Blockchain Bites: COMP x2, Reddit Scales and Factom Goes Bankrupt
The COMP governance token has seen massive increases (more than 270% day by day, according to CoinDesk's first mover team), as well as potential listings in Coinbase Pro and CoinFlip, a crypto-ATM network.
This wild, retail-driven speculation is also driving the value of Compound's intelligent contract. At $ 395 million, Compound is looking for the position of the DeFi king, who has long been occupied by the MakerDAO protocol. According to DeFi Marketcap, COMP MKR has already surpassed its fully diluted value by another value.
You read Blockchain Bites, the daily summary of the most important stories in blockchain and crypto messages and why they matter. You can subscribe to this and all CoinDesk newsletters here.
Related: Compound Tops MakerDAO, now has the greatest value in DeFi
This indicates a possible fundamental change in the DeFi credit standard. Compound is a credit protocol that allows users to leverage deposits and algorithmically set interest rates based on demand. COMP, the protocol's governance token, enables owners to vote on development decisions, including the type of collateral to be accepted.
Only started on Monday, with around 10,000 of the 4.2 million tokens reserved for community members in circulation, it is impossible to judge what comes next. To put it in the words of Mythos Capital founder Ryan Sean Adams: “Drunk stocks. DeFi sober. I wrote this Monday. I have hexed us. Because DeFi is now drunk too. "
DeFi has been completely overhauled by Compound this week. As long as the token price remains above $ 100, the effective market capitalization of COMP, the new governance token, is over $ 1 billion, although many of the tokens are illiquid. It is difficult to predict what will happen as only about 10,000 of the 4.2 million tokens reserved for community members have been released. However, here are some amazing data points:
Coinbase Pro announced Thursday that it will list COMP next week after investing in Compound's $ 8.2 million launch in 2018.
More than 10% of the total supply of USDC, the stable coin created by Circle and Coinbase, is currently restricted to compounds.
The total amount of tether (USDT) for compound has increased by almost 8,000% since June 11th.
FTX and FTX US will list both COMP and cUSDT, the composite version of Tether.
Ethereum Progress: Reddit and Hard Forks
Reddit announced a partnership with the Ethereum Foundation to find a layer 2 scaling technique for the Ethereum-based "Community Points" system, which may expand to 430 million website users. These tokens are earned by collecting upvotes for posts and can be used to purchase special GIFs or emojis. While ZK rollups and optimistic rollups are product-ready L2s, they are intended for exchange. "Many of these designs do not take into account the cost of getting tokens or entering the scaling system, which can be significant," explains Reddit. "Community Points distributions have cost an order of magnitude more gas than all other operations together, largely due to the storage costs in the chain associated with adding new users." Applicants are requested to submit a proof-of-concept by July 31, the review of which will be completed by September.
Related topics: DeFi startups based on a composite weight weigh with $ 200 COMP tokens
Ethereum's consensus algorithm isn't the only thing that changes with the introduction of Eth 2.0. The underlying cryptography itself is being revised based on leading research from the Electric Coin Company. A new elliptical pairing curve called BLS12-381 securely coordinates transactions in the Eth 2.0 network to demonstrate use and opens up opportunities for data savings and data protection solutions. The curve will be presented at the next Ethereum hard fork, Berlin, which is planned for July.
Bankruptcy & cuts
Factom declared voluntary bankruptcy and said it was currently unable to pay $ 7.5 million in debt. Chapter 11 enables companies to restructure and pay creditors over time. The company's board of directors submitted its restructuring proposal with its bankruptcy filing, which will be evaluated by the administrators. The company raised $ 18 million from investors in a series of financing rounds. Markus Braun, CEO of Wirecard, resigned on Friday after an inspection by EY revealed cash balances worth EUR 1.9 billion (over USD 2 billion) that the German payment processor could not take into account. (The Block) Finally, We.trade has reportedly fired around 50% of its employees, which corresponds to approximately 12 employees. (The block)
Blockchain polls may come to a phone near you, but that doesn't mean that technologists, politicians, or voters are happy. "There are many companies that are working on voting technologies and selling digital snake oil - overpriced garbage that has never been tested by independent experts or that we already know is unsafe," said Senator Ron Wyden (D-Ore .) in an email. "Cyber security experts agree that hand-marked paper votes are the safest way to vote." Voatz, the best-known blockchain voting app, has a number of security vulnerabilities that have been uncovered by researchers, but it also contains promises. "It is up to voters, lawmakers and election officials to decide if they want to take a risk," said Ben Powers of CoinDesk.
