What’s New In The Crypto World?
Welcome everyone, today we will go over the fourth instalment of our What’s New in Crypto series, with some juicy info for all kinds of DeFi users.
Microsoft and Edge Are Looming over ChatGPT
Microsoft has officially unveiled its new Bing search engine based on artificial intelligence, which, together with the Edge browser, will provide a new and more complete Web search experience — Google’s big bogeyman after the ChatGPT explosion.
Introducing us to the details of how it works is Yusuf Mehdi, Corporate Vice President & Consumer Chief Marketing Officer, who explains Microsoft’s new revolution in a long post.
“Today we’re launching a completely new Bing search engine and Edge browser powered by artificial intelligence, available for preview on Bing.com, to deliver better search, more comprehensive answers, a new chat experience, and the ability to generate content. Think of these tools as an AI co-pilot for the web”
They were excited to announce that the new Bing is based on a new next-generation OpenAI language model that is more powerful than ChatGPT and customised specifically for search. The new model builds on the key learnings and advances of ChatGPT and GPT-3.5 and is even faster, more accurate and more capable.
We can also check the statement on Microsoft Prometheus Model.
“We have developed a proprietary way of working with OpenAI that allows us to make the most of its power. We have called this set of capabilities and techniques the Prometheus model. This combination delivers more relevant, timely and targeted results with greater security.”
While all of those news are great for the market since we never want to see a monopoly on something like Ai integrations, we wonder how many users these new chatbots will be able to get from ChatGpt and its already huge following.
Tether Behind the Veil: $1.48 billion profit and Bitcoin and Gold reserves disclosure.
Stablecoin issuer Tether announced a profit of $1.48 billion for the first quarter of this year after rising interest rates helped the company achieve higher returns.
In addition to announcing the billion-dollar profit, Tether revealed that it now holds both physical gold and Bitcoin (BTC) — considered by some to be digital gold — as part of its reserves.
The company said that about four per cent of its reserves are gold and two per cent are Bitcoin.
Tether added that it now holds excess reserves of $2.44 billion, a record for the stablecoin company, after what it called ‘another excellent quarter’.
Tether now holds $81.8 billion in total consolidated assets, the majority of which are held in US Treasury bonds, the press release said, noting that the company has been working to ‘reduce its reliance on pure bank deposits.
The stablecoin issuer also increased the number of tokens in circulation by 20 per cent during the quarter.
“This is a clear indicator of Tether’s customer confidence, which allows Tether to be very optimistic about the future.”
Tether described its reserves as “extremely liquid” and stated that around 85 per cent are held in cash and other short-term deposits.
Stablecoin issuers such as Tether usually earn money from the interest they receive on their reserves.
The Chiliz-Ethereum Bridge has been built
Chiliz, a major blockchain provider for the sports industry, has made two important announcements in recent hours.
First, the long-awaited Chiliz Ethereum Bridge has gone live, allowing users to move their CHZ tokens from the Ethereum mainnet to the Chiliz Chain. This new bridge opens up new possibilities of use and exchange for CHZ token holders.
To take full advantage of the Chiliz Ethereum bridge, it will be necessary to have CHZ tokens on at least one of the two networks involved.
Furthermore, if the bridge will be performed by Ethereum, a sufficient balance of ETH will be required to cover the transaction fees, whereas if the bridge will be performed by the Chiliz Chain, an adequate balance of CHZ will be required to cover the relevant fees.
The second major piece of news concerns the official release of the Chiliz Chain mainnet, a major event in the world of blockchain and sports.
This new infrastructure represents a significant step forward for both niches as it is the first blockchain platform specifically dedicated to the sports and entertainment industry.
And with the launch of the public mainnet, a new chapter has begun for Chiliz to strengthen relations between fans, community and teams.
Chiliz Chain is a layer 1 blockchain, compatible with EVM and based on a Proof of Stake Authority system. This new infrastructure represents the next phase of the Chiliz project, offering sports teams and brands a space to build Web3-based products, promoting more direct engagement with their communities.
Sam Altman prepares to drop some big news in the crypto industry.
The Artificial Intelligence platform ChatGPT, developed by OpenAI, has created a significant market upheaval since its launch around November 2022.
