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Author: Ronal Thapa

  • Alchemy Pay ($ACH) 2023 Guide: Strongest Performing China Coin Narrative

    Alchemy Pay ($ACH) 2023 Guide: Strongest Performing China Coin Narrative

    Alchemy Pay ($ACH) is leading the Chinese coin rally. And data suggests Alchemy Pay prices can go much higher throughout 2023. They are collaborating with the likes of Binance, Visa, MasterCard, and PayPal to provide crypto and fiat payment services. In this article, we will explain what Alchemy Pay is, and why $ACH should be on your 2023 watch list.

    What is Alchemy Pay?

    Alchemy Pay provides real-world crypto payment solutions and fiat on/off ramps for global businesses, developers, and consumers. One key problem in the current blockchain payment landscape is the lack of integration between traditional financial systems and cryptocurrencies. The project aims to address this by incorporating a hybrid solution. The solution is to (1) simplify the use of crypto to access traditional financial services; and (2) have fiat currency access blockchain services and value.

    This will be huge for driving crypto adoption, as it is essentially a network system that allows cross-platform payments. For example, users can use their credit cards to make payments in fiat currencies. Their payment gateway converts this into crypto. This allows users to make credit card purchases while benefiting from the advantages of cryptocurrency. Such as faster and more secure transactions.

    Payment Channels and Strategic Partners

    Alchemy Pay already has a global reach of 173 countries and over 300 fiat payment channels. These include Visa, Mastercard, Apple Pay, Google Pay, regional mobile wallets, and domestic bank transfers. They also have a massive network of strategic partnerships with many major blockchain networks and services. For example Polygon, Chainlink, Arbitrum, Coinbase, and Bybit.

    Who is the Team behind Alchemy Pay?

    In 2018, Molly Zheng and Shawn Shi established Alchemy Pay in Singapore. Both founders have extensive backgrounds in the financial sector. Zheng previously held the position of senior consultant at PayPal China, and also worked for HSBC China and Mastercard China. In 2021, Zheng was appointed Chairwoman of Alchemy Pay’s Board and was succeeded as CEO by John Tan, the then-COO. Tan was responsible for driving the growth of the project’s payment business. He did this by securing the company’s initial base of merchant networks across Asia. Their team now boasts over 80 members who have deep experience across the blockchain and payments industries.

    The “China Coin” Narrative in 2023

    A growing number of Twitter crypto experts predict a surge in the value of “Chinese coins” in the near future. The easing of regulations in Hong Kong and the potential for quantitative easing in China largely attribute to this. We also see a correlation between massive liquidity injections by the People’s Bank of China (PBoC) and an increase in the overall market cap of crypto.

    https://twitter.com/NoodleofBinance/status/1626839763155324929

    Furthermore, the announcement of a new licensing regime for Virtual Asset Service Providers (VASP) in Hong Kong has generated public interest in Chinese cryptocurrencies. Even though this licensing regime will not have a direct impact on retail buyers. However, both these catalysts may not have as significant of an impact as anticipated. The uncertainty of the actual size of the monetary easing and the lack of a well-defined concept of a “Chinese coin” remain.

    People are still interested in taking advantage of any potential mini-rally despite these uncertainties. And are actively searching for investment opportunities. Whilst $ACH still has a small market cap, but with strong connections and established infrastructure, it could become a leading contender in China this year.

    Alchemy Pay news

    On 23rd February 2023, Alchemy Pay announced its partnership with Conflux Network. Conflux Network is a permissionless Layer 1 blockchain which connects decentralized economies across borders and protocols. Through this partnership, Alchemy Pay would be able to have an easy fiat on-ramp onto its ecosystem. This on-ramp payment solution will allow people to buy crypto using their local currency, which will give Conflux’s system a higher level of convenience for both beginners and experienced users. By working together, Alchemy Pay will help Conflux expand its reach around the world. Now with 2 of China’s hottest projects joining forces, we will hopefully see a massive boost for both Alchemy Pay and Conflux’s tokens.

    Alchemy Pay $ACH Token and Price Prediction for 2023

    $ACH is the utility token of Alchemy Pay, issued on the Ethereum blockchain as an ERC-20 token. There is a total circulating supply of 4 billion $ACH. Its primary use is for its partners to pledge their $ACH as an intermediate settlement currency between token payment networks. Also, as a medium for transaction fees. Alchemy Pay coin is required for every transaction. But, businesses and merchants within the network receive $ACH incentives for accepting crypto as payment at their point of sale.

    As of 20th February 2023, we can see from the price chart that $ACH price is gaining a momentum. There has been a 142.1% increase over the past seven days. Technical indicators do show that $ACH is overbought. But its long-term 50 & 200 daily moving average crossover indicates a bullish trend. This suggests that $ACH is likely to continue its uptrend. The pump to $0.041 at the time of writing is partly attributed to news of them partnering with Google Pay. Provided they expand their infrastructure and build more connections, $ACH could deliver strong returns in 2023.

    Frequently Asked Questions (FAQs)

    What is Alchemy Pay?

    Alchemy Pay is a blockchain and cryptocurrency project which aims to provide real-world crypto payment solutions and a fiat on/off ramp for global businesses, developers, and consumers.

    Is Alchemy Pay a good coin?

    Alchemy Pay is a good coin with potential. $ACH is currently at US$0.050599 and its all-time high price was $0.198666. It is currently ranked number 177 amongst all cryptocurrencies in terms of market capitalization.

    Is Alchemy Pay a good investment?

    Alchemy Pay’s $ACH token is also very popular among Chinese cryptocurrency investors. As with any investment, it is important to do your own research and consider the potential risks before investing in Alchemy.

    Does Alchemy Pay have potential?

    Alchemy Pay does have potential since the Chinese cryptocurrency community views the project so favourably. Also, the Chinese crypto narrative is seen as a huge trend this year, which will certainly give Alchemy Pay a boost.

    Who invested in Alchemy Pay?

    Alchemy Pay completed its Series A funding round in 2022. They raised US$15 million from several investors including Charles Schwab and Jay Z.

  • Conflux Network ($CFX) 2023: China’s Blockchain Project Set to Soar

    Conflux Network ($CFX) 2023: China’s Blockchain Project Set to Soar

    News of potential quantitative easing in China has led crypto experts to believe that there will be a surge in the value of Chinese blockchain projects. As such, Conflux Network ($CFX), one of China’s public blockchain, has seen a whopping 1600% price increase in 2023. In this article, we will explain what Conflux is, and why $CFX should be on your watch list this year.

    If you are interested in another Chinese crypto project, Alchemy Pay ($ACH) is also a top Chinese project this year.

    What is Conflux?

    Conflux Network is a public blockchain platform designed to support high-performance decentralized applications (dApps). It aims to address some of the limitations of existing blockchain networks such as slow transaction processing times, limited scalability, and high fees. It uses a novel consensus algorithm called Shanghai Tree-Graph that enables high throughput while maintaining decentralization and security. The algorithm allows multiple blocks to be generated in parallel and then merged into a single chain.

    Conflux Network also supports a range of smart contract languages, including Solidity, the most widely used language for Ethereum smart contracts. This means that developers can easily port their existing dApps from Ethereum to Conflux Network and take advantage of its faster transaction processing times and lower fees.

    Who is the Team behind Conflux?

    Conflux Network was founded by a team of researchers and developers from Tsinghua University in China and the University of Toronto in Canada. The co-founders of Conflux Network are Fan Long (CEO) and Xiaolong Wang (Chief Scientist). The team also includes a number of other experienced researchers, developers, and advisors from various fields, such as computer science, blockchain, and finance.

    Why is $CFX Pumping?

    The current price surge of $CFX seems to have strong support from retail investors, as indicated by social media metrics and fundamentals. This came as a result of two significant developments made by Conflux:

    On 15th February 2023, Conflux announced that they are developing blockchain-based SIM cards in partnership with China Telecom, one of the largest wireless carrier in China (390+ million movile subscribers). The trial program will first launch in Hong Kong later this year, followed by key mainland China locations such as Shanghai.

    Earlier in late January, Conflux partnered with Little Red Book, the Chinese equivalent of Instagram, to provide NFT services for the social media platform’s 200 million users. The news prompted a 90% increase in CFX’s price.

    $CFX Price Prediction 2023

    Looking at the technical aspects, CFX has experienced a significant increase in price which has caused it to become very overbought. This can be seen in both the daily and weekly charts where CFX’s relative strength index has risen above 70, indicating that the uptrend is close to its limit.

    Additionally, the Conflux Network token is currently testing the $0.28-$0.41 range as a resistance level, which was previously a support level between May and November 2021. If CFX falls back from this resistance area, its price could drop to the range of $0.097-$0.141, which is its main downside target.

    Source: Cointelegraph

    This range also coincides with the token’s 50-week exponential moving average (50-week EMA) at around $0.108, which is approximately 65% lower than the current price levels. On the other hand, if CFX manages to break above the $0.28-$0.41 range decisively, its price could rise to $0.84, which was the resistance level during the May-September 2021 period.

    Will $CFX Continue Its Momentum Throughout 2023?

    From a fundamental standpoint, $CFX is part of the “Chinese coins” narrative that is trending in 2023. With the potential of quantitative easing in China and crypto expansion in Hong Kong, people on the Crypto Twitter space are actively searching for investment opportunities in the Chinese market, taking advantage of any potential rally. $CFX still has a relatively small market cap, but has the potential to deliver strong returns for its investors if its momentum continues. And its momentum will likely continue if continuous development is seen in the Asian market.

  • Aptos vs Sui Blockchain: Similarities and Differences

    Aptos vs Sui Blockchain: Similarities and Differences

    Which Layer 1 Blockchain is “Better”?

    In the past year, layer 1 (L1) blockchains have exploded, facilitating ecosystem pumps throughout the market. L1s have become a viable alternative blockchain to Ethereum, the OG. They offer better scalability, lower fees, native DApps, risky meme tokens, massive APYs and more.

    As smart investors, we know that when an ecosystem is performing well, its underlying token is a great opportunity to make substantial profits. And with the Solana and Nomad hack happening recently, other L1s have become increasingly popular as investors are looking for a more secure and innovative blockchain.

    Aptos and Sui are among the most discussed L1s recently, with many venture capitals (VC) expressing investment interest in them.

    Both show a lot of promise to blockchain veterans as these web3 startups are formed by ex-Meta (formerly Facebook) blockchain developers as well as their infrastructure being based on Meta’s abandoned blockchain intiative, Diem.

