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Tag: cryptocurrency

  • Top 7 Countries for Cryptocurrency Investors (Tax-Free)

    Top 7 Countries for Cryptocurrency Investors (Tax-Free)

    Doing your taxes on your cryptocurrency trades has become a necessary burden for many as major nations continue to implement regulations on the industry, and this is actually a positive thing for global adoption. Huge nations such as the United States are currently looking to introduce stricter regulations for crypto and have already been taxing crypto profits. Therefore, to avoid unwanted meetings with the IRS, American investors are having to play by the old rules.

    But if that’s not something you’re into (long live financial freedom!) or you’re a crypto maximalist, the good news is there are several places in the world that might present better options for you.

    This article highlights seven countries around the world that are pro-crypto and some that will even allow you to trade and earn crypto income tax-free. Here’s our video comparing the top best countries for crypto investors. 

    1. Portugal
    • No capital gains tax on crypto
    • No personal income tax on crypto received

    Portugal is one of the most crypto-friendly countries in the world after establishing a Digital Transitional Action Plan in April 2020 to promote decentralization. The country experienced hyperinflation in the early 1990s which almost drove companies to bankruptcy, so it is no surprise the Portuguese people have shown trust towards crypto.

    If you’re making any capital gains from purchasing or selling cryptocurrencies you do not have to pay any taxes, nor is there any income tax on payments received in crypto. If you don’t hold an EU passport then you can invest 350,000 euros in funds in the country for five years to become eligible for citizenship via the Golden Visa Scheme. The best part is you’ll only need to spend seven days in Portugal per year, meaning you don’t have to permanently relocate.

    2. Bermuda

    • No income tax at all
    • No capital gains tax on crypto 

    As an example of Bermuda’s crypto-friendly nature, we only need to look at the Bitcoin ETF that was approved in late 2020 after years of unsuccessful attempts to launch in the United States. The Bermuda Stock Exchange approved Hashtag’s Nasdaq crypto ETF making it one of the first of its kind and proving that the country is likely to continue to be forward-thinking regarding crypto.

    It’s fairly easy to obtain residency in Bermuda as long as you have sufficient income. At least $2.5 million must be invested into real estate, businesses, or bonds in the country in return for a passport.

    3. Malta

    • No income or capital gains tax on long-term crypto investments
    • 35% income tax on crypto trading

    Malta is a southern European island in the Mediterranean Sea that has been using crypto for the longest time. Crypto traders receive 35 per cent in income tax as it is viewed as the same as stock trading by legal definition, but on the plus side, there is no income or capital gains tax on long-term investments in digital currencies. So if you’re a long-term hodler you would love Malta, but not so much if you’re a day trader. 

    If you’re not an EU citizen and want to become one you can buy Maltese citizenship and receive a passport in about one-and-a-half years at a cost of around $1 million dollars. This is more for long-term players who really want to cash out their crypto tax-free.

    4. Singapore

    • No capital gains tax on crypto
    • No existing crypto funds subject to taxation

    Singapore already enjoys the reputation of being one of the most business-friendly places on the globe and is slowly emerging as a safe haven for crypto investors as well. The country’s central bank believes the crypto ecosystem should be monitored to prevent money laundering and other illegal activities, however, also insists innovation should not be stifled. Singapore is known as the fintech hub of Asia as residents and companies do not have to pay any capital gains tax nor are there any existing funds subject to taxation. 

    Residency in Singapore is easy for students, who just need to study there for two years and pass a government exam, but the requirement is much higher for their investor program – at least 2.5 million Singaporean dollars (roughly US$1.8 million) must be invested into new businesses or funds.

    5. Switzerland

    • No capital gains tax on crypto
    • Bitcoin is legal tender in some regions

    Swiss banks were the first in the world to offer crypto companies business accounts in 2018 after recognizing that banking channels would help to eliminate fraud and encourage legitimate businesses in Switzerland. Crypto is classified as an asset and Bitcoin is recognized as legal tender in some regions so the narrative for crypto is generally positive. The Swiss don’t see crypto as a threat to their fiat currency.

    If you trade or hold any crypto as an investment in your own account and qualify as an individual trader you will not be liable for any capital gains taxes. Residency in the country is a bit tricky in comparison to other countries – you must be under the age of 55 and need to invest at least one million Swiss Francs in a way that stimulates new technology developments in the region.

    6. El Salvador

    • No income or capital gains tax on Bitcoin
    • Bitcoin recognized as legal tender
    • Building world’s first ‘Bitcoin City’

    El Salvador made mainstream media headlines and is the undisputed king when it comes to crypto-friendly regulation after Bitcoin was recognized as legal tender in 2021. Consequently, the country has no income tax or capital gains tax on Bitcoin and plans to maintain its status as a crypto hub by building the world’s first ‘Bitcoin City’.

    In the future it might also be possible to buy an extra passport and a new nationality with crypto. The law hasn’t been confirmed yet but ever since Bitcoin became legal tender in the country El Salvador has continued to accumulate and now holds more than 1,800 Bitcoin as they want to continue to build up their Bitcoin reserves. Do not be surprised to one day see El Salvador offering citizenship in exchange for crypto investments.

    7. St. Kitts & Nevis

    • No capital gains tax at all
    • Buy a passport for $150k or BTC equivalent
    • Move freely between Caribbean Union countries

    St. Kitts & Nevis is an island in the West Indies that has welcomed digital assets with open arms and implemented legislation to make crypto transactions easier under its Virtual Asset Bill of 2020. You can use crypto to buy a passport to this tax haven and the best part is you don’t even have to land in the country to get the passport. A passport costs about $150,000 or the equivalent in Bitcoin and you can get it in about four months.

    There is no capital gains tax in the country at all and local banks work happily with crypto investors. The island nation has Bitcoin ATMs placed throughout the country and you can live in any other Caribbean countries that are also part of the Caribbean Union.

    Conclusion

    At the end of the day there are still many countries that consider crypto to be a threat to their sovereignty yet each day more and more nations are realizing the benefits and possibilities of welcoming the innovation of blockchain and crypto. The treatment of digital assets varies depending on each country’s financial regulations and procedures, which is why it’s essential to do your own research and consult a tax advisor before deciding to immigrate.

  • Starly NFT Staking: How to Tutorial and Guide

    Starly NFT Staking: How to Tutorial and Guide

    The NFT industry has become one of the most exciting spaces amongst emerging blockchain and crypto trends. With many related projects and startups launching, the sector is becoming more popular and has provided creators with significant earning opportunities.

    NFT creators constantly seek more accessible ways to publish and market their assets to varied audiences while also maximizing potential returns on their art. Buyers who like to collect NFTs also look for the best marketplace that curates these assets and facilitates easy access to purchases and rewards. The Starly platform provides all these and more to both categories of stakeholders. 

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    What Is Starly?

    Starly is an NFT-focused launchpad and marketplace where users can create, buy, and sell gamified NFT collectables. The platform aims to make creating, selling and collecting NFTs as seamless as possible. Starly offers complete creative control to NFT minters, allowing them to set prices, rarity ratings, and decide preferred launch dates. 

