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26% of ETH 2.0 staking is from exchanges, here’s what this means

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The Ethereum network has been preparing for the launch of Ethereum 2.0 for a while now and the community is expecting the launch to be sooner than expected. As the launch nears, the Ethereum community received answers to most many key questions about the second-largest crypto as it transitions to the 2.0 version.

The Chief Strategy Officer at HRF, Alex Gladstein who was showcasing his pessimism about Proof of Stake [PoS] was interrupted by Ethereum developer Tim Beiko. Beiko took this opportunity to answer questions about the upcoming upgrade for the Ethereum network where he explained Ethereum’s unique position concerning pushing back against “top-down changes.”

With staking coming into effect in ETH 2.0, the top question remained about validation and how will it be distributed among exchanges, pools, or those hosted by people on Amazon Web Services [AWS]. Currently, 26% of staking was from exchanges, meanwhile, 15% was directed via pools. The remaining was a mix between all the available means to stake.

However, Beiko noted that:

“One important thing to note is that Ethereum’s PoS algorithm uses penalties that are correlated with how many other people do something wrong along with you.”

This meant that even though the Ethereum network cannot stop people from staking on AWS or other popular clients, it can provide “an economic incentive to setup staking node in a way where their failures are uncorrelated from the rest of the network.”

The PoS protocol aimed at validators to be profitable if they are online “>2/3 of the time.” This meant that it was less risky for people to stake on non-production-grade infrastructure, as per the developer.

Meanwhile, the ETH 2.0 issuance has been expected to be between 100k and 2M per year. Users have been speculating the reason for such a vast difference in certainty about the issuance for which Beiko shared the chart below.

Beiko added:

“While these numbers are for issuance, it is worth noting that Ethereum will introduce a “fee burn” this summer (EIP-1559). That change could be its own thread, but in short, it burns a large % of all transaction fees, reducing supply. The % burnt increases with blockspace demand.”

This will help to maintain a balance between limiting inflation and ensuring a long-term budget for validators’ rewards.

The developers for the Ethereum foundation have been open and transparent when it comes to clarifying what benefits Ethereum 2.0 will bring along, however, the issuance may once again be a point of discussion when the 2.0 is finally out. This was seen a few months back when the crypto community was raging against the not-so-fixed supply of Ethereum. Although the developers managed the situation, a lot more education may be necessary to understand the issuance procedure.


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Source: https://ambcrypto.com/26-of-eth-2-0-staking-is-from-exchanges-heres-what-this-means

Blockchain

Cathie Wood’s Ark Funds Now Hold Over One Million Coinbase Shares 

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Cathie Wood’s Ark funds has purchased a total of $352 million worth of Coinbase shares, two days after making its debut on the Nasdaq stock exchange under the ticker, COIN. 

Ark Funds’ COIN Acquisition Spree

Citing data received by email, Bloomberg reports today that Wood’s funds, including the Ark Innovation ETF, Ark Fintech Innovation ETF, and Ark Next Generation ETF together added 341,186 COIN to their holdings yesterday. 

This is the second investment in a roll that Wood’s Funds have made in Coinbase. Ark’s funds earlier purchased 749,205 Coinbase shares moments after it went live on Nasdaq. The shares were acquired at approximately $250 million, with each unit priced around $333.67. 

With the latest acquisition, Wood’s funds now hold a combined 1,090,388 Coinbase shares, valued at around $352 million, at the time of writing. 

According to Bloomberg, the emailed data suggests that Ark funds sold some of its stake in New York Stock Exchange owner Intercontinental Exchange for two consecutive sessions. 


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Wood Receives Indirect Bitcoin Exposure

Despite its large purchase of Coinbase shares, Tesla stock (TSLA) remains the top holdings of Wood’s funds even after selling about $170 million worth of shares of the electric car company. 

Ark funds’ investments in Coinbase and Tesla, increase their indirect exposure to bitcoin and other cryptocurrencies. 

As reported, the American electric car company had purchased $1.5 billion worth of bitcoin in February 2021, thus boosting the cryptocurrency’s popularity among various institutional investors and wealth managers. 

Coinbase Performance on Nasdaq

Coinbase has continued to gather attention globally following its direct listing on Nasdaq on Wednesday. Even after getting a reference price of $250 for a unit of its share, COIN opened at $381 and subsequently surged to $429.54, before retracing back to $310. 