    However, both teams have vastly different approaches to tackling the issue of blockchain scalability. In this article, we will compare and contrast Aptos and Sui, and consider which L1 blockchain you should be more bullish on.

    What is Aptos?

    Aptos is co-founded by Mo Shaikh (CEO) and Avery Ching (CTO), both former Meta employees who have years of experience as a senior developer and engineer in the blockchain industry.

    The team behind Aptos, also known as Aptos Labs, consists of an impressive group of PhDs, researchers, engineers, designers and strategists. Moreover, the team at Aptos has been aggresively expanding. They recently acquired several former Solana staff, most notably Austin Virts, former Head of Marketing at Solana.

    Aptos utilizes key elements of the former Diem blockchain as well as Move, a Rust-based programming language independently developed by Meta. Aptos claims the network will be able to process over 130k transactions per second using its parallel execution engine (Block-STM), which will mean lower transaction costs for users.

    See also: Aptos Blockchain Guide: the Next Big Innovation in Blockchain Scaling (Layer 1)?

    What is Sui?

    Sui is co-founded by Evan Cheng (CEO), Sam Blackshear (CTO), Adeniyi Abiodun (CPO), and George Danezis (Chief Scientist). They were former senior leaders of Meta’s advanced blockchain research and development organization.

    They were responsible for creating some of the most advanced open source components such as the programming language, execution engine and cryptography of the Diem blockchain.

    Sui is a decentralized, permissionless L1 blockchain designed to allow creators and developers to build experiences for web3 users. Similar to Aptos, its proof-of-stake network will scale horizontally and organise data such that transactions are executed in parallel. This greatly reduces computational power and transaction costs.

    Although both Aptos and Sui use Move as their programming language, their versions differ from each other, as such that their infrastructure operates distinctively on a fundamental level.

    See also: Sui Blockchain Guide: Revolutionary Scalability Solution?

    Aptos vs Sui Comparison

    Programming Language

    Both Aptos and Sui use Move, a Rust-based programming language, for parallel execution, but Sui uses has a different version of it.

    In short, Move is an executable bytecode language used to create smart contracts as well as custom transactions on the blockchain. According to Diem’s whitepaper on Move, it focuses on two major digital assets: scarcity and access control. Scarcity imposes limitations on asset creations, preventing any double-spending, while access control manages ownership and privileges.

    It differs from other programming language like Solidity because of its use of resources, which is drawn from the mathematical concept of linear logic. In linear logic, formulas are treated as fundamental resources that can only be used once. In the case of Move, “a resource can never be copied or implicitly discarded, only moved between program storage locations“, hence their name “Move”. This mechanism was designed to maximize security without adding complications to transactions, reducing gas fees.

    Aptos generally follows the textbook design of Diem’s whitepaper. On the other hand, Sui has a slightly different object model from Aptos. Its storage system is object-centric, which means that you can see most things on the blockchain, including addresses and transactions. These are represented as “objects.”

    Sui’s version of Move makes it clear when an object is owned, shared, mutable or immutable, whereas Aptos does not. Moreover, Sui’s ownership API is cleaner than that of Aptos, as it shows the blockchain design more clearly.

    Architecture

    Though both Aptos and Sui use proof-of-stake as their consensus mechanism, the consensus algorithm behind it is different.

    Aptos employs parallelization by dynamically detecting dependencies and scheduling execution tasks using BlockSTM, which is a derivative of the HotStuff consensus protocol.

    Sui implements Narwhal and Tusk as their consensus algorithm, which is a DAG-based (directed acyclic graph) mempool used for parallelization at the execution layer. The protocol is asynchronous which means it can withstand DoS (denial of service) attacks.

    In terms of security, Sui has a slight edge over Aptos.

    Scalability

    Instead of home validator case or large-scale decentralization, both Aptos and Sui aim to optimize scalability by maximizing network capacity, similar to Solana. However, the bottleneck would most likely be state growth in the ecosystem.

    To address the state growth bottleneck, Aptos prioritizes heterogeneous validators (constrained CPU and storage), whereas Sui plans to shard data storage efficiently, and scale its resources horizontally.

    Tokenomics

    There are five major components of the Sui economic model:

    Sui blockchain’s economic model (Source: Medium)

    SUI token: SUI is the native coin of Sui.
    Gas fees: all network operations on the platform require gas fees. Gas fees are rewarded to participants in the proof-of-stake mechanism. It can also be used to prevent spam and denial-of-service attacks.
    Storage fund: In order to compensate future validators for the storage expenses of previously stored on-chain data, Sui’s storage fund is used to distribute stake rewards over time.
    Proof-of-stake mechanism: Used to select, incentivize and reward platform operators i.e. the validators and SUI delegators.
    On-chain voting: for voting and deciding on governance and protocol upgrades.

    On the other hand, Aptos has no coin yet and its whitepaper has yet to be published. However, Aptos has launched their testnet in March and its developer community has been very active. For more information on their testnet development, you can read our previous article here.

    Funding

    Aptos Labs has raised $350 million in total from FTX Ventures, Jump Crypto, a16z, Tiger Global, Multicoin Capital, among many other capital ventures. Currently, Aptos Labs has 28 investors.

    Sui is fast catching up after its latest Series B funding round in September 2022. Mysten Labs, the company behind Sui closed a US$300 million fundraise in this round. This brings Sui to a combined raise of US$36 million so far, after adding up the $36 million from Series A. Sui also states that they are currently valued at over US$2 billion.

    Development Status

    Aptos launched its Mainnet in October 2022 and developers can now build on Aptos. They are also currently working on improving the gas schedule in 3 parts. In the short term, to have dynamic NFT gas reduction. Then, in the medium term, to have gas-efficient data structures. Finally, the long-term plan is to adopt demand-driven gas costs.

    Sui has recently finished their Sui Testnet Wave 2. Their Sui wallet is also up and running, albeit in the Devenet stage. Nevertheless, you can install the Sui wallet and request Devnet SUI tokens to try out the wallet. The Sui wallet currently has features such as sending, staking, and minting their Capy NFTs. Users can also register their domain name on Sui Name Service. (https://casadelninobilingual.com/)

    Conclusion

    It is still too early to say which one you should be more bullish on. Both projects have been developing rapidly and have done an excellent job of optimizing its current design. But whatever the case is, Move technology is most likely here to stay as it shows a lot of promise in blockchain scalability and security.

    Frequently Asked Questions (FAQs)

    Is Aptos blockchain the same or related to Sui blockchain?

    No, Aptos and Sui and completely different and unrelated projects. The only connection between the two projects is that both teams have previously worked in blockchain development at Meta (formerly Facebook).

    Is Aptos blockchain better than Sui blockchain?

    It is still too early to say which one you should be more bullish on. Both projects have been developing rapidly and have done an excellent job of optimizing its current design. But whatever the case is, Move technology is most likely here to stay as it shows a lot of promise in blockchain scalability and security.

    Is Sui blockchain better than Aptos blockchain?

    It is still too early to say which one you should be more bullish on. Both projects have been developing rapidly and have done an excellent job of optimizing its current design. But whatever the case is, Move technology is most likely here to stay as it shows a lot of promise in blockchain scalability and security.

    What are the similarities between Aptos and Sui blockchain?

    Both Aptos and Sui use Move, a Rust-based programming language, for parallel execution on the blockchain, but Sui has a slightly version of it than Aptos.

    What are the differences between Aptos and Sui blockchain?

    Sui’s version of Move programming language makes it clear when an object is owned, shared, mutable or immutable, whereas Aptos does not. And although both blockchains use proof-of-stake as their consensus mechanism, the consensus algorithm behind it is different. Aptos uses BlockSTM for parallel executions, which is a derivative of HotStuff protocol, whereas Sui uses Narwhal and Tusk, a DAG-based mempool used for parallelization at the execution layer.

  • Aptos Blockchain Guide: the Next Big Innovation in Blockchain Scaling (Layer 1)?

    Aptos Blockchain Guide: the Next Big Innovation in Blockchain Scaling (Layer 1)?

    Aptos, a repurposed blockchain initiative of Meta’s abandoned web3 project (formerly Facebook). Its mainnet and token launch were hugely anticipated owing to its revolutionary infrastructure that might just surpass all other layer-one protocols. All you need to know about Aptos is in this article, made simple to understand and updated in real time.

    What is Aptos?

    Origin of Aptos

    Aptos also known as Aptos Labs is a web3 startup focused on building a scalable layer-1 blockchain. I know what you’re thinking, not another new smart-contract layer claiming to be more scalable than the others.

    But Aptos is not a new entity of its own, in fact, the company was founded by developers who formerly worked on Diem, Meta’s blockchain initiative that was abandoned in January. This means that the project already has a solid foundation to build its products off of.

    Key Features of Aptos Blockchain

    Aptos utilizes key elements of the former Diem blockchain and Move, a Rust-based programming language independently developed by Meta. The company also claims the network will be able to process over 130k transactions per second using its parallel execution engine (Block-STM), which results in low transaction costs for users.

    For context, most blockchains either execute smart contracts sequentially or require a massive parallel workload for improved performance, which requires a lot of power. Aptos differs from other blockchains because a single failed transaction will not hold up the entire chain. Instead, all transactions are processed simultaneously and validated afterwards. The ones that failed are aborted and re-executed, thanks to their STM (software transactional memory) libraries which detect and manage conflicts.

    As a result, the combination of these technologies streamlines the entire network’s throughput capacity, which has been a major bottleneck for other layer-1 blockchains. This is a short summary of Aptos’ smart contract execution according to their white paper published in August 2022. Their model is based on cloud infrastructure as a scalable and cost-efficient platform for building widely-used applications.

    Aptos enables DeFi projects to be built on its blockchain. So far, there are over 30 DeFi projects on the ecosystem. These projects include decentralized exchanges, lending protocols, and liquid staking. An example of this is Aries Markets– a margin trading protocol.

    Who is the Team behind Aptos?

    Aptos is co-founded by Mo Shaikh (CEO) and Avery Ching (CTO), both former Meta employees who have years of experience as a senior developer and engineer in the blockchain industry.

    The team consists of a battle-hardened group of PhDs, researchers, engineers, designers and strategists. They are the original creators, designers and builders of Diem.

    What’s Happening with Aptos?

    Aptos Funding

    Aptos has been securing a sizeable amount of funding from numerous crypto heavyweights despite the bear market. In March 2022, the company received $200 million in funding from a16z, Tiger Global, and Multicoin Capital, among many other venture capitalists.

    In July, the company raised $150 million in a Series A financing round led by Sam Bankman-Fried’s FTX Ventures and Jump Crypto.

