Tag: cryptodaily

Dive into the freshest perspectives from StealthEX and CryptoDaily! We’re thrilled to present to you a concise, straightforward summary of the key developments influencing the crypto world. Curious about the top stories in the crypto realm this week? Join us as we delve into them immediately!

Dogecoin Soars as Elon Musk Hints It Could Be Used to Buy Teslas

Elon Musk, the CEO of Tesla, hinted at the possibility of Dogecoin being accepted as payment for Tesla cars in the future. This announcement led to a significant surge in Dogecoin’s value, with an 8% increase in just 24 hours, pushing its market capitalization to around $26.5 billion. Musk’s endorsement of Dogecoin, a meme-inspired cryptocurrency, has once again highlighted his influence on the crypto market.

During a visit to the Tesla Gigafactory in Germany, Musk responded to inquiries about accepting Dogecoin for car purchases by stating the company “should enable that…at some point.” He emphasized Dogecoin’s status as “the people’s crypto” and expressed his support for it over other cryptocurrencies. This is not the first time Musk has shown favor towards Dogecoin; he has previously promoted it through social media and public appearances, contributing to its volatile price history.

Musk’s support for Dogecoin comes amid a broader rally in the cryptocurrency market, with Bitcoin reaching a record high and the total market value surpassing $2.85 trillion. As the crypto community reacts to Musk’s hints, the potential for Dogecoin to become a mainstream payment method for Tesla purchases adds an intriguing layer to the evolving relationship between technology, finance, and culture.

UK Court Declares Craig Wright Is Not Satoshi Nakamoto

UK court has definitively stated that Australian computer scientist Craig Wright is not Satoshi Nakamoto, the pseudonymous creator of Bitcoin. This verdict comes after the Crypto Open Patent Alliance (COPA) challenged Wright’s claims of being the digital currency’s inventor, aiming to prevent him from asserting intellectual property rights over Bitcoin’s foundational technology.

The court’s decision was swift and unequivocal, dismissing Wright’s long-standing assertion that he authored the 2008 Bitcoin whitepaper. The judge’s ruling addressed several points, firmly establishing that Wright was not the author of the Bitcoin whitepaper, did not operate under the pseudonym Satoshi Nakamoto, did not create the Bitcoin system, and was not the author of the initial versions of the Bitcoin software.

This ruling is celebrated by COPA and its members, including notable firms like Block, Coinbase, and MicroStrategy, as a victory for developers, the open-source community, and the truth. It marks the end of Wright’s years-long campaign of using his claim to Satoshi Nakamoto’s identity to intimidate and sue members of the Bitcoin community.

The case also highlighted allegations of forgery against Wright, with COPA accusing him of presenting backdated documents and evidence created with software that did not exist at the time the documents were supposedly made. The court’s decision not only clears the air on Wright’s claims but also sets a precedent for the protection of developers and the integrity of the cryptocurrency ecosystem.

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El Salvador Champions Investment with Zero Income Tax on International Funds

El Salvador has taken a bold step to boost its appeal to foreign investors and expatriates by eliminating income tax on international investments and money transfers. Previously set at 30%, the tax rate has been slashed to 0%, as announced by President Nayib Bukele. This strategic move is aimed at attracting foreign capital and stimulating economic growth within the country.

By removing the income tax barrier, El Salvador positions itself as a more attractive destination for international investment and financial inflows. This policy change reflects the government’s commitment to fostering an environment conducive to economic development and global integration. It’s a significant shift that could lead to increased foreign investment, providing a much-needed stimulus to the local economy.

The decision to axe income tax on international funds is part of El Salvador’s broader strategy to embrace digital innovation and financial inclusivity. As the first country to adopt Bitcoin as legal tender, El Salvador continues to demonstrate its openness to unconventional economic policies. This latest tax reform is expected to further enhance its reputation as a forward-thinking and investor-friendly nation, potentially setting a precedent for other countries to follow.

