you look at some of the rivalries in La Liga, you’re talking about literally 100-year rivalries, and we don’t really have that in North American sports. We think that it’ll be really fun to lean into the derbies and El Clásico.”
Dapper Labs and LaLiga began talking back in early 2019, Tedman said, well before NBA Top Shot launched the following year. It took a while to pin down the details and help the league become comfortable with NFT collectibles, but Tedman suggested that the global reach of soccer could help the marketplace tap into an even broader audience than Top Shot.
Dapper’s announcement comes on the back of LaLiga joining Sorare, an Ethereum-based fantasy soccer game built around collectible NFT player cards. Sorare—which announced a $680 million funding round at a $4.3 billion valuation this week—doesn’t use video footage for its NFTs, plus the fantasy sports angle is a differentiator from what Dapper has planned.
“I hope that there’s room for different approaches and takes,” Tedman replied, when asked whether multiple LaLiga NFT projects could dilute the market. “I think we’re very focused on distilling the best moments of sport, and making those something that you keep forever.”
“I would hope that there’s a world in which we all work together, and that this ecosystem is truly playing into the metaverse we all keep talking about,” she added. “I think if we each do what we’re good at, there’s a ton of room to play.”
LaLiga will mark Dapper’s second sports-centric marketplace when it opens next year, following NBA Top Shot, which recently added the WNBA to its platform. The firm also announced plans with Ultimate Fighting Championship in February 2020, but has yet to reveal the fruits of that collaboration. Still, you can bet on additional sports NFT projects from Dapper Labs ahead.
“Oh, for sure,” Tedman told Decrypt. “In the near future, we’ll have more to say on that topic.”
MetaMask is one of the most useful wallets in the crypto space, allowing you to access Ethereum’s vast ecosystem. Why wouldn’t you, with all the interest that Ethereum is stirring?
NFT sales are going through the roof, and corporations are releasing their own. You may be wondering how to partake in this new ecosystem between digital artists and buyers of speculative assets. Even more, you may have heard of DeFi protocols and want to become a yield farmer for a steady passive income.
These are but just a few reasons to get up and ready with a good wallet. This guide to MetaMask will teach you the fastest way to access those services.
In this guide:
Behind the scene — why would you need MetaMask?
Before we begin with a guide to MetaMask, it is important to understand what you are accessing with it. When blockchain technology first birthed bitcoin in 2009, its blockchain was narrow-focused, with the goal being a peer-to-peer payment system. As you know, the cryptocurrency is stateless, borderless, deflationary, and open money vs. the controlled, centralized, and inflationary fiat money.
Over time, Bitcoin development diverged into two specializations — bitcoin cash (BCH) for fast, cheap daily transactions and bitcoin (BTC) akin to digital gold that has more expensive transactions. Meanwhile, thousands of other altcoins arrived, trying to ape the cryptocurrency’s success. Among them, ethereum (ETH) had an entirely different development philosophy.
The Ethereum blockchain had a general-purpose use case in mind at the time of conception, instead of just facilitating cryptocurrency. By having smart contracts running within its data blocks, it extended its flexibility far beyond a simple payment system. This allows digital and automated forms of legal or financial contracts, with decentralized and security features from blockchain technology.
In essence, Ethereum created Decentralized Finance or DeFi. It primarily involves a series of smart contracts that collectively form a decentralized application or dApp.
These dApps make it possible to digitize every banking service you could think of — lending, borrowing — without the banking system itself. Not only that, but marketplaces and games can also run on Ethereum’s back. They all use Ethereum’s native cryptocurrency — ETH — to pay for various fees. Additionally, they may exchange ETH for the dApps’ tokens.
What is MetaMask then?
MetaMask is a crypto wallet that supports ETH-based tokens, ERC-20 or ERC-721, besides ETH itself. Moreover, you will see in this guide to MetaMask that it seamlessly connects to any Ethereum-based dApp once you install it as a browser extension. Therefore, when you visit any dApp, such as NFT marketplaces or yield farming protocols, you will be able to connect your MetaMask wallet to it, fluidly moving funds how you see fit.