    Moreover, during the Venture Round on 15th September, Binance Labs doubled down on Aptos, bringing up the blockchain startup’s valuation to a massive $4 billion according to Bloomberg. With the new funding from Binance, Aptos quadrupled its valuation in six months as per Crunchbase’s report.

    A few days later on 28th September, an undisclosed amount was also raised during the Venture Round by Dragonfly Capital.

    Being backed by Binance Labs is a good sign that the project shows promise. In fact, Yi He, co-founder of Binance and the head of Binance Labs, chose to invest in Aptos in part because of the Move programming language the company is using to build its blockchain.

    Aptos Team and Ecosystem Expansion

    Moreover, the team at Aptos has been actively hiring, most notably they have acquired several former Solana staff such as Austin Virts, former Head of Marketing at Solana.

    Not only Solana staff but a lot of hardcore Solana proponents have jumped ship for Aptos as well. With the narrative of Aptos being the next Solana, people are speculating whether investors actually believe in their tech long-term, or it is simply a pump and dump for venture capital firms (VC) and whales to make back their money due to the series of liquidation across the market. VC-heavy projects should be considered a red flag, but in the case of Aptos, there is more than meets the eye.

    Aptos Testnet

    Aptos has been focusing on driving the growth of their ecosystem. Since May, Aptos has launched their testnet campaign named “Aptos Incentivized Testnet” (AIT) and is divided into four stages according to their roadmap: AIT1, AIT2, AIT3 and AIT4. The goal is to invite and reward node operators, developers, ecosystem builders, and auditors alike to deploy applications and stress-test the decentralized network, ensuring the community is ready to launch a production-grade Aptos mainnet. Each stage focuses on executing different deliverables that contribute to the overall function of the blockchain.

    AIT3 concluded on 9th September 2022, preparing for the final testnet which will lead to the mainnet launch if successful. Throughout the series of testnets, millions of transactions have been carried out, tens of thousands of nodes have been put up, and more than 1,500 have forked the Aptos-core repository. The codebase is open-source and the project has onboarded well over 100 projects. Teams such as Pontem Network, Protagonist, PayMagic, MartianDAO, Solrise Finance and more have already been building and testing on the network.

    Furthermore, Aptos also has a grant program to offer project teams and individuals non-dilutive funding in order to further develop the ecosystem. One thing is certain that the earliest projects to develop on a blockchain are the ones that tend to moon if the blockchain is successful.

    Aptos Mainnet Launch

    Aptos Labs officially launched its mainnet “Aptos Autumn” on 12th October 2022, making it the first blockchain to debut Move technology. The mainnet is currently using the latest version of AptosBFT (version 4), which leverages a Byzantine Fault Tolerance (BFT) consensus protocol with responsive production optimization. To put it simply, this mechanism quickly minimizes the impact of failed validators on throughput and latency, significantly improving the blockchain’s performance. Aptos team has announced that they are developing AptosBFT (version 5) and will release it in a future upgrade.

    The Aptos Bridge

    The Aptos Bridge went live on 19th October 2022, powered by LayerZero, a trustless omnichain interoperability protocol. With this deployment, users will be able to move USDC, USDT, and ETH into Aptos from Ethereum, Arbitrum, Optimism, Avalanche, Polygon, and Binance Smart Chain. Users can also withdraw their funds out of the Aptos ecosystem, but as of now, there will be a 3-day transfer window to keep the network stable. According to LayerZero Labs, this will decrease as stability and time in production increase.

    Another thing to note is that there is a rate limit to the bridge, starting at an outbound value cap of $1 million every 24 hours. As stability and time in production increase, this will also increase. Finally, since Aptos is an entirely new ecosystem, native assets outside of the APT token do not exist. This means that the only way to get other assets into the ecosystem is via “wrapped assets” from other chains.

    Aptos Goes into Web3 Gaming

    Aptos has recently announced its partnership with NPIXEL, a Korean Triple-A gaming studio. NIPXEL have been behind popular massively multiplayer online role-playing games such as Gran Saga, which boasts 4 million downloads since its launch in Korea and Japan.

    Aptos and NPIXEL are joining forces to create METAPIXEL, a Web3 gaming ecosystem. This partnership sees NPIXEL creating games on the Aptos network. The goal of their partnership is to create a triple-A game that boasts true ownership of game assets.

    Partnership with Google Cloud

    Google Cloud and Aptos Labs have announced an expansion of their partnership, which now includes Google Cloud running a validator for Aptos. Additionally, Aptos has selected Google Cloud as the preferred infrastructure provider for its ecosystem, and the two companies will collaborate on an accelerator program through the Aptos Foundation that supports Web3 startups and developers working on Aptos.

    Moreover, Aptos and Google Cloud will collaborate in hosting global hackathons and other events. The purpose of these hackathons is to bring decentralized developer communities together to collaborate and address common challenges. They will also invite both the Google developer community and the Aptos community to participate and work alongside engineers from both companies to deploy projects that can be quickly scaled globally. In line with their joint events at Bitcoin, Consensus, and Converge last year, they also plan to continue engaging their communities through happy hours and panels in 2023.

    MoonPay Fiat On-Ramp Integration into Petra Wallet

    Aptos Labs and MoonPay have teamed up to make it easier for billions of people to join the web3 space. This means that users can now purchase APT using Apple Pay. Aptos Labs’ wallet, Petra, now features an easy-to-use interface for exchanging value within the Aptos ecosystem. The partnership began in November 2022 when APT became available on MoonPay.

    The integration of the MoonPay fiat on-ramp into Petra was a crucial step in enhancing the web3 user experience. The fiat on-ramp makes it easy for both new users and early adopters to get started on the Aptos network, as they can purchase APT using a variety of payment methods, including Visa, Mastercard, Apple Pay, and Google Pay.

    Securing Move as the Underlying Programming Model

    To ensure that Aptos is secure, their team has been developing bug-free code through a combination of disciplined software engineering practices and the right tools. This includes mandatory code review, continuous testing and integration, and best practices in the Rust ecosystem.

    Moreover, Aptos has contracted auditing companies (Certik, Holburn), conducted community auditing, and worked closely with OtterSec. They also run a bug bounty program that offers rewards of up to $1,000,000 for critical bugs and $100,000 for crash bugs. Aptos has invested in fuzzing and added redundancy through a paranoid mode in the Move Virtual Machine.

    Lowering Gas Fees with Community-Driven Feedback

    Aptos is engaging with community builders to improve its ecosystem, with a focus on reducing gas fees. The team has analyzed on-chain data and interviewed builders to gather insights. Their three-stage plan includes reducing costs for dynamic NFTs, developing gas-efficient data structures, and creating a demand-driven gas model.

    The current gas framework combines execution and storage fees, leading to an unbalanced gas price. The team will separate storage and execution fees and provide storage refunds to solve these issues. The team is committed to delivering these improvements in the coming months to better serve the network’s demand.

    What is the APT token?

    APT is the native token of the Aptos platform. The APT token is used to pay for transaction and network fees on Aptos.

    Fees will be charged on all transactions on the network and are specified in Aptos tokens. Validators will have the opportunity to prioitise the highest-value transactions on the Aptos network, and to discard transactions of lower value. The result is that the blockchain would still be able to operate efficiently when the system is at capacity. Eventually, network fees will also be deployed so that the cost of using Aptos would be proportionate to the costs of deploying hardware, maintenance, and node operation.

    In addition, APT can be used for governance voting on upgrades to the protocol and on/off-chain processes, and to secure the blockchain by way of a proof-of-stake model.

    Validators holding a minimum number of staked APT tokens can participate in transaction validation on the Aptos blockchain. The benefit of being a validator is that they can decide on the division of rewards between themselves and their respective stakers. On the other hand, stakers can select any number of validators to stake their tokens with in order to receive a pre-agreed split of the rewards. Rewards will be distributed to validators and stakers at the end of every epoch.

    At present, the maximum reward rate for stakers starts at 7% per annum and this amount is evaluated at every epoch. The maximum staking reward however will decrease by 1.5% per year until it reaches 3.25% per year. However, all reward amounts and mechanisms can be changed by governance voting.

    Aptos Token Listing

    Binance announced the listing of Aptos (APT) on their exchange and trading of the APT token commenced on 19th October 2022, 01:00 UTC. The spot trading pairs include APT/BTC, APT/BUSD, and APT/USDT, and withdrawals for APT will open on 20th October 2022, 01:00 UTC. Moreover, the listing fee for APT is at 0 BNB and users can now start depositing APT in preparation for trading.

    In addition, Binance will add APT as a new borrowable asset on cross margin and isolated margin within 48 hours from 19th October 2022, 01:00 UTC. Both margin pairs include APT/BUSD and APT/USDT.

    Where can I buy the Aptos ($APT) token?

    Aptos and MoonPay have recently partnered up to allow Petra wallet fiat on-ramps. So users can now buy APT using Visa, Mastercard, Apple Pay and Google Pay.

    The APT token can also be purchased and traded on the following exchanges: Binance, Coinbase Exchange, OKX, and Digifinex.

    Start trading $APT on Binance and enjoy 20% off trading fees by signing up here.

    Is Aptos Worth Investing?

    Aptos offers unique and promising features that cannot be found in other layer-1 protocols (except for Sui which is also a Diem-based blockchain). As such, Aptos has the potential to compete with Ethereum and Solana in terms of scalability and overall network capacity.

    However, Aptos is heavily backed by venture capitals (VC), and in light of the VC bankruptcy domino effect toppling across the industry, investors should be cautious when dealing with VC-heavy projects. In fact, according to Aptos Explorer, its total supply is over 1 billion and more than 800 million of the tokens are actively staked, suggesting that early investors, private buyers, and the Aptos team collectively control 80% of the token supply.

    Nevertheless, at the end of the day, Move technology is most likely here to stay as it is a revolutionary programming foundation for blockchain scalability and security. And with decades of experience in the blockchain industry as well as Meta, Aptos Labs stakes its reputation on the long-term success of the blockchain.

    Frequently Asked Questions (FAQs)

    What is Aptos?

    Aptos is a layer-1 blockchain that uses key elements of the former Diem blockchain and Move, a Rust-based programming language independently developed by Meta.

    How to buy Aptos?

    Binance announced the listing of Aptos (APT) on their exchange, and will be available for spot trading at 19th October 2022, 01:00 UTC.

    Does Aptos have a coin?

    Binance announced the listing of Aptos (APT) on their exchange, and will be available for spot trading at 19th October 2022, 01:00 UTC.

    When is Aptos ICO?

