Day: April 17, 2024

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Fantasy, a crypto trading card game allowing users to trade crypto influencers as cards, has launched on Blast mainnet. The project garnered $600,000 in funding in February.

Fantasy, the crypto trading card game, is now live on Blast mainnet after a successful testnet phase. Users can trade crypto influencers portrayed as trading cards on the app, with influencers earning a 1.5% cut each time their cards are traded.

The project secured $600,000 in funding from Alliance DAO, Manifold Trading, Fabric Ventures, and angel investors in February. Notable angel investors include Santiago Santos from former ParaFi Capital, Bryan Pellegrino from LayerZero Labs, and the pseudonymous NFT influencer known as “money.”

Fantasy is also offering a points airdrop based on activity on social media platform X and on-chain metrics from several blockchains, including Blast.

During the testnet phase, Fantasy gained significant traction with influencers like Ansem driving interest. Ansem’s trading cards generated substantial testnet ETH trading volume, resulting in rewards of testnet ETH. The project’s success on mainnet will depend on its ability to sustain similar momentum.

Additionally, Fantasy allows users to participate in competitions using five of their cards. During the testnet phase, over 23,800 users engaged in such competitions, with a total of 75,000 registered users.

Fantasy operates on Blast, a Layer 2 network on Ethereum launched on mainnet in February. Blast aims to offer a native-yield model for ether and stablecoins, providing 4% interest for ether and 5% for stablecoins. The network was developed by Tieshun Roquerre, founder of the NFT marketplace Blur.

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Solana-based decentralized betting platform Parcl has experienced a significant decline in total value locked (TVL), losing approximately 40% since early April, as reported by DefiLlama data. Other Solana-based airdrop tokens, including W and TNSR, have also witnessed notable declines in value.

Since its airdrop snapshot on April 3, Parcl has witnessed approximately $74 million exiting the protocol, marking a sharp decline from $184.5 million to $110.69 million in TVL within about two weeks. The platform distributed native Parcl (PRCL) tokens to eligible users following the snapshot, with its initial TVL dropping significantly post-airdrop.

The airdrop distributed 80 million PRCL tokens initially valued at $0.8255 each, but the token’s value swiftly plummeted to a low of $0.45 before rebounding to $0.5294 at the time of publication. Launched in February 2023, Parcl enables users to trade on assets reflecting major city housing markets through decentralized betting.

While Parcl did not respond to inquiries from The Block, the mass withdrawal from the platform coincides with weak performances of other Solana-based airdropped tokens. For instance, Wormhole’s W token has seen a 56.4% decline since its debut, and Tensor’s TNSR token has lost half its value post-airdrop.

Despite these setbacks, Solana projects continue to conduct airdrop events, with decentralized exchange Drift and Zeta Markets announcing plans for token distributions. Solana itself has grappled with congestion issues in recent weeks, likely exacerbated by spam transactions, although updates have been deployed to address these challenges.

CoinMarketCap data indicates an 18.8% decline in the price of Solana over the past seven days, mirroring a broader downturn in the crypto market, with the GMCI 30 index, representing a selection of the top 30 cryptocurrencies, falling 13.79% amid investor caution following geopolitical tensions.

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In just three days, Bitcoin will undergo its next halving event, a significant occurrence in its price history. Scheduled approximately every four years, this event, ingrained in the cryptocurrency’s source code, aims to introduce anti-deflationary features to Bitcoin. While past halvings have contributed to price appreciation, the dynamics this time around might differ. Here’s what to consider.

At present, each block mined rewards miners with 6.25 new Bitcoins. Following the halving, this reward will halve to 3.125 BTC per block. In theory, this reduction should alleviate selling pressure on Bitcoin. Miners, who receive new BTC as rewards, often sell these tokens promptly, potentially decreasing daily token sales post-halving. This scenario could create a demand-supply imbalance, potentially driving prices upward. However, the market’s response is far more intricate.

Past halvings sparked debates and uncertainties. Some argued that market anticipation already factored in the halving’s effects, undermining its impact. However, history proved otherwise. Preceding each of the last three halvings, Bitcoin experienced minor price surges, followed by significant increases in the ensuing year, leading to new highs.