This integration with your web browser — Edge, Chrome, Firefox, or Brave — makes it extremely convenient and popular, as you can see from these rapidly growing adoption numbers.
The integration between web browsing, blockchain, and DeFi represents Web 3.0, a new kind of internet in which both financial services and information is decentralized. In other words, Ethereum is the tech platform for finance 2.0, and MetaMask is the gateway into this exciting ecosystem.
How to install MetaMask — a step-by-step guide
The first step to gaining access to Ethereum’s rich ecosystem of dApps is to download the MetaMask extension from the official website. You will see support for all three major operating systems — Windows, iOS, and Android. Correspondingly, depending on your platform, MetaMask can either be desktop or mobile.
Once you have installed MetaMask into your favorite browser, click on the “get started” prompt in order to “Create a Wallet.”
This is the critical part of the installation, in which you will create a private key to access your funds. After all, crypto wallets are not fund holders, just containers for private keys which grant access to blockchains. Then, each time you access them with private keys, your transaction is recorded on the digital ledger.
Seed phrase as your wallet restoration point
After clicking on the “Create a Wallet,” you will be asked to create a password for the MetaMask app itself. The most important part comes after when you are asked to create a backup phrase. Also called seed phrase, this 12-word safety guard allows you to recover your wallet even if your device is lost.
As you can see, you have two options — Import wallet and Create a Wallet. If you had already lost your device and all data on it, you would then recover your crypto assets by selecting the “Import wallet” with your seed phrase.
Accordingly, try to keep the 12-word seed phrase as a separate item, safely stored on a piece of paper or a hardware password manager.
You will see this screen on token swapping after you safely store your seed phrase.
As mentioned previously, MetaMask wallet allows you to exchange between ETH and dozens of DeFi tokens. You can see ETH as the master cryptocurrency for the whole DeFi ecosystem. Protocols like Uniswap or 1inch are mini-ecosystems, each one having a token for governance and network fees.
How to add funds to your MetaMask wallet
However, before you can start token swapping or anything else with MetaMask wallet, you have to have funds. This means that you must convert fiat currency to ETH first. MetaMask wallet gives you two options — Wyre payment processor or transfer using a blockchain address.
Not many people have Wyre, and most buy cryptocurrencies from exchanges, so the second option is the most convenient. Of course, this means that you would have to have an account on a crypto exchange to buy some ETH. Coinbase, Binance, StormGain are just some of the most popular crypto exchanges from which you can easily buy cryptocurrencies once you complete your KYC (Know-Your-Customer) procedure.
If you already have an account with some ETH, deposit it into MetaMask in the Send/Receive section. You will see the section when you click on Wallet:
Copy the receive address of your MetaMask wallet
Paste this receive address into your exchange’s send textbox
Execute the transfer of ETH from your crypto exchange (send) to the MetaMask wallet (receive)
Keep in mind that your crypto exchange account is also a wallet, but you don’t own your private key. Therefore, such a wallet is custodial. In contrast, MetaMask is a non-custodial wallet, with which you own your private key. You can, at any time, access and export your private key if you click on “Account details.”
Keep your private key safe
You will then see the “Export Private Key” option, to both view it on Etherscan or export it. Of course, if someone gains access to your private key, they would also gain access to all of your crypto assets. This is what crypto exchange hacks are all about.
For the convenience of using an exchange, it safeguards your private key, but if hackers pilfer them, they also steal all the exchange’s funds. This is why you should always use a non-custodial wallet, preferably a hardware one.
Fortunately, MetaMask supports the most popular hardware wallets — Trezor and Ledger.
With the ETH funds in your wallet, the next step is using it to access dApps.
How to connect your MetaMask wallet to dApps
Remember, dApps themselves are smart contracts running on Ethereum (others like BSC, Cardano, or Solana have their own dApps). The surface level of dApps is their web interface. This is what you see when you connect to Uniswap — one of the most popular decentralized exchanges used for yield farming.