    Binance announced the listing of Aptos (APT) on their exchange, and will be available for spot trading at 19th October 2022, 01:00 UTC.

    Who is the Aptos team?

    The Aptos team consists of researchers, designers and engineers of Diem, Meta’s blockchain initiative that was abandoned in January 2022. Aptos currently has 60 employees on their team.

    Who is the founder of Aptos?

    Aptos Labs is co-founded by Mo Shaikh and Avery Ching, both former Meta employees who have years of experience in the blockchain industry.

    Is Aptos funded?

    Aptos Labs has raised $350 million in total from FTX Ventures, Jump Crypto, a16z, Tiger Global, Multicoin Capital, among many other capital ventures. Currently, Aptos Labs has 28 investors. Aptos Labs also received an undisclosed amount in strategic investment from Binance Labs, bringing its valuation to $4 billion.

    What is the Aptos testnet?

    Aptos has an incentivized testnet program where the Aptos team welcomes community members to help with testing. The first testnet was Aptos Incentivized Testnet 1 (AIT1) where the community and the Aptos team created and deployed a decentralized network for over a week. Those who met a 95% participation rate were rewarded. Eligible individuals who were unable to meet the original expectation, but still participated in at least 5% of the testing rounds were also offered 50% of the rewards.

    Aptos Incentivized Testnet 2 (AIT2) was concluded in late July 2022.

    The latest Aptos Incentivized Testnet 3 (AIT3) opened for registration on 19th August 2022 and will launch on 30th August 2022. Participants that meet the team’s success criteria will receive 800 Aptos tokens. For more details and signup, check out the Aptos blog.

    Is Aptos Labs listed on any stock exchange?

    Aptos Labs is a private company and is not listed on any stock exchange.

    What is the price of Aptos Labs (APTOS) cryptocurrency?

    Aptos Labs (APTOS) does not currently have a cryptocurrency token. Binance announced the listing of Aptos (APT) on their exchange, and will be available for spot trading at 19th October 2022, 01:00 UTC.

    Is Aptos the same or related to Sui?

    No, Aptos and Sui and completely different and unrelated projects. The only connection between the two projects is that both teams have previously worked in blockchain development at Meta (formerly Facebook).

    Is Aptos worth investing?

    Aptos shows a lot of promise but investors should be cautious as the project is heavily funded by venture capitals. But at its core, Aptos’ programming language, Move, is most likely here to stay as it offers better scalability and security compared to other layer-1 blockchains.

    Is Aptos backed by Binance?

    Aptos Labs received an undisclosed amount in strategic investment from Binance Labs, bringing its valuation to $4 billion. In fact, Yi He, co-founder of Binance and the head of Binance Labs, chose to invest in Aptos in part because of the Move programming language Aptos is using to build its blockchain.

    Is there any Aptos $APT token airdrop?

    Early Aptos network participants were given an airdrop of APT tokens. A total of 20,067,150 APT tokens were airdropped to 110,235 participants.

    How do I participate or be eligible for an Aptos APT airdrop?

    Previous Aptos users who had completed an application to join the Aptos Incentivized Testnet or minted an APTOS:ZERO testnet NFT were eligible to claim APT tokens. Those who were eligible to receive APT tokens were notified by the Aptos team via email. There are no plans for further airdrops for the time being.

    Which wallet support Aptos?

    Petra Wallet and Pontem Wallet are native non-custodial wallets for the Aptos ecosystem, and can integrate with many Aptos DApps.

    Why is Aptos dumping?

    Aptos’ price usually comes under pressure whenever there is a token unlock event. This is because early investors will typically sell those unlocked tokens to take profit. The next one will unlock on February 12, 2023.

    What is the price prediction for Aptos in 2023?

    Aptos will most likely increase in value, as the narrative for layer-1 blockchain scaling solution is trending in 2023.

  • Visa Auto-Payment on Ethereum: The Complete guide

    Visa Auto-Payment on Ethereum: The Complete guide

    Visa on Ethereum Blockchain

    Visa payment is proposing to use Ethereum and Smart Contracts as an Auto-payments platform in order to increase efficiency and speed. The company published a technical paper detailing its plan to develop an automatic payment system for self-custodial wallets on the Ethereum network. This would enable Ethereum users to schedule auto-payments from their own self-custodial wallets, making online bill payments possible via blockchains. This comes at a very critical time as Ethereum is currently in a series of network upgrades, dubbed “Ethereum 2.0“, that will drastically increase its network efficiency and capacity.

    Visa is also innovating using Ethereum’s account abstraction — combining Ethereum’s user accounts and smart contracts into one account type which allows smart contract functions including pre-scheduled executions for recurring payments. This not only progresses blockchain technology but also brings real-world applications for the general public.

    Limited Payment Options on Blockchain Networks

    Existing blockchain infrastructures do not have the core functionality for auto-payments. In order to send funds to another address, all crypto users must generate a cryptographic signature via their private key. This is an example of push payments, where a payment transaction is manually triggered by the payer. It requires time and attention from the payer.

    On the other hand, there is pull payments, where a payment transaction is triggered by the payee. Automatic online bill payments are an example of this. Most of our recurring payments today are done directly on mobile banking applications or charged on our credit/debit cards. It is very convenient as users do not have to manually settle bills every month.

    Large blockchain networks such as Bitcoin and Ethereum support push payments but do not natively support pull payments. Additionally, users might be unwilling to hand over their private keys to a third-party custodian for monthly bill payments. Therefore, Visa has found a solution to enable pull payments on Ethereum, giving users full control over their scheduled payments.

    Smart Contract Auto-Payments

    Visa leverages the concept of Ethereum’s account abstraction to provide self-custodial wallets with automatic recurring payment capability. Instead of hard-coding validity conditions into the Ethereum protocol that applies to all transactions, validity conditions can be programmed in a customizable way into a smart contract on a per-account basis. This means that users would be able to create a whitelist of pre-approved auto-payments on a “delegable account.” This would not require the owner’s signature every time a payment is made.

    Furthermore, Visa also believes account abstraction has other real-world applications beyond just recurring payment such as account recovery services, multi-owner accounts or even public accounts where anyone could make a transaction. But the technology is still nascent and a lot of research needs to be done around fundamental aspects important for digital payments such as security and scalability, which are crucial for crypto adoption.

    Other payment competitors

    As one of the world’s largest payment networks, Visa is actively getting involved in the crypto ecosystem, looking for ways to expand their capabilities within blockchain payments. This could be a huge step towards mass adoption as traditional financial leaders are seeing the potential of crypto in the long-term future of digital payments.

    In fact, more and more global financial services are getting involved in the crypto ecosystem. Last week, PayPal is partnering with MetaMask to allow users to purchase ETH directly in their wallet via PayPal. On another note, Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network.

    FAQ

    What is Visa proposing?

    Visa is proposing a technical paper detailing their plan to develop an automatic payment system for self-custodial wallets on the Ethereum network. This would enable Ethereum users to schedule auto-payments from their own self-custodial wallets, making online bill payments possible via blockchains.

    How does Visa’s solution work?

    Visa leverages the concept of Ethereum’s account abstraction to provide self-custodial wallets with automatic recurring payment capability. Instead of hard-coding validity conditions into the Ethereum protocol that applies to all transactions, validity conditions can be programmed in a customizable way into a smart contract on a per-account basis. This means that users would be able to create a whitelist of pre-approved auto-payments on a “delegable account.”

    What are the benefits of Visa’s solution?

    Visa’s solution would enable pull payments on Ethereum, giving users full control over their scheduled payments. It also has other real-world applications beyond just recurring payment such as account recovery services, multi-owner accounts or even public accounts where anyone could make a transaction.

    What other companies are getting involved in the crypto ecosystem?

    PayPal is partnering with MetaMask to allow users to purchase ETH directly in their wallet via PayPal. Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network.

    What is the potential impact of Visa’s solution?

    Visa’s solution could be a huge step towards mass adoption as traditional financial leaders are seeing the potential of crypto in the long-term future of digital payments. It could also open up more real-world applications for the general public.

  • Sovereign Labs: Unlocking the Potential of ZK-Rollups in 2023 – Why This Project Should Be On Your Watchlist

    Sovereign Labs: Unlocking the Potential of ZK-Rollups in 2023 – Why This Project Should Be On Your Watchlist

    ZK-rollups could be one of the strongest performing sectors in 2023, as demand for Ethereum scaling solutions is increasing. As such, Sovereign Labs is one of the most promising upcoming projects in the ZK-rollup space. The team is well-funded and the development is on track to be completed in Q2 2023. As such, Sovereign should definitely be on your watchlist for 2023.

    Check out our zkSync article for another highly anticipated ZK-rollup project this year.

    What is Sovereign?

    Sovereign Labs, the team behind Sovereign, is creating an open, interconnected rollup ecosystem to make it easier for developers to deploy interoperable and scalable rollups on any blockchain. It’s been compared to Cosmos ($ATOM), but instead of layer-1 chains, Sovereign uses their software development kit (SDK) and inter-blockchain communication protocol (IBC) for ZK-rollups.

    Current Problems of Blockchain Scaling Solutions

    The current blockchain scaling solutions including application-specific layer-1s, optimistic rollups and ZK-rollups, all have their own drawbacks:

    1. Application-specific layer-1s are the easiest to design and implement, but require large amounts of capital from validators to secure the blockchain. This approach is only viable for a few well-funded blockchain apps.
    2. Optimistic rollups produce fraud proofs to prevent misbehavior. However, during an attack, fraud proofs can be censored, leading to long finality delays. This makes bridging out of optimistic rollups slow and costly.
    3. ZK-rollups share the advantages of optimistic rollups, but without the long finality delay. Large batches of transactions can be finalized with validity proof in a matter of seconds. However, ZK-rollups are incredibly difficult to build because it involves a very high level of cryptography and protocol engineering.

    Out of the three blockchain scaling solutions, ZK-rollups prove to be the most promising scaling paradigm despite the massive undertaking it requires to build them. As such, Sovereign aims to make it easier for developers to create secure and interoperable ZK-rollups, just like the Cosmos SDK did for layer-1 chains. As a result, developers do not need to be experts in cryptography to write their apps, allowing them to focus on the business logic of their chain.

    Who is the Team behind Sovereign?

    Sovereign Labs is co-founded by Cem Özer (CEO) and Preston Evans (CTO). Özer had worked as a smart contract and protocol engineer in ConsenSys, the company behind MetaMask. On the other hand, Evans had worked as a software engineer in Amazon, and has years of experience in computer science and machine learning.

