Connect with us

Uncategorized

Is Avalanche Here to Stay?

Published

on

Is Avalanche Here to Stay?

Decided Avalanche is a good investment? You can get Avalanche on Coinbase today.

While you may be familiar with blockchains like Bitcoin, Ethereum or Polkadot, another chain is mentioned less but is actually much faster than these chains. 

Avalanche is a speedy, low-fee Layer 1 chain, with over 450 operating projects. Avalanche boasts a transactional finality of under 2 seconds, high energy efficiency and thousands of nodes – it could truly be a name to watch.

The Avalanche blockchain uses subnets to allow builders to create their own customizable blockchains. This feature holds great potential for GameFi, and it has already attracted a number of Web3 games – most notably DeFi Kingdoms and Crabada. The subnets are also useful for institutions to deploy blockchains; this demand will only grow as blockchain gets properly regulated.

Advertisement

If a multi-chain future is possible, then Avalanche has carved out a nice sector of the industry and can provide a great deal of value. But, if Ethereum continues to successfully develop its network and Layer 2s, it may be too much to compete with – and it could swallow up competing Layer 1s. For a real shot at competing with Ethereum, Avalanche would need to beef up its developers, war chest and quality projects running on its network.

Is Avalanche Here to Stay, or Just a Fad?

Avalanche has a ton of advantages over other Layer 1 networks, but its number of users is far inferior to many other chains. Whether this narrative will flip is yet to be determined. 

The speed of the network and subnet capability are key features that Avalanche is leaning into. The chain is also proof-of-stake, making it more energy efficient than the proof-of-work Ethereum. Its key disadvantage is Ethereum’s first-mover advantage, as network effects are already far along.

Avalanche History

The Avalanche blockchain was founded by computer scientist and professor at Cornell, Emin Gun Sirer. The blockchain is backed by Ava Labs, a for-profit company that supports the Avalanche blockchain, also run by Sirer. 

Avalanche recently launched the Rush program, setting aside $225 million worth of AVAX for developer incentives. The program has seen great success, and similar incentive programs have been implemented in other Layer 1 projects. When Sirer was asked in an interview with Forbes about the similar programs, he called them copycats – Sirer also believes that Avalanche is further along in its technology than any other chain, even further along than the yet-to-be-launched Ethereum 2.0 via Forbes.

Advertisement

Pros and Cons of Avalanche

The Avalanche blockchain has a few key advantages, as well as areas needing improvement:

Pros

  • Subnets that are great for gaming and institutional use
  • Transaction finality < 2 seconds
  • Infinite transactional throughputs
  • More decentralized than most competitors
  • EVM compatibility to make using Ethereum dApps on AVAX simple

Cons

  • Number of developers is small in comparison to other Layer 1s
  • Dropped over 75% in 2022
  • Must compete with Ethereum and its many Layer 2s

Avalanche Competition

Creating alt-Layer 1s is a bold play with the behemoth that Ethereum has become. While Avalanche has to compete with Ethereum, Solana, Binance Smart Chain and others, it also must compete with the many Layer 2s built on top of Ethereum.

Ethereum has a firm grasp on the number 1 smart-chain compatible blockchain, leading in users, developers, market capitalization and many more aspects. 

Avalanche is unlikely to flip Ethereum but can certainly carve out a section of the market suited for its chain. Continuing its success with GameFi and institutions that want to dip their toe into blockchain technology will be crucial.

How to Make Money With Avalanche

Outside of just investing in Avalanche through the AVAX token, you can also stake the token and earn interest. By staking the AVAX token, you make the network more secure, and in return you are rewarded with roughly a 9% yield. Nexo, a cryptocurrency lending platform, offers a competitive APR of 12% on AVAX tokens.

Advertisement

The minimum staking time and amount of tokens staked is two weeks and 25 AVAX respectively. This means your tokens will be locked up for two weeks and you must invest at least $375 USD – AVAX trading at roughly $15 per coin at time of this writing.

How to Buy Avalanche

You can get exposure to Avalanche through the AVAX coin. The coin is tradeable on most big exchanges, like Coinbase Global Inc. (NASDAQ: COIN). If you are looking to dive deeper into the utility of AVAX a self-custodial wallet is required. You can use the AVAX wallet, found on the Avalanche website.