    Each Starly NFT collection consists of 21 unique NFTs (or NFT cards) divided into three packs for ease of valuation. The packs are composed of 11 common cards, 6 rare cards, and 4 legendary cards. Members of the Starly community can purchase and sell NFT cards on the secondary market, or buy all the cards in a collection to receive special rewards reserved for buyers who acquire complete collections.

    NFT Staking on Starly

    Collectors can stake their NFT cards for Starly token rewards based on the value and rarity of the NFT. Each NFT card in a collection has a Card Score determined by its pack (common, rare, or legendary) and price. Stakers can earn rewards in $STARLY- the project’s native token. The total $STARLY staking reward for each NFT card is equal to its Card Score and gets distributed daily for over a year. This means that it would take 365 days to accrue the total $STARLY staking reward. 

    Although users can claim a limited number of token rewards, these rewards depend on the user’s Starly token tier. Starly uses the following formula for reward distribution:

    Card Score/365 = Token Amount Distributed for 24h.

    For instance, if a user stakes an NFT with a Card Score of 15,000, the available token staking reward for that card is 15,000 $STARLY. The user can claim up to 41 $STARLY (15,000/365) daily depending on the membership tier until the user exhausts 15,000 $STARLY.

    Starly Token Staking Tiers

    Token holders staking $STARLY are categorized into reward tiers curated according to the number of staked tokens. The tiers include the Silver, Gold, and Platinum memberships, with the following required token amounts:

    • Silver Tier: a minimum of 1000 $STARLY staked
    • Gold Tier: a minimum of 10,000 $STARLY staked 
    • Platinum Tier: a minimum of 50,000 $STARLY staked 

    These tiers come with varying benefits, including the ability to claim more daily NFT staking rewards. Members of the Starly community who stake their NFTs but have no staked Starly tokens are not placed in any of the three tiers and can claim only 2 of the available daily token rewards. Silver, Gold, and Platinum tier members can claim 10, 100, and 500, respectively.

    Furthermore, if an NFT card is unstaked, all unclaimed rewards of the staked card remain locked on the card till the user stakes it again. Additionally, if the unstaked NFT card gets sold, the new owner gets all unclaimed staking rewards locked in the card and can stake the card again for token rewards.

    $STARLY Token

    $STARLY is the platform’s native token, helping creators earn from their NFT assets. On the Starly marketplace, creators can monetize their NFT collectibles and receive rewards for their effort via $STARLY tokens. The platform has a total supply of 100 million tokens allocated for different uses. For instance, the largest allocation is for the Product and Ecosystem Development Fund at 31.25% or 31,250,000 tokens. Others include 22% for the Team and Advisors, 20% for the private sale, and 0.75% for the public sale. Furthermore, Starly allocated 5% each for token liquidity and staking payouts, while reserving 16% for the community.

    Benefits Of Starly NFT Staking

    All NFTs have inherent value that provides some aspect of collectibility or utility to collectors. However, collectors can derive additional value by staking these NFTs on Starly. The primary benefit of staking owned NFTs is that users can accrue more $STARLY and then re-stake for added rewards. As users collect more tokens, their designated membership tier moves from Silver to Gold or Gold to Platinum. New tiers furnish users with additional Starly benefits, such as voting rights and exclusive NFT drops from selected artists.

    Staking has become a significant way of contributing to projects across the blockchain and crypto space, with billions of tokens and coins locked on many platforms. NFT staking is no different and is an excellent way for users to earn passive income from idle NFT collections. Although the concept is still relatively in its infancy, Starly opens users to more NFT staking opportunities with the possibility of progressive rewards.

    Visit Starly here to learn more about them.

  • Crypto Airdrops: The Good, The Bad, and The Ugly

    Crypto Airdrops: The Good, The Bad, and The Ugly

    Whether a blockchain project lives or dies depends on its capability to attract and grow its user base, and projects that are unable to gather or maintain their clientele eventually fold. To kickstart or encourage engagement within the community, these projects often find themselves doing token airdrops, using them to raise awareness and value for their products while also incentivizing new and existing customers. 

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    What is a crypto airdrop?

    A crypto airdrop is a method used to distribute cryptocurrencies to a project’s community of users for free, usually in exchange for participating in a campaign or owning other related assets. Airdrops are typically used as a marketing and awareness strategy to draw attention to a product or event. These projects may share tokens to existing users’ crypto wallets or encourage prospective users to register accounts to receive assets.

    Types of Airdrops

    Over the years, the airdrop marketing strategy has taken many different forms. Several projects have used airdrops to create awareness, promote features, and attract users. For instance, gaming metaverse ArcadeLand launched an airdrop in March where 850 participants shared a 2,000 USDT prize pool. Eligibility required simple tasks, including social media activity such as following ArcadeLand’s Twitter and participating in the project’s announcement channel on Telegram.

    There also was a MetaGods airdrop in November for 800 winners, including bonuses for the top 50 referrers. Participants also qualified for a $2,000 prize pool by completing tasks on Twitter and Telegram.

    The Sukhavati Network also launched an airdrop of 10,000 $SKT worth 6000 USDT to celebrate achievements, including an official startup sale on Gate.io and a MEXC listing. The prize pool was for a total of 1050 winners, with 1000 $SKT reserved for the top 50 referrers. Although projects use different types of airdrops depending on their aim for each one, the most common types include:

    Standard Airdrops

    During a standard airdrop, wallet holders receive small amounts of the new cryptocurrency in return for completing tasks, such as signing up for a newsletter or creating an account with the crypto project. Some projects require participants to complete a KYC (Know Your Customer) verification or provide their email and wallet addresses before receiving the tokens.

    Standard airdrops often serve as a good preface for projects to introduce themselves to the public. New projects, such as this recent airdrop hosted by Questian, attempts to pull in more attention by asking their community to complete tasks for USDT.

    Bounty Airdrops

    Projects that use bounty airdrops distribute their tokens among users who help to create awareness – usually across social media platforms. To be eligible for these airdrops, participants must perform simple tasks such as retweeting an official tweet, sharing a Facebook post, or creating Instagram media. Participants may also earn by referring new users. Although this type is similar to standard airdrops, the main difference is that crypto projects usually reserve bounty airdrops for people who help create public awareness. Standard airdrops are simply open to anyone who joins the project’s community via accounts, newsletters, or other similar channels.

    Exclusive Airdrops

    Blockchain projects usually reserve exclusive airdrops for loyal followers. In many cases, these airdrops automatically go to early adopters or users who are frequently active on the platform. Eligible members of the community receive these exclusive airdrops with no strings attached.

    Examples include a recent sudden airdrop hosted by MetaGods, which asks their community to simply drop their wallet address for an exclusive prize. The method was also utilized by AkiralGal, whose tweet asked their followers to screenshot their brand new AkiraGal wallpaper for more rewards.

    Exclusive Airdrop hosted by MetaGods
    Exclusive Airdrop hosted by AkiraGal

    Holder Airdrops

    These are airdrops for users who already hold specific cryptocurrencies or tokens. So, to be eligible for these holder airdrops, users need to be holding a specified type and/or amount of a particular token by a specified date.  For instance, a new Ethereum-based project may offer free tokens to the Ethereum blockchain community, or a new exchange may offer its tokens to holders who own the native cryptocurrency of a competing exchange. 

