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Most Bitcoin Layer-2 Networks Won’t Survive: Galaxy Research
Bitcoin rollups will require millions of dollars per year just to keep their heads above water thanks to transaction fees, per an analysis.
Bitcoin layer-2 scaling networks—particularly “rollups”—have been the talk of the town in crypto developer circles as a new means to keep Bitcoin payments cheap, fast, and decentralized. But despite their vaunted promise, data and analysis from Galaxy Research suggest the vast majority of Bitcoin rollups will be unsustainable.
“Rollups on Bitcoin that post data to the base layer will face a significant problem: the cost to post data,” wrote Galaxy analyst Gabe Parker in a report published Friday. “Rollups on Bitcoin will need to generate substantial revenue from transaction fees on their own networks, driven by sizable numbers of users paying to transact on layer-2.”
Rollups are off-chain execution environments where transactions are “rolled up” and later settled in batches on a more decentralized, more secure blockchain. Ethereum has used rollups like Optimism and Arbitrum to scale for a long time, but developers only recently unlocked the technology to build rollups on Bitcoin. Read More
Crypto hackers buy Ethereum dip using stolen funds
Hackers exploit the market crash, using stolen funds from the 2022 Nomad bridge hack to purchase 16,892 ETH at a significant discount.
Cryptocurrency hackers saw the ongoing crash market as an opportunity to buy up heavily discounted Ether using stolen funds from previous heists.
On Aug. 5, 16,892 Ether was bought using stolen cryptocurrency funds linked to a hack on crypto bridge Nomad from August 2022. This comes as Ether lost over 20% of its value — from approximately $2,760 to $2,172 — in under 12 hours, according to data from Cointelegraph Markets Pro and TradingView.
Blockchain analytics firm Lookonchain noted that the Nomad bridge exploiter used 39.75 million stolen Dai tokens to buy 16,892 ETH. Soon after the purchase, the hacker began moving the stolen funds to crypto mixer Tornado Cash.
Crypto hackers tend to use crypto mixing services like Tornado Cash to deter onchain traceability, and usually do so with no intention to return the stolen funds. Read More
Decentralized solution offers cost-effective cloud computing alternative
This platform harnesses blockchain technology to provide transparent AI computing by leveraging idle GPU power and token incentives.
Blockchain technology and artificial intelligence are two of the most transformative innovations of our time. When combined, these technologies promise to revolutionize various industries by enhancing data security, transparency and efficiency.
Blockchain is a decentralized ledger that records transactions across many computers, prohibiting the alteration of registered data. The immutable nature of blockchain makes it an ideal technology for verifying and recording AI processes and data exchanges, ensuring transparency and trust.
On the other hand, AI, with its ability to analyze large data sets and make intelligent decisions, can benefit from the enhanced data integrity and decentralized control provided by blockchain.
Despite these promising synergies, the integration of blockchain and AI faces several hurdles. High costs associated with computational power, limited transparency and centralized control over data and processing capabilities are just a few of the hurdles that need to be addressed. Read More
Latam Insights: El Salvador Proposes Using Crypto for International Settlements; First Bitcoin-Funded Company Registered in Argentina
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: El Salvador proposes using crypto as a tool to complete international settlements with Russia, Argentina registers its first bitcoin-funded company, and the Polymarket Venezuelan presidential election bet is still undecided. Read More
How To Excel At Customer Acquisition Through Content Creation With Markethive
Acquiring customers is vital for a business's success, serving as the main driver for marketing efforts and overall business expansion. However, the process has become fiercely competitive and increasingly costly, with the customer acquisition cost (CAC) rising by over 60% in the last six years. This increase in CAC is due to various factors, such as increased competition, rising advertising costs, and changing consumer behaviour, making it more critical than ever for businesses to invest in effective customer acquisition strategies like content marketing.
Navigating the crowded online landscape can be a significant hurdle as businesses flock to establish a presence through various digital platforms. However, these channels present a tremendous chance to stand out and acquire new customers through compelling content. By creating informative and engaging content, businesses can cut through the noise and take control of their customer acquisition strategies, empowering them to shape their own success.