When you go to Uniswap, you will see “Connect to a wallet” in the top-right corner.
With MetaMask installed, a confirmation notification will appear asking to connect your account and the corresponding dApp.
Once you click on “Next,” the dApp will have access to your wallet’s funds. You can then use them for staking in a liquidity pool for token pairs. When traders use that pool to exchange tokens, you get a cut. This is called yield farming. In Uniswap, it will be the upper left option, just next to Swap.
To get the most advantage of yield farming and maximize your returns, it would be best to read this yield-farming guide first. In the same manner, as you connect to Uniswap, you will also be able to connect to NFT marketplaces and blockchain games, effectively all dApps running on Ethereum.
The matter is quite straightforward, even if it is your first time with MetaMask. After clicking the wallet icon in the top-right, you’ll see a list of wallets with direct download links. For example, this is how OpenSea, the top NFT marketplace, offers its web wallet connection.
Likewise, Rarible.com, the second-largest NFT marketplace, will have it in the same upper-right corner.
How else can you take advantage of MetaMask?
Lastly, if you want a more gamified dApp experience, Axie Infinity is a compelling choice. Since July, it has generated $485 million in revenue. Axie Infinity is a yield farming adventure where you evolve your fantasy creatures, complete quests, manage kingdoms, and trade NFTs.
If this pokemon-like venture interests you, we already have a comprehensive guide on Axie Infinity. Many people use the game as a source of passive income, so it is worth learning how it all works. Now that you can use MetaMask, you’ll have access to myriad opportunities of the growing Ethereum dApp ecosystem.
Ever since the primary cryptocurrency recovered from its dip to $46,300 at the start of the month, the bulls have had control over the market. They pushed the asset to and beyond $50,000, as reported yesterday.
Furthermore, bitcoin went to just over $51,000, which became the highest price tag since the mid-May correction. However, as it happened with the previous attempts to overcome this particular level, BTC was rejected and dumped by a few thousand dollars.
This resulted in a drop to around $49,000 hours ago. As of now, though, bitcoin has reclaimed some ground and currently sits just beneath $50,000 once again.
Its market capitalization is just shy of $950 billion, while BTC’s dominance over the alternative coins stands still at over 41%.
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Most alternative coins have also calmed since yesterday. Ethereum went to a high of just over $4,000 but has failed to continue upwards. A quick retracement has driven the second-largest cryptocurrency down beneath $3,900.
Further declines come from Cardano (-2%), Ripple (-2.5%), Solana (-5%), and Polkadot (-3%).
On the other hand, Binance Coin, Dogecoin, Uniswap, and Litecoin are slightly in the green.
Polygon is the most significant gainer from the larger-cap altcoins. MATIC has surged by nearly 20% in a day to around $1.75.
Quant’s performance has trumped the rest of the top 100 coins. QNT has skyrocketed by 27% and has neared $250. IOTA (16%), Axie Infinity (15%), Filecoin (12%), and Siacoin (10%) follow suit.
Consequently, the cumulative market cap of all crypto assets has remained rather stable as well and is just below $2.3 trillion.
CryptoApa | Cryptocurrency News, Market Cap and Prices
The U.S. securities watchdog is reportedly investigating the development firm behind the biggest decentralized cryptocurrency exchange (DEX).
The Wall Street Journal first reported on Friday that the Securities and Exchange Commission (SEC) are conducting a civil investigation into Uniswap Labs. According to WSJ, “people familiar with the matter” say enforcement attorneys are seeking information on how Uniswap is used and how the team behind it markets the platform.
A Uniswap Labs rep told the Journal that the firm is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”
More broadly, the news signals that the SEC’s recent talk on decentralized finance or DeFi is translating into action — and that a new era of enforcement is on the way.
General Counsel for Delphi Labs Gabriel Shapiro said crypto-focused lawyers have been waiting for the dam to break on DeFi enforcement.