    Hard Fork Airdrops

    This type of airdrop occurs when a permanent blockchain split creates the need for a new token to go with the new chain. While the previous blockchain still exists along with old tokens, users may receive tokens from the new blockchain via an airdrop. However, this does not happen with every fork, only with hard forks. A hard fork occurs when the community cannot decide how to move forward, and a new chain must be created via a split.

    Growth and Popularity of Airdrops

    Since the inception of cryptocurrencies, people have used digital assets to move finance to decentralized platforms. Several decentralized cryptocurrency projects have also emerged to satisfy the global need for decentralized finance, with many of them using airdrops to attract users. These projects usually airdrop a percentage of their total token supply shortly before or after an official launch. A recent example is the Looks Rare airdrop, distributing 12% of the total $LOOKS token supply to anyone in the OpenSea community that spent more than 3 ETH on the NFT exchange. 

    Another example of the popularity of airdrops was the recent MetaWars Alliance Gleam Campaign which features an extensive collaboration between multiple projects. Running from April 17 to April 22, the campaign had a prize pool of more than $20,000 open to 100 winners. The MetaWars Alliance Campaign had 9 partners, including Souls of Meta, MetaLand, Battle Saga, The Three Kingdoms (TTK), Bit Hotel, Age of Tanks, Mouse Hunt, MechaChain, and FitEvo. The initiative was yet another prime example of how multiple projects can use airdrops for cross-promotion that can help all involved projects gain much-needed traction. MetaWars successfully achieved this aim as the campaign saw nearly 232,000 different entries.

    The Dark Side of Crypto Airdrops: Scams and Controversies

    The need for blockchain projects to launch airdrops spurred the creation of several platforms that aggregate airdrops from promising projects. These platforms made airdrops a lot more popular, increasing the number of people who consider the method a channel for passive income and an opportunity to earn new crypto assets.

    Beware of SCAMS!

    (Beware of scams! This recent ApeCoin attack stole $1 million through hacked verified accounts)

    Unfortunately, the airdrop method has suffered its fair share of scams and controversies. As with anything tagged “free,” illicit players exploit community members’ innocence and use deceptive means to obtain funds from unsuspecting people. In March, a Twitter phishing scam pretending to airdrop ApeCoin tokens successfully stole $1 million from unsuspecting users. The Ape Coin scam promised users a rare NFT airdrop which can only be received after paying an ETH gas fee. The scammers then not only made off with the ETH fee, but because users had to approve and sign the transaction with their cryptocurrency wallets, the scammers were able to take the rare and often valuable NFTs contained in those wallets. Some notable NFTs stolen in this scam included Jay Chou’s Phantabears, Bored Ape Yacht Club, Mutant Ape Yacht Club and Doodles. 

    There was also a fake Azuki NFT airdrop where self-proclaimed Azuki affiliates hijacked verified user handles, got users to connect their Ethereum wallets, and made away with their highly valuable NFTs.

    How to Protect Yourself Against Airdrop Scams

    In light of these scams, members of the crypto community should adhere to certain precautions when participating in airdrops. The most important is the DYOR (Do Your Own Research) rule, which requires people to do extensive research on projects advertising airdrops before buying in. 

    However, scammers are keeping ahead of the game. For example in the ApeCoin airdrop scam, the scammers hacked into and hijacked the Discord servers for Doodle and BAYC, posting the faked website on the server to make it look like a legitimate announcement. The scammers also used faked Twitter accounts (including some from verified Twitter handles) to spread the fake links. 

    The following are other steps that help avoid airdrop scams:

    • Never pay for airdrops;
    • Check multiple sources and social media accounts belonging to the project to see if the airdrop is legitimate. For example, if a projects’ Discord server is being compromised they may make an announcement on their official Twitter or Telegram;
    • Never participate in an airdrop that requires user private keys or mnemonic phrases;
    • Protect personal identity and data as much as possible;
    • Avoid KYC airdrops if possible (although not always the case); and
    • Most airdrops require an email address. Users should create a new ‘burner’ email address to use only for airdrops.

    It might be impossible to create an exhaustive list of steps required to avoid scams because fraudsters get more creative with their illicit activities, but participants should always be on the lookout for airdrops that do not tick security boxes or have little to no information obtainable from research.

    Airdrops have many benefits in the blockchain space, such as marketing, building communities, and providing additional value to loyal users of crypto assets. Authentic airdrops help people earn extra income and provide additional utility with little to no effort. However, airdrops may be harmful to people who do inadequate due diligence or personal research. If an airdrop seems too good to be true, there’s a good chance it is.

  • Colizeum ($ZEUM): Bridging the Earning Gap Between Blockchain and Traditional Gaming

    Colizeum ($ZEUM): Bridging the Earning Gap Between Blockchain and Traditional Gaming

    The gaming market has seen impressive growth over the last few years and is still set for more expansion. According to a 2021 report, the gaming market’s valuation for the year hit $198.4 billion. The same report states that the market will register a compound annual growth rate (CAGR) of 8.94% from 2022 to 2027. By 2027, the valuation could jump 71.3% to $339.95 billion.

    Several factors contribute to the gaming market’s popularity, attracting more people to the sector. Game developers are continually improving options and general gameplay, a factor that keeps existing gamers interested enough to stay. In addition to improved features, there is also increased advancement in technology.

    The introduction of blockchain technology to the gaming sector is easily the market’s most significant advancement. Apart from the immutability and security of the gaming infrastructure and assets stored, blockchain also provides players with an opportunity to earn while enjoying their gameplay. Platforms like Colizeum are taking this further by stretching blockchain gameplay features past earning rewards.

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    What is Colizeum?

    Colizeum is an ecosystem bridging the gap between the blockchain and traditional gaming worlds. It is a play-to-earn platform that connects several games and related applications from multiple developers, providing a shared marketplace for developers and gamers alike. 

    Colizeum continuously closes the traditional and blockchain gaming gap through its Colizeum Software Development Kit (SDK). Conventional game developers can use the Colizeum SDK to effortlessly build blockchain games without the expected technicalities from decentralized applications. The kit also provides a cost-effective way for creators to design and publish games since there is no need for blockchain developer teams.

    Why Colizeum?

    There are several features the Colizeum ecosystem offers the gaming public. In addition to the ease of creating exciting play-to-earn games, here are a few points to note:

    • Earnings for All: The Colizeum ecosystem maintains an equal focus on gamer and developer earnings. As players accumulate rewards by participating in their favorite play-to-earn games, developers also earn from gamers and the entire Colizeum community.
    • In-Game NFTs: Colizeum supports low-cost NFT minting while checking other related boxes, including demand programming and multilayering.
    • Tournaments-as-a-Service: The Colizeum SDK allows developers to create multiplayer games in different modes and designs. Depending on game specifics, players can enjoy tournaments and earn by winning or simply participating.

