Web 3 Industry News Highlights

Web 3 Industry News Highlights

Local Web 3 News

Reserve Bank and Australian Banks Partner to Test Digital Currency Trials

Australia's central bank, the Reserve Bank of Australia (RBA), is collaborating with major banks such as the Commonwealth Bank and ANZ to test a retail central bank digital currency (CBDC), or a digital version of the Australian dollar. The RBA has announced 14 pilot projects to explore the potential economic gains and practical applications of CBDCs, including using them to reduce delays in international payments, help small businesses with GST paperwork, and provide digital cash without requiring access to banking infrastructure.?

The pilots will involve using real money and will take place over the coming months. The RBA's assistant governor for the financial system, Brad Jones, welcomed the industry's engagement and highlighted the range of players involved, including big banks and fintechs. While the RBA has previously referred to the concept of a CBDC as an "e-AUD" and believes it would be revolutionary, it has also expressed skepticism about the case for a retail CBDC. Nonetheless, the RBA's move is in line with the increasing global interest among central banks in exploring CBDCs as a way to innovate and protect government-backed money against the disruptive threat of cryptocurrencies.

Melbourne Man Faces Extortion Charges After Allegedly Threatening to Start Bushfire for Cryptocurrency

A man from Melbourne has been arrested and charged with extortion after allegedly threatening to start a bushfire unless a large sum of cryptocurrency was transferred to him. The threat was reported to the police by the Queensland emergency service, and an investigation led to the arrest of the 27-year-old. Cryptocurrency blackmail is becoming more common, with scammers using the anonymity of transactions to their advantage. Experts recommend being cautious when sharing personal data and information to avoid falling victim to such scams.

Crypto/Blockchain/FinTech News

Cryptocurrency-focused US Bank Silvergate's Shares Plunge 50% Due to Exposure to FTX Collapse and Regulatory Scrutiny

The US bank Silvergate, which focuses on cryptocurrency, took a massive hit when its share price plummeted nearly 50% in early trading on Thursday. It turns out the bank is in hot water over its exposure to the collapse of crypto exchange FTX, and people are now worried about whether Silvergate can survive. Silvergate had to delay publishing its annual report, and has announced a sale of assets to repay debts. They're even unsure if they can continue operating as a "going concern". The bank also hinted that more regulatory scrutiny could hit their profits.

Major partners, including the crypto exchange Coinbase, quickly dropped Silvergate. Coinbase used to use Silvergate to handle cash transactions but has since cut ties. Other investigations by regulators and Congress could end up being a problem for Silvergate's business. After Coinbase's announcement, Silvergate's stock price plummeted by nearly 50% to $7.?

Mt. Gox trustee sets new deadline for creditor repayment method selection

Mt. Gox trustee, Nobuaki Kobayashi, has asked creditors to select a repayment method and register payee information online before the new deadline of March 31. Those who fail to complete the process will not receive early lump sum repayments and will forfeit their rights in a portion of the cryptocurrency rehabilitation claims, bank remittance payments, or remittance through a fund transfer service provider. Bitstamp and BitGo were appointed by Mt. Gox trustee as some of the designated crypto exchanges to assist in the repayment procedures to creditors. Almost a decade after an attack forced the platform to shut down, Mt. Gox creditors were given the option to choose between bitcoin, cash or Bitcoin Cash to receive repayment.

ETH Deflation Rate Reaches Yearly High, Could Boost Long-Term Price Despite Recent Drop

The deflation rate of Ethereum has recently hit its highest level of the year, with individual ETH tokens becoming scarcer at a faster rate. While this could potentially boost the cryptocurrency's price in the long run, traders are currently paying little attention to this development, with ETH/USD down 10% versus its recent highs. The increase in ETH deflation rate is driven by the Ethereum network fee structure, which includes a base fee that all users must pay, with the Ethereum network automatically calculating the fee, and an optional tip that users can pay for quicker processing.?

The deflation rate could accelerate further if high network congestion consistently drives the EIP 1559 burn rate to early 2022 highs. While ETH deflation might sound exciting, the near-term outlook for the cryptocurrency looks bumpy, with a potential test of February lows in the mid-$1,400s on the cards.

