What are algorithmic stablecoins?💰

📔Algorithmic stablecoins are a form of digital currency that uses computer algorithms and smart contracts to ensure the stability of its value. They typically link their value to another asset, such as the US dollar. Unlike centralized stablecoins like Tether, which are backed by real-world assets, or decentralized stablecoins like MakerDAO's DAI, which rely on cryptocurrency reserves, algorithmic stablecoins often operate without significant reserves. That is, they do not depend on assets corresponding to their value.

🆘The stability of these algorithmic stablecoins is highly dependent on market demand. If demand falls below a certain level, the entire system may fail. Additionally, these stablecoins rely on independent investors to conduct arbitrage and stabilize prices, which can pose a serious risk.

🔤There is a unique set of risks and benefits associated with trading algorithmic stablecoins. On the one hand, they represent the real embodiment of decentralization, operating only on the basis of verified code without regulatory intervention.

🪙However, the architecture of these algorithmic stablecoins also has its drawbacks. These digital assets, which are not backed by real assets and use algorithms and market incentives to link to the price of a reference asset, are at risk of de-pegging. They need a certain level of demand to operate properly, and if demand falls below the level, the system may collapse.

🌐It is important to note that the stability of these stablecoins can be seriously affected during times of crisis, when traders acting on ambiguous information can cause the stablecoin to lose value, causing a herd mentality and a significant drop in price. For example, the stablecoin TerraUSD experienced a depegging event when its price fell below $1, which led to a massive sell-off and subsequent decline in the price of the Luna token that governs the Terra blockchain.

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🟢Worldcoin has opened the source code of its iris recognition output system

🟢The first retail platform for trading tokenized securities was approved in Switzerland. The platform will allow citizens to trade tokenized securities and digital assets

🟢Coinbase will launch an "embedded wallet" service. It is an enterprise-grade solution based on Coinbase's Wallet-as-a-Service technology, allowing developers to create non-custodial crypto wallets

🟢Fig Technologies is seeking SEC approval for issuance of a stablecoin with interest income. If approved, Figure will offer the first stablecoin to be regulated as a security in the US


#crypto_tweets

💰 Main forks of Bitcoin💰

✔️A fork is a change to the rules of the blockchain. Essentially, we are talking about creating a fork from the original blockchain. There are two main types of forks: soft (soft) and hard (hard).

📌 Let's consider the most famous variants of Bitcoin hard forks.

1️⃣Bitcoin XT (2014)

Bitcoin XT was one of the first notable hard forks of the first cryptocurrency. It was launched by Mike Hearn in late 2014 and included several new features designed to improve network throughput. While Bitcoin allowed up to seven transactions per second, Bitcoin XT offered 24 transactions per second. To achieve this, it was proposed to increase the block size from one megabyte to eight

2️⃣Bitcoin Classic (2016)

When Bitcoin XT ceased to exist, some members of the community still wanted to increase block sizes. In response to this, a group of developers created Bitcoin Classic in early 2016. Unlike XT, which proposed increasing the block size to eight megabytes, Classic planned to increase it to only two megabytes

3️⃣Bitcoin Unlimited (2016)

Bitcoin Unlimited was, and in principle remains, a fork of the Bitcoin blockchain, proposed after problems with slow transaction processing and rising fees began to grow in the community. Bitcoin Unlimited proposed to solve these problems through a flexible block size. The idea sparked heated discussions, but it didn’t go any further.

4️⃣Bitcoin Cash (2017)

Bitcoin Cash (BCH) was implemented as a Bitcoin hard fork in August 2017 as a response to the SegWit soft fork. Some developers did not agree with the update to the SegWit protocol and decided to go a different route.

The main goal of Bitcoin Cash is to increase the number of transactions that the network is capable of processing. To achieve the goal, enthusiasts did not use the SegWit protocol, but increased the block size first from 1 MB to 8 MB, and then to 32 MB. This turned out to be a viable solution, although it raised some concerns, primarily related to security.

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The number of completed transactions on the Bitcoin network is approaching an impressive 1 billion mark🔥

Currently reaching 956.6 million transfers. Soon we will see this figure reach the beautiful figure of 1 billion.🆎

And again about ETFs....