1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Advertisement

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For

  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform

Pros

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins

Cons

  • Higher fees than competitors
Advertisement

So, is Avalanche Here to Stay?

If the future is multi-chain, Avalanche is well positioned to be one of the big names. It holds key fundamental advantages and caters to specific industries, creating real value for companies. If Ethereum and its Layer 2 swallows up all alt-Layer 1s, Avalanche could just be another name to pump and crash. To truly compete with the big dogs, Avalanche will need to attract more developers.

Advertisement

205.8209 ETH

Risk Of ‘Significant Drawdowns’ Pushes Cypherpunk Holdings To Sell Entire Stash Of Bitcoin And Ethereum

Published

on

Risk Of ‘Significant Drawdowns’ Pushes Cypherpunk Holdings To Sell Entire Stash Of Bitcoin And Ethereum

On Tuesday, the Canada-based investment firm Cypherpunk Holdings Inc. announced that the company has sold all of its bitcoin and ethereum due to the “risk of further significant drawdowns.” The company has transitioned its treasury to cash after selling 214.72 bitcoin and 205.82 ethereum as Cypherpunk Holdings continues “to see systemic risks propagating” across the crypto economy.

Cypherpunk Holdings Sells All of the Bitcoin and Ethereum on Its Balance Sheet

Crypto winter has done a lot of damage since the bull run’s price highs, as more than $2 trillion has left the digital currency economy since the first week of November 2021. Today, the crypto economy is worth roughly $945 billion and bitcoin (BTC) is coasting along just above the $20K per unit range.

BTC is down more than 70% from the all-time high ($69K) on November 10, 2021, and ethereum (ETH) has lost more than 77% since the ATH ($4,878) recorded on the same day. On June 28, 2022, or eight months later, the publicly listed Canadian investment company Cypherpunk Holdings revealed it had dumped all of its bitcoin and ether holdings.

Advertisement

Cypherpunk Holdings (CSE: HODL) (OTC Pink: CYFRF) was one of the many publicly listed companies that held bitcoin and ethereum on its balance sheet. The update from the company notes that the sale was due to risk and it said the crypto economy may see “significant drawdowns” going forward.

CEO and president of Cypherpunk Holdings Jeff Gao.

Cypherpunk Holdings sold approximately 214.7203 BTC and 205.8209 ETH and it got around $4,927,000 for the lot of crypto assets. The company said that it currently has just over $14 million worth of “cash and stables” on hand. After the sale, the CEO and president of Cypherpunk Holdings, Jeff Gao, spoke about dumping the digital assets for cash.

“Recently, Cypherpunk liquidated all of its treasury holdings in BTC and ETH for cash and withdrew back to custody,” Gao wrote in an update concerning the company’s cryptocurrency holdings and strategy.

“We continue to see systemic risks propagating throughout the crypto ecosystem and, in our assessment of the risk reward and opportunity costs involved in holding asset tokens, we believe that the most prudent approach is to sit on the sidelines as we wait for the volatility and illiquidity contagion to come to its logical conclusion,” Gao said. “On the balance of probabilities, we see weaker price action opening the way to lower levels to come as reports of the number of chains imposing ‘temporary’ suspension on withdrawals increases.”

The Cypherpunk Holdings executive continued by adding:

Advertisement

Until such a time as our thesis on market conditions change, our treasury will remain in cash. Cypherpunk maintains its long-term bullish outlook on crypto and currently plans to actively seek to capitalize on compelling risk reward opportunities as and when they present.

Company Sold 196.74 Bitcoin and 382 Ether Prior to the June 28 Announcement and Amid the Terra LUNA Fallout

Furthermore, Cypherpunk Holdings dumped bitcoin (BTC) before the June 28 announcement, as it told investors on June 13 that it sold 96.74 BTC for $2.9 million and 50 ETH for $100K. Cypherpunk Holdings’ management also decided to unload shares of Animoca Brands, as it sold the company’s last block of 500,000 Animoca shares for “a realized profit of 234%.” Amid the Terra LUNA and UST fallout, on May 11, 2022, Cypherpunk Holdings sold 100 BTC and 332 ETH for just over $4 million.