Tether and Backers Accused of Using Unconventional Tactics to Maintain Banking Access

A new report by the Wall Street Journal reveals that Tether, the Singapore-based stablecoin issuer, used fraudulent documents, obscured identities, and shell companies to maintain access to the global banking system. Tether's trading volumes are typically in the region of Bitcoin and Ether combined, and it claims that USDT's value is pegged to the US dollar and backed 1:1 with US dollar/liquid equivalents. The report caused major cryptocurrency prices to dip, with critics of Tether claiming that USDT is not backed 1:1 by US dollars or equivalents. A large-scale bank run on Tether could be catastrophic for crypto markets, as USDT is a key source of inbound liquidity in the space.

NFT News

NFT Trading Volume Hits $2B in February, Driven by Blur and Yuga Labs' Collections

The NFT market is heating up, and it looks like competition between different platforms is a good thing. DappRadar, a Web3 data platform, reports that NFT trading volumes hit $2 billion in February - the highest number since before Terra and its UST and LUNA tokens crashed in May 2022. A lot of the increase is thanks to the popularity of the zero-fee marketplace Blur. Although the number of tokens traded decreased about 32% from January, the amount of cryptocurrency transacted across those trades increased about 120%, largely due to incentivized trades before Blur's native token airdrop in mid-February.

However, it seems like Blur is not bringing new traders into the NFT market. While it is challenging the historically leading marketplace OpenSea, Blur's focus on professional traders may be raising trading volumes, but not necessarily attracting new buyers. According to DappRadar blockchain research analyst Sara Gherghelas, "Blur doesn't bring adoption... As of right now, they are just bringing hype with the token launch, but it's impressive what they're doing."

Since launching in October, Blur has been targeting NFT traders looking to make large-scale purchases with zero fees. It quickly became popular by incentivizing traders to transact on the platform to be eligible to receive its native token BLUR ahead of its release in February. Two days after the token went live, Blur surpassed OpenSea in trading volume, and it has been challenging the leading marketplace's status ever since.

While Blur has played a significant role in February's NFT trading volumes, DappRadar also reported that Yuga Labs' NFT collections contributed 30% of Ethereum-based NFT trading volume last month. Its Dookey Dash skill-based mint played a large role in this figure, with the winning key, an NFT earned by receiving the highest score on the game, selling for $1.6 million earlier this week.

Crypto Market Watch

Bitcoin took a big hit on March 2nd thanks to some trouble with Silvergate. Big-time crypto clients like Coinbase put a stop to their dealings with Silvergate Bank, which caused Silvergate's stocks to plummet over 50%. Investors got a bit scared, and some of them jumped to stablecoins, leaving most of the crypto market in a bad spot.

Before this happened, Bitcoin was actually doing pretty well, going from around $16K in early January to $25K in February. The support at $22.6K was pretty solid, showing that people still believed in Bitcoin. But when Silvergate started having trouble, things changed.

Bitcoin broke a key ascending line and now has a bearish structure. If bears can get past two hurdles, they can really do some damage to Bitcoin. The first hurdle is the 50-day EMA (exponential Moving Average) of $22.400, and the second hurdle is the 100-day EMA ($21,200). If they can't do that, then the bulls may come back and start buying again.

The RSI shows that Bitcoin's uptrend momentum has been weakening, and the retreating Average Directional Index (ADX) confirms that. But even though Bitcoin's sentiment has been negative lately, the 90-day Mean Coin Age has been rising steadily. This means that lots of people are accumulating Bitcoin, which is a good sign for the future.

When Bitcoin's price drops sharply, investors usually buy stablecoins. But this time, there wasn't a big spike in stablecoins held by big investors. This suggests that people still believe in Bitcoin and aren't ready to give up just yet. As long as the support at $21K holds strong, things may turn around for the better.

Binance USD market capitalization falls below $10 billion for the first time since June 2021

Binance USD (BUSD), a stablecoin issued by Paxos and backed by Binance, saw its market capitalization fall below $10 billion for the first time since June 2021. This drop in value comes after Paxos stopped minting new BUSD tokens in February, citing orders from the New York Department of Financial Services (NYDFS) and facing potential legal action from the U.S. Securities and Exchange Commission (SEC) for offering unregistered securities.

