Home Technology Weekly Crypto Roundup: Ethereum transition, new Tether partnership and crypto hack stats

Weekly Crypto Roundup: Ethereum transition, new Tether partnership and crypto hack stats

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Weekly Crypto Roundup: Ethereum transition, new Tether partnership and crypto hack stats

This week, Bitcoin slid again until it fell below the $22,000 level on Friday, losing more than 7% in a single day. Ether was also affected as the second-largest cryptocurrency by market capitalization fell below $1,700 on Saturday.

This week, Bitcoin slid again until it fell below the $22,000 level on Friday, losing more than 7% in a single day. Ether was also affected as the second-largest cryptocurrency by market capitalization fell below $1,700 on Saturday.

While prices have returned to freezing temperatures, the crypto industry is heating up as more and more participants – traders, developers, founders, regulators and, yes, even hackers – attempt to leave their unique mark on it.

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Ethereum is preparing for the transition

You may have seen a lot of rhymes in the crypto community lately – meltdown, surge, verge, purge, and madness are just a few. The reason? The crypto community eagerly awaits the day when Ethereum fully transitions from the much-requested “proof-of-work” method of developing the blockchain, to the much less energy-intensive “proof-of-stake” consensus mechanism. This is called the ‘merge’ event.

Ethereum currently has what is called a “beacon chain”, which uses proof-of-stake. Now, the goal is to securely transfer activity from Ethereum to this chain. Although official sources have listed September 19 as the deadline, it’s important to remember that merger “deadlines” are closer to predictions than promises.

Still, that hasn’t stopped crypto traders from investing in a possible rise in the price of Ether, as users and those building projects on Ethereum look forward to a hopefully smoother, less expensive and more environmentally friendly after the merger.

“This is the most important development that we are looking at, which will basically put Ethereum in a bullish scenario very soon,” Nirmal Ranga, CFO of Indian crypto exchange ZebPay told . The Hindu.

The merger is meant to be just the start of Ethereum, as it has ambitious plans to scale and become more efficient until it can “help all of humanity,” according to the official website.

Regaining confidence after Terra

Stablecoins are an enigma in the crypto industry. Users around the world have converted their savings into these tokens, whose prices are supposed to remain stable, or “pegged” to the value of assets such as dollars, pounds, precious metals, etc. However, the collapse of the TerraUSD [UST] stablecoin in May 2022 horrified the industry and caused multi-billion dollar losses. Surviving stablecoins are feeling the pressure to regain investor confidence.

On Thursday, Tether Holdings Limited, including Tether [USDT] is the largest stablecoin by market capitalization, announced that it was working with BDO Italia, an accounting firm, for quarterly attestations. Tether has been the subject of considerable legal scrutiny over whether it really backs each USDT with 1 USD, and was even hit with a $41 million fine from Commodity Futures Trading. Commission (CFTC).

Naturally, what many Tether watchers want is thorough auditing. Although the company has not promised a day when this will happen, it has confirmed that an audit is in its future.

“The decision to work with the BDO organization represents its promise to offer considerable transparency to those who hold Tether tokens, providing daily updates on issued tokens and reserves, supplemented by monthly assurance notices. . This new relationship aligns with Tether’s commitment to transparency and is the next step on the company’s path to full audit,” the official statement read.

Good news and bad news

Ronin, Harmony, Nomad, Solana wallets – these are just some of the crypto hacks that have sent shockwaves through the industry this year. On Tuesday, blockchain analytics platform Chainalysis released a report which showed that the first seven months of 2022 saw $1.9 billion stolen in hacks of crypto services, compared to less than $1.2 billion in crypto dollars stolen around this time last year.

In particular, the report highlighted how decentralized finance (DeFi) protocols turned out to be a rich target for hackers. The analytics platform estimated that North Korea-linked hackers stole around $1 billion from these sources.

However, the Chainalysis report noted that both legal and illegal crypto trading volumes this year were down, likely due to Bitcoin and Ether plummeting by more than 50% in value. Investors also seem more savvy about scams.

“Total scam revenue for 2022 currently sits at $1.6 billion, 65% lower than at the end of July 2021, and this decline appears to be related to lower prices in various currencies,” the report said. Chainalysis report.

What can investors expect in the near future? As September approaches, expect more buzz about the Ethereum merger event and further debate about the connection between the crypto sector and the energy sector, including our current energy crisis. As these discussions unfold, don’t be too surprised by any strange price movements or emotions in the market.

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