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Japan’s Gaming Giant Nexon Buys 1,717 Bitcoins — Company Says BTC ‘Offers Long-Term Stability and Liquidity’

Japan's Gaming Giant Nexon Buys 1,717 Bitcoins — Says BTC 'Offers Long-Term Stability and Liquidity'

Japanese gaming firm Nexon has purchased 1,717 bitcoins for approximately $100 million. The company believes “bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”

Japan’s Nexon Buys Bitcoin

Major gaming company Nexon Co. Ltd. announced Wednesday that it has purchased 1,717 bitcoins for approximately $100 million (¥11.1 billion) at an average price of approximately $58,226 per bitcoin, inclusive of fees and expenses. The Tokyo stock exchange-listed company noted:

This purchase represents less than 2% of Nexon’s total cash and cash equivalents on hand.

Founded in 1994, Nexon describes itself as “a global leader in multiplayer online games.” With more than 10 franchises, the Tokyo-headquartered company currently has more than 60 live games, operated in more than 190 countries. Nexon’s iconic games include Maplestory and Dungeon Fighter.

Nexon CEO Owen Mahoney explained, “Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets,” elaborating:

In the current economic environment, we believe bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.

Nexon joins a growing list of publicly listed corporations that have added bitcoin to their balance sheets, including Elon Musk’s Tesla, Jack Dorsey’s Square, Microstrategy, and Chinese tech firm Meitu.

What do you think about Nexon investing $100 million in bitcoin? Let us know in the comments section below.

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Balancer teams up with Gnosis to develop a ‘gasless’ Ethereum DEX

Balancer Labs, a leading automated market maker (AMM) within the Ethereum ecosystem, has teamed up with Gnosis to develop a new decentralized exchange (DEX).

Balancer’s AMM already forms a de facto DEX, although is utilized differently from the likes of Uniswap and SushiSwap. Increasingly, Balancer’s liquidity pools have been used to support token sales based on bonding curve mechanisms, and to reward LPs who provide long-term liquidity, particularly when paired against stablecoins such as USDC.

The new Balancer-Gnosis-Protocol (BGP), as it’s dubbed, promises to shake up the defi landscape and to provide a genuine competitor to Uniswap that captures the best of both worlds, DEX and Balancer-style AMM.

A Wild Uniswap Competitor Appears

The idea behind the Balancer-Gnosis Protocol (BGP) being developed by the two teams is to combine the improved vault system inherent to Balancer v2 with the price-finding mechanism devised by Gnosis.

It’s also been promised that BGP will set new standards for UX, pricing, and transparency. At the heart of the new DEX is a system that’s become a hot topic in the Ethereum community in recent weeks: Miner Extractable Value (MEV), which utilizes an auction system to obtain better pricing.

“MEV is a phenomenon currently extracting the value of up to 1% of all DEX trades on Ethereum, with value going from users to miners or other arbitrageurs,” explains Gnosis CEO Martin Köppelmann.

He added, “With BGP, and in particular Gnosis Protocol v2, we built a trading protocol that protects users and makes sure the value stays with them.” 

The DEX is scheduled to launch in mid-June but a PoC is already up and running, CowSwap (an acronym for “Coincidence of Wants). Its primary USP is the ability to support gasless transactions, with trades settled off-chain and zero network fees attached.

As per CowSwap, more than $390 million in value has been extracted from users by bots frontrunning transactions, exploiting the slippage users allow in a trade. However, CowSwap avoids this problem by enabling tight slippage and can avoiding settlements on AMMs altogether.

Driving Down Network Fees

Ethereum’s infamous network fees, which have been rising steadily for months, have dropped sharply over the past week, aided by increased block space and traffic moving to scalable networks such as Binance Smart Chain (BSC) and Polygon.

The arrival of BGP, if it can secure adoption, will help to further lower trading fees, and could see gwei return to levels not witnessed in over a year. On April 25, Yearn Finance’s Andre Cronje teased “If gwei hits single digits again, I might just release one of the four new protocols,” suggesting that his love affair with Ethereum could be rekindled. 

While it will take more than a gasless DEX to achieve that, regardless how talented its developer team may be, the alliance of Balancer and Gnosis in a surprise partnership will serve to shake up the DEX landscape, and could pave the way for a second defi summer that eclipses the heady heights of 2020, when yield farming and degen trading were all the rage.

The post Balancer teams up with Gnosis to develop a ‘gasless’ Ethereum DEX appeared first on CryptoSlate.

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GlobeDX Raises $18M to Build a Next-Generation Derivatives Exchange

Up-and-coming derivatives exchange GlobeDEX – or Globe as it’s simply known – has closed a private round worth $18 million.