    Sovereign aims to make scaling simple, supporting billions of blockchain users without sacrificing security. In late January 2023, Sovereign Labs raised $7.4 million in seed funding led by Huan Ventures with participation from Maven 11, 1KX, Robot Ventures and Plaintext Capital. According to CoinDesk, a spokesperson from Sovereign stated the fundraise puts the company’s valuation in the “eight-figure” range. The fund will be used to build the SDK and hire protocol and researchers with expertise in blockchains and cryptography.

    Properties and Key Features of ZK-Rollup SDK

    The Sovereign SDK will provide a set of default modules, a peer-to-peer network, a database, and an RPC node, and will abstract away the details of zero-knowledge. This way, developers can write their apps in Rust or C++, and the SDK will automatically compile it to an efficient zero-knowledge virtual machine.

    It will also use a novel bridging technique based on proof aggregation to allow rollups on a shared L1 to bridge back and forth at minimal cost without a trusted third party. Off-chain relayers can combine the proofs of all the peer rollups into one proof, which can then be verified on the chain. As the state transitions are proven to be valid, there is no need to pay fees to a liquidity provider or wait a week for transactions to be completed. This means that bridging can be done immediately with no drawbacks.

    Source: Sovereign

    The biggest feature here is that Sovereign SDK Rollups are able to be used on any blockchain, as the responsibility of verifying proofs is given to the user, not the original blockchain. This is what sets them apart from smart-contract rollups. As the data availability layer does not need to be able to check proofs, SDK rollups can be used on any blockchain without needing to be rewritten. This makes them incredibly versatile, creating an ecosystem of interoperable and scalable rollups that can run on any blockchain.

    When is Sovereign Launching?

    Sovereign is currently in the process of developing the SDK, which includes designing the default storage module, cryptoeconomics, and core APIs. They are also working on a research prototype which is currently integrating with modular blockchain Celestia for data availability and ZK virtual machine Risc0 for the proving system. This phase is expected to be complete around Q2 2023.

    Initial implementation of the SDK will begin afterwards, which they will implement a peer-to-peer network, RPC node, core APIs, default storage and sequencing modules. Once this feature is complete, the SDK will be repeatedly stress tested and audited for about six months until it is ready to be deployed across all mainnet chains.

  • Crypto Market Analysis for Beginners: Looking at Macro Data (Inflation, Interest Rate) to Determine Trends

    Crypto Market Analysis for Beginners: Looking at Macro Data (Inflation, Interest Rate) to Determine Trends

    The crypto market is volatile and unpredictable, but there are events outside of the crypto space that heavily influences the performance of the market. If you are unsure of how the market will react, it always helps to take a step back and look at the bigger picture, which in this case is the macroeconomic data.

    Why Technical Analysis and Narratives are Not Enough

    A lot of people use technical analysis and narratives to determine future price movements. For example, traders would use chart patterns, trading ranges, and technical indicators to determine bullish or bearish trends. On the other hand, investors with a more fundamental approach tend to capitalize on rising narratives in the crypto industry, such as the upcoming Ethereum Shanghai Upgrade causing liquid staking derivatives to pump or halving events for Bitcoin.

    These can be effective strategies, but not always reliable because there are larger forces at play. When the Ethereum Merge came in September, everyone expected ETH to surge in price because of the hype. But the crypto market was under pressure from macroeconomic factors causing broader investment market volatility rather than negative reactions from investors. This was when inflation and interest rate was at its highest for the year, affecting not only the crypto market but other financial markets as well.

    How Do Macro Data Influence the Crypto Market?

    As we have seen in 2022, short term speculation has been significantly influenced by macroeconomics. Since crypto is not widely adopted yet, it is still treated as a speculative asset. As such, Bitcoin’s price movement tend to mirror Nasdaq tech stocks, despite its vision of decoupling from the stock market. It is important not to underestimate macro data as they affect all financial markets. These are some of the common macro data to look out for when analyzing the market.

    U.S. Consumer Price Index (CPI)

    Inflation is measured by the Consumer Price Index (CPI). It is a key economic metric based on prices that consumers pay for goods and services throughout the U.S. economy. When CPI is high, it means that prices for goods and services have risen, indicating inflation. Essentially, high inflation erodes the purchasing power of fiat currencies, meaning that individuals have less buying power for goods and services.

    As a result, inflationary pressures can cause market volatility, as people are more likely to save money for daily necessities and reduce their exposure to risky investments such as crypto. But as shown in the image below, the inflation rate and CPI are cooling off in 2023, which means that the worst is already behind us.

    Source: cnbc.com

    Federal Interest Rate

    The federal interest rate, also known as the federal funds rate, is the benchmark interest rate set by the Federal Reserve (the central bank of the United States) for overnight lending between banks. It is measured in basis points (bps), describing the percentage change in the interest rate. One basis point is equal to 0.01%. It is an important tool used by the Fed to influence the overall level of interest rates in the economy and to affect the supply of credit.

    The fed rate goes hand-in-hand with CPI and inflation rate. If the Federal Reserve raises interest rates, it becomes more expensive to borrow money. This affects businesses in particular, and shifts the investment landscape from risk-on to risk-off, reducing the demand for stocks and crypto alike.

    Although CPI and inflation has been cooling off in 2023, it is not guaranteed that the Fed will scale back to 25 bps. According to Bloomberg, broader analysis of economic and financial conditions would favor the Fed raising rates by 50 bps. This could result in a stock market dip, which also affects the crypto market.

    Supply Chain

    The supply chain refers to the series of industries involved in the production, delivery, and distribution of goods and services worldwide. They are key indicators of global economic activities. Strong economic growth can increase demand for cryptocurrencies, as investors seek alternative investments in a growing market. On the other hand, weak economic growth or disruptions in the supply chain can reduce demand for cryptocurrencies and impact their price.

    As of 2023, the supply chain is slowly recovering as the COVID pandemic is dying down. With the rise of artificial intelligence (AI) tools such as ChatGPT, supply chain leaders are focusing on automation, robotics and sustainability to improve manufacturing and solve labor cost problems. As such, shipping costs and gas prices have gone down. But there are still some areas struggling with shortages and bottlenecks, leading to bankruptcies and unemployment. For more information, Forbes has published an article sharing their insight on supply chain trends in 2023.

    US Gross Domestic Product (GDP)

    Out of all countries, the US seems to have been the dominating narrative in what has affected the price action of the crypto market. This could be related to the US CPI and Fed interest rates. While the US GDP does not have a direct affect on crypto prices, it can indirectly impact crypto prices by affecting the overall economy, consumer confidence, and market sentiment.

    A strong US economy may increase consumer confidence and investment, potentially leading to an increase in crypto prices. Conversely, a weak economy may lead to a decrease in consumer confidence and investment, potentially leading to a decrease in crypto prices.

    Housing Market

    The housing market can affect crypto prices indirectly, as changes in the housing market can impact the overall economy and consumer confidence. A strong housing market can boost consumer confidence and lead to an increase in investment, potentially resulting in an increase in crypto prices.

    On the other hand, a weak housing market can dampen consumer confidence and lead to a decrease in investment, potentially leading to a decrease in crypto prices. However, it is important to note that the relationship between the housing market and crypto prices is not direct and can vary depending on various other factors such as interest rates, economic policy, and global events.

    As of 2023, the supply chain recovery has helped bring back inventory of single family homes on the market, and has increased the supply side as well. But with mortgage rates increasing, it is unlikely there will be an increase in demand for housing any time soon. Therefore, it is highly likely there will be a housing market correction, but we do not know if it is going to small or big.

    Source: Altos Research

    Oil Prices

    Energy has been a critical factor in the economic turmoil and increased inflation in the past year, and it has mainly come from oil prices. With the ongoing war in Ukraine, many people were fearful of a major worldwide energy crisis this winter. Although there was an energy crisis in Europe, it was not as bad as predicted. Meanwhile, oil prices dropped from $120 to $80 as a result of CPI and inflation rate cooling off.

    Source: Trading Economics

    Key Takeaway

    Macroeconomic data is important for crypto prices because it can provide insight into the health and stability of the overall economy, which can impact investor confidence and market sentiment. This, in turn, can affect demand for cryptocurrencies and ultimately their prices. Macroeconomic data such as GDP, inflation, interest rates, employment figures, and trade balances can all provide a broader understanding of the economic environment, helping traders and investors make informed decisions about the crypto market. Additionally, changes in macroeconomic conditions can also impact the supply and demand of cryptocurrencies, affecting their prices.

  • Meme Coins 2023: How Smart People Get Rich Investing in Them

    Meme Coins 2023: How Smart People Get Rich Investing in Them

    2023 started off with the explosive rise of Bonk ($BONK), a Solana-based meme coin. In the process, some people made a lot of money, and some did not even have to invest a dime as they were eligible for $BONK airdrops as Solana users. It is important to remember that meme coins are purely speculative and extremely volatile, but smart traders are able to recognize patterns and trends, allowing them to capitalize on these opportunities.

    What are Meme Coins?

    Meme coins are cryptocurrencies that are created for the purpose of entertainment and humor. They are often based on popular internet memes. Dogecoin is the most famous example, a dog-themed token based on the viral Doge meme in 2013.

    What started as a joke quickly became a driving force in the crypto market. Thanks to Dogecoin’s success in 2021, the meme coin market rapidly expanded, and is now valued over $17 billion in total market capitalization.

    Why are Meme Coins So Popular?

    Investing in meme coins present a low-entry barrier. Since meme coins are typically valued at pennies per token, investors can acquire large amounts of tokens for a relatively small price. As a result, investors can gain significant profits if these tokens spike up in price. Many investors view meme coins as a way to make a quick profit, as they are often volatile and can be traded for a profit.

    In contrast to actual blockchain projects such as Ethereum or Aptos, meme coins have no utilities at all. They are less about technology and solutions, and more about fun and community engagement. Additionally, meme coins are often seen as a way to show support for a particular meme or cause, which can be a powerful motivator for investors. Instead of complex blockchain terminologies, meme coin communities focus on building on their biggest facility — humor. Because of this, meme coins are a good at exposing newcomers to the crypto space.

    The Psychology Behind Investing in Meme Coins

    The originator of the term “meme” is Richard Dawkins. In his book “The Selfish Gene”, he explains that when a cultural meme becomes viral and is attached to an exchangeable value, it can theoretically become an actual currency. With blockchain technology, memes can literally become cryptocurrencies.

    As such, they have become increasingly popular in the cryptocurrency space due to their ability to post rapid gains and reach incredible market capitalization and popularity levels in a very short period. This phenomenon can be attributed to two main factors: Social Media Hype and Fear of Missing Out (FOMO).

