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Paxos adopts Chainlink oracles to further adoption of PAX and PAXG tokens

Paxos, a crypto brokerage and infrastructure platform, today announced it is now working with Chainlink to leverage its market-leading decentralized oracle network. This will boost the adoption of the USD-backed stablecoin Paxos Standard (PAX) and the gold-backed token PAX Gold (PAXG) within the Decentralized Finance (DeFi) ecosystem—a parallel financial system built on the blockchain which allows […]

CryptoNinjas.net » Paxos adopts Chainlink oracles to further adoption of PAX and PAXG tokens

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Paxos, a crypto brokerage and infrastructure platform, today announced it is now working with Chainlink to leverage its market-leading decentralized oracle network. This will boost the adoption of the USD-backed stablecoin Paxos Standard (PAX) and the gold-backed token PAX Gold (PAXG) within the Decentralized Finance (DeFi) ecosystem—a parallel financial system built on the blockchain which allows users to permissionlessly buy and sell financial products and assets without intermediaries.

The initial integration, which is now live in production, involves the launch of Chainlink-powered decentralized Price Feeds for both the PAX and PAXG tokens, providing DeFi smart contracts with a highly available, tamperproof, and accurate source of on-chain pricing data to reference when executing critical on-chain functions. Additionally, Chainlink will develop on-chain Proof of Reserve Data Feeds for Paxos assets, allowing DeFi applications to quickly verify on-chain that PAX tokens are fully backed 1:1 by US Dollars and PAXG tokens are fully backed by gold bars, both of which are held off-chain in Paxos’ custody.

By giving smart contract developers access to pre-built, easy-to-integrate, and proven Price Feed and Proof of Reserve oracle networks for both PAX and PAXG, it’s now easier than ever to support the secure and reliable use of these tokenized assets within DeFi applications. As a trusted form of collateral or payment, users now receive additional assurances that these tokenized assets are fully collateralized by real-world assets off-chain and priced at fair market values reflective of real-time conditions.

Using the Chainlink Network to Increase the Adoption of Paxos-Powered Assets in the DeFi Ecosystem

Paxos is established within DeFi through the successful launch of both PAX and PAXG, giving users on-chain access to tokenized assets fully backed by U.S. dollars and Gold in the custody of a highly regulated entity. Now it is critical to provide the key infrastructure that supports the adoption of these assets within emerging DeFi protocols, particularly as a reliable form of collateral used in lending/borrowing and derivatives, as well as a tradeable asset and trusted form of payment.

Two key components to ensure PAX and PAXG are strong forms of payment and collateral includes providing assurances that these tokenized assets are fully collateralized themselves and that they are priced on-chain at their fair market value. This allows users to trust the assets will function properly within automated DeFi products, such as receiving the correct exchange rate on trades or ensuring a collateralized loan isn’t improperly liquidated.

Since price data is generated across a variety of centralized and decentralized exchanges, and custodial data exists outside blockchain ecosystems, a piece of middleware known as a blockchain oracle is required to connect DeFi apps to off-chain APIs for aggregated price feeds and bank reserve balances.

Paxos is using Chainlink’s oracle solutions as they are secure, reliable, and flexible. Chainlink offers:

  • High duality data sourced from premium APIs, leveraging modular Chainlink External Adapters that allow users to connect to any off-chain API.
  • Security reviewed oracle nodes run by leading security and blockchain DevOps teams such as Deutsche Telekom subsidiary T-Systems, ensuring smart contracts always receive reliable oracle services.
  • Decentralized infrastructure at both the data source and oracle node levels, providing developers with highly available and manipulation resistant data and oracle services.
  • A proven mainnet solution already live in production and securing high-value contracts and assets, making it easy and safe for developers to quickly integrate Chainlink oracles into their applications.
  • Blockchain agnostic oracle network, empowering the creation of oracle solutions on every blockchain where Paxos assets are supported both today and in the future.

Utilizing Chainlink’s infrastructure, the PAX and PAXG Price Feeds will provide smart contracts with on-chain price data backed by a decentralized network of security reviewed oracle nodes and sourced from off-chain data aggregators that maintain volume-adjusted market coverage across all trading environments. These Price Feeds can be integrated within a day, and are resistant to various data manipulation vulnerabilities such as the recent flash loan exploits. Additionally, the upcoming Proof of Reserve data feeds will give users more ways to verify that PAX and PAXG are fully backed by their respective real world assets.

The creation of these oracle networks gives smart contract developers access to all the external data resources required to create highly secure financial applications backed by transparent forms of tokenized collateral. This allows Paxos to play a more direct role in supporting the growth of DeFi by bridging real-world assets on-chain while retaining the guarantees users expect when it comes to security, reliability, and transparency.

Source: Paxos.com

Source: https://www.cryptoninjas.net/2021/01/14/paxos-adopts-chainlink-oracles-to-further-adoption-of-pax-and-paxg-tokens/

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TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

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Bitcoin price failed to stay above $50,000 and $49,000 against the US Dollar. BTC is now below the 100 hourly SMA and it is likely to continue lower towards $45,000

  • Bitcoin started a fresh decline below the $50,000 and $49,000 support levels.
  • The price is now trading well below $50,000 and the 100 hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline towards $45,000 as long as it is below $50,000.

Bitcoin Price Turns Red

After forming a short-term top near the $52,600 level, bitcoin started a fresh decline. BTC traded below the $51,200 and $50,000 support levels to move back into a negative zone.