While this trend prevailed in the past, it’s not guaranteed for this halving. With previous halvings and market cycles informing investors, forecasts might be more accurate, potentially altering the usual cycle dynamics. Notably, BTC reached new all-time highs before the halving for the first time, possibly indicating investors pricing in the event’s impact beforehand, possibly influenced by factors like ETF approvals.

In this unprecedented market cycle stage, various outcomes are plausible, challenging investors’ ability to predict BTC’s trajectory post-halving. Only time will reveal the true impact of the upcoming halving on Bitcoin’s price.

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Bernstein, a brokerage firm, recommends purchasing stocks of bitcoin miners Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK) ahead of the impending halving event. They anticipate a bullish trajectory for Bitcoin post-halving, once mining hashrates adjust to reduced rewards and ETF inflows pick up.

Despite concerns over profitability following the halving, Bernstein maintains a positive outlook on bitcoin mining stocks, citing their potential for superior execution and market leadership in self-mining hashrate.

Analysts Gautam Chhugani and Mahika Sapra highlight the historical trend of Bitcoin price breakout following halving events, with recent ETF approvals driving pre-halving price appreciation. However, recent fluctuations, including a 15% drop in the last 10 days, coincide with slower ETF inflows.

Bernstein expects Bitcoin’s bullish momentum to resume post-halving as mining hashrates adapt and ETF inflows recover. The rollout of spot bitcoin ETFs by wirehouses and registered investment advisors is seen as a structural driver for bitcoin demand, with a forecasted cycle high of $150,000 by 2025.

In summary, Bernstein suggests seizing the opportunity presented by the miner fear factor preceding the halving and investing in RIOT and CLSK stocks for potential long-term gains.

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With Bitcoin’s fourth mining reward halving imminent, Goldman Sachs urges investors to exercise caution in extrapolating past halving cycles for price predictions, emphasizing the role of macroeconomic conditions and inflows into spot ETFs.

While previous halvings have historically coincided with Bitcoin price appreciation, Goldman’s Fixed Income, Currencies, and Commodities (FICC) and Equities team warns against simplistic interpretations due to varying macroeconomic landscapes.

Despite bullish sentiments surrounding previous halvings, the time taken to reach peak prices and the magnitude of price increases differed significantly across cycles.

Crucially, the macroeconomic backdrop during previous halvings contrasted with the current environment characterized by high inflation and interest rates. Previous cycles occurred amid rapid growth in M2 money supply and near-zero interest rates, fostering risk-taking behavior across financial markets.

For history to repeat itself, supportive macroeconomic conditions are deemed essential.

However, present circumstances diverge from past cycles, notably with interest rates in the U.S. surpassing 5% and market expectations discounting prospects of rate cuts amid persistent inflation and economic resilience.

Despite Bitcoin’s 50% rally this year and record highs preceding the halving, driven by inflows into U.S.-based spot ETFs, some analysts speculate that much of the post-halving surge may have already materialized.

Goldman views the halving as a “psychological reminder” of Bitcoin’s capped supply, emphasizing the significance of ETF uptake in determining medium-term price outlook.

The team suggests that whether the halving event leads to a “buy the rumor, sell the news” scenario may have a limited impact on Bitcoin’s medium-term trajectory. Instead, they highlight ongoing supply-demand dynamics and ETF demand as primary drivers of spot price action in the crypto markets.

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The resurgence of digital assets in mainstream finance brings attention to Bitcoin automated teller machines (BTMs), with experts cautioning against the financial risks inherent in these machines, particularly in areas predominantly inhabited by Black and Latino residents.

BTMs, physical kiosks facilitating crypto conversions, have proliferated, especially during the pandemic, reaching approximately 31,100 units nationwide. However, investigations into the BTM boom reveal a disproportionate presence in Black and Latino neighborhoods, coupled with exorbitant transaction fees of up to 22%.

Bitcoin Depot, the leading US operator with around 7,300 BTMs as of April 8th, boasts high fees despite promoting financial inclusion. According to a November 2023 presentation, over 80% of Bitcoin Depot’s customers earn less than $80,000 annually. However, critics liken the high fees to predatory lending practices.

Despite claims of non-discriminatory placement, a Bloomberg analysis indicates a correlation between Bitcoin Depot’s BTM locations and areas with large Black and Latino populations, particularly in states like Georgia and Texas.