Ethereum’s Dencun Upgrade: A Leap Towards Scalability and Efficiency

Ethereum has embarked on a new chapter with the successful deployment of the Dencun upgrade on its mainnet, marking a significant milestone in the network’s journey towards enhanced scalability and reduced transaction costs. Launched on March 14, 2024, at 9:55 AM ET, the Dencun upgrade promises to revolutionize the way transactions are processed on Ethereum, particularly on Layer-2 networks, by potentially making gas fees a thing of the past.

The upgrade introduces a series of Ethereum Improvement Proposals (EIPs), including the much-discussed EIP-4844, also known as Proto-Danksharding. This feature establishes a dedicated data channel for Layer-2 solutions, drastically cutting down transaction fees on rollups. With a total of nine EIPs rolled out in this single fork, Dencun ties for the largest number of improvements introduced in one go within the Ethereum ecosystem.

Developers and users alike are poised to see immediate benefits from the upgrade, as “data blobs” introduced by EIP-4844 significantly reduce transaction fees. This reduction is expected to be so substantial that, once settlement contracts across Layer-2 networks incorporate Dencun, gas fees could drop by 75%. This upgrade is not just about cost reduction; it also expands Ethereum’s capabilities, making it a more robust and efficient platform for developers and users.

The Dencun upgrade is hailed as a transformative step for Ethereum, likened to the shift from country back roads to a four-lane highway in terms of transaction processing efficiency. It builds on the momentum of previous upgrades, including the landmark Merge of 2022, and sets a new precedent for the network’s evolution towards a future where transaction fees are minimal, ensuring Ethereum remains at the forefront of blockchain innovation.

Coinbase Embarks on $1 Billion Convertible Debt Offering

Coinbase, the leading cryptocurrency exchange in the U.S., has announced its plan to raise $1 billion through a convertible debt offering. This strategic move is designed to capitalize on the recent surge in digital asset markets without diluting the ownership interests of current shareholders. By opting for convertible bonds, which can be converted into company shares or cash by 2030, Coinbase is following a path similar to that of Michael Saylor’s MicroStrategy, which has successfully funded its Bitcoin acquisitions through convertible notes.

The offering includes a special feature known as “negotiated capped call transactions.” This provision aims to minimize dilution during the conversion of debt to equity, a concern for investors wary of their share value being diluted. Such financial instruments allow companies to hedge against dilution, ensuring that existing shareholders’ interests are protected even as the share price rises above the conversion price.

Coinbase’s decision to tap into the debt market comes amidst a bullish trend in the cryptocurrency sector, with Bitcoin reaching an all-time high above $73,000. The company’s stock has also seen a significant uptick, rising by 48% in the same period. The funds raised through this offering may be used for various purposes, including debt repayment, financing potential capped call transactions, and possibly acquiring other companies.

This move by Coinbase has been met with optimism, as evidenced by the recent upgrades from Wall Street analysts who had previously been bearish on the stock. Analysts from Raymond James and Goldman Sachs have revised their outlooks, buoyed by the robust rally in digital asset markets.

VanEck Waives Fees for Spot Bitcoin ETF Until 2025

VanEck has announced the elimination of all trading fees for its spot Bitcoin exchange-traded fund (ETF), HODL, until March 31, 2025. This decision marks a significant shift in strategy for VanEck, whose HODL ETF has gathered just over $305 million in assets, trailing behind its competitors.

Previously charging a modest fee of 0.2%, VanEck’s fee was already lower than many of its rivals, such as BlackRock, Invesco, and Fidelity, which charge around 0.25%. The fee waiver is a clear attempt to boost the fund’s attractiveness and asset under management by making it more cost-effective for investors to hold Bitcoin through the ETF.

However, there’s a catch to this generous offer: the fee waiver will apply only until the ETF reaches $1.5 billion in assets or until the specified end date, whichever comes first. Should the fund’s assets exceed $1.5 billion before March 31, 2025, a fee of 0.20% will be charged on the excess assets.