MicroStrategy took 4 years to acquire 189,150 BTC, while BlackRock and Fidelity were able to acquire a total of 82,154 BTC for their spot Bitcoin ETFs in just a couple of weeks.🕓

#Infopost

🔔 News from the past week


💎 Cryptocurrency

🟢 SEC postponed decision on BlackRock spot ETH ETF

🟢 Bankrupt exchange FTX sold GBTC shares worth $1 billion

🟢 The US court refused Changpeng Zhao to leave the country, even after an offer as collateral for his stake in Binance ($4.5 billion)

🟢 Scam exchange Mt Gox has started collecting addresses for payment of compensation in BTC and BCH


💼 Financial news

🟢 The US Senate approved a draft law on confiscation of frozen assets Russia in favor of Ukraine

🟢 The Turkish Parliament voted for Sweden’s entry in NATO, only Hungary remains

🟢 The Central Bank of China poured into liquidity market by $139.8 billion through lowering reserve requirements for banks

🟢 The Central Bank of Turkey again raised the rate, now from 42.5% to 45%

🟢 Mark Zuckerberg sold Meta shares for $22.9 million


🔄 Regulation

🟢 Uzbekistan adopted a law on criminal liability for illegal transactions in cryptocurrency trading and its mining

🟢 The European Commission will create a department to control AI

🟢 The FTC is conducting an investigation into corporate AI collusion against Amazon , Microsoft, OpenAI, Anthropic and Alphabet

🟢 The Hong Kong regulator classified Floki staking as “dubious” operations


#weeklynews

🫂Proof of Authority (PoA) algorithm

➡️Proof of Authority (PoA) is a reputation-based consensus method that provides an effective solution for blockchains, especially those that are private. The term was coined in 2017 by Ethereum and Parity Technologies co-founder and technologist Gavin Wood.

👍The PoA algorithm is based on the reputation of decision makers, i.e. block validators who have their own reputation, rather than making bets. Thus, PoA blockchains are backed by verified nodes that are considered trustworthy.

👍The Proof of Authority model is based on a limited number of block validators, which makes it scalable. Pre-approved participants who act as moderators review blocks and transactions.

✔️Advantages include eliminating the possibility of attack by checking validators when obtaining credentials, low energy consumption, fast block generation, low fees and horizontal scaling of the network.

❕However, PoA has its drawbacks, such as the inability to achieve full decentralization due to the limited range of blocks participating in the validation, its use mainly in private blockchains, and the uncontrollability of malicious actions of participants who can receive greater rewards for fraudulent actions than for maintaining reputation.

#Guides

🟢DZ Bank, Germany's third largest bank, plans launch a pilot project to provide crypto trading services to physicists

🟢BlackRock wants to advertise its spot BTC-ETF with projections on building facades. Filed an application with the SEC for the relevant campaign

🟢Binance has confirmed that it is discussing the sale of its majority stake in South Korean exchange Gopax

🟢Visa now allows cryptocurrency withdrawals from debit cards in 145 countries

#crypto_tweets

💎Top useful tools and services for analyzing crypto industry data💎

➡️DeFi

Defillama - Tracks key metrics such as revenue and TVL for various DeFi projects (e.g. lending, DEX, PERP, and so on).

Dex Screener is a DEX-focused platform that shows trends and new liquidity pools for liquidity farming.

➡️Deanonymization

Arkham intelligence is a project that uses its own artificial intelligence to de-anonymize the blockchain.

➡️Analytics on centralized exchanges

Glassnode - offers data on centralized and decentralized exchanges.

CryptoQuant - Provides data analytics and market signals for crypto traders.

➡️Wallet Explorers

Debank is a platform that offers wallet portfolio tracking for EVM blockchains.

Zapper - Offers a tool to track other tagged wallets.


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🔔 News from the past week


💎 Cryptocurrency

🟢 Leading American broker Charles Schwab has opened access to all 11 spot BTC ETF

🟢 An advertisement for a Bitcoin ETF appeared in Google search

🟢 Tether reported quarterly profit of $2.9 billion and bought another 8,888 BTC

🟢 Cryptobankrupt Celsius will pay creditors $3 billion

🟢 The Polygon team reduced staff by 19%

🟢 The OPNX crypto exchange, launched by the founders of the cryptobankrupt 3AC, announced its closure

🟢 DEX Jupiter on Solana has surpassed in trading volume of Uniswap amid the hype of meme tokens


💼 Financial news

🟢 The Fed left the rate unchanged at 5.25-5.5 %

🟢 A Delaware court overturned Elon Musk’s $55 billion payment for leading Tesla.