While some BTMs operate in major stores like Circle K and Cumberland Farms, local businesses often host them, with operators either paying rent or providing a monthly stipend to the store owners.

Transaction fees vary, with some BTMs charging flat rates plus a percentage fee. Critics dubbed this practice “predatory inclusion,” akin to payday lending, targeting marginalized communities.

In states like Alabama and Dallas, BTM placement aligns with higher concentrations of Black and Latino residents, raising concerns about equity and accessibility.

Bitcoin Depot’s CEO, Brandon Mintz, defends the fee structure, citing operating expenses and convenience as key factors. However, competitors CoinFlip and Bitstop also impose steep fees, up to 22%.

Despite the limited utility of BTMs for selling crypto, Bitcoin Depot eyes expansion, awaiting approval for operations in New York, a potential market expected to boost the company’s size significantly.

Critics like Aaron Klein from the Brookings Institution caution against the proliferation of BTMs, highlighting their limited functionality and the risks associated with crypto investments.

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Kraken, the second-largest U.S.-based crypto exchange, has unveiled its own crypto wallet, joining the ranks of competitors such as Coinbase(NASDAQ:COIN) and MetaMask in the saturated market.

The newly launched self-custodial “Kraken Wallet,” debuting on Wednesday, offers support for eight blockchains including Bitcoin, Ethereum, Solana, and Dogecoin. Notably, it is the first wallet from a major exchange to be open-sourced, allowing developers to access and contribute to the code. Kraken also incentivizes developers to identify vulnerabilities through its open-source grant program.

Focused on user privacy, Kraken Wallet collects minimal data necessary for functionality, shielding IP addresses and protecting users’ identity and location information. This emphasis aligns with the principles of the crypto space, emphasizing self-custody and privacy.

While Coinbase’s Coinbase Wallet remains popular, other major exchanges like Binance and OKX also offer wallets integrated into their ecosystems. Kraken’s move into the wallet space reflects its commitment to providing users with access to on-chain ecosystems and maintaining a user-centric approach.

Kraken has been expanding its product offerings, including discussions with layer 2 teams to explore building its own layer 2 blockchain. The development of Kraken Wallet underscores the importance of self-custody in the crypto ecosystem, particularly in light of the risks associated with leaving assets on centralized exchanges highlighted by past incidents such as the collapse of FTX crypto exchange in 2022.

Eric Kuhn, Product Director for Kraken Wallet, emphasized the significance of the “your keys, your crypto” ethos and expressed Kraken’s commitment to building the best all-in-one crypto wallet that is open-source, secure, and private.

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Centrifuge, a decentralized finance platform, revealed its intentions in a Wednesday blog post to establish a lending protocol for real-world assets  aimed at institutions on Base, an Ethereum layer-2 network developed by crypto exchange Coinbase.

According to the post, the protocol will enable verified institutions to onboard RWAs and borrow against their RWA holdings.

Anthony Bassili, Coinbase’s head of allocators and tokenization, remarked, “We continue to see significant interest from our institutional clients for easier access to tokenization solutions on-chain.”

This development coincides with Centrifuge’s announcement of raising $15 million in venture capital investment in an “oversubscribed” fundraising round. ParaFi Capital and Greenfield spearheaded the investment, with participation from multiple firms including Arrington Capital, Circle Ventures, Gnosis, The Spartan Group, and Wintermute Ventures.

Following the announcement, CFG, the protocol’s native token, surged by as much as 14% before moderating gains, as per CoinGecko data. Despite a slight pullback, the token remained up by 5% over the past 24 hours, surpassing the sector benchmark CoinDesk DeFi Index’s  1% decline during the same period.

This development occurs amid intensifying competition in the RWA tokenization realm, as digital asset firms and global banks endeavor to migrate traditional financial products like bonds and credit to blockchain infrastructure to enhance efficiency, settlement speed, and transparency. Asset management firm 21.co projected the market for tokenized assets to reach $10 trillion by the end of the decade.

Centrifuge specializes in bringing structured credit products to blockchain, with rwa.xyz data indicating $270 million in active loans on the protocol.

Ben Forman from ParaFi Capital expressed confidence in institutional adoption, stating, “The Centrifuge team is a leader in real-world asset tokenization, taking a deeply thoughtful approach to design decisions around legal, regulatory, and smart contract architecture.”

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