Blockchain Bites: Filecoin Strike, Bitcoin Fees Fall, Coinbase Censorship

Top shelf
Token protest
Five of the largest Filecoin miners securing this data storage network have gone on strike, raising awareness of the project's “unfair” economic model. According to a report by 8btc.com, miners will need to wager a significant amount of FIL tokens to start mining. However, there is a critical shortage of FIL tokens right off the bat. Buying tokens on exchanges at potentially inflated prices is seen as unattractive. “All miners have been shut down since the mainnet went live. This is not a kind of protest, but we have to close it because we really don't have the tokens as security for mine, ”said Chuhang Lai, CEO of ST Cloud, in the report. In response to the miner's concerns, Filecoin decided to release 25% token rewards upfront once a miner creates a block on the blockchain.
Number of transactions
Bitcoin (BTC) miners see a drop in profits as transaction activity in the chain and price movements cool. "Boring price movements and low volatility tend to reduce the number of transactions to and from the exchanges," Willy Woo, on-chain analyst and author of the Bitcoin Forecast newsletter, told CoinDesk via Telegram. Yesterday only 231,437 transactions were processed on the Bitcoin blockchain. This is the lowest since May 24th and is a 40% decrease from the high on July 1st. This is based on data from the blockchain analysis company Glassnode. With the network currently processing far fewer transactions, the percentage of miners' revenue from weekend fees also fell to a three-month low of 3.49%.
Ship reef
The Euro Pacific Bank of the well-known Bitcoin skeptic Peter Schiff has become the focus of a large global tax evasion investigation. This investigation, initiated by the UK, US, Australia, Canada and the Netherlands and known as Operation Atlantis, seeks to determine whether hundreds of high-risk account holders have been involved in tax evasion and money laundering by the bank. The investigation began in January and has its roots in the Panama Papers, which shed light on how some of the world's richest people and companies hid money and evaded taxes on offshore accounts.
Related: First Mover: "Blue Wave" in the US Senate could mean a flood of impulses for Bitcoin
Crypto insurance
Bitstamp, one of the world's largest cryptocurrency exchanges, has launched an insurance policy that covers the theft and other losses of user funds held on its platform. The European-based exchange announced that Paragon International Insurance Brokers' new insurance policy will be made available in a blog post Thursday, in coordination with Woodruff-Sawyer. The policy applies to digital assets such as bitcoin held in the exchange both online and offline, and covers a range of per-post crime-related circumstances. The underwriters will consist of various insurance companies and certain syndicates from one of the oldest insurance markets in the world, Lloyd's of London.
Branch closure
Binance, the largest cryptocurrency exchange platform by trading volume, is closing its own Jersey office offering euro and pound sterling users an exchange from fiat to crypto for a limited selection of crypto assets. Binance announced on Monday that all deposits to the local platform will be disabled on October 30th and trading and other services will cease on November 9th. Binance said its global service Binance.com is now offering GBP deposits via the UK, faster payments system, as well as SEPA payments for the euro. It also offers trading pairs against both currencies. Because of this, the growth of the services on Binance.com has "obliterated the rationale for Binance Jersey as an unambiguous exchange."
Fast bites
Binance saw all-time high spot trading volume in the third quarter (Yogita Khatri / The Block)
MicroStrategy Forwards Hope.com To Bitcoin After Purchasing $ 425 Million BTC (Robert Stevens / Decrypt)
Related Topics: Crypto Long & Short: The OKEx drama exhibits a weakness in the crypto market infrastructure
Binance destroys $ 68 million BNB in ​​most expensive incineration to date (Robert Stevens / Decrypt)
Coinbase's New "Direction" Is Censorship, Leaked Audio Revelations (Edward Ongweso Jr / VICE)
With Ripple's $ 10 Million Donation, Mercy Corps Reinforces Its Bet On Crypto (Leo Jakobson / Modern Consensus)
On the game
For the past three days, it has been reported that the central bank digital currencies are a means of breaking economic sanctions, tools to strengthen local monetary policy, and slightly worse versions of the payment technology that we already have.
The global CBDC talk got really serious after the Libra consortium incubated by Facebook was revealed to the world, causing regulatory backlash and prompting national experimentation with digital currencies. A recent report by the International Monetary Fund (IMF) makes it clear that the scales are still at the fore for many central bankers.
In a hypothetical scenario, IMF researchers describe a bait-and-switch in which “big techs” advertise a stablecoin run by companies but supported by Fiat, only to decouple it later: to become something like a stateless currency for itself . This is clearly undesirable for central bankers who want granular control over monetary policy.
The global economy cooled off even before the economic crisis triggered by the pandemic. Global productivity, wage growth, inflation and GDP stagnated in the 2010s, leaving most central banks lacking the “ammunition” to stimulate themselves adequately. Many CFOs, such as Federal Reserve Chairman Jerome Powell, and Bank of England Governor Andrew Bailey, are foregoing the central bank's longstanding political independence to demand coordination of monetary and fiscal policy.
While CBDCs are seen as a panacea, the IMF believes it could expand the central banks' toolbox and offer new ways to tackle old problems. For example, CBDCs could allow central banks to cut policy rates “below the effective floor” in order to exercise better control over their economies.
However, initial reports from the world's most advanced CBDC experiment in China were missing. Early on, to see how a “digital yuan” could be used for government economic programming, the first trial drawn a scene where people are not interested in using the novel currency.
Shenzhen City and People's Bank of China launched a “red envelope” lottery earlier this month, giving away 20 million of the digital yuan (worth around $ 1.5 million) to locals. Many found the play money impractical and similar to existing payment apps like Alipay.
"It is especially important to provide convenience and other benefits to encourage the use of the digital yuan," a senior economist at PwC China told Reuters. This is just another bond for the central banks.
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Blockchain Bites: Filecoin Strike, Bitcoin Fees Falling, Coinbase Censorship
Blockchain Bites: Filecoin Strike, Bitcoin Fees Falling, Coinbase Censorship

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