    Colizeum is a fully-decentralized, anonymous, on-chain, and community-focused ecosystem. The platform also features an Attention Marketplace – a tokenized product that allows the direct monetization of gamers’ attention. Instead of going through Ad Exchanges that charge excessive fees and still keep a large portion of generated revenues, the Attention Marketplace enables transparent user acquisition and monetization via $ZEUM staking. Colizeum already has an exciting list of partners, including the Israeli Blockchain Association, IHODL, and Cex.io.

    Benefits to Game Developers

    • The SDK provides quick and inexpensive game development that can shorten developer timelines by up to 1 year
    • Creators can introduce a play-to-earn feature to any mobile game, attracting more players and allowing gamers to earn during gameplay
    • Colizeum is a cross-chain and cross-platform ecosystem that enables gamers and developers to enjoy the best of multiple games regardless of their host platform
    • In-game assets can be easily converted to NFTs
    • Since there are no middlemen on the platform, all processes are cheaper and faster

    Benefits to Gamers

    • Colizeum allows players to use one token across all games hosted in the ecosystem
    • In-game assets are tradeable as NFTs. This will enable players to earn more in addition to direct gameplay. Trading NFTs also serves as passive income for gamers
    • Enjoy earnings from any of the games hosted by Colizeum

    Tokenomics

    The Colizeum ecosystem has a total supply of 1 billion $ZEUM tokens available for different purposes. The seed round featured 6% or 60 million tokens, while 13% or 130 million tokens were available at the private round – both with 18-month vesting periods. There also is another 19% allocated to the Colizeum team, 5% to the DAO fund, 15% for strategic partnerships, and 8.650% for its in-game reward program. As a community-focused platform, Colizeum also allotted 10% (100 million tokens) to community incentives.

    Colizeum is set to be one of the largest play-to-earn platforms in the blockchain sector as it leverages flexibility and interoperability. Creators will be able to develop games that easily interact with each other, thereby adding to Colizeum’s credibility as the go-to play-to-earn host platform. Furthermore, the earning opportunities available to players across all games will attract more users and also appeal to game developers.

  • The 2.0 of Step.App – FitEvo: Advancing from Play-to-Earn to Move-to-Earn

    The 2.0 of Step.App – FitEvo: Advancing from Play-to-Earn to Move-to-Earn

    Play-to-Earn experienced a massive wave of adoption during 2021, as crypto-friendly gamers jumped on the opportunity to earn money while playing games. P2E games such as Axie Infinity, Star Atlas, and others saw a dramatic increase in user and revenue growth. However, after the initial hype wave over P2E games settled, what was left was a realization that many of these games lacked truly engaging gameplay, social features, and sustainable tokenomics.

    Fast forward to late 2021/early 2022, we witnessed a significant pivot in the blockchain gaming space: Move-to-Earn. M2E has taken the world by storm, with numerous projects popping up and their valuations skyrocketing. Among the younger generations, there is a trend towards self-care and maintaining a more healthy lifestyle as we continuously get reminded of just how much time we end up spending indoors. Covid lockdowns took this lifestyle to the extreme and forced everyone to spend time at home longer than many felt comfortable. Now there is a thirst for a more active, healthier life.

    P2E games have had (and continue to have) a good run, but M2E has managed to capture the interest of not only gamers, but also those blockchain enthusiasts who might not be fully on board with just spending time tapping away at their phone screen to earn their P2E tokens. However, every project comes with its own shortcomings. Let’s take a look at these shortcomings and how an emerging project – FitEvo has transformed its platform amidst this trend with a new edge.

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    Finding An Edge in the M2E World

    With popular M2E games such as STEPN, Genopets, and STEP, you’ll find that they share a common gameplay model in which the user acquires an in-game asset, be it a sneaker or a pet animal, and upgrades it further as they keep on exercising.

    But these features on their own are not enough to make an M2E game successful. The focus should be just as much on the social aspects and community engagement opportunities around a user’s physical activities, as it is on the earning and NFT upgrading experiences. And many of the games in this space seem to have forgotten what the most popular traditional social fitness apps such as Strava, FitBit, and MyFitnessPal have already done in order to expand their user base, and keep it engaged. 

    Strava, one of the pioneers in the social fitness app space, has achieved an enormous global user adoption, boasting nearly 100 million users. Much of this growth can be attributed to the app offering not only a feed of activities of their friends, but also other social features that are geography-centric and community engagement focused.

    This precedent for a successful M2E game is exactly the reason why FitEvo is so appealing in terms of fundamentals. FitEvo, an M2E dragon breeding NFT game, has the makings of an incredibly successful blockchain-based game, as they have incorporated many of the social features that people know and love.

    FitEvo: Focusing on the Interaction Between Individuals

    FitEvo aims to engage the masses through a powerful combination of NFT dragon breeding (evolving together with a dragon companion), and social features that gamify physical activity and human competitiveness, and bring friends and communities closer together.

    An engaging and fun dragon breeding game, FitEvo has been inspired by the greats, like Tamagotchi and Pokemon, taking it to the next level by syncing the user’s movements with the development of their very own dragon. In FitEvo, the dragon co-evolves with the user, creating a bond between the two. The hatching of eggs, breeding and evolving of dragons, will be intimately linked to the physical movements of their masters.

    And here is where FitEvo will really shine – the social and gamification features. For those familiar with the M2E STEP game, FitEvo will be like a new and improved Step 2.0, incorporating all the crucial engagement mechanisms that have made traditional social fitness apps so popular. If you’re one of those who didn’t manage to get in on STEP early on, it might be worth your while to pay close attention to FitEvo.

    The multiplayer feature alone will offer an enormous amount of value to the users, FitEvo allows FITamins(as the FitEvo community calls itself) to meet other like-minded and even geographically adjacent individuals by organizing group runs or other group exercises. Anyone who has ever tried getting back in shape with their friends cheering them up or even being right next to them, sweating off their own dietary sins, knows how much it helps to have someone give you motivation and some peer pressure at your lowest moments. This type of community support will be possible, with FITamins helping each other become their better selves.

    Of course, what would a fitness app be without some healthy competition? FitEvo will offer many opportunities to challenge others and stimulate their competitive neurons through classical challenges, as well as user-created routes with leaderboards.

    In addition to earning $FIVO tokens through movement, FitEvo has made sure that attention is paid to incentivizing more extensive user engagement beyond exercising and dragon breeding. Users will be able to collect Active Points through interactions, referral count, daily sign-ins, missions completed, community contributions, and more. The Points will significantly influence users’ earnings to the upside, so it will be in everyone’s best interest if they try to make the best of their experiences on the FitEvo app – and why shouldn’t they?

    Another interesting feature that we are yet to hear more about is the training programme, which will offer inexperienced users the opportunity to learn from the community and follow pre-planned exercise curricula without having to design them themselves.

    Incorporating all of these features will be no small feat for FitEvo, and it will be interesting to see how the project progresses forward. With such a clear edge over their competitors defined, it’s now up to the FitEvo team to deliver on these ambitions and rise through the ranks of the M2E space.