VanEck’s decision is not just about fee reduction; it’s a statement of confidence in Bitcoin’s future. By removing the barrier of entry fees, VanEck aims to make Bitcoin investment more accessible to a broader audience. This move could potentially shake up the competition among Bitcoin ETFs, especially as the cryptocurrency continues to gain mainstream acceptance and investment.

This strategic fee waiver comes at a time when Bitcoin has been experiencing a resurgence, recently surpassing the Swiss Franc to become the third-largest currency by market value. With its ETF shares physically backed by Bitcoin and securely stored in cold storage, VanEck is positioning itself as a leading choice for investors looking to gain exposure to Bitcoin without directly purchasing and holding the cryptocurrency.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.

Tags: Bitcoin crypto news crypto world CryptoDaily Ethereum

In the crypto sector, knowledge is power. Dive into StealthEX and CryptoDaily’s weekly roundup for a snapshot of market shifts, tech innovations, regulations, and key collaborations. Stay ahead with our curated insights! Welcome to your essential crypto news digest!

MicroStrategy Acquires Another Big Stash Of Bitcoin Worth $147M

Business intelligence company MicroStrategy has once again showcased its unwavering confidence in Bitcoin (BTC). The company recently announced the acquisition of an additional $147 million worth of Bitcoin, elevating its total holdings to a staggering 158k BTC. This recent procurement was made at an average price of $27,053 per Bitcoin, which is 9% lower than the average purchase price of its entire Bitcoin collection. 

MicroStrategy’s co-founder and executive chairman Michael Saylor shared this news on X, detailing that 5,445 BTC were bought for $147.3 million in cash. As of September 24, 2023, MicroStrategy’s total Bitcoin holdings were acquired for approximately $4.68 billion, with an average price of $29,582 per Bitcoin. The company’s commitment to Bitcoin is evident, as it has even sold 403,362 MSTR shares to fund this latest Bitcoin purchase. 

Furthermore, MicroStrategy had previously intended to raise around $750 million through stock sales to buy more Bitcoin. The company’s unwavering bullish stance on Bitcoin remains evident, especially with its continuous acquisitions, even as the cryptocurrency’s price fluctuates.

SEC Gensler Told He Is Not Above the Law and Threatened with Subpoena

Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), faced intense scrutiny during a recent House Financial Services Committee hearing. Democrats and Republicans grilled Gensler with the spotlight on the SEC’s transparency, especially concerning its interactions with FTX and its former CEO, Sam Bankman-Fried. Republican McHenry did not mince words, accusing Gensler of a “lack of responsiveness” and even threatening a subpoena if the SEC did not clarify its dealings.

One of the key moments during the hearing was when McHenry questioned Gensler about Bitcoin’s classification, asking whether it was a security or a commodity. After some evasion, Gensler acknowledged that Bitcoin wasn’t a security as per the Howey test but stopped short of labeling it a commodity. Another notable exchange occurred between Democrat Richie Torres and Gensler, where Torres inquired if a tokenized Pokemon card on a digital exchange would be treated as a security. Gensler’s response was non-committal, stating he’d need more information.

Congressman Tom Emmer also took a critical stance, quoting Gensler’s previous remarks about bank executives’ concerns over the shift of deposits into crypto exchanges and wallets. Emmer questioned Gensler’s regulatory approach, suggesting it might be more about protecting industry incumbents than fostering innovation. He concluded by emphasizing that even Federal Courts have pointed out the potential harm caused by the SEC’s actions, questioning its legal authority to stifle competition in financial markets.

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Marathon Digital’s Experiment Results to Invalid BTC Block

Marathon Digital, a prominent Bitcoin miner, recently acknowledged mining an invalid block on the Bitcoin network. This occurred on September 26 at 9:42 pm UTC at block height 809478. The company attributed this to an optimization experiment that inadvertently led to the error. The glitch was identified as an unexpected bug within Marathon Digital’s internal development environment, unrelated to their main Bitcoin production pool or the primary Bitcoin Core software.

