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Is Hedera Hashgraph (HBAR) a Good Investment?

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Decided Hedera Hashgraph is a good investment? You can get HBAR on crypto.com today!

The Hedera Hashgraph network is a public distributed ledger network that is built using a directed acyclic graph (DAG). Hedera Hashgraph was founded by a Texas software company known as Swirls. The company raised capital for the project through a series of SAFTs (Simple Agreement for Future Tokens) starting in 2018. It’s mainnet was launched in 2019 and currently has partnerships with major institutions such as Alphabet Inc. (NASDAQ: GOOGL), LG Electronics Inc. (KRX: 066570), University College London and many more. 

What is Hedera Hashgraph? HBAR is the native token for the Hedera Hashgraph network. The token is used to power its decentralized applications and serves as the fuel for its ecosystem. The vision of Hedera Hashgraph is “to build a trusted, secure, and empowered digital future for all.”

Although Hedera Hashgraph is a distributed ledger technology, it is important to note that it is not built on top of a blockchain. Instead this technology uses a DAG, which differs from the vast majority of distributed ledger networks — such as Bitcoin, Ethereum, Cardano — that are all built using the blockchain. Hedera Hashgraph also uses a unique consensus mechanism called the hashgraph consensus algorithm, which was invented by the co-founder of Hedera, Leemon Baird. The consensus algorithm uses what is referred to as a “gossip protocol” where the nodes of the network send transaction information to other nodes, and the receipts of this information repeat the process by sending it to additional nodes. This unique consensus algorithm has been validated through mathematical proofs to be asynchronous Byzantine Fault Tolerant (ABFT).

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Hedera Hashgraph claims to support 10,000+ transactions per second, which is lightning fast. For reference, Visa Inc. (NYSE: V) handles around 1,700 transactions per second and claims to have the capacity to support 65,000 transactions per second. However, there are major red flags in the transactions per second that Hedera Hashgraph claims to be able to process. The transactions per second supported by the network drops significantly when executing transactions involving smart contracts. Furthermore, transactions involving smart contracts written in solidity tend to cause the transactions per second to drop to 13 to 15 transactions per second because the Ethereum virtual machine (EVM) must be used to run transactions.  

Another important critique of Hedera Hashgraph is its centralization. Hedera Hashgraph is governed by a council of 19 multinational corporations from around the world. Some of these multinational corporations include Google, LG and IBM (NYSE: IBM). These multinational corporations and the founding company Swirls have a great deal of power over the network. Furthermore, until recently the software behind Hedera Hashgraph was patented and closed source. 

Hedera Hashgraph Price History The HBAR token is currently trading around $0.25 as of February 2022. The token has a market cap of over $4 billion and a fully diluted market cap of over $12 billion. The fully diluted market cap is the market cap of the token if the max supply were in circulation. Currently, 18.09 billion HBAR tokens are in circulation, and the token has a max supply of 50 billion tokens. That level accounts for 36% of the max supply currently in circulation. The token is in the top 50 largest cryptocurrencies by market cap. It is currently down from an all-time high of $0.5059. 

Hedera Hashgraph Competition Hedera Hashgraph faces strong competition from other major smart contract platforms. Competitors include well-established networks such as Ethereum, as well as other projects such as Cardano, Solana, Avalanche and Fantom. Although Hedera Hashgraph aims to serve the enterprise blockchain space, nothing prevents big institutions from building their applications on top of these other networks. 

Hedera Hashgraph also faces competition from the many Layer 2 solutions working to help scale Ethereum.  One example would be Polygon and the MATIC network. Ethereum currently has the most users and developers of any smart-contract-compatible distributed ledger technology. If Layer 2 solutions are able to help scale Ethereum, then many institutions may choose to build their applications there instead of on a smaller project such as Hedera Hashgraph.   

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How to Buy Hedera Hashgraph The best place to buy Hedera Hashgraph is from a centralized exchange. These exchanges are companies that allow you to purchase cryptocurrencies using fiat money. Unfortunately, many major exchanges such as Coinbase Global Inc. (NASDAQ: COIN) do not support Hedera Hashgraph. Currently, the most reputable exchange to purchase HBAR on is crypto.com. To purchase HBAR through crypto.com you create and then login to your account. Afterwards, you fund your account through your bank account, credit card or other cryptocurrencies. Then convert these funds to HBAR. 

Decentralized exchanges (DEXs) are also a popular way to purchase cryptocurrencies. Some popular DEXs include Uniswap, SushiSwap and Metamask. However, since Hedera Hashgraph is not an Ethereum ERC-20 token, the vast majority of DEXs will not have this token available for purchase. 