“Lawyers in the space have been aware and talking for about a month about how DeFi projects are starting to get letters from the SEC, inquiries from other regulators, and this is just it becoming more public,” he said.
In addition to its inquiry into Uniswap, the SEC’s division of enforcement recently sent letters to multiple startups as part of an effort to examine crypto lending services, according to the Journal.
Sarah Brennan, a blockchain-focused lawyer with Harter Secrest & Emery LLP, said the new developments could signal the start of a larger theme of enforcement in this new era of the SEC.
“My feeling is this is part of a broad sweep, similar to what happened with ICOs in 2018,” said Brennan.
Big enough
Regulators have yet to reckon with the decentralized finance (DeFi) space and how to regulate DEXs.
Last year, Commissioner Hester Peirce told The Block she expected DeFi would “challenge” the way the agency regulates, but it was unclear when the space would grow big enough to draw the attention of regulators.
“It’s big, but it’s still all relative,” she said at the time. “So if it got even bigger, then I think you’d see more regulatory attention, but that’s not to say that there isn’t any regulatory attention being paid.”
Peirce made those comments in September 2020, when DEX volume had broken records by topping $30 billion. By May, DEXs reached nearly $163 billion in volume. In short, DeFi has gotten bigger — and Uniswap leads the way.
The signs
As DeFi grew, Gary Gensler ascended to the head of the SEC. As a former lecturer on blockchain at MIT, many view Gensler as a more informed regulator, perhaps sympathetic to burgeoning technology — but it also means he knows where to look for activity lacking in investor protection.
Gensler’s hinted that DeFi could be high on his list of priorities. At the start of last month, he delivered a speech at the Aspen Security Forum in which he said investor protection in crypto is lacking, calling the space “the Wild West.” He took aim specifically at exchanges, both centralized and decentralized, saying the venues can implicate securities laws if they support tokens that could be considered securities.
The SEC then announced its first settlement with a DeFi project in DeFi Money Market and operators Gregory Keough and Derek Acree. Days later, Gensler called for DeFi regulation in an interview with the Wall Street Journal, saying DeFi projects that reward participants with valuable tokens or similar incentives could still be regulated since a core group of developers are often behind the project.
Brennan said the industry should take Gensler at his word, and the reported Uniswap investigation shows he means business.
“Based on recent pronouncements, particularly Gensler’s remarks before the Aspen Security Forum, I do think this is a big deal,” she told The Block. “We should expect the SEC under Gensler to be an aggressive regulator, both in terms of their reach and their enforcement efforts.”
Early days
But as Jake Chervinsky, General Counsel at Compound pointed out in a tweet: “An investigation is not an allegation of wrongdoing, it’s just how the SEC gathers information.”
The reported investigation into Uniswap is currently only a request for the developers to voluntarily supply the information. No subpoenas have been issued. Though it’s coming from the enforcement division, it’s not yet an enforcement action against the DEX.
“It also shouldn’t worry anyone too much (yet),” Chervinsky tweeted.
Any movement could take a long time, according to Shapiro. Requests for information mean ensuing conversations on how the space works before getting to the question of whether wrongdoing may have occurred and furthermore in the event of a settlement.
If the SEC decides to pursue enforcement, settlement discussions take a long time. It could be months before a resolution — one that would set the tone for investigations into other DeFi projects — is reached.
The SEC also could mainly be looking to catch up to a space that’s growing at a fast clip by soliciting information from one of its biggest players. But even if no enforcement comes, voluntary requests for information have costs.
As ShapeShift founder Erik Voorhees pointed out in a tweet
It should be highlighted that when a regulator "gathers information" it means millions of $ of legal costs and millions more in lost productivity incurred on the target.
When no wrongdoing is found, the regulator doesn't reimburse for their transgression, nor even offer apology
With the event of ether (ETH) launching above the USD 4000 threshold in May 2021, one couldn’t help but wonder whether decentralized applications could be nearing mainstream adoption. With NFTs becoming a household name and thousands of applications being run on the Ethereum network, it’s no wonder the token has become so hot recently.