    Social Media Hype

    We are currently living in the Internet age, where our average attention span is short. As such, memes could prove to be a powerful marketing tool because they are simple, entertaining, and engaging. When used properly, memes are a low-effort marketing strategy that can drive organic engagement.

    Generating hype via social media channels has been a successful strategy for many meme coin projects. By creating shills and utilizing prominent influencers and mainstream celebrities, projects can generate excitement and attract potential investors, even if there is limited information available about the project. This growth, although organic, is based on “unverified beliefs” and inflated utility. Meme coins have been particularly successful in leveraging this strategy, leading to a surge in their token prices.

    Fear of Missing Out (FOMO)

    The volatile nature of the crypto market is often driven by ambitious investors who jump into new projects with the hope of making a profit or not missing out on the project’s potential success. This fear of missing out on further profits has been a major factor in the success of meme coins.

    The price growth that follows the hype marketing is further augmented by FOMO and widespread hype. This trend has enabled meme coins to gain hundreds of thousands of followers, mainly due to their meme culture, before they adopted a reasonable utility. Additionally, as meme coins generally appeal to less experienced retail investors, they tend to jump on the bandwagon in hopes of making profit and being part of a large community.

    The Risk of Investing in Meme Coins

    While meme coins can be a great way to make a quick profit, they also come with a certain amount of risk. As with any investment, there is always the potential for losses. Additionally, because meme coins have no utilities, they are purely speculative assets. Therefore, they are often highly volatile, meaning that prices can change quickly and without warning. As such, it is important to do your research and understand the risks before investing in meme coins.

    Key Takeaway

    At its core, meme coins are purely speculative, and investing in them is somewhat of a gamble. However, smart traders are able to identify trends before they break out. Because meme coins typically rely on hype, they monitor activities on the niche market via social media channels or word-of-mouth. Because these tokens are usually valued at pennies per token, they are able to secure a position before any price surge or drop. But from that point on, it is really just a bet.

  • The Flippening: Will Ethereum Overtake Bitcoin in 2023?

    The Flippening: Will Ethereum Overtake Bitcoin in 2023?

    The Flippening Narrative: Bitcoin vs Ethereum

    The concept of the “Flippening” has been increasingly gaining traction in the crypto space. It refers to the hypothetical moment when Ethereum (ETH) surpasses Bitcoin (BTC) as the most valuable cryptocurrency by market capitalization. The Flippening is important because it would signify a major shift in the overall direction of the crypto landscape, signalling a change in investor sentiment and adoption patterns.

    https://www.youtube.com/watch?v=0lQ8bz9QRBo

    While the Flippening is not set in stone, there are compelling data that indicate it is coming, and sooner than you think… Here’s why:

    The Case for Bitcoin

    Being the world’s first cryptocurrency, Bitcoin has maintained its throne on the crypto market since its genesis block in 2009. It is often considered as the safest digital store of value by investors, with its limited supply structure similar to the scarcity of gold, hence its nickname “digital gold.” As such, Bitcoin is usually the primary choice of cryptocurrency for financial institutions looking to get involved. As far as mainstream adoption goes, Bitcoin has led the way so far.

    However, Bitcoin’s Proof-of-Work (PoW) consensus model is highly energy-intensive, sparking criticisms of the network’s impact on the environment. Additionally, the usage of Bitcoin is only limited to exchanging and storing value. This is where Ethereum has much more to offer.

    The Case for Ethereum

    As the second most valuable cryptocurrency, Ethereum is designed to be used as the foundation of a decentralized, blockchain-based internet — an idea that is become known as Web3. Apart from exchanging and storing value, Ethereum introduced smart contract functionalities that allows developers to do all kinds of innovative and creative things on the network. This brought about a proliferation of financial products that have enabled a much broader range of investors.

    Ethereum earned its nickname “digital oil” because it is a utility-based asset like oil, fuel or gas, and its value is largely dictated by supply and demand mechanisms. Similar to how the world’s global supply chain is fueled by crude oil, Ethereum lays at the heart of the Decentralized Finance (DeFi) space as well as GameFi and Non-Fungible Token (NFT) market. And as the Web3 landscape progresses, demand will increase as more and more people are recognizing the potential of a decentralized internet. It is only a matter of time when Web2 evolves to Web3, and Ethereum is at the centre of that.

    Do “Ethereum Killers” Hinder the Flippening?

    It is worth noting that Ethereum faces competition from other prominent layer-1 blockchains such as Aptos, Cardano, Solana, BNB Chain, Polkadot, and Avalanche. There is a trending “Ethereum Killer” narrative in which user adoption will be distributed amongst these blockchains instead of focusing on Ethereum only. However, most of these blockchains in fact depend on Ethereum, as one way or another they are associated with the network’s smart contract. As shown in the image below by Cryptowatch, all of the top layer-1 blockchains are closely correlated with Ethereum’s price action.

    Source: Cryptowatch

    Comparing Market Share between Bitcoin and Ethereum

    As of 11th January 2023, Ethereum’s market share increased by 3% among global crypto assets, signalling its dominance on the rise. According to Coinmarketcap, Ethereum’s market dominance is at 19%, valued at around $856 billion. On another note, Coingecko’s metrics were slightly different, indicating Ethereum’s dominance at 18.3%. But both aggregation websites show that Bitcoin’s market dominance is decreasing, from 40% to 38%.

    It is unclear whether this trend will continue, but according to data sourced from Blockchain Center, the Flippening has been on an uptrend since July 2021. And we are nearly halfway for it to happen. It is also worth noting that Ethereum came closest to the Flippening in 2017, when Bitcoin’s market dominance’s dropped by 40.6% and Ethereum took over 32% of the market amidst the situation.

    Source: blockchaincenter.net

    In reference to the data provided by Blockchain Center, there are also other metrics apart from market cap that determines the Flippening. As of now, Bitcoin is still by far superior in trading volume, which is a crucial metric for adoption usage. However, Ethereum has Bitcoin beat in active addresses, transaction count and volume, and total USD transaction fees.

    Outperformance of Ethereum will be primarily driven by the strength of its post-Merge fundamentals. The upcoming Shanghai Upgrade will significantly reduce the risk and opportunity cost of staking ETH, which is likely to attract participation from more crypto users.

    Key Takeaway

    Despite Ethereum’s increasing adoption and market dominance, Bitcoin still reigns supreme in the crypto space. In fact, Bitcoin saw significant adoption in 2021-2022 from retail and institutional investors, public companies, and even countries. As of now, El Savador and the Central African Republic (CAR) have adopted Bitcoin as a legal currency. This is a monumental step towards mainstream adoption.

    But that is not to say the Flippening will never happen — it is certainly a possibility. After all, both Bitcoin and Ethereum have different visions. Bitcoin aims to become the global reserve currency, whereas Ethereum aims to become the infrastructure of a global digital economy. The Technology Acceptance Model (TAM) applies to both assets, but it all comes down to supply and demand mechanisms. If demand in digital money is higher, then Bitcoin dominates. But if demand in utility-based asset in building out a decentralized ecosystem is higher, then Ethereum is generally favored.

  • 2022 Crypto Recap: The Good, The Bad, and The Uglies

    2022 Crypto Recap: The Good, The Bad, and The Uglies

    The crypto industry had a tumultuous year in 2022, with coins tanking at the start of Q2 and never rallying, signalling the beginning of a crypto winter. To make matters worse, the collapse of Terra Luna and FTX led to a devastating contagion across the industry. Despite the challenges, we shouldn’t forget about the progress and achievements the industry has made. Here’s a brief recap of some of the biggest news in 2022.

    Crypto’s Role in the Russia-Ukraine War (February)

    During the Russia-Ukraine war, cryptocurrencies have been immensely valuable to Ukrainian refugees. Russian attacks have destroyed critical infrastructure, rendering many Ukrainians inaccessible to withdrawing money from ATM machines. Therefore, many Ukrainian refugees relied on digital currencies sent from relatives or donors abroad to purchase goods and services.

    All that is needed for them to access their cryptocurrency wallets is a mobile phone and internet access, which was being provided by the thousands of Starlink satellite internet dishes provided by Elon Musk’s SpaceX at the time.

    Feds Interest Rate Hike (March)

    Despite Bitcoin reaching an all-time high of $69000+ in November 2021, what follows is a series of market decline. This is in part due to the U.S. Federal Reserve announcing its first interest rate hike in March to fight increasing inflation. As a result, the macro backdrop began to worsen, not only affecting crypto assets but also every other investment asset class. This also called into question Bitcoin’s reputation as an inflation hedge as Bitcoin itself started to trade in tandem with Nasdaq tech stocks, according to the New York Times.

    Collapse of Terra Luna (May-July)

    The collapse of the Terra Luna ecosystem in May 2022 was one of the most devastating black swan events in crypto history, wiping at least $60 billion off the market which triggered a dangerous domino effect across the industry such as the fall of several high-profile crypto firms, namely Three Arrows Capital, Voyager Digital, and Celsius Network.

    Amid the crash, the UST algorithmic stablecoin, which was supposed to maintain a $1 peg via on-chain mechanisms with Terra’s native token LUNA, depegged, bottoming out at $0.006. This was caused by a massive continuous selloff on both UST and LUNA, resulting in a death spiral. Terraform Labs (TFL) developers and founder Do Kwon are facing multiple investigations as well as lawsuits into its collapse. (Canadian Pharmacy) As of now, South Korean authorities and Interpol have issued a warrant for the search and arrest of Do Kwon and his accomplices.

    Recovery Plan of Terra Luna Classic (August)

    As of now, the Luna Classic blockchain is managed and governed by the community after Terraform Labs (TFL) developers abandoned the chain in support of Luna 2.0. On August 26th 2022, governance was restored as citizens of Luna Classic could delegate, stake, and vote for the future of the ecosystem. Proposals and the associated implementations are being passed by the Terra Classic Decentralized Autonomous Organization (DAO).

    Feds Sanction Tornado Cash (August)

    On 8th August 2022, the U.S. Treasury Department imposed sanctions against Tornado Cash, a privacy-focused Ethereum mixing service that obscures the trail back to the fund’s original source. They claimed that Lazarus Group, a cybercrime group run by the North Korean government, has been using Tornado Cash to launder illicit funds.

    Moreover, one of the developers for Tornado Cash was arrested in the Netherlands. The crypto community and privacy advocates bashed Netherlands authorities as the developer was simply writing code and had nothing to do with illicit activities. Ethereum co-founder Vitalik Buterin also criticized the move as he himself used Tornado Cash to make donations to Ukraine’s cause.