🟢 Shares of the American bank New York Community Bancorp collapsed by 35% after a bad quarterly report

🟢 Saudi Arabia temporarily stops investments in increasing oil production

🟢 The EU accepted a package of financial assistance to Ukraine in the amount of €50 billion

🟢 Meta decided for the first time in history pay dividends, Zuckerberg will receive $700 million


🔄 Regulation

🟢 German authorities confiscated 50,000 BTC from the administrators of the pirate site

🟢 Hong Kong authorities are conducting an investigation into the activities of the Worldcoin crypto project


⚙️ Technologies

🟢 Elon Musk's Neuralink company successfully implanted a chip into the human brain

🟢 Samsung uses AI bot from Baidu in Galaxy smartphones for the Chinese market


#weeklynews

What is Sh*tcoin❔🆘

Sh*tcoin is a form of cryptocurrency that lacks practical value or utility.

📉These tokens are typically created by programmers looking to make a quick profit, using them as a means to generate instant returns. A recent example: shortly after Arbitrum was released, sh*tcoins emerged, many of which were simply copies of other tokens.

⚠️The term "sh*tcoin" is applied to such cryptocurrencies because of their inherent uselessness. Unlike established cryptocurrencies like Bitcoin or Ethereum, sh*tcoins lack real utility and are rarely accepted as a means of payment.

How to identify a sh*tcoin❔

- Lack of useful applications
- Lack of active development
- Lack of transparency
- Use of Pump-and-Dump schemes
- Risks of investing in shitcoins

❎Investing in sh*tcoins always carries a high level of risk, as these cryptocurrencies often lack real value and are subject to manipulation in terms of their worth.

❗️One of the key risks when investing in sh*tcoins is low liquidity. Unlike well-known cryptocurrencies, sh*tcoins are rarely traded on reputable exchanges and are often only available on small unregulated platforms.

#Guides

🟢BlackRock increased the amount of BTC on balance to 76,750 BTC for its spot BTC-ETF

🟢Uzbekistan will demand through the court that Binance pays a fine for operating without a license

🟢The Polish city of Mińsk Mazowiecki launches MinsCoin stablecoin for local commerce

🟢The Ministry of Finance of Thailand announced VAT exemption for trading digital assets

🟢Following the delisting from Binance, the Monero team stated, which will not compromise privacy and users will still be able to buy and use the coin on other exchanges.

🟢The judge said that Ripple must submit financial statements to the SEC


#crypto_tweets

💰What are domains❔ using ENS as an example

➡️Domains are simplified names used to access information on the internet. For example, ENS (Ethereum Name Service) provides a similar service, but unlike traditional domain names (DNS), ENS operates on the blockchain and is designed for use in the Web3 network.

🎯ENS, created on the Ethereum blockchain, allows users to acquire domain names in the .eth zone that provide protection, privacy, and resistance to censorship. These domains can be linked to crypto wallet addresses or other information stored in the Web3 infrastructure, such as the InterPlanetary File System (IPFS).

How does this differ from DNS❔

🟠The difference between ENS and DNS lies in their fundamental architectures. ENS is built on the decentralized Ethereum network, not controlled by central authorities. Additionally, ENS replaces manual management with automated Ethereum smart contracts, making domains registered through ENS more private, secure, and censorship-resistant.


#Guides

The intriguing FOMO model by Lee from Fundstrat offers an interesting perspective on the market📈

🟢Fundstrat is a leading independent research company founded by Tom Lee.

🆎Back in 2019, when Bitcoin was priced at $10,000, Lee expressed the view that the main FOMO wave in the market occurs on those 3% of days when Bitcoin trades above a certain price. Following this, movements within the range of 200%-400% take place.

📈Based on the current market situation, Bitcoin has been above the $50,000 level for less than 3% of days. Therefore, if this FOMO model remains valid, we can expect movements towards the $100,000 - $200,000 range after surpassing the $50,000 level.


#Infopost