    To learn more about FitEvo, see: https://linktr.ee/FitEvoNFT

  • 5 Reasons Why Move-to-Earn NFT Games will be the Hottest Trend of 2022

    5 Reasons Why Move-to-Earn NFT Games will be the Hottest Trend of 2022

    A recent uptick in projects combining the concepts of move-to-play and play-to-earn into what is known as move-to-earn have started gaining traction, with more and more people trying out this new play-to-earn paradigm. Players are rewarded proportional to their physical activity, incentivizing an active lifestyle all the while generating a passive income. This article looks at 5 reasons why move-to-earn might become the hottest crypto trend of 2022.

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    And check out our predictions and analysis on whether move to earn has potential to become a BILLION dollar industry:

    Move to Earn: BILLION dollar potential in 2022? Predictions and Analysis (StepN $GMT)

    What Is Move-To-Earn?

    Move-to-earn is a fast developing component of Web3, enabling individuals to own and monetize their personal data. M2E’s mission is to scale the blockchain-based incentives system for healthy lifestyle promotion. The increased use of fitness trackers and employer-sponsored wellness programs that reward employees for boosting their physical activity might result in the global fitness tracker market growing from $36.34 billion in 2020 to $114.36 billion in 2028. Employee absenteeism due to illness can be reduced with fitness-based M2E. In this aspect, M2E applications have a far wider audience reach than P2E applications.

    5 Reasons Move-To-Earn NFT Games Will Be the Hottest Trend of 2022

    1. Investors are Flocking towards Move to Earn Projects

    Investors make it their job to identify trends, and seeing the amount of investments in play-to-earn gaming projects, it’s easy to see how the recent influx of cash into projects (such as STEPN and Genopets) in the past months foreshadow the upcoming success of move-to-earn. In their January seed round, STEPN raised $5 million, and, back in October 2021, Genopets raised a whopping $8.3 million in their seed round.

    We’re likely to see more projects and investments by way of SAFTs, and retail-focused IGOs (Initial Game Offerings) to pop up this year, each attempting their own take on monetizing the intersection of blockchain and physical activity.

    2. People want to be Active Post-lockdown (Whilst Earning Passive Income)!

    With Covid lockdowns mostly fading away and warm weather (in the Northern hemisphere) knocking on the door, life will return from the drab cold days of the winter, forcing everyone outdoors. The pandemic showed us that better physical health can keep us from experiencing severe effects of disease, as is the case with Covid-19, and many will try to improve their health as a result. 

    Combined with a desire to socialize and finding the next thing to get addicted to (aside from social media and binging Netflix), an app that aligns an active lifestyle, passive income, collectibles, and mobile video games in a fun and engaging way can be a very powerful combo that launches some move-to-earn projects into our daily lives this year.

    Looks like move-to-earn gaming will contribute to a planet-wide increase in human health by combining the two things people love to do, whether they admit it or not, making money and playing games!

    3. Move-to-Earn Gets People Earning Faster and Easier than Play-to-Earn Games

    With play-to-earn games having laid the practical and conceptual foundations of NFT-based gaming, move-to-earn NFT games are set to see a rapid rise in popularity this year. Games like Axie Infinity, The Sandbox, and many more, have exploded in the past years, amassing a large user base and catalyzing the creation of gaming guilds that bring like-minded gamers together. Now, the crypto community is ready for a new evolution of Play-to-Earn.

    The biggest advantage of move-to-earn games is the low barrier of entry. Contrary to traditional character-based games with narratives and gameplay that require time, dedication and effort to understand, move-to-earn games leverage actions that every human is very familiar with – movement! This means that a player has practically no learning curve before they can start playing and earning, completely eliminating barriers to entry for anyone. Simply open the app and start earning!

    4. Move-to-Earn Builds on the Proven success of Social Fitness Apps 

    Anyone who’s actively used fitness apps like Strava, Fitbit, or PlayFitt will know how addictive their gamification aspects can be, be it trying to set a route record, trying to keep up with the physical activity of your friends (and get more likes), or even competing against yourself as you see your progress in the app.

    These social fitness apps do something magical – they bring out our competitive side, forcing us to push further than we’ve ever pushed, either against ourselves or others. And the amazing thing is that, aside from improved physical health, there is no additional reward that would merit such dedication. If peer pressure and social clout is enough to cause us to do things we normally wouldn’t happily do – exercise – what will the promise of earning a buck or two as you exercise do to us?

    Move-to-earn games seek to answer the question: “What if you added a financial layer and further gamification to a social fitness app, and built it on robust decentralized technologies to ensure fairness and true ownership?”

    5. Move-to-earn Might be the NFT Play Many Retail Investors are Waiting for

    Though some metaverse coins like Axie Infinity’s $AXS have gone parabolic since last year, the bigger Metaverse & GameFi narrative plays are yet to fully take off. This leaves plenty of options to choose from from an investment/bag holding perspective, with many potential “up-only” plays looming around the corner.

    In addition, many retail investors missed the insane gains of last summer’s NFT craze, either due to not fully understanding how to take advantage of the NFT hype train, or simply not wanting to be bothered with having to immerse themselves into the culture of the NFTs to anticipate the highest ROI plays. Flipping NFTs is more difficult than simply buying a coin that goes up.

    Luckily for these people, move-to-earn projects might offer just the solution. In addition to having NFTs, which can be traded as normal, these games also incorporate in-game utility and governance tokens, which can be easily purchased on exchanges, and grow as the value and popularity of the game grows.

    STEPN and Dotmoovs have both made a very smart decision by integrating an NFT marketplace with its own Rental System, allowing players to borrow sneakers/ footballs and start earning quickly and seamlessly, without having to join a gaming guild and apply for a scholarship. Click here to learn more about the controversial practice of NFT Scholarships.

    Not only is this more beneficial for players, but also for NFT owners who don’t want to earn by moving, but through lending them to someone else and collecting a percentage of the fruits of their labor. 

    By reducing the friction of lending their sneaker NFTs to scholars, all owners need to do is to simply place their NFTs on the in-game marketplace, and reap the rewards. This approach to NFT staking will likely gain popularity due to the ease of use and low barriers of entry for hobbyist NFT owners.

    Conclusion

    2022 is looking ripe for move-to-earn games, as GameFi, active lifestyle, and SocialFi narratives take root, eventually culminating in a hype train that might even overshadow previous parabolic narrative-driven runs!

  • ArcadeLand – The Ultimate Gaming Metaverse

    ArcadeLand – The Ultimate Gaming Metaverse

    ArcadeLand is placing back control in the users’ hands – the gamers, the builders, the visionaries – with the Ultimate Gaming Metaverse. Hundreds of top-quality games, advanced cross-platform avatars with NFT wearables, and a blockchain-optional UI to make ArcadeLand’s platform easy to use. Welcome to the Ultimate Gaming Metaverse!

    ArcadeLand is Coming, Why Do You Need It?

    ArcadeLand sees the Metaverse as the natural evolution of the web experience in terms of socializing, gaming, exploring, and learning. While it took nearly a decade to catch on, the world-wide-web quickly gained significant market share while antiquated competitors in the areas of postal, television, newspapers, education, entertainment, and gaming either adapted or were left behind by the new companies that embraced this technology. 