Research entities, including BitMEX Research and an anonymous core developer named “0xB10C”, pinpointed the mistake as a “transaction ordering issue”. Jameson Lopp, the founder of CasaHODL, further confirmed the case. Specifically, two transactions were improperly ordered, resulting in an invalid block. According to a Bitcoin developer named “mononaut”, the transactions were reordered based on ascending absolute fees, causing the discrepancy.

Marathon Digital quickly addressed the situation, emphasizing that only a small fraction of their hash rate was used for such experimental endeavors. Industry experts, like Dylan LeClair, advised that future tests of this kind should first be conducted on a testnet to prevent potential errors on the main Bitcoin network. Reflecting on the incident, Marathon highlighted the robustness of the Bitcoin network, which promptly detected and corrected the invalid block.

Marathon Digital, a significant player in the cryptocurrency domain since 2021, is recognized as the second-largest Bitcoin holder among public entities. Following the incident, Marathon Digital’s share price dipped by approximately 2.91% as of 20:00 EDT on September 27. The company currently possesses 11,466 BTC, with its stock priced at $8.01 and a market capitalization of $1.4 billion.

Coinbase Holds as Much Bitcoin as Satoshi Nakamoto

Coinbase, one of the leading cryptocurrency exchanges, is now believed to hold an amount of Bitcoin comparable to that of Bitcoin’s enigmatic creator, Satoshi Nakamoto. According to insights from Arkham, a blockchain analysis platform, this equates to approximately 5% of all existing Bitcoin. 

Over the years, under the leadership of CEO Brian Armstrong, Coinbase has consistently augmented its Bitcoin reserves. Satoshi Nakamoto’s Bitcoin wallet remains untouched since the inception of the cryptocurrency. Possessing 5% of all Bitcoin is a significant achievement for Coinbase, positioning it favorably in a future where Bitcoin could emerge as a dominant global asset, especially given its independence from the depreciating fiat monetary system.

Arkham’s analysis, however, does come with a caveat. The platform has yet to examine all of Coinbase’s wallets comprehensively. They have identified and tagged over 36 million BTC deposit and holding addresses associated with Coinbase. Their largest identified cold wallet contains around 10,000 BTC. Arkham speculates that there are potentially thousands more BTC in Coinbase’s possession that still need to be labeled.

Apart from Bitcoin, Coinbase also holds other cryptocurrencies. ETH is its second-largest holding, valued at $2.68 billion, followed by $488 million in LINK and $193 billion in BNB, the native token of its major competitor, Binance.

MoneyGram to Introduce Non-Custodial Digital Wallet in 2024

MoneyGram International, a frontrunner in the fintech sector, has declared its plans to unveil a non-custodial digital wallet by the first quarter of 2024. This pioneering venture is designed to offer users enhanced security for storing and managing their digital assets. Furthermore, the initiative will enable consumers to harness stablecoin technology, ensuring a smooth transition between traditional fiat and crypto currencies.

The announcement was made by MoneyGram’s CEO, Alex Holmes, during the Stellar Development Foundation’s annual Meridian conference. Holmes emphasized the transformative potential of the digital wallet in revolutionizing cross-border payments. He articulated,

Through the services we provide in partnership with SDF, MoneyGram has made strides to create equitable access to the global financial system… The MoneyGram non-custodial digital wallet advances this mission even further.

Alex Holmes, MoneyGram’s CEO

Once activated, users can visit any participating MoneyGram location to convert their digital assets into cash, thereby enhancing the utility of their holdings. Additionally, they can effortlessly transfer digital assets to other wallet users. 

A notable feature of this wallet is MoneyGram’s incorporation of its advanced global compliance screening for all users.

The digital wallet will be available as a complimentary service until June 2024. It operates on the efficient Stellar network and integrates seamlessly with MoneyGram’s fiat on and off-ramp services linked to the Stellar network. The wallet’s development was a collaborative effort between Cheesecake Labs and MoneyGram.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.

Tags: Bitcoin crypto news crypto world CryptoDaily Ethereum