With Cypherpunk Holdings removed from the Bitcoin Treasuries list, and Microstrategy’s recent purchase of 480 bitcoins, publicly-listed companies hold 268,357 BTC worth 5.382 billion at current bitcoin exchange rates. Exchange-traded products hold 828,641 BTC, countries hold 50,699 BTC, and private companies own 174,381 BTC, according to the Bitcoin Treasuries list on June 29.

What do you think about Cypherpunk Holdings dumping its bitcoin and ether because it believes “weaker price action” is coming? Let us know what you think about this subject in the comments section below.

Advertisement
Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

central bank digital currency

Report: Taiwan’s Central Bank May Need 2 Years To Complete Work On CBDC

Published

on

Report: Taiwan’s Central Bank May Need 2 Years To Complete Work On CBDC

Taiwan’s central bank is yet to conclude work on its central bank digital currency (CBDC) and according to the bank’s governor, the institution may need two more years to finish its work, a report has said. Some of the bank’s next tasks include winning the public’s support, ensuring the system is stable, and building the currency’s legal framework.

Simulating Use of the CBDC

Some two years after work on Taiwan’s central bank digital currency (CBDC) commenced, the governor of the country’s central bank, Yang Chin-long, recently revealed that his organization is still working on the project. Yang warned the central bank may need as long as two years to complete the task.

Yang, who spoke at a digital currencies forum, also disclosed the central bank had been simulating the use of the CBDC in what a Reuters report called a closed-loop environment. However, the same report said the central bank now faces three key tasks. These include communicating and ultimately winning the public’s support, ensuring the system is stable, and building the currency a legal framework.

Advertisement

According to the report, the governor also conceded that the entire process may last more than the anticipated two-year period.

While the Taiwanese people are reported to be more accustomed to using cash, Yang said the central bank had to consider the fact that future generations will likely use digital currencies more than they use physical cash.

“We still have to push forward. After all, most of the young people in the future will use mobile phones, so we have to think about the next generation,” Yang is quoted in the report explaining.

What are your thoughts on this story? Let us know what you think in the comments section below.

Advertisement
Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

eBay

E-Commerce Giant Ebay Files Trademark Applications Covering Wide Range Of Metaverse, NFT Services

Published

on

E-Commerce Giant Ebay Files Trademark Applications Covering Wide Range Of Metaverse, NFT Services

E-commerce giant Ebay has filed two trademark applications covering a wide range of products and services relating to the metaverse and non-fungible tokens (NFTs).

Ebay’s NFT, Metaverse Trademark Applications

Ebay Inc. (Nasdaq: EBAY) filed two trademark applications with the United States Patent and Trademark Office (USPTO) last week covering a wide range of products and services relating to non-fungible tokens (NFTs) and the metaverse.

A USPTO-licensed trademark attorney, Mike Kondoudis, tweeted Tuesday: “Ebay Inc. is coming to the metaverse.” He explained that the filings indicate the e-commerce giant’s plans for virtual good marketplaces, online retail stores with actual and virtual goods, NFTs, NFT exchanges, and NFT trading. The applications’ serial numbers are 97473696 and 97473620.

Advertisement

One day before Ebay filed the two trademark applications, the company announced that it has acquired NFT marketplace Knownorigin. According to Ebay, the two companies signed and closed the deal on June 21.

Ebay CEO Jamie Iannone described at the time: “Ebay is the first stop for people across the globe who are searching for that perfect, hard-to-find, or unique addition to their collection and, with this acquisition, we will remain a leading site as our community is increasingly adding digital collectibles.”

The e-commerce platform began allowing NFT sales in May last year, citing a “massive wave of attention” in the area.

This month, McKinsey and Company said that the metaverse could generate $5 trillion by 2030. “By 2030, it is entirely plausible that more than 50 percent of live events could be held in the metaverse,” the company noted.

Advertisement

In addition, a survey conducted in April showed that the metaverse will be the most popular place for crypto, with 70% of respondents agreeing that “cryptocurrency and blockchain technology advancements will be critical to shaping the future of the metaverse.” Moreover, Citigroup predicted that the metaverse could be a $13 trillion opportunity with 5 billion users by 2030 while Goldman Sachs sees the metaverse as an $8 trillion opportunity.

What do you think about Ebay filing trademark applications covering metaverse and NFT services? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement
Continue Reading

Trending

Get our daily News updatesSignup to get instant updates straight to your email