    For example, what happened to Blockbuster when Netflix came along, and this trend is expected to repeat as the newest generation of Web 3.0 technologies emerge. While P2E games and Metaverse platforms are relatively new to the market, there are still significant barriers to overcome before mainstream audiences can fully embrace them. 

    Blockchain remains a double-edged sword, in the sense that, although it grants the benefits of ownership, security, and the ability to earn great rewards from playing games; it also represents a significant learning curve. This comes with a number of dangers for new users, and it’s largely seen in a detrimental way due to the many negative media headlines of bad actors within the industry. 

    Many P2E games in development, and currently on the market, require players to be knowledgeable about blockchain technology. This limits their total addressable from the billions worldwide, down to around roughly 400,000 to 500,000 players, the “niche within a niche” of savvy crypto users who still find time to play such games. User acquisition becomes a battle for these games, as they struggle to compete for adequate DAU numbers within a narrow audience.

    While the definition of the Metaverse, according to Wikipedia, is: “a network of 3D virtual worlds focused on social connection” the current offerings fall short of this important network aspect. Leading Metaverse platforms suffer from a lack of compatibility and interconnectivity, which are hallmarks of a “true Metaverse”. They create a restrictive environment where games of high quality cannot exist, as developers are forced to build within them using only the tools provided by the platform. Avatars and their accessories are only compatible with their own platform, and users cannot show off their costumes or treasured digital wearables elsewhere. By all measures of what a fun, interconnected Metaverse should be, they simply come up short.

    ArcadeLand is creating a platform that will serve game developers, gamers, and the entire community that supports the future of P2E gaming. Arcadeland is connecting games, guilds, studios, and publishers with players from within and beyond the crypto community accelerating this future and removing the obstacles to mass adoption. Increasing the reach of this rapidly growing industry.

    ArcadeLand Will Push the Boundaries of Gaming

    A Metaverse must be complete in its offering and for its intended purpose, as it is by nature a platform to host many applications. A true Metaverse is an environment for exploration, socialization, and play. Compatibility and interoperability with a total array of ecosystem products and services are paramount, as the sandbox-style of exclusivity limits the variety, replayability, and quality of the games within. ArcadeLand understands this and has shaped the platform accordingly.

    ArcadeLand will:

    • Feature hundreds of top-quality games
    • Integrate both mainstream and crypto games via SDK
    • Provide virtual land and a No-Code Builder with UNLIMITED potential
    • Offer avatars with NFT accessories compatible with thousands of other games
    • Deliver a holistic and complete gaming ecosystem for users of all types


    To address the issue of game quality, ArcadeLand is onboarding top-quality game partners with successful titles from both the mainstream space as well as crypto. The objective is to make the developer’s jobs as easy as possible by providing a comprehensive suite of tools to allow for rapid integration with little labor required. 

    ArcadeLand can apply its dual-tokenomics model to mainstream games with dynamic rewards and tournament payouts. This allows game owners and users to benefit from an easy to deploy and use P2E model that can be adopted by any type of game.

    On the crypto gaming side, ArcadeLand can support the seamless integration of games along with the important token features to allow players to take full advantage of the games and their earning potential. 

    ArcadeLand provides a safe environment and tools for newcomers with no crypto knowledge to acquire, manage, and sell their NFTs with their built-in wallet and native marketplace. ArcadeLand provides native and easy-to-use interfaces to share updates on social media channels.

    Land within ArcadeLand can be developed in over a dozen ways. Builders can create their own shops, entertainment venues, or virtual headquarters for almost any type of business or service. Assets generated via ArcadeLand’s No-Code Builder tools can even be listed and sold on the platform’s marketplace to allow players to monetize their designs and speed up the building process. Games can import all popular file formats of their 3D objects without the need to recreate their designs to use them in their virtual spaces. This expands compatibility and creativity in those who wish to thrive with their plots in the Metaverse.

    People love to display their achievements, express their individuality and creative style in real life and virtually. So, what good is clothing you can only wear to one place? ArcadeLand has taken a unique approach by comparison to other existing Metaverses and chose to incorporate one of the most advanced avatar systems on the market. 

    The tokenized avatar accessories issued are already compatible with 1,750+ other games and that number is increasing weekly. Any costume or wearable created, earned, or purchased in ArcadeLand’s Metaverse will be the players’ to show off in hundreds or thousands of other games on all platforms including AR/VR. 

    ArcadeLand is taking an inclusive and cooperative approach to bringing in all the best games, partners, and ecosystem-related services needed to create the Ultimate Gaming Metaverse. Whether you’re a gamer, creator, developer, business owner, social butterfly, eSport champion, or some combination of these, you’ll find everything you’re looking for in ArcadeLand.

    Start Getting Pump!

    To sum up, ArcadeLand is addressing three of the most critical issues halting the widespread adoption of play-to-earn gaming:

    1. High-Quality Games – They have nearly 200 games available and are actively onboarding more weekly
    2. Ease of Use – Their platform is designed for gamers of all walks of life, not just the crypto-savvy.
    3. Broad Compatibility – Arcadeland prioritizes compatibility, from their avatar system to their various ecosystem partners.

    Join ArcadeLand’s social media channels below to stay abreast of developments. There’s much more to reveal about how it all works.

    About ArcadeLand

    ArcadeLand is building the ultimate gaming Metaverse. Its mission is to deliver the most rewarding experiences with the best selection of high-quality games and an ecosystem designed to serve gamers, developers, and the community, to propel the future of gaming.

    Website | Twitter | Discord | Telegram | Reddit

  • Saito ($SAITO): Providing Scalability and Decentralization Towards Web3 Development

    Saito ($SAITO): Providing Scalability and Decentralization Towards Web3 Development

    Blockchain technology is often considered the best solution to problems caused by centralization. Through blockchain, people get to exercise authority over their personal affairs and enjoy more security and sovereignty, especially with financial transactions. Yet despite all the advantages of blockchain adoption, the technology also has a few current drawbacks.

    Many people complain about unstable and sometimes relatively high transaction fees. For some people, the main problem with blockchain is a lack of interoperability between several different systems while others worry about response time or latency. However, a bigger issue lurks around the corner – scalability.

    Compared to traditional systems, blockchain technology might be a long way from tackling the scalability problem. Saito Network helps to solve these issues by providing unique solutions for the general growth of the sector.

    What is Saito ($SAITO)?

    Saito ($SAITO) is a layer-1 blockchain that provides a permissionless and scalable network for decentralized applications. The open network also supports in-browser crypto applications without private APIs or plugins. 

    Saito aims to tackle problems caused by centralization, as well as scalability issues that are commonplace with both Proof-of-Work (PoW) and Proof-of-Stake (PoW) blockchains. Instead of paying stakers and miners for block production, the network directly pays internet service providers, allowing easy use of regular browsers for decentralized projects. This method helps new and existing Web3 projects run cost-effective operations instead of paying node operators like Infura.