    Ethereum Merge (September)

    On 15th September 2022 at 06:42:42 UTC at block 15537393, the Ethereum Merge was completed. This meant a merger of the Ethereum mainnet execution layer and the Beacon Chain’s consensus layer, transitioning from the proof-of-work consensus mechanism to proof-of-stake. This landmark update brings major changes to the network, including a 99.95% reduction in energy consumption and a 90% cut in ETH issuance.

    This is a significant achievement in the history of blockchain, allowing the Ethereum network to scale effectively as demand for Web3 and DeFi increase. Since Ethereum is the mother of all smart contract platforms, this could put Ethereum in a position to rival Bitcoin in adoption and even value.

    Downfall of FTX and Sam Bankman-Fried (November)

    On 11th November 2022, former FTX CEO Sam Bankman-Fried (SBF) filed FTX, FTX US, and Alameda Research for bankruptcy in the U.S. Once hailed as one of the top crypto exchanges, the sudden collapse of FTX came as a shocking blow to the entire crypto industry, setting off yet another contagion across the space. This affected 130 affiliated companies including several high-profile firms such as BlockFi, Genesis Trading, Grayscale, KuCoin, Gemini, Coinbase, Crypto.com, Sequoia Capital, and Galaxy Digital.

    Apparently, SBF was misappropriating customer funds for his own benefits without customers’ consent and knowledge, conducting unethical flywheel schemes with Alameda Research. As a result, SBF had been arrested in the Bahamas, facing many criminal charges including securities fraud, money laundering, and campaign finance law violations. However, on 22nd Decemeber 2022, the disgraced FTX founder was released on a $250 million bail.

  • Binance vs Coinbase Exchange Comparison Review: Features, Fees, Services and More

    Binance vs Coinbase Exchange Comparison Review: Features, Fees, Services and More

    Which Cryptocurrency Exchange is the “Best?”

    Cryptocurrency exchanges have been the central trading platform in the crypto space. Traders worldwide have made substantial returns on their investment just from pressing a couple of buttons. This has attracted many others to join in hopes of profiting from trading crypto.

    However, one of the key factors in successful trading is finding the right crypto exchange. With hundreds of crypto exchanges available, everyone is constantly asking “which crypto exchange is the best?” Traders want to make the most of their investments, whether it be low trading fees or lucrative services. In this article, we will be comparing two of the top crypto exchanges in the world: Binance and Coinbase.

    See also: Top Best Cryptocurrency Exchanges of 2023

    What is Binance?

    Binance is the world’s most popular crypto exchange by a large margin. It is rank one in organic trading volume per day ($14 billion at the time of writing) and in website and app user session (87 million visits).

    Sign up and get 20% off Binance fees!

    Key Features of Binance

    This is because Binance is largely focused on the spot market, supporting a wide range of cryptocurrencies for users to trade. On top of that, users can earn passive income on their holdings via Binance Earn. There is also no shortage of trading features for experienced investors such as leveraged trading, options trading, and lending platform.

    Since Binance is not accessible in the U.S., Binance started Binance.US in compliance with U.S. regulations for citizens to trade freely.

    See also: Binance Exchange Review (2022) Best Crypto Exchange?

    Who Founded Binance?

    Binance was founded in 2017 by Chengpeng Zhao (CZ), former Chief Technology Officer of OKCoin who had years of experience developing high-frequency trading softwares.

    Binance’s Milestones

    For the longest time, the cryptocurrency industry is dominated by Binance. The exchange is held in high regard for being proactive and astute in their planning and actions, not only for themselves but also for advancing the crypto space as a whole.

    Binance has been very active in collaborating with global regulators such as the Financial Action Task Force to support the development of crypto regulatory framework and policies. In 2022, Binance has received regulatory approval to set up locations in Dubai and Bahrain, which is an important step as the granted license allows them to operate in compliance with global standards.

    What is Coinbase?

    Founded in 2012, Coinbase is one of the earliest crypto exchanges in the world. Unlike other exchanges, Coinbase is based in the U.S. and subject to its regulations. As such, it is the largest cryptocurrency exchange in the U.S. by trading volume.

    Key Features of Coinbase

    Coinbase is split into several categories catering for different types of users. Coinbase itself is for retail investors, and only offers spot trading, unlike other exchanges which offer other products such as derivatives or futures trading.

    Coinbase Pro is for individual professional traders, and Coinbase Prime is for larger institutional clients. Both platforms provide charting tools, real-time order books, among other tools to help advanced traders make the most of the exchange. Moreover, they also have cheaper transaction fees and more supported cryptocurrencies compared to Coinbase.

    Coinbase’s Milestone

    Moreover, Coinbase was the first crypto exchange to go public on the Nasdaq in 2021, establishing itself as one of the front-runners of the crypto industry. With its market value on the stock market worth $100 billion in 2021, this is an impressive achievement that would further advance the crypto industry as a whole.

    Coinbase Controversies

    However, Coinbase has also had its fair share of controversies, from experiencing outages in the 2020 bull run to insider trading and Securities and Exchange Commission (SEC) investigations this year.

    Nevertheless, Coinbase remains one of the top crypto exchanges in the world and will continue to be in the future. In fact, like Binance, Coinbase is also proactive, and has demonstrated time and time again the ability to turn unfavorable situations around.

    The exchange immediately discovered the root cause of the outage in 2020 and remediated traffic spikes through autoscaling procedures. Additionally, Coinbase has called on the SEC to develop a viable regulatory framework for digital asset securities following the insider-trading incident in July.

    Binance vs Coinbase Exchange Overview

    In this section, we will take a closer look at what Binance and Coinbase have to offer and compare them based on these features:

    Cryptocurrency and Products

    Binance is the winner in terms of the number of cryptocurrencies supported. It has more than 600 coins and tokens compared to Coinbase which has over 100. This is because Binance’s spot market includes many different crypto categories such as GameFi, DeFi protocols, and even meme coins. On the other hand, Coinbase largely focuses on low-risk cryptos with a high market cap such as Bitcoin and Ethereum.

    Both exchanges offer crypto earning products which allow investors to earn passive income on their investments. However, Binance offers more earning products such as liquidity farming, dual investment and DeFi staking, whereas Coinbase is only limited to savings and single token staking. Moreover, Binance also has the edge in maximizing return on investment (ROI). Though most of their products are estimated at APR, they outweigh Coinbase’s APY products.

    See also: APY vs APR in DeFi: What They Actually Mean for Your Rewards

    Moreover, Binance offers a wide array of trading tools such as leveraged trading, options trading and lending platform, whereas those features are only available on Coinbase Pro and Coinbase Prime.

    Fees

    The difference in fees between Binance and Coinbase is quite significant. Overall, Binance charges much less for trading crypto as well as funding your account. At the lowest-tiered account, Binance only charges 0.1% for their maker and taker fee. Its rate go as low as 0.02% at the highest-tiered account, which saves a lot of money for active traders.

    On the other hand, Coinbase charges users an average flat fee of 0.5% per transaction. Additionally, extra fees are also incurred based on the account used in the transaction, i.e. 1.49% for US Bank Account, 2.49% for Coinbase USD Wallet, and 2% for credit/debit card.

    Fortunately, we have a comprehensive guide that would allow you to avoid withdrawal fees. Click here to learn more.

    On another note, since Coinbase is subject to U.S. regulations, users in the U.S. have to pay capital gains tax on profits made and staking rewards. Users are responsible for reporting all profits made as income on tax forms, even if it is just $1. According to Coinbase, if users earn $600 or more through the exchange, Coinbase is required to report those payments to the Internal Revenue Service (IRS).

    Depending on the users’ location, Binance users do not have to pay taxes on their crypto gains. However, Binance.US also complies with U.S. tax laws, which means U.S. users also have to pay capital gains tax. Click here if you want to learn more about crypto tax-free countries.

    Security

    Both Binance and Coinbase have the highest cybersecurity score (AAA) audited by CER, the leading cybersecurity ranking and certification platform.

    Both exchanges require Know Your Customer checks (KYC) in order to open an account, and provide two-factor authentication via SMS or the Google Authenticator app. They also store account funds in cold storage and crypto vaults off the Internet so that they cannot be hacked.

    Though both have similar security protocols, Binance focuses more on access restriction, whereas Coinbase implements biometric access (i.e. fingerprints) for logins. Binance offers address whitelisting and device management to review and secure address books and devices, blocking other entries that users do not recognize. On the other hand, Coinbase has biometric fingerprint logins as well as AES-256 encryption and multi-signature security for digital wallets. This is because Coinbase has its own digital wallet, whereas Binance does not. But Binance partners with Trust Wallet, one of the most secure digital wallets with over 25 million users.

    The main difference between both exchanges is that Coinbase is one of the only exchanges that offers FDIC insurance on USD deposits, insuring up to $250,000 of deposited USD funds which is similar to traditional banks. This also applies to Binance.US but not Binance. User funds on Binance are protected by reserves they have in their treasuries.

    Conclusion

    Although Binance and Coinbase are two of the top crypto exchanges in the world, they offer very different user experiences. With new features being added on a regular basis, Binance offers more than almost any exchange on the market as well lower fees.

    On the other hand, Coinbase is a more reputable exchange on an institutional level. It was the first crypto exchange to be listed on the NASDAQ stock market with its market value reaching more than $100 million. This is an impressive milestone in propelling the crypto industry as whole as it signifies the recognition of cryptocurrency as tradeable securities in the global market.

    Although its fees are high and offer less products compared to Binance and other exchanges, Coinbase has a slight edge in security compared to other exchanges as it is subject to U.S. regulations. It is also one of the few crypto exchanges that has its own self-custody crypto wallet.

    But the bottom line is if you are looking for a wide variety of crypto products, Binance is the pick. Coinbase is better suited for beginners due to its spot market offering more secure long-term investments.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. (https://wbctx.com) As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • SwissBorg vs eToro Comparison Review: Which Crypto Exchange is Better?

    SwissBorg vs eToro Comparison Review: Which Crypto Exchange is Better?

    Recently, the news has been flooded with talks about crypto regulation and exchange investigations by the SEC. This has raised a lot of problems among investors as particular crypto exchanges they use might one day become restricted by international regulators. Therefore, one of the safest long-term solutions is to find yourself a fully regulated crypto exchange.

    In this article, we will be comparing two of the top regulated crypto exchanges in the world: SwissBorg and eToro.

    See also: Top Best Cryptocurrency Exchanges of 2023

    What is Swissborg?