Partnerships, extensions and products
ParaFi Capital, a San Francisco-based investment firm focused on blockchain, has invested in Kyber Network and participated in its KyberDAO project. In the meantime, Komainu, a company with Nomura Holdings, CoinShares and Ledger, was officially founded on Wednesday. The UK-based Jersey Channel Islands company acts as a custodian and provides institutional investors with compliance and insurance services for their holdings of digital assets. Regardless, the Google-supported Internet of Things startup Helium wants to expand to Europe with blockchain support after it has already moved to over 1,000 US cities. (Decrypt) Finally, EY launched CryptoPrep, a cryptocurrency application that helps its US users file taxes. (The block)
Galaxy Digital, a crypto trading bank that never made a profit, relies on institutional investors to improve the company's assets. CEO Mike Novogratz said while Bitcoin started as a "retail-driven people's revolution," his "intuition" is that there will be "great [institutional] acceptance" over the next six to 24 months. "If very few hedge funds get into the room, my company will shit." Elsewhere, Jimmy Nguyen, president of the Bitcoin Association, the entity behind Bitcoin Satoshi Vision (BSV), accused Binance of hypocrisy after news was released earlier this week. The exchange's new mine pool was now the largest inspector of the BSV protocol. Nguyen said it was "a little too ironic" that Binance BSV deleted its main stock exchange in April 2019, but found it economically worthwhile for me. Meanwhile, John Cantrell of Juggernaut was able to hack into a 1 BTC wallet as part of Alistair Milne's social experiment. According to reports, he checked a trillion word combinations with several dozen GPUs rented by a cloud provider to unlock the wallet. (Decrypt)
Bitcoin outflows from miners have dropped to a decade low, with analysts speculating that a hoarding mentality is partly responsible. The 7-day average of the total amount of Bitcoin transferred from the miners' addresses dropped to 987 on Thursday and, according to Glassnode, reached its lowest level since February 3, 2010. The previous decade low of 988 was reached on December 23. May registered. "This is a sign that efficient miners continue to hoard (sell only part of BTC)," said Asim Ahmad, Co-Chief Investment Officer at Eterna Capital in London.
Censorship or speech?
Jill Carlson, a CoinDesk columnist and co-founder of the Open Money Initiative, sees both sides of the dispute over the demolition of public statues of disgraceful men. As Boris Johnson said, it is a form of censorship, while the ancient Romans used Damnatio Memoriae to ritually disfigure statues of former leaders. Carlson's attitude? “Definitely continue to educate generations to talk about these men. Educate generations to get over these statues. Finally, you should let generations know why some of these statues were blurred or removed. Removing or changing monuments to adapt them to the morals and values of the day is not censorship. It is an act of speaking in and of itself. "
It's just my job, guys.
This week's US unemployment report brought bad news. While economists expected new claims to decline from 1.27 million the week before to 1.29 million, claims only fell by 58,000 to 1.51 million. In the latest episode of The Breakdown, NLW examines the mixed signals, confusing analyzes, short-term shocks and demand destruction that are behind these numbers.
Who won #CryptoTwitter?
Blockchain Bites: COMP x2, Reddit Scales and Factom go bankrupt
Blockchain Bites: COMP x2, Reddit Scales and Factom go bankrupt
Eli Manning says Giants' pair of Super Bowl wins 'still bothers' Tom Brady
Biden to announce executive action targeting racism against Asian Americans
California Coronavirus Update: Dangerous Days Still Ahead, Golden State Justifies Ending Stay-At-Home Order On Anniversary Of 1st Reported Cases
Fauci Puts A Stop To Rehashing Trump History As Fox News Host Presses Questions
1st private space crew paying $55M each to fly to station
Eli Lilly says monoclonal antibody cocktail cuts hospitalizations by 70% for high-risk COVID-19 patients