A host of blockchain VCs lined up to back the exchange on its mission to create an advanced trading platform that can cut it with the best of them.

Its team, who can’t be accused of lacking ambition, are confident that they can transform Globe into a global exchange that’s as appealing to novices as it is to pro traders. All the usual staples you would expect of a derivatives exchange are present and accounted for including leverage of up to 100x, bitcoin futures, and defi assets. In addition, though, Globe boasts exposure to the Crypto Volatility Index, a perpetual product that’s sure to appeal to seasoned traders.

Y Combinator Leads Packed Investment Round

Y Combinator and Pantera Capital were among the lead investors in Globe’s private round which also saw Draper Dragon, Republic Crypto, OKEx, CMT Digital, and Wave Financial write checks. Derivatives dominate the crypto exchange landscape, which in turn dominates the industry, accounting for the bulk of all revenue generated by cryptocurrency businesses. It’s easy to see, therefore, why VCs are keen to capture a slice of the pie and potentially bootstrap the next Binance or BitMEX.

While it’s too early to tell how big GlobeDEX will become, the signs are at least promising. The exchange recently held a presale that attracted greater participation than Binance achieved at the same stage, and there are now more than 200 strategic partners wedded to the growing GlobeDX ecosystem.

Globe’s team are confident that they can compete across a number of key benchmarks, particularly in terms of user experience. Derivatives platforms have traditionally been daunting, particularly to newcomers who are overwhelmed with options. BitMEX in particular was notorious for its unforgiving interface, while Binance has made some improvements in this domain, but has added complexity over time as it’s integrated new products and features. If GlobeDX can keep clutter to a minimum while focusing on UX, it will be well placed to onboard novice and intermediate traders.

Next Up: A Public Sale

With the private round out of the way and a public presale successfully under its belt, Globe is gearing up for its public sale, set for April 30. Participants will have an opportunity to acquire GDT, the utility token that will power all things Globe. Naturally, GDT can be used to obtain a trading discount on fees, but there’s also a lot more it can do. For example, holders will be able to stake GDT to earn additional benefits, and it can also be used as margin to increase the size that users can trade with.

These are exciting times for Globe and for the crypto market as a whole. “We’re working closely with our investors and strategic partners to bring innovative products for our traders on Globe,” says CEO James West. “Trading defi perpetuals on an exchange built by trad-fi veterans will be a whole new experience for crypto traders.” Once the GDR public sale is out of the way on April 30, a wave of new users will be able to put that claim to the test and discover what GlobeDX has to offer.

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How Blockchain Businesses And Crypto Companies Can Reduce Cyberthreats

Bitcoin and Ethereum are booming, altcoins are surging, and other crypto categories like DeFi and NFTs have taken off like never before. Money is being made on digital currencies and it is highly visible in the public eye due to mainstream media coverage of the cryptocurrency revolution.

With more eyes on the asset class, it also means that cyberthreats are rising. Here’s what the latest figures say about rising crypto crime, cyberthreats, and how businesses in the blockchain industry can do much more to protect customers – and themselves.

Crypto Scams Rise Year-Over-Year, What Can Blockchain Companies Do?

The 2018 bear market was plagued with high profile exchange hacks all over the world. It set the industry itself back years and while things have improved in terms of exchange operations and security, crypto-related crime and cyberthreats continue to rise year-over-year.

Related Reading | Bitcoin Searches Spike On Google After Twitter Scam Goes Viral

According to a breakdown of analytics company Bolster’s recent report from Alexander Vasiliev, the co-founder and CCO of the global payment network Mercuryo, crypto-related scams increased 40% year-over-year from 2019 to 2020, and is projected to increase another 70% in 2021.

“The attacks most of the time included fake prizes and giveaways, celebrity impersonations, and phishing attacks,” Vasiliev added.

The scams can even involve real, verified Twitter accounts that have been hijacked by cybercriminals. A particularly large hack last year involved several high profile Twitter accounts including politicians, CEOs like Elon Musk, and other celebrities like Kim Kardashian West.

Vasiliev highlights several critical ways that blockchain companies and crypto businesses can protect users and themselves. Tactics include multi-sig systems, advanced automated security protocols, and mandatory identity checks.

total crypto market cap 2t

With the crypto market at $2 trillion, criminals are taking notice | Source: CRYPTOCAP-TOTAL on TradingView.com

Bitcoin, Ethereum, And Chainlink Are Top Targets For Cybercriminals

Vasiliev also revealed that Bolster’s report highlighted three primary cryptocurrencies being used in these types of scams: Bitcoin, Ethereum, and Chainlink. These coins tend to have some of the most vocal supporters behind them, making them a primary focus of cybercriminals when targeting unsuspecting social media users.