While global technology companies are moving to adapt to the impact caused by this technology, OpenAI chief Sam Altman is also looking to revolutionise the cryptocurrency sector.
As reported by the Financial Times, Sam is seeking $100 million in funding for Worldcoin. This project, launched in 2019, aims to create a globally disruptive cryptocurrency using iris scanning technology.
Co-founded by Sam Altman together with Alex Blania, Worldcoin is set to launch in a few weeks.
Popular investors in the project include Andreessen Horowitz’s crypto fund Khosla Ventures, Internet entrepreneur Reid Hoffman and disgraced FTX founder Sam Bankman-Fried.
According to the early details of the project, the company will use eyeball-scanning technology to create a global identification system. this will allow users to access their own global cryptocurrency, Worldcoin.
According to the company, its key plan is to create a platform that:
“…uses iris biometrics to establish an individual’s uniqueness, then creates a digital World ID that can be used in a wide variety of everyday applications without revealing the user’s identity.”
Once their identity is established, users can start receiving free Worldcoin tokens.
This development comes at a time when the cryptocurrency market in general is facing strong regulatory action. Furthermore, following the FTX exchange failure, the market has been under heavy selling pressure, but 2023 has so far been positive for investors.
However, the cryptocurrency ecosphere has not yet fully recovered from the negative events of last year, which will go down in history as one of the harshest crypto winters.
Last week, on the 8th of May, Worldcoin unveiled its World App and noted that:
“You can use it to prove your identity online with World ID, claim your Worldcoin tokens and send digital money globally for free.”
It also launched a cryptocurrency wallet for verified users of the app. According to the latest developments, the Optimism mainnet will host all of Worldcoin’s flagship apps.
Smart contracts have also arrived on the Bitcoin blockchain!
Last week, a group of developers deployed a suite of Uniswap smart contracts directly on the Bitcoin blockchain.
Uniswap is a decentralised cryptocurrency exchange that operates on multiple blockchains that already use smart contracts, such as Ethereum and Polygon, specifically with Automated Market Maker smart contracts.
Automated Market Makers are DEXs that use ‘algorithmic monetary robots’ to facilitate the buying and selling of cryptocurrencies by individual traders. Instead of trading directly with other people, as in a traditional order book, users trade through AMMs.
The new Bitcoin-based DEX, called Trustless Market, allows its users to trade so-called ‘Smart BRC-20 tokens’, provide liquidity and earn a 2% transaction fee and issue new Smart BRC-20 tokens, according to @punk3700, one of the developers behind the DEX. ‘
BRC-20 is a Bitcoin-based token standard that allows users to write information into each Satoshi, which is BTC’s smallest unit of denomination — there are 21 million Satoshi per Bitcoin.
According to the Trustless Market website, “Smart BRC-20s are the first smart contracts implemented on Bitcoin”.
“They work exactly as they are programmed, with no possibility of fraud, third-party interference or censorship,” it added, pointing out that they can be issued for “anything: a cryptocurrency, a share in a company, voting rights in a DAO and more.”
The implementation of AMM smart contracts on Bitcoin marks its official birth as a smart blockchain, regardless of whether its creators and strongest supporters intend to use it as such.
Bitcoin’s use in decentralised finance has always been limited, and even with the arrival of the Ordinals protocol late last year or the BRC-20 token standard in March, the BTC chain was only experiencing problems.
Now with the introduction of smart contracts to the Bitcoin’s standard, we may see it used in more ways in the world of DeFo.
Tokenised versions of the cryptocurrency, such as Wrapped Bitcoin on the Ethereum blockchain, have attempted to unlock the DeFi potential of the world’s largest cryptocurrency.
There has also been a lot of enthusiasm in recent times for Bitcoin’s layer2 ‘scaling’ solutions enabled by smart contracts, such as Stacks.
But the Trustless Market protocol could be the first of an explosion of new dApps that will be deployed directly on Bitcoin’s blockchain.
After three days of implementing the protocol, Trustless Market had already recorded a trading volume of more than $500,000, said @punk3700.
Since 2018, AMM smart contracts using DEX like Ethereum have been at the forefront of the explosion of DeFi applications on Ethereum and other smart chains.