It’s exceptional, customer-centric, search-engine-friendly content that resonates with audiences and drives conversions. Search-engine-friendly content refers to content that is optimized to rank high in search engine results pages (SERPs). This involves using relevant keywords that your target audience will likely search for, creating high-quality backlinks from reputable websites, and ensuring the content is easy to read and navigate, with clear headings, subheadings, bullet points, and short paragraphs.
By creating search-engine-friendly content, businesses can increase their visibility and attract organic traffic. While most companies acknowledge the significance of digital content, it's surprising that only a few prioritize crafting high-performing content that delivers results. Instead, they churn out subpar material that lacks impact, leaving a gap in the market for those who do prioritize it. Read More
How the Bank of Japan wrecked the yen carry trade — and crypto markets
Why did the crypto market lose 15% of its value in one weekend? Thank the Bank of Japan for playing a starring role.
Everything changed on July 31, when the Bank of Japan raised rates on short-term government bonds from 0% to 0.25%. (That came after a hike in March, when the bank raised the rate — for the first in 17 years — from -0.1%.) That seemingly innocuous move set off a cascade of events that eventually caused Bitcoin and Ethereum prices to plunge around 18% and 26%, respectively.
Even traditional markets were badly shaken, with the S&P 500 — an index of US stocks — down more than 5% on the day.
The catalyst wasn’t so much Japan’s rate hike as what followed: the surging value of the yen in foreign exchange markets. (Currencies often gain value when domestic interest rates rise.) From July 31, the USD/JPY exchange rate dropped from around 153 yen per dollar to 145. Suddenly, those yen-denominated loans became significantly more expensive.
Whether because of margin calls from lenders or general caution, traders started dumping positions by the billions. Jump Trading’s sale of more than $370 million in ETH between July 24 and Aug. 4 caused a stir, but they didn’t trigger the downturn. At most, Jump amplified what was already destined to be a historic selloff. Read More
What Is a Carry Trade and What Does It Have to Do With the Bitcoin Crash?
As traders move to cover souring bets on the yen, the prices of risk assets (including Bitcoin) have taken a beating as a result.
When it comes to the global market selloff battering Bitcoin’s price on Monday, a focus has emerged on whether traders that borrowed the Japanese yen are this rout’s culprit.
The yen’s value has strengthened 10% against the U.S. dollar within the past month, according to TradingView data. Meanwhile, the price of Bitcoin has fallen 20% in the past week, dipping below $50,000 on Monday for the first time since February.
A so-called carry trade is rapidly being unwound, Jake Ostrovskis, an OTC Trader at the market maker Wintermute told Decrypt. The popular trade involves borrowing the yen at “historically low interest rates to invest in higher-yielding assets elsewhere,” he said.
If the yen’s value falls or stays low, traders are able to make a profit simply by holding assets denominated in other currencies, such as the dollar. On top of that, the returns can be juiced by yields or investing those converted funds into other assets. Read More
UK body proposes property category for crypto assets, SEC sued over status of NFTs: Law Decoded
The Law Commission’s final report urges the UK government to reclassify crypto assets, addressing current legal gaps.
On July 30, the Law Commission of England and Wales insisted that the United Kingdom government categorize all crypto assets as a new form of personal property in its final report.
It published a supplemental report highlighting current legal inadequacies as an independent body primarily recommending and reviewing law reforms in its respective jurisdictions.
These inadequacies were of the current categorization of personal property and its legal implications concerning crypto assets.
The commission stated that legal “flexibility” allows for “the recognition of a distinct category of personal property,” capable of recognizing and protecting “certain digital assets.” Read More
Ethical hackers share tips on how to protect your crypto
Ethical hackers said that scammers using a fake site called Meetly.gg have rebranded it into Meeten.gg and are preparing to strike again.
As malicious hackers continue to threaten the security of the digital assets space, those with the same skill sets but using their talents for good shared what crypto users can do to cover their bases against cybersecurity threats.
On July 26, malicious actors used a social engineering tactic to trick crypto users into downloading fake conferencing software to steal their crypto. Scammers posed as hiring staff of legitimate crypto companies advertising fake job positions to gain access to crypto wallets and steal user funds.
In an interview with Cointelegraph, ethical hackers Kirill Firsov and Marwan Hachem shared details about an investigation they conducted into the fake conferencing software called Meetly.gg and detailed what users can do to prevent themselves from losing their crypto. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