The share closed around $328.28 on Wednesday, which saw the popular crypto trading firm’s market cap set at $85.8 billion. 

Unfortunately, the stock slumped further on Thursday and closed 1.7% lower, bringing the exchange’s value below 43% of the $112 billion it hit in its debut.

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Source: https://cryptopotato.com/cathie-woods-ark-funds-now-hold-over-one-million-coinbase-shares/

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Blockchain

Turkey to Ban Cryptocurrency Usage as Payment Instruments From April 30

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Turkey’s government has introduced a new regulation that will prohibit cryptocurrency assets from being used as payment methods as of April 30th, citing significant risks. Nevertheless, banks are excluded from the legislation, meaning that users can still deposit the Turkish Lira on crypto exchanges through their banking accounts.

Turkey’s Ban on Crypto Usage as Payment Methods

According to the official statement from the Central Bank of the Republic of Turkey, the country plans to implement a new regulation on interacting with cryptocurrencies starting from April 30th.

Essentially, it will prohibit cryptocurrency investors from utilizing their holdings as instruments for payments or to use them “directly or indirectly in the provision of payment services and electronic money issuance.”

The last part means that payment providers will also be banned from providing cryptocurrency-related services. The bank listed numerous security risks connected with digital assets as the primary reasons behind the new regulation.

Those include lack of “regulation and supervision mechanisms,” severe market volatility, alleged usage in illicit activities, and irrevocable transactions.


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“Recently, some initiatives have emerged regarding the use of these assets in payments. It is considered that their use in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors, and they include elements that may undermine the confidence in methods and instruments used currently in payments.” – reads the statement.

It’s worth noting that banks are exempt from this regulation, and users can still deposit the Lira on exchanges using wire transfers from their banking accounts.

CryptoPotato recently reported the rapidly increasing demand for bitcoin in Turkey. After President Tayyip Erdogan removed the governor of the central bank, the Lira plummeted by 15% in a day against the dollar. At the same time, the number of BTC Google searches and transactions on peer-to-peer exchanges skyrocketed.

Turkey Behind Today’s Price Slumps?

Shortly after the statement from Turkey’s central bank today, the cryptocurrency market sharply tanked in value, raising the question if the FUD coming the country could be behind the adverse developments.

Bitcoin traded at nearly $64,000 before a sharp price drop drove it south by roughly $3,000. Ethereum followed with a nosedive of its own, and so did most alternative coins. Ultimately, the cumulative market capitalization of all crypto assets lost more than $80 billion since yesterday’s high and dipped beneath $2.2 trillion briefly.

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Source: https://cryptopotato.com/turkey-to-ban-cryptocurrency-usage-as-payment-instruments-from-april-30/

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Blockchain

$600 Million in BNB Gone: Binance Completes the 15th Token Burn

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Binance announced the completion of the 15th BNB burn earlier today of just shy of 1.1 million tokens. Although the amount in coins has substantially declined compared to the past several such events, it set a record in terms of USD with almost $600 million. 

  • The announcement from the Malta-based cryptocurrency exchange from earlier today reads that the company has completed the 15th quarterly BNB token burn “in accordance to the Binance whitepaper.” 
  • The amount of coins destroyed is 1,088,888. Interestingly, this is actually the fourth-smallest amount burnt in terms of BNB and is considerably less than the previous event – 3,619,888 BNB. 
  • However, the price growth of Binance’s native token has helped it set a new ATH in terms of the US dollar. The company said the 15th BNB token burn was worth $595.3 million.  
  • The popular crypto exchange has vowed to buy and destroy BNB worth a certain percentage of its quarterly profits until it brings down the token supply to 100 million. After the latest event, the BNB supply is down to 154.5 million.  
  • Binance Coin is among the best performers price-wise since the start of the year. BNB entered 2020 beneath $40 but has rapidly appreciated in value. 
  • CryptoPotato reported the latest record reached earlier this week when the cryptocurrency skyrocketed to $640.  
  • Although BNB has fallen by more than $100 since then and currently trades just shy of $520, it’s still up by about 1,200% YTD. 
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Source: https://cryptopotato.com/600-million-in-bnb-gone-binance-completes-the-15th-token-burn/

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