We now know how businesses can protect themselves and through that, its users, but how can users themselves bolster security? For one, always use two-factor authentication with Google Authenticator and not SMS-based 2FA. Man in the middle attacks and SIM-swap attacks can be eliminated.

Related Reading | The Most Common Bitcoin Scams And How To Avoid Them

Using a pseudonym whenever possible online, a PO box for ordering any hardware wallets, and relying on malware protection can avoid many easy ways cybercriminals can access crypto assets.

Never disclose to anyone that you hold crypto assets or how much, and use unique passwords that don’t end in nine or an exclamation point for all accounts. If that’s you, change them now.

There are almost endless ways to protect yourself, yet still the smartest criminals will still find a way. Keep your eyes peeled and follow as many safety measures as possible, and your chances for success can improve greatly.

Featured image from Pixabay, Charts from TradingView.com
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Ethereum’s Price Taps Fresh New Highs, ETH Market Cap Eats Away BTC Dominance

Ethereum's Price Taps Fresh New Highs, ETH Market Cap Eats Away BTC Dominance

The second-largest cryptocurrency in terms of market valuation, ethereum, has seen significant gains this week in comparison to the rest of the crypto economy. On Wednesday, ethereum tapped an all-time high at $2,736 per unit as the crypto asset has gained 11.48% during the last seven days.

Ethereum Cracks a New ATH

While a great number of digital assets dropped in value last week, ethereum (ETH) prices rebounded much quicker than most. On April 27, after climbing more than 11% during the course of the week, ETH tapped an all-time high (ATH) at $2,706 per ether on Tuesday. Then again, on Wednesday, ether prices touched an ATH of around $2,736 per coin.

During the last seven days, ether prices have jumped 10% higher against bitcoin (BTC) as well. Bitcoin’s current dominance index is being drained too as it’s dropped to 49.2% while ethereum now captures 14.9%.

Ethereum's Price Taps Fresh New Highs, ETH Market Cap Eats Away BTC Dominance
The ETH/USD chart on Wednesday, April 28, 2021. 1-Hour, Bitstamp.

Against the U.S. dollar during the last month, ether is up 48.3% today and 102% for the last three months. 12-month stats show that ethereum has gained a massive 1,270.57% against the USD. Over the last 30 days, ETH has gained 55% on bitcoin (BTC) and 22% against BTC during the 90-day span. Since tapping the new ATH, ETH is down 2.55% from that high price point during the early morning trading sessions on Wednesday.

Ethereum's Price Taps Fresh New Highs, ETH Market Cap Eats Away BTC Dominance
Since the Berlin upgrade on April 15, gas prices to transact with ETH have dropped.

Following Ethereum’s launch of the “Berlin” upgrade on April 15, ethereum users have noticed that gas prices have dropped considerably. This has ramped up decentralized finance (defi) action this week and the total value locked (TVL) in defi today is a colossal $63.2 billion in value. Maker dominance captures 15.83% of the $63.2 billion held in defi today. Additionally, ethereum settlement volume is slowly catching up with BTC.

Ethereum's Price Taps Fresh New Highs, ETH Market Cap Eats Away BTC Dominance

While BTC transactions settled $75.1 billion during the last 24 hours, the ETH network processed $23.57 billion over the course of the day. Still, the amount of transactions per day on the Ethereum network is much larger than BTC’s.

1.45 million ethereum transactions were processed in 24 hours while only 289,613 BTC transactions were confirmed. BTC’s median fee to get into the next block on Wednesday is around $14.31 per transaction while ETH’s median fee is only $5.89 per send.

Ethereum Is BTC’s Number One Sidechain, Ether Settlement Surpasses Paypal

ETH is also considered BTC’s number one sidechain as no other chain holds as many wrapped or synthetic BTC tokens as ETH does. Today there’s a whopping 201,058 and the Wrapped Bitcoin (WBTC) project captures 156,936 of the current circulating supply.

Ethereum's Price Taps Fresh New Highs, ETH Market Cap Eats Away BTC Dominance
There’s currently 201, 058 bitcoin (BTC) or $11 billion worth of BTC using the Ethereum network for transaction speed, lower fees, and defi applications.

While a lot of digital assets have been eating away at BTC’s dominance index, ETH has been taking the most off the leader’s plate. Besides hashpower, Ethereum is outshining BTC on most metrics and has outpaced Paypal as well.

“Paypal settled $936 billion in payments last year,” explained the popular Twitter handle @spencernoon. Ethereum settled $1.5 trillion in transactions just last quarter. This figure is also growing exponentially. Paypal’s market cap is $310 billion, while the ETH market cap is $263 billion,” he added.

Since Spencernoon’s tweet, ethereum has gathered an overall market valuation of around $311 billion today.