There was also a break below a major bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair. The pair even broke the $48,000 support level. There was a clear break below the 50% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

It is now trading well below $50,000 and the 100 hourly simple moving average. It seems like the bulls are trying to protect the 61.8% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

If they fail and the price trades below $46,500, there are chances of more losses. The next key support is near the $45,000 level, below which the bears might aim a test of the $43,000 support zone.

Fresh Increase in BTC?

If bitcoin stays above $46,500, it could correct higher. An initial resistance on the upside is near the $48,000 level. The first major resistance is near the $49,000 level and the 100 hourly simple moving average.

There is also a connecting bearish trend line forming with resistance near $49,000 on the same chart. To move into a positive zone, the price must clear the trend line resistance and then gain pace above the $50,000 barrier.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $46,500, followed by $45,000.

Major Resistance Levels – $48,000, $49,000 and $50,000.

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Source: https://www.newsbtc.com/analysis/btc/bitcoin-btc-could-retest-45k/

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Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

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A former equities CIO of Goldman Sachs drew an strong response on Twitter after suggesting Tesla should sell its Bitcoin and buy back company shares.

The price of TSLA shares have fallen 28% from $863.42 to $621.44, since news broke on Feb. 8 that Tesla had made a $1.5 billion BTC acquisition.

MicroStrategy’s shares have fared even worse in the short term. The company, which is headed by Bitcoin bull Michael Saylor and just completed its latest acquisition of $15 million in BTC on Mar. 3, is now down 50% from its all-time high of $1,315 from Feb. 9.

Tesla’s share market woes are likely due to a number of factors. In early February, it was reported that Tesla had been reprimanded by the Chinese government over quality control issues after receiving consumer complaints. The broader stock market has also experienced volatility, with the S&P 500 down 4.1% in the last 30 days. 

But the tweet from longtime Tesla analyst Gary Black, who has several decades of financial management experience, sparked a debate on whether Tesla’s purchase of $1.5 billion in Bitcoin last month had benefited investors.

“I don’t want them buying back stock,” said Twitter user Techgnostik. “I want them investing in growth, and making another billion on their BTC position.”

Black countered by suggesting TSLA would also draw inclusion by more fund managers with a share buyback program, considering it of greater value to the investor than buying BTC “with excess cash.”

Some users on Twitter agreed that a stock buyback seemed to be a more appropriate use of funds, while others felt too much attention was being paid to what Tesla did with 8% of their cash reserves.

It’s not easy to ascertain the impact buying Bitcoin has had on a company’s bottom line. While MicroStrategy’s share price has halved in a month, shares of MSTR are still up 340%, (from $146.63 to $645.66), since the company announced its first purchase of 21,454 BTC on Aug. 11, 2020. The price of BTC is currently up 310% from the same date.

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Source: https://cointelegraph.com/news/analyst-tells-tesla-to-dump-bitcoin-for-buybacks-as-shares-plunge-alongside-mstr-s

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Experts divided on BTC predictions: Bullish or super bullish?

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Despite the current battle between Bitcoin bulls and bears around the $50,000 price mark — and an 8.7% pullback over the past 24 hours — a raft of analysts and commentators have got out their crystal balls to tip a glittering future for Bitcoin prices.

On Mar. 4, Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone pointed to historical data to suggest that Bitcoin is on the way to $100,000.

McGlone’s logic revolves around the growing discount for shares in the Grayscale Bitcoin Trust which is at the same level as last year’s Black Thursday collapse. The discount refers to when shares in the Grayscale Bitcoin Trust trade for less than the value of the underlying Bitcoin (normally they trade at a premium).

Looking at historical data, said that

Twitter user “Lee Hendricks” wasn’t convinced, suggesting the catalyst for Grayscale’s discount could be the result of pressure from upcoming ETFs and other crypto funds. (Although that’s arguably bullish too.)

The Bloomberg strategist isn’t the only expert with high expectations for BTC, with influencer and YouTuber Lark Davis stating on Mar. 4 that “we are just now past the first major price wave,” with two more, larger waves to come.

On March 2, technical analyst Kaleo posted a chart predicting BTC will hit $100,000 near the start of April this year.

It’s a follow-up on his “Bitcoin Halving Reward Era Price” analysis chart two years ago predicting the price would reach $200,000 around mid-2021. He tweeted two weeks ago that he still has faith in it:

“It is by far the most accurate, long-term chart prediction I’ve ever seen for Bitcoin… $BTC will hit $200K+ this cycle.”

Another analyst who goes by the Twitter name MasterChangz, told his 10,000 followers he believes Bitcoin will hit the $200,000 mark even earlier than mid-2021, potentially at the start of April. The next rise, he said, is to $77,000 over the next two weeks.

Other predictions are even bolder with Kraken CEO Jesse Powell stating the cryptocurrency could reach $1 million or even “infinity” in a Bloomberg television interview on Mar. 4, adding that it will eventually become the world’s currency.

“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”

Kraken Head of Growth Dan Held, echoed this prediction on Mar. 5, claiming on Twitter that:

“Bitcoin is more likely to hit $1,000,000 than $0.”

Even past Bitcoin skeptics are becoming crypto converts with investment firm Sanders Morris Harris CEO George Ball admitting to Yahoo Finance on Mar. 4 that he believes cryptocurrencies are now “attractive” as a “small part” of any portfolio.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Despite this wave of optimism, history also suggests March could be a bloody month, with Bitcoin’s price falling across the month in six of the past nine years by an average of 5.8%. The most recent of these occurred last year on Black Thursday when the price plunged by 50%. That said, the second-biggest monthly candle in BTC history happened in March 2013, when the price shot up 179%.

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Source: https://cointelegraph.com/news/experts-divided-on-btc-predictions-bullish-or-super-bullish

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