    Learn more about Proof of Stake (PoS) vs Proof of Work (PoW) with our article: Proof of Stake Explained

    Saito’s open infrastructure provides better security for projects looking to host on a blockchain without intermediaries. A problem with employing the services of a middleman is the apparent centralization of a supposedly decentralized product. Another issue is that projects connected to the blockchain through node operators are open to several risks if the operator becomes compromised or otherwise unavailable. For example, in 2020, Infura suffered an outage that caused Binance and other exchanges to disable ERC-20 transactions. By connecting projects directly to the blockchain through the browser, Saito Network allows decentralized apps or other infrastructure to host their own nodes without an intermediary.

    Features of Saito

    Saito’s decentralized framework is essential to the ongoing shift to Web3. Since a major tenet of Web3 is decentralization, the platform’s basic structure is the critical tool developers and various projects need to compete in the new iteration of the internet. The following Saito features place the network at the forefront of Web3 development:

    • Truly Peer-To-Peer: Saito ensures that projects and all their transactions are truly peer-to-peer. No go-between is required.
    • Scalable Onchain Data: Saito solves scalability problems by providing easy dApp support through browsers instead of relying on a node operator.
    • Browser Applications: All projects will quickly onboard and operate decentralized applications directly through a browser, without the need for a plugin like MetaMask.

    What makes Saito special?

    In addition to the advantages Web3 projects enjoy through Saito, the platform also offers the following:

    • Dynamic App Support: Saito’s network provides a valuable framework for several applications regardless of data or bandwidth requirements. Developers can build anything from games to social media apps and communication tools.
    • Open Infrastructure: Other networks can take advantage of Saito’s infrastructure to tackle interoperability problems. 
    • Web3 Blockchains: All applications built on Saito support Polkadot and many other major Web3 blockchains, with many more coming down the line.
    • Enterprise PKI Support: Saito’s scalable PKI network layer tackles network security head-on. The layer’s basic design satisfies enterprise-level and encryption requirements.
    • App Deployment: Developers can easily create and publish apps on Saito’s platform. App creators can do everything from start to finish without any third-party infrastructure.
    • Vibrant Community: Joining the Saito community exposes projects and developers to an active and growing community of like-minded people excited about Web3 development.

    Saito has already processed more than 10 million transactions and averages over 30,000 transactions per day. With more than 30 popular applications and modules already in the works, Saito has positioned itself as the best chance for the ongoing evolution of Web3.

    SAITO Token: What is it?

    SAITO token is the network’s native asset, a utility token that powers activities on the platform. The platform offers two types of SAITO on different networks, an ERC-20 variation and the Layer One SAITO. The ERC-20 tokens are wrapped tokens in ERC-20 form and are available to public sale participants over vesting periods. Wrapped SAITO asupports purchases and permissionless integration in off-chain applications. Users who hold ERC-20 SAITO also enjoy token withdrawals to any public Saito fork.

    Layer-One SAITO tokens have on-chain utility and represent 75% of all tokens minted. As the network expands, on-chain SAITO holders will enjoy increased liquidity and convertibility. However, holders cannot directly convert Layer-One SAITO to ERC-20 SAITO. Of the allocated 75%, the Saito Foundation retains 20%, while strategic partners share a 10% pool. Rewards, contributors/developers, and the Saito core team all receive 15% each of the SAITO token supply.

    Visit Saito’s latest developments here:

    Website | Twitter | Telegram | Discord

  • Livestream 17th August 2020: DeFi, Yield Farming, Bitcoin and Cryptocurrency Update

    Livestream 17th August 2020: DeFi, Yield Farming, Bitcoin and Cryptocurrency Update

    Join us for our bi-weekly decentralised finance (DeFi), cryptocurrency and bitcoin updates!

    On the channel we focus on DeFi and Yield Farming, the HOTTEST trends right now. We also look at the latest cryptocurrency and blockchain news as well as market trends.

    Our aim is to have rational discussions and try to see through any speculation and sensation. All the while sharing our personal experiences in our live chat and keeping our community’s spirits up during these times.

    Event Time: 17th August 2020, 03:00 UTC

    Livestream link: https://www.youtube.com/watch?v=wytuYqi_Mk8

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

  • What is Compound Finance ($COMP)? A guide to hacks and tips on the latest DeFi platform

    What is Compound Finance ($COMP)? A guide to hacks and tips on the latest DeFi platform

    Compound Finance is a leading decentralised finance (DeFi) protocol which allows users to deposit and borrow cryptocurrencies, and earn interest whilst doing so. How Compound does this is by creating liquid money markets for cryptocurrencies by setting interest rates with the use of algorithms. They are popular mainly because they are cryptocurrency exchange Coinbase‘s first ever investment into a crypto project and prices for their $COMP token had more than doubled in the past week. In this Compound guide we cover topics such as what is Compound, how to use the platform profitably and how to earn more of their $COMP token.

    For an overview, check out our explainer video on DeFi and Compound:

    What is Decentralised Finance (DeFi)?

    Decentralised Finance (DeFi) was designed to “cut out the middle man” i.e. banks and reduce the cost of traditional financial operations such as taking out a loan or buying property. The aim of DeFi is so that people, particularly the unbanked can have open access to every financial service on the internet with their smartphones, without needing the banking system. Smart contract platforms such as Ethereum opened the door to DeFi, whereby programs running on the blockchain can self-execute when certain conditions are met. Developers can make use of these smart contract platforms to build decentralised apps (Dapps) with various functions. Developers brought the concepts of Dapps and DeFi together by bringing functions traditionally served by banks onto smart contract platforms. Compound is an example of a DiFi app, it is a blockchain-based Dapp which allows deposits and taking out loans of cryptocurrencies on its platform.

    How does Compound work?

    Compound operates similar to a bank. You can deposit various cryptocurrencies and earn an annual interest on your deposits, similar to depositing your money into the bank. However, Compound’s main difference is that it does not have custody of your cryptocurrency deposits. Instead, you are actually sending your crypto to and interact with a smart contract, rather than another company or user. This feature is important because it means that no person or authority can control or take your funds.

    What makes all of this so interesting is that since Compound is a DeFi platform, it does not have to follow the Federal Funds Rate. It can do something completely different and cannot be shut down since there is no central authority.

    How to supply (deposit) cryptocurrencies onto Compound and earn interest

    On Compound’s website you can earn interest when you deposit (Compound refers to this as “supply”) cryptocurrencies onto their platform. To do this, first load an Ethereum account with any of the cryptocurrencies supported by Compound. Then on the Dashboard, choose which cryptocurrency you wish to supply to the platform by clicking on it.

    Supply cryptocurrencies
    Choose which cryptocurrency you wish to supply to the platform

    In the below image you can see that we will be depositing USD Coin (USDC) which generates an Annual Percentage Yield (APY) of 0.12%. So you can earn 0.12% per year if you supply USDC to the platform. Input the amount you wish to supply and confirm by clicking “SUPPLY”. A metamask window will pop up where you will interact with the smart contract and confirm the transaction. You will be charged gas fees for interacting with the smart contract. In our case we were charged USD$1.

    Supply cryptocurrencies
    Supplying cryptocurrencies to the platform generates interest

    Once you have supplied cryptocurrencies onto the platform, you would be able to use Compound’s other features such as using these supplied cryptocurrencies as collateral to take out loans.