Best Hardware Wallet: Ledger If you choose to purchase a significant amount of HBAR tokens, it is extremely important to take the precaution to store these tokens safely. The best place to store your HBAR tokens is on the hardware wallet Ledger. 

Hardware cryptocurrency wallets such as Ledger store access to your cryptocurrencies on an external device. Ledger wallets are a form of offline storage and are not connected to the internet. This feature is beneficial because “hot” wallets that are connected to the internet are much more likely to be exposed to scams, hacks and private key leaks. Ledger wallets currently cost around $60 to $250 depending on the model you choose to purchase. 

buy now securely through Ledger Hardware Wallet’s website

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1 Minute Review

Launched in 2014, Ledger has transformed into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for companies and individuals. Born in Paris, the company has since expanded to more than 130 employees in France and San Francisco.

With 1,500,000 Ledger wallets already sold in 165 countries, the company aims at securing the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates to a secure chip for its line of wallets. So far, Ledger takes pride in being the only market player to provide this technology.

Best For

ERC-20 tokens All experience levels Pros

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Easy to set up and use Supports more than 1,500 different digital assets Tamper proof Portable Long-lasting battery Bluetooth connectivity features Cryptocurrency Market Outlook Here is the current outlook for the cryptocurrency market. The total cryptocurrency market is currently down significantly from the end of last year. If you are interested in purchasing cryptocurrencies, now may be a good time to get in well below past all-time high prices.

Is Hedera Hashgraph a Good Investment? Hedera Hashgraph may not be a good investment in part because of its minimal community. Hedera Hashgraph’s centralization and focus on institutional investors mean that it does not seem to have grown a strong following. Lack of community can have a negative impact on cryptocurrencies because the value of a good or service that a user derives — the network effect — depends on the number of users of the same product or platform. 

The value provided by a platform with great technology may be less than the value provided by a less sophisticated platform if such platform has more users. For example, a social media platform with superior technology would provide little value if you are the only user of the platform. 

Another reason Hedera Hashgraph may be a poor investment is due to the heavy competition it faces from other Layer 1s and Layer 2 solutions. Many competing platforms attempt to create more scalable distributed ledger technology, and it is unlikely that Hedera Hashgraph will come out on top. 

However, the cryptocurrency market is down significantly. Hedera Hashgraph may still see a significant amount of growth if the cryptocurrency market as a whole experiences substantial growth.

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Investments

Binance CZ denies Bloomberg report of Abu Dhabi fundraising attempt

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Binance CZ denies Bloomberg report of Abu Dhabi fundraising attempt

Binance CZ denies Bloomberg report of Abu Dhabi fundraising attempt Liam ‘Akiba’ Wright · 3 hours ago · 2 min read

Reports that CZ has been seeking funding from Abu Dhabi investors have been called ‘false’

2 min read

Updated: November 22, 2022 at 6:04 pm

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Cover art/illustration via CryptoSlate

The CEO of Binance, CZ, has denied a report published by Bloomberg on Nov. 21 that he was seeking investment for an industry recovery fund. CZ took to Twitter to succinctly confirm that the report was “false.”

False

— CZ 🔶 Binance (@cz_binance) November 22, 2022

The Bloomberg article stated that “Changpeng.

“CZ” Zhao and several deputies met with investors in Abu Dhabi last week in an effort to raise cash for a crypto industry recovery fund, according to people familiar with the matter.”

However, given that CZ has now denied that he spoke with investors regarding the new recovery fund, it appears that the report may have misrepresented the Binance CEO after he attended the recent Milken Institute Middle East and Africa Summit on Nov. 17. CZ lives in Dubai which is just an hour away from Abu Dhabi.

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According to Bloomberg, a Binance representative stated that CZ’s meetings focused on “global regulatory matters.”

“CZ’s meetings in Abu Dhabi were all focused on general global regulatory matters — specifically how Middle Eastern regulators could lead the globe by exploring more aggressive proof of custody requirements for crypto exchanges,”

CZ confirmed the existence of a global crypto recovery fund on Nov. 14.

To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2

— CZ 🔶 Binance (@cz_binance) November 14, 2022

CZ has noted that “most journalists at Bloomberg are good, but Binance has run into issues with Bloomberg in the past. It filed a lawsuit against the organization in July 2022. CZ claimed that Bloomberg

“will do a nice profile piece on you, invite you for photoshoots, etc. Then switches the story last minute. Ignore all positive comments they got from 3rd parties. Picked only old negatives. And still puts you on the cover.”