Investors have since redeemed some $6.7 billion of BUSD from Paxos, leading to declining demand and liquidity concerns. This resulted in Coinbase announcing that it will pause trading of BUSD on its platform starting March 13, citing liquidity concerns. As a result, dogecoin (DOGE) has replaced BUSD as the ninth-largest cryptocurrency by market capitalization.

Web 3 Community Events?

Each week we will promote local and Australian-wide events in the Web3 ecosystem.

Upcoming Local Web 3 Events

Gold Coast: March 7 - Blockstars Web 3 Enthusiasts

Gold Coast: March 8 - International Women's Day: Digital Inclusion

Sydney: March 8 - International Women's Day: Digital Inclusion

Gold Coast: March 9th- Done Day: GG Innovation Hub

Melbourne: March 15 - Aus DeFi Association Meetup (MELB)

Web3 Conferences & Events?

1st February - 31st March

MELBOURNE: Drift x Magic Eden Summer Camp

March 10th, 2023

MELBOURNE: ChainsawFest

March 23rd, 2023

MELBOURNE: NFT Melbourne - NFT Melbourne Festival

Previous Web 3 Events

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Web 3 Knowledge Corner: Fiat vs Sound Money

What is Fiat Currency?

Fiat currency is a type of currency that has no intrinsic value or physical backing, such as gold or silver. Its value is derived solely from the government that issues it and the public's acceptance of it as a medium of exchange. Fiat currency is often used as legal tender, meaning it is accepted by law for the payment of debts and taxes.


Fiat currency is subject to inflation, which means its purchasing power may decrease over time as the supply of currency increases. The central bank or monetary authority of a country is responsible for managing the supply of fiat currency and ensuring its stability.

Examples of fiat currencies include the US dollar, Euro, Japanese yen, and many other national currencies. Fiat currency is the dominant form of currency used around the world today.


What is Sound Money?


Sound money is a term used to describe a type of currency that has a stable and predictable value over time. This is typically achieved through certain features such as a limited supply, high degree of decentralisation, and a high level of security. Sound money is considered to be healthy and reliable because it is difficult to manipulate or devalue. It is often associated with hard currencies like gold and silver, which have been used as money throughout history.?


Sound money is important because it provides a stable foundation for economic activity. It allows people to save and invest with confidence, knowing that their purchasing power will not be eroded by inflation or currency manipulation. In contrast, unsound money can create economic instability and uncertainty, leading to inflation, currency crises, and other negative consequences.


What is Ultra Sound Money?


Ultra sound money is a concept that refers to a type of money that is designed to maintain its purchasing power over time. One of the key features of ultra sound money is a supply cap, which ensures that the money supply does not increase beyond a certain point. This is seen as a way to prevent inflation and maintain the value of the currency.


Bitcoin is often considered the first and most well-known example of ultra sound money, with a hard cap of 21 million coins. This means that there will never be more than 21 million bitcoins in existence, no matter how much time passes or how much demand there is for the cryptocurrency.


However, Ethereum, which is the second-largest cryptocurrency by market cap, does not have a supply cap. Unlike Bitcoin, the supply of Ether (ETH) is not limited, and there is no maximum number of ETH that can be created. Instead, new ETH is created through staking rewards from validating nodes which are used to validate transactions on the Ethereum network.


So, why is Ethereum still considered ultra sound money despite not having a supply cap? One reason is that the rate of new ETH issuance is actually decreasing over time. There are now a number of mechanisms built into the Ethereum protocol that are designed to reduce the supply of ETH. For example, a portion of the transaction fees paid on the network are burned, effectively reducing the overall supply of ETH.


While Ethereum does not have a supply cap like Bitcoin, it is still considered by many to be ultra sound money due to its deflationary nature and decreasing rate of new issuance. As the network continues to grow and evolve, it will be interesting to see how these factors impact the long-term value of ETH.

janardan Bale

?SourceOpulence ? Solutions Achieved ??

1 年

Oh damn . I missed it !

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Katie Molly Richardson

Co-CEOs of AVEIT & Creators of FairyFrens? | Experts in EQ, Storytelling & Behavioural Trends | 19k+ Connections

2 年

Thanks Danielle Have a great day Much love The fairies

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