    SwissBorg

    Company Overview

    After having raised USD $53 million, SwissBorg was launched in 2017 by Anthony Lesoismier (CSO) and Cyrus Fazel (CEO). SwissBorg is based in Switzerland and is fully compliant with Swiss Law, making it a popular European crypto exchange. It is the first blockchain-based secure wealth management platform, aimed at simplifying the process of crypto investments. It integrates with major crypto exchanges, DeFi protocols, and features a community-based ownership model.

    SwissBorg is available in over 115 countries, and they have plans to include many more in the future. However, as of now, SwissBorg is not supported in the U.S. If you want to see if your country is included, you can visit their Supported Countries page.

    SwissBorg Team

    Prior to founding the exchange, Lesoismier was Head of Financial Market Digital-Advisory at JFD Brokers, and Fazel was a multicultural FinTech professional with decades of experience in asset management and algorithmic trading.

    The SwissBorg team spans 20 different countries, consisting of 300 highly experienced professionals in portfolio management, financial advisory services, and blockchain development. The combined power of their diversified expertise has led them to achieve numerous impressive milestones, including receiving the Mass Adoption Project of the Year award and the Top Swiss Fintech Startups award.

    Key Features of SwissBorg

    Wealth App Smart Engine

    The Wealth App is the smart command-and-control centre of SwissBorg. It lets users build, manage, and monitor their crypto portfolios, enabling easy and secure wealth management. Users can fund their accounts with 16 different fiat currencies, including USD, EUR, GBP, and CHZ. Additionally, similar to Coinbase, a limited number of high-cap digital assets are supported to ensure quality.

    The biggest advantage that SwissBorg has is their Smart Engine. It ensures zero spreads and no inflated exchange rates or hidden fees, allowing users to trade at the best rates and lowest slippage. Moreover, the Smart Engine analyzes hundreds of live trading pairs in seconds by connecting to major crypto exchanges such as Binance or Kraken. As a result, SwissBorg finds the best route to execute customer orders in milliseconds, saving investors time to find the best exchange rates.

    Smart Yield Account

    SwissBorg’s Smart Yield is a feature on its app which allows users to potentially earn passive income through Decentralized Finance (DeFi) protocols and Centralized Finance (CeFi) platforms. Smart Yield’s user-friendly interface allows easy access to the benefits of DeFi and CeFi, even average crypto users without much pre-requisite knowledge can stand to gain from it.

    The Smart Yield feature works with top platforms such as Compound, Curve Finance, Binance, Aave, and Uniswap, with its rates ranging from 0.1% to the highest 25% APY for over 20 assets. Since APY rewards change invariably due to supply and demand, you can check the current rates on the SwissBorg Smart Yield Rates page.

    Thematics (Crypto Portfolio Bundles)

    There are a lot crypto themes, and within each theme there are hundreds of different tokens to choose from. Decision fatigue really sets in when you are opting to diversify your crypto portfolio. SwissBorg’s answer to this is their “Thematics”, expert-designed bundles of different crypto themes.

    They provide exposure and diversification that is important for every crypto investor. SwissBorg’s Thematics lets you choose a category you have long-term belief in. For example, if you believe in layer-one protocols, you can choose a layer-one protocol bundle containing Ethereum, Cardano, Solana, Avalanche and so on.

    If you are interested in upcoming layer one protocols, you can check out our comprehensive article on Aptos or Sui.

    What is eToro?

    eToro

    Company Overview

    Based in Tel-Aviv, eToro was established in 2007 by co-founders Ronen Assia (Executive Director), Yoni Assia (CEO), and David Ring (Former CTO). The company was originally a social trading exchange offering commodities, indices, and stocks before diving headfirst into the crypto industry in 2018 with the launch of eToroX and a crypto wallet. It has since grown to one of the largest crypto exchanges, with a user base of 25 million active users worldwide.

    eToro offers a secure, regulated platform for crypto trading with a track record of storing investor funds for well over a decade. The company is regulated by the Cyprus Securities and Exchance Commission (CySEC), Financial Conduct Authority (FCA), and the Australian Securities & Investments Commission (ASIC). As such, eToro has a cross border license to operate in member states of the European Economic Area and other permitted countries.

    eToro Team

    Before eToro was established, Yoni Assia had held managerial roles in the FinTech industry and is an expert in computer science and finance. On the other hand, his brother Ronen Assia is a specialist in product design and engineering, having created products across various platforms such as medical devices, household applications, and web applications.

    eToro has one of the largest teams in the crypto exchange scene, with roughly 1,700 employees across 16 different countries in the EMEA, APAC and North America. They have seasoned veterans coming from various disciplines, such as IT and business solutions, data analytics, and blockchain innovations.

    Key Features of eToro

    CopyTrader

    The biggest innovative feature of eToro is their CopyTrader, which allows you to automatically copy top-performing traders, what they invest in and when. This is great for average crypto users and beginners as they can easily leverage other crypto traders’ expertise, instead of going through the hassle of constantly monitoring the market, unsure of whether to enter or exit. As a result, you can simply replicate their trading in your own portfolio. In a way, it is similar to KuCoin’s trading bot, where trading activities are already figured out for you.

    Moreover, CopyTrader is also a social trading platform, where traders are part of a collaborative community. They can with chat with other traders, discuss strategies and benefit from each other. This is a great place to start for beginners and learn from the best on how the market moves, but keep in mind that their quality is not assured. Crypto investments are always volatile.

    Smart Portfolios

    Similar to SwissBorg’s Thematics, eToro’s Smart Portfolios are essential a grouping of several assets bundled together based on the theme. In addition to crypto, eToro also has portfolios of stocks, ETFs, commodities and even people, as per their business model in the early 2010s before crypto became mainstream.

    Smart Portfolios leverages machine learning algorithms and data science to group the best performing bundles, taking into account factors such as balance, exposure, potential yield, risk, and more. Moreover, there are no management fees or commission, other than those applied with assets comprising each portfolio.

    eToroX

    eToroX is the company’s product specifically designed for professional crypto traders and institutional investors. It is not available to retail investors. It offers a suite of advanced trading tools, 30+ crypto assets including 17 unique stablecoins and 80+ tokenized asset pairs. eToroX has a highly competitive fee structure and is renowned for having deep liquidity for stabilizing large-volume trades.

    SwissBorg vs eToro Overview

    Cryptocurrencies and Products

    Both SwissBorg and eToro only offer a limited number of cryptocurrencies, around 30-40. Most of these assets have large market cap like Bitcoin, Ethereum, XRP (Ripple), BNB, and Polkadot. This is done to ensure quality, reducing exposure to high risk/high reward assets or degen projects that could incur a lot of loss. Both exchanges strictly adhere to standards set by financial regulatory agencies to protect the securities of investors.

    In terms of trading, both exchanges offer a wide array of trading tools for all crypto users as well as deep liquidity to support large volume trades with zero spreads. However, trading on eToro only benefits whales and institutional investors as eToroX unlocks them the full benefit and is inaccessible to retail investors. In contrast, SwissBorg’s Wealth App, optimized with Smart Engine, performs just as well as eToroX and is accessible to everyone.

    Furthermore, SwissBorg offers much more than crypto trading. Their Smart Yield feature works with numerous DeFi protocols and CeFi platforms, simplifying the process of earning and allowing users to stake and receive passive income. On the other hand, eToro also has their own staking reward programs, but is only limited to Cardano, Tron, and Ethereum. Although their monthly staking yield is high, only UK and US users have access to it.

    Fees

    Thanks to their Smart Engine, SwissBorg users do not have to worry about inflated exchange rates, floating spreads, and hidden fees. In other words, you will never end up with less crypto than what you paid for. There are no deposit fees, but crypto withdrawals are subject to an execution fee of at least 0.10%, which is relatively low compared to other exchanges. In terms of exchange fees, SwissBorg fees are among the lowest in the crypto industry, but vary greatly depending on loyalty tier and which fiat or crypto asset is being used. Moreover, 20% of their profits generated from the fees are reinvested back into the SwissBorg ecosystem.

    On the other hand, eToro charges a 1% fee on crypto transactions plus a spread. Although this is still considered lower compared to other exchanges, it is not as competitive as SwissBorg. If you are planning to trade a lot of cryptocurrencies, paying more than 1% can eat into your profits. Unlike SwissBorg, eToro charges foreign transaction (FX) fees for non-USD deposits, and USD $5 for withdrawals. Furthermore, if you are planning to HODL assets long-term, it is important to note that eToro charges an inactivity fee for accounts that have not been online for a year. You can simply log in each day to negate that.

    Overall, SwissBorg is the clear winner in terms of lower and transparent fees.

    Security

    As leading trading platforms, both SwissBorg and eToro have successfully ensured compliance with top regulatory authorities, placing the security of their platform and the safety of their clients’ funds as a top priority.

    Both exchanges adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, protecting traders from fraudulent and criminal activities. Much like all other major crypto exchanges, SwissBorg and eToro uses two-factor authentication (2FA), data encryption, network monitoring and other standard security protocols.

    Both companies also store account funds in cold storage so that they cannot be hacked online. However, their methodology of cold storage security is different but impenetrable nevertheless.

    eToro deploys a cold storage Custody as a Service (CaaS) solution in partnership with leading cybersecurity firm GK8. It is essentially the application of secure institutional model of custody and cryptographic security in crypto. The funds are also insured by Aon PLC against theft, loss, damage or destruction of assets.

    On the other hand, instead of custody mechanism, SwissBorg addresses and enhances cold wallet security by implementing multi-party computation (MPC) keyless technology. It does not require a private key to be created, eliminating a single point of failure. MPC works by multiple parties jointly performing mathematical computations, without one party revealing its information to the others. SwissBorg achieves this in collaboration with Fireblocks as their security partner. Fireblocks is renowned for being the most secure and adaptable platform that leverages MPC technology to secure digital assets.

    Crediting to their advanced security protocols and regulation compliances, there have been no known successful hacks on both SwissBorg and eToro to date.

    Key Takeaways

    Both SwissBorg and eToro are great crypto exchanges for investors to manage and expand their portfolio. While eToro’s CopyTrader feature is great for beginners to learn how expert traders maneuver the market, it is important to note that their quality is not assured. Crypto investments are always volatile, and no one can predict the market.

    Overall, SwissBorg is relatively better than eToro in terms of trading efficiency, fees, and product variety. SwissBorg’s Smart Engine allows users of all levels to trade without inflated exchange rates, spread and hidden fees. Their exchange fees are also much lower than eToro’s, and have no deposit fees. Moreover, the company also brings DeFi benefits to its users, letting them earn high APY rewards in a simple process.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.