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Investments

Binance muscles in on hardware wallet sector with series A investment in NGRAVE

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Binance muscles in on hardware wallet sector with series A investment in NGRAVE

Binance muscles in on hardware wallet sector with series A investment in NGRAVE Samuel Wan · 7 hours ago · 2 min read

Binance Labs said investment in self custody wallets will encourage crypto adoption by giving users confidence.

2 min read

Updated: November 22, 2022 at 11:27 am

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Cover art/illustration via CryptoSlate

Binance Labs announced it will take the lead in an upcoming Series A investment round in hardware wallet maker NGRAVE.

Company co-founders Xavier Hendrickx, Ruben Merre, and Edouard Vanham launched NGRAVE in 2018 to make crypto a safer place for all.

Hendrickx had suffered multiple instances of lost and stolen crypto funds, including being a victim of the 2014 Mt. Gox hack. These experiences inspired him to address the problem of crypto security and launch NGRAVE.

The team wants to change the way people experience crypto by eradicating “the chance of loss and malicious hacking.”

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“Our mission, empower people to master their wealth so they are free to live the life they want.

Currently, the company’s product lineup includes the Zero “air-gapped” hardware wallet, meaning it connects by QR code, rather than USB, WiFi, Bluetooth, etc, a physical stainless steel key backup called Graphene, that incorporates an obfuscation mechanism, and the software interface called Liquid.

Binance sees hardware wallets as an emerging market

Commenting on the problem of crypto security, head of Binance Labs, Yi He, said the issue hinders mass adoption. She added that investing in NGRAVE is a step towards addressing the problem.

“Security remains one of the biggest hurdles for crypto adoption. Self-custodial wallets are one of the most secure methods for storing digital assets and through our investment in NGRAVE, we are looking to continue backing innovative startups that enhance user security.”

Similarly, Investment Director at Binance Labs, Tyler Z, said hardware wallets are perhaps the safest way to store cryptocurrency, especially during times of market volatility.

Binance Labs incubated self-custody solution provider SafePal back in 2018. SafePal’s product offerings include software and hardware wallets, with the latter priced at less than NGRAVE’s solution.

Self-custody is the way forward in wake of the FTX disaster

Following FTX filing for Chapter 11 bankruptcy on Nov. 11, the self-custody of assets has taken on greater significance.

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Days after the bankruptcy filing, Binance CEO Changpeng Zhao (CZ) tweeted that self-custody is a fundamental human right while reminding his followers they are “free to do it at any time.”

Giving advice, CZ encouraged users to start small and get familiar with how self-custody solutions work. Warning that “mistakes here can be very costly.”

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Bear Market

Grayscale holds 635K BTC as Coinbase Custody reveals holdings

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Grayscale holds 635K BTC as Coinbase Custody reveals holdings

Grayscale holds 635K BTC as Coinbase Custody reveals holdings Liam ‘Akiba’ Wright · 16 mins ago · 2 min read

Spotlighted investment vehicle Grayscale holds roughly $10B worth of Bitcoin after failure to produce proof of reserves.

2 min read

Updated: November 21, 2022 at 2:43 pm

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Cover art/illustration via CryptoSlate

Following recent uncertainty regarding the future of the Grayscale Bitcoin Trust, its custodian partner Coinbase released a report detailing the assets held on behalf of Grayscale Bitcoin Trust.

The letter revealed that holdings are segregated from other funds. However, no on-chain addresses were published in the document.

“The digital assets underlying each Grayscale product have their own on-chain addresses, as we use client by client custody segregation.”

The Bitcoin held by the trust is valued at around $10 billion as of press time. At the height of the bull market, the figure would have been closer to $43.8 billion. Grayscale also holds 3,056,833 ETH valued at $3.3 billion in the Greyscale Ethereum Trust. Both BTC and ETH are also held in smaller amounts within the Grayscale Digital Large Cap Fund which appears to be segregated from the main trust.

Source: Greyscale.com

Grayscale recently refused to release proof of reserves to follow a trend seen across centralized exchanges after the collapse of FTX. The company cited “security concerns” as validation for the decision not to publish on-chain addresses.

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6) Coinbase frequently performs on-chain validation. Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure.

— Grayscale (@Grayscale) November 18, 2022

However, Grayscale does offer links to SEC filings on its website for off-chain validation as per its legal requirements. It also confirmed that each trust is registered as a separate legal entity to highlight that each product is segregated from the main fund.

The discount on Bitcoin within the Grayscale Bitcoin Trust reached 45.8% on Nov. 18, indicating the underlying value of each Bitcoin held to be just $9,300.

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