What do you think about ethereum prices climbing in recent days? Let us know what you think about this subject in the comments section below.

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Young Koreans hooked on Bitcoin trading sparks “crypto addiction” fears

An article today from the leading South Korean newspaper Chosun Ilbo detailed the phenomenon of obsessive Bitcoin tracking and mentioned the impact of price fixation on the lives of young Koreans, even to the point of interfering with their work commitments.

Psychological experts warn that compulsive price tracking may be part of a wider problem with cryptocurrency addiction, which shares similarities with gambling addiction. Is now the time for crypto holders to check themselves?

Bitcoin mania is impacting the jobs market

Since the start of Q4 2020 to its all-time high, the price of Bitcoin has increased by over 500%. When it comes to top-performing alts such as Dogecoin, Polygon, and VeChain, the percentage gains are magnitudes greater.

The lure of easy and fast money is a distraction for most. So much so, that even employers in South Korea are beginning to notice the effects. Not only do they complain about distractions over price obsession during work hours, but some even report that workers are quitting jobs to become full-time traders.

Han Jung-soo is one such former worker. He quit his credit card company job last month off the back of making ₩3 billion ($2.7 million) from cryptocurrency investing. He said crypto provides a better return compared to working a normal job.

“I enjoyed working, but I realized it made more financial sense to focus on my investments considering the returns I can gain for the amount of time I put in.”

The IT industry, which has a high correlation of employees who invest in cryptocurrency, is experiencing high staff turnover rates. One team leader at an IT startup based in Seoul said this is partly why IT companies are giving out big pay rises to staff.

Crypto trading addiction

With Bitcoin and cryptocurrency only gaining traction in recent years, cryptocurrency addiction is a relatively uncharted phenomenon.

However, psychologists classify it under the same taxonomy as a behavioral addiction, which includes established sub-types such as gambling addiction and stock market trading addiction.

Personal accounts of Bitcoin trading recount becoming hooked on the easy gains. What’s more, the issue gets compounded by 24/7 365 markets, which is described as a never-ending horse race.

Taking the leap, I took some money out of my measly savings and bought myself some Bitcoin…In three days, I had made 6 percent. I was hooked… I’ve noticed that the whole cryptocurrency trading trend is like placing bets on a never-ending horse race, where new horses are introduced to the race almost daily”

While it’s fun and games when making a profit, the sad reality is that 80%-90% of traders lose money. With that in mind, the relation to gambling is evident for all to see.

The post Young Koreans hooked on Bitcoin trading sparks “crypto addiction” fears appeared first on CryptoSlate.

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Tesla’s Bitcoin Stash Now Worth $2.5 Billion, SEC Filing Shows

Tesla’s quarterly filing with the U.S. Securities and Exchange Commission (SEC) shows that the company’s bitcoins are now worth $2.48 billion, a substantial increase from the initial investment of $1.5 billion. This is also after the electric car company sold some bitcoins to “prove liquidity.”

SEC Filing Shows Tesla Sitting on Bitcoins Worth $2.48 Billion

Elon Musk’s electric car company, Tesla Inc. (TSLA.O), revealed the value of its bitcoin holdings in its quarterly report filed with SEC on Tuesday.

Tesla explained in the filing that it purchased “an aggregate of $1.5 billion in digital assets, comprised solely of bitcoin” during the three months ended March 31. The company also began “accepting bitcoin as a payment for sales of certain of our products in specified regions, subject to applicable laws.” The company then sold some of its bitcoins in March.

After accounting for the sale of some bitcoins which netted $272 million, Tesla wrote:

As of March 31, 2021, the carrying value of our bitcoin held was $1.33 billion … The fair market value of bitcoin held as of March 31, 2021, was $2.48 billion.

The price of bitcoin on March 31 was around $59K according to data from markets.Bitcoin.com. It has since fallen slightly. At the time of writing, the price of BTC stands at $54,900, which means Tesla’s bitcoin holdings would now be worth roughly $2.31 billion.

While Tesla sold some bitcoins, CEO and Technoking Elon Musk insisted on Twitter: “I have not sold any of my bitcoin.” He explained that “Tesla sold 10% of its holdings essentially to prove liquidity of bitcoin as an alternative to holding cash on balance sheet.”

Meanwhile, Tesla is still committed to holding bitcoin long term. CFO Zachary Kirkhorn, whose title is also Master of Coin, said during the earnings call on Monday: “We do believe long term in the value of bitcoin. So it is our intent to hold what we have long term and continue to accumulate bitcoin from transactions from our customers as they purchase vehicles.”

What do you think about Tesla holding $2.48 billion in bitcoin? Let us know in the comments section below.