One obstacle preventing Bitcoin from following this path is the lack of blockchain transaction processing speed, which also continues to hinder Ethereum.
However, unlike Ethereum, Bitcoin has no plans or roadmap to upgrade its protocol and increase transaction speed, meaning that we probably will have to wait for a while before seeing anything concrete change.
US Chamber of Commerce Gives the Win to XRP Owners!
Lawyer John Deaton, known for his pro-crypto stances, claims that members of the XRP community were the first to denounce the SEC’s serious violation.
In a tweet yesterday, CryptoLaw founder John Deaton claimed that XRP holders were the first to call the attention of the US Securities and Exchange Commission for its gross abuse of power.
According to Deaton, XRP holders have been raising the issue of SEC interference in crypto activities for the past two years.
Those who supported XRP from the beginning urged other crypto enthusiasts not to be fooled by the SEC. The pattern would be repeated involving other companies active in the sector.
Instead, many ignored these warnings and chose to side with the Securities and Exchange Commission and against Ripple and XRP.
Deaton, who has long overseen legal disputes for the cryptocurrency industry, has always urged the crypto community to stand up against government prevarications, even when they were aimed at commercial rivals.
“Even when the government rails against a project you don’t like, you have to oppose it,” Deaton said.
When the SEC initiated the case against Ripple in 2020 for alleged violations of US securities laws, the Ripple supporter community had made its voice heard.
In the course of time, there were those who did not fail to lend their support, while others praised the Commission’s action against Ripple.
Since then, however, the Commission’s attention has turned elsewhere. Over the past year, the SEC has pointed its finger at several cryptocurrency companies, including Coinbase, Bittrex, Kraken, and others.
Attorney James Murphy, founder of MetaLawMan reported in a tweet that the US Chamber of Commerce has filed amicus briefs in the Coinbase v. SEC case.
According to Murphy, the fact is of great significance.
He further stated:
“The United States Chamber of Commerce is a very influential organisation that represents companies in all sectors in the United States, not just cryptocurrency.”
The Chamber of Commerce claims that the SEC is destabilising the regulatory environment for digital assets and violating constitutional due process. The body also claims that the SEC’s actions are harmful and illegal.
Murphy said the court will pay close attention to the body’s arguments because it is one of the most influential organisations in the US.
Ethereum staking boom: Record profits for investors!
Following the Shanghai update in mid-April, which gave investors the option to withdraw their staked ETHs, staking returns on Ethereum have hit record levels.
In fact, data from the Token Unlocks analytics platform reveal that at the moment, the annual rate of return for Ethereum staking, i.e. the interest rate to operate an ETH validator, has reached an all-time high of 8.76 per cent.
Since the implementation of the unstaking process on Ethereum’s network, investors have deposited 3.44 million ETH in ETH 2.0 contracts, while they have withdrawn 2.67 million ETH, creating a net commitment of 770.70k ETH (worth approximately $1.41 billion).
The latest development on the Ethereum blockchain, also known as ‘Shapella’, has had a significant impact on several aspects of the ecosystem.
In addition to unlocking billions of previously blocked ETHs, it has enabled a reduction in gas fees for Ethereum’s platform developers. The goal is to make the entire system more scalable and efficient.
Ethereum is trying to recover from the losses of the past weeks and is avoiding the coming true of some rather critical predictions by some experts, according to which ETH would end up at the $1,500 level.
Thus, it seems that the crypto community’s predictions with Ethereum at $1,900 by the end of the month are catching on, with CoinMarketCap members remaining more careful, forecasting $1,835 by 31 May.
Afterthoughts
As always, the crypto world remains a volatile, exciting ecosystem to navigate, with many up and downs, twists and turns, and a lot of projects coming up with new amazing technology.
While we are still looking at the BCR craze with quiet discontent, both a correction of the problem and the ability of BTC to translate into a smart chain are long-term solutions that could bring a lot of opportunities to the table, but at the moment we need to remain clear-headed and focus on building real use cases for the people of the DeFi community.
This is why we are happier about the SEC being fact-checked or the introduction of more infotainment industries to the DeFi world than anything else, and we hope for more uplifting news in the following weeks.
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