With all of this happening, Ethereum Serenity, or Ethereum 2.0, is one of the most hyped upgrades in the industry. And with that, the question that brews in the minds of bullish Ethereum fans is: How do I stake my ETH for the upgraded version of the most used protocols around?
Let’s explore.
What is Ethereum 2.0?
Serenity, or Ethereum 2.0, if successful, will have the usability, scalability, and sustainability to operate for users all over the world. In its current state, Ethereum has high transaction fees, sometimes even costing USD 200 to go through. And even if it’s usable, one would find it difficult to scale and create a whole new world of next-generation decentralized applications if the transactions per second remain at 10-15 when traditional financial tools like Visa operate on 17,000. Also, mining uses immense electrical energy. Although media often exaggerates this, it is still great that this issue will be handled by Proof-of-Stake, which is an alternative to the mining mechanism Proof-of-Work.
Once Proof-of-Stake comes out, Ethereum will operate on an alternate consensus mechanism. It currently runs on Proof-of-Work, which uses mining in order to validate blocks. Proof-of-Stake runs on validator nodes and should be more usable, scalable, and sustainable.
This will make DeFi applications like Aave and Compound easier to run. If decentralized financial tools need USD 100 to make a single transaction, not many will believe in decentralized protocols as an alternative to mainstream finance. Also, if it takes that amount to sell a piece of digital property or artwork, one would wonder about the widespread use of it all.
Ethereum 2.0 aims to put to an end all of those concerns and allow its extensive worldwide user base to grow and make use of the protocol smoothly.
Source: Adobe Stock (edited).
Why Stake Ethereum for Ethereum 2.0?
The main reason why many would probably want to stake Ether is to acquire the APR or Annual Percentage Revenue, which can range from 6% – 15%. The minimum requirement is 32 ETH, so you can net anywhere from 2 – 5 ETH with these rates. (disclaimer: this isn’t financial advice).
What’s the catch? You have to lock up your ETH for years. To some who don’t have 32 ETH to just lock up on the fly or like to use ETH for other decentralized applications, they would be hesitant to choose this option. You have to do this until the Ethereum 2.0 protocol rolls around, which may not take place until years from now. For those who have limited ETH or use them regularly, staking Ethereum for Ethereum 2.0 won’t be a viable option.
Alternatively, you can put them on an exchange to stake and earn rewards, but you aren’t necessarily running a validator node and staking for Ethereum 2.0.
The other reason why someone would want to stake ether is to help out the network. In order for the network to secure legitimacy, it needs to be validated by nodes, which are the individual computers that have staked ETH that are running. If you want to validate the network, help it out and get a decent reward while doing so, that could be your reason for staking.
Possible Risks of Staking ETH
Always make sure to have all of your bases covered and consult a financial advisor if you’re planning to be serious with staking Ethereum. The rewards are promising, but there are risks involved.
1. What will be Ethereum 2.0’s value?
While this may not be a problem in the long run if Ethereum 2.0’s value is incredibly high, you should still take note that the value of Eth 2.0 is unknown as of this point and will likely be different than Ether. If you’re confident that Ethereum 2.0 will be a successful project, then you should be confident that running a validator node will be beneficial.
2. Liquidation
Another possible risk is a lack of liquidation. You will not be able to withdraw your earned ETH and your staked ETH until Ethereum 2.0 is launched, which might not happen for 2 years or possibly longer. If you are not a long-term holder and are planning to sell Ethereum in this bull run or the next, then this might not sit well with you.
If you believe that cryptocurrencies will be the future and are planning to hold onto it long term, running a validator node might be your choice. If you plan to hold ethereum for 5+ years, you have good incentives to do so with the rewards involved.
Although there are ways to stake Ether on exchanges, which would make them more liquid, doing so does not directly support the network or decentralization in general.
3. Bugs
And although Ethereum is one of the most reliable blockchain networks around and powers thousands and thousands of applications that are being used daily, you should still be aware that if there are any bugs. You may lose some or, in the unlikely worst scenario, all of your Ethereum in the case of an extreme bug. Although there have been very few instances of this happening, be aware that they are a possibility.
That being said, there are tons of investors already running validator nodes, so it isn’t as if you’re left on an island. You’ll be part of a whole Ethereum community that has already supported and staked on the blockchain for years.
Hardware Requirements for Staking Ethereum 2.0
Although not as intensive as mining, you still need a decent rig in order to set up a validator node. This is to ensure that the applications you are using to stake are running at optimal capacity. If you are planning to stake, then having the best possible setup will give you the necessary tools.
Prysm has these requirements for staking Ethereum:
Minimum specifications Operating System: 64-bit Linux, Mac OS X 10.14+, Windows 64-bit Processor: Intel Core i5–760 or AMD FX-8100 or better Memory: 4GB RAM Storage: 20GB available space SSD
Recommended specifications Processor: Intel Core i7–4770 or AMD FX-8310 or better Memory: 8GB RAM Storage: 100GB available space SSD
All of these specifications can be found on modern PCs, so they shouldn’t be too unrealistic for many crypto holders who are already planning to stake, given the barrier to entry already in place.
Keep in mind, just because these are the recommended specifications doesn’t mean that you won’t benefit from a stronger system. The stronger your system, the more failsafe it will be.
Costs of Staking ETH
The current price of ETH at the time of writing hovers around USD 2,500, meaning that USD 80,000 is already necessary to even have the possibility of the option.
This doesn’t factor in other costs like hardware and electricity to keep the node up and running. With all of these factored in, you will be spending a pretty penny to set one up.
If you are only planning to stake for ETH, then you can do this on several exchanges without factoring in hardware costs. Alternatively, there are multiple staking pools that you can choose from that may not require you to stake the full amount of ETH.
Best places to Stake for Ethereum 2.0
Although you can stake ETH on exchanges like Coinbase, it is probably better to use decentralized protocols to staking Ethereum. Not only does this keep up with the spirit of decentralization, but you are solely responsible for that validator node, rather than any of your stake being dictated by exchange or centralized application.
Setting up your own node through Prysm or the ones Ethereum suggests seems to be the way to go.
If you don’t have enough ETH, you can always stake in a pool. Although you are not running your own validator node, you are at least using your Ethereum to stake for rewards and allowing others to pool it and run validator nodes. In the coming months, more and more DeFi projects will come about that allow you to stake ether for Ethereum 2.0 in pools. A notable one is RocketPool, a decentralized way to stake, which is based on much of Vitalik Buterin’s own ideas about staking Ethereum 2.0. However, RocketPool and many of these other applications coming out are not available at the moment. RocketPool will also provide a way for you to stake your ETH 2.0.
Source: Rocketpool.net
So if you want to wait for these staking options to open up, then that might be better if you want to hold for a long time. This does mean that you will have to wait on the possible rewards since getting started early will earn you more rewards.
If you can’t wait to start earning on your extra ETH, then perhaps choosing the centralized versions out now would be better for you since you’ll immediately be starting to earn rewards. If you have the resources, both options are available.
Binance BETH?
Although the steps to stake on here are incredibly simple, this way you will stake BETH. BETH is a Binance token version of Ethereum which has near a 1:1 value to ETH. Although it is easy to do this on exchanges like Binance since they cover several of the costs you would have to make like hardware and electricity, keep in mind that this isn’t decentralized. You would also be earning BETH, which you can convert into ETH on the exchange.
If you don’t care so much about the values of decentralization and want something convenient, then you could use this method. Exchanges like Binance, Coinbase and Kraken all have a way of staking ETH.
Ethereum 2.0 Validator Node Staking Process
The official one requires you to have your own 32 ETH. It is recommended to use a hardware wallet to stake ETH as those are less susceptible to attacks than entirely hot wallets like Metamask.
1. For starters, go to the launchpad address. Click Become A Validator.
2. Read through the instructions and accept them. It’s important to read through all of them in order to have a clear picture of the staking process.
3. Ethereum recommends for you to have your own client ready to go to keep up the spirit of decentralization. All of them have their own instructions on set-up. Parity Ethereum is Ethereum’s own.
4. Next, you will choose the client for your node. The suggested one is Rust’s own Lighthouse which has its instructions, although you might like to try other clients, too.
5.Next, you’ll choose your command-line app. Make sure to download it from Github.
6. After that, you’ll need to jot down the seed phrase from the command prompt. And then you’ll upload your data.
After this, you can connect your wallet and become a validator. If you want to follow a step-by-step process on how to stake ETH for Ethereum 2.0, we also recommend watching this ETH 2.0 staking guide by popular crypto YouTuber Boxmining.
Congrats, you are officially staking and helping out the Ethereum network.
Four non-fungible token (NFT) projects stood out since their very recent launches: 0N1 Force, CyberKongz, Generativemasks, and Pudgy Penguins, per the latest report by data aggregator and analysis firm DappRadar. The first three have all been launched in August, while the last one was launched in the second half of July – all already recording significant results.
The 0N1 Force has seen one of the best starts of any NFT project, said the report, with all metrics looking “very solid.” In just seven days of existence, the collection generated over some USD 115.3m in total sales volumes, “a number that most of the collections have not even reached in several months.”
At the time of the report, its floor market (the floor price is the lowest price for collection items) capitalization is USD 92.4m, the highest sale – USD 622,835, the total volume – USD 115.34m, and the number of traders is 13,344.
The demand for 0N1 has spiked, reaching 3,987 unique owners, “making it one of the most distributed collections in the space.”
But while the demand is on the rise, the project may be heading towards a consolidation period. Still, it “has all the traits to become a top NFT collection going forward.”
Source: DappRadar
The CyberKongz (VX) project has generated more than USD 30.9m in two weeks, reaching more than 2,800 unique owners. Early investors are at least 1,114% up from the minting price, said the report.
Floor market capitalization is USD 35m, the highest sale – USD 389,606, total volume – nearly USD 31m, with 9,594 traders.
One of its strengths is the utility – “something that is always an advantage in the NFT space.” The project now seems consolidated, the demand is clearly in place, and when their Banana Shop is fully functioning, “the main metrics may spike again.”
“The biggest drawback is the high concentration, however, it is probable that owners will profit in the upcoming weeks,” per the report.
Source: DappRadar
Generativemasks is “a groundbreaking collection,” said DappRadar. The project has generated more than USD 10.7m in total sales volume since the launch. The floor price hasn’t seen a drastic increase, but early investors are at least 150% in the profit range.
Floor market capitalization is USD 7.92m, the highest sale is USD 9,054, total volume – USD 10.7m, with 7,696 traders.
While the generated volumes aren’t massive, “the demand is there.” It’s also a well-distributed project, with only 343 pieces held by the top 5 wallets. It’s also attracting both Larva Labs investors and Parallel Alpha owners.
The main concern is that the utility may disappear once the masks can be worn in a metaverse.
Source: DappRadar
The Pudgy Penguins generated USD 97.6m in five weeks in total sales volume with almost 25% happening in the last 7 days, and it has been one of the most traded collections in August. It has an established community, and the project reached mainstream media.
“Due to their low mint price, early investors are at least 11,733% above the initial cost,” said the report.
Floor market capitalization is USD 99.96m, the highest sale – USD 458,752, total volume – USD 97.6m, and the number of traders – 23,326.
Its strength is the high distribution level – Pudgy Penguins are owned by 4,547 unique owners, “clearing all questions regarding a potential manipulation risk.” Also, the demand keeps rising, continually pushing the floor price upwards.
However, the concerns include the storage process, described as “far from ideal in the NFT space,” as well as the lack of a clear roadmap. “If the team can improve those aspects, we’ll continue seeing the Penguins atop the NFT rankings in the upcoming months,” per DappRadar.