    An important point to note is that Compound has floating interest rates which are subject to change. How Compound determines the interest rate is similar to the Federal Reserve, Compound would analyse the supply and demand for a particular cryptocurrency and then set a floating interest rate that will adjust based on market conditions. Compound also takes a 10% cut off your earned interest. Users can take back their cryptocurrencies at any time with a 15 second lag between executing the instruction and receiving their crypto.

    How do I take out loans/ borrow cryptocurrencies on Compound?

    You can use your deposited cryptocurrencies as collateral to borrow other cryptocurrencies. Compound requires users to put up 100% of the value of your intended loan. There are risks of doing this though which will be explained below where we look at Compound’s liquidation clause.

    Borrowing cryptocurrencies does also require you to pay fees. For example in the below image you can see that taking out a loan of BAT will cost you a whopping 29.4% per year.

    Borrowing cryptocurrencies
    Borrowing cryptocurrencies requires you to put up collateral and pay fees

    You can also see from the above image how Compound makes money, since there is a spread between the amount of interest generated from depositing, say BAT and the amount of fees you need to pay for borrowing the same.

    What is $COMP token? How can I earn $COMP?

    Since May 2020, Compound has transitioned to community governance. This means holders of Compound’s token, $COMP can make proposals and vote on decisions relating to how Compound is to be developed or run, e.g. what kind of collateral should Compound support, or what the interest rates should be.

    There is a total supply of 10 million $COMP, of which 42.3% is reserved for distribution to users to earn when they use Compound e.g. by supplying or borrowing cryptocurrencies. For every Ethereum block, 0.5 $COMP is distributed across Compound’s 9 markets in proportion to the interest accrued in the market. And within each of these markets, the amount of distributed $COMP is divided 50:50 between suppliers and borrowers of that particular cryptocurrency. Hence the cryptocurrency which is earning the most COMP per day is always changing. Users should check Compound’s User Distribution page, where they can see the amount of interest paid per day as well as the amount of $COMP distributed to suppliers and borrowers.

    You can also earn $COMP by voting on various governance proposals concerning how Compound should be run.

    Governance proposals
    Users can vote on governance proposals and earn more $COMP

    $COMP can be traded on various exchanges, such as Coinbase or FTX Exchange. And there was certainly a lot of attention focused on $COMP since prices for the token recently shot up from USD$60 to over USD$300 in a matter of days.

    $COMP prices
    $COMP prices

    How are people using the Compound platform to earn 100%+ APR?

    Users earn COMP when they supply or borrow cryptocurrencies on the platform. So in the below image we deposited 500 USDC and borrowed 300 USDT to get a net effective interest of -12.27% which on the face of it does not look profitable.

    Net interest
    In our case, depositing USDC and borrowing USDT generated a net interest of -12.27%

    BUT at the same time we are also earning $COMP. This calculator shows you how much $COMP would be distributed depending on the type and amount of tokens supplied or borrowed. So as seen in the below image, whilst the net interest was -12.27% per annum, we EARNED 13.94% APY of $COMP. Basically, you are being PAID to take out a loan.

    $COMP mining: Another way to potentially earn more $COMP

    $COMP mining goes beyond simply supplying cryptocurrencies and profiting off the interest rates on Compound. Rather it is about getting as much $COMP rewards as possible in the shortest amount of time. Some methods even allow you to multiply your earnings by folding your position 4x.

    In a nutshell, people have have been finding ways to do this by first depositing USDC, borrowing USDT and then converting the USDT to USDC. Then depositing the USDC onto the platform, leveraging it, withdrawing USDT and depositing it onto the Compound platform several times over.

    What cryptocurrencies does Compound support?

    Compound currently supports 9 cryptocurrencies, namely: Ether (ETH), USD Coin (USDC), Basic Attention Token (BAT), Tether (USDT), 0x (ZRX), Wrapped BTC (WBTC), Dai (DAI), Augur (Rep) and Sai (Legacy DAI) (SAI).

    Available markets on Compound
    Available markets on Compound

    What are the risks of DeFi platforms?

    DeFi, and any such platforms such as Compound has the main feature of being decentralised. Yet, it is decentralisation that brings associated risks. This is because instead of trusting a central authority to supervise the transactions, we are trusting the code which the smart platform was built upon. If there is a mistake in the smart contract e.g. the conditions for release of funds are set incorrectly, there is no overriding body which can correct this mistake or any customer service representative that can help. And the biggest risk of all is if the developer did not code the contract correctly making it vulnerable to hackers. An example of this was the dForce hack where hackers exploited a well-known exploit of an Ethereum token, resulting in losses of USD $25 million worth of customers’ cryptocurrencies.

    Risks of using Compound: Compound’s liquidation clause

    For Compound, there are risks associated with trying to earn $COMP through borrowing on the platform. Compound has a liquidation clause that kicks in when borrowing on the platform. For instance if the cryptocurrency you are borrowing increases in value and exceeds the value of your collateral, your borrowing account will become insolvent. In such case, other users can step in and repay a portion of your outstanding loan in exchange for a portion of your collateral at a liquidation incentive. This liquidation incentive is the discount at which other users can receive your collateral. So if the liquidation incentive at the time is 8% (subject to change through voting on Compound’s governance system), then other users can receive your collateral at 8% off the market price when they help repay your loan. Hence there are serious incentives for users on Compound to liquidate others and this will result in the person being liquidated to potentially suffer huge losses.

    What is Compound’s aim for the future?

    Currently, Compound only deals in cryptocurrencies on the Ethereum blockchain. However the Company eventually wants to expand and move into carrying tokenised versions of real-world assets, for example the US Dollar, Japanese Yen or stocks in companies such as Google.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    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.

  • Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Decentralized Finance (DeFi) has been the breakout trend of 2020. With prices of standout DeFi tokens surging and terms like “Yield Farming” getting mainstream attention, the DEFi field has taken off. This next step in the evolution of finance uses public blockchain technology and has a wide range of sub- divisions that make up the growing field. The most notable and popular of these DeFi services are decentralized exchanges, decentralized stablecoins, decentralized money markets, decentralized synthetics and decentralized insurance. To understand this emerging field, first a definition on what decentralized means must be had. 

    Learn more about DeFi, and liquidity pools such as Balancer, Uniswap and Curve with our video:

    What is decentralized and what does it mean?

    Decentralized is a term you will have definitely heard thrown around even if you are relatively new to the cryptocurrency scene. Be it on Twitter, with the various profiles espousing the benefits of decentralization and calling out centralized cryptocurrency projects, or in articles online. To give a little context, the decentralized v centralized argument is akin to economic arguments on political systems between capitalists and communists. 

    Part of the reasoning for many supporters of decentralization is that blockchain technology at its core was made to be decentralized. Blockchain is reliant on open source networks and has no central entity controlling it. Rather, the computer power and the overall network is split up, which is why it is decentralized. The benefits of this system are that it doesn’t have a single point of failure, making cyber attacks and poor leadership somewhat irrelevant. 

    As such blockchain has been earmarked as the breakout technology of the 21st century. Companies, governments and financial institutions are all clambering to bring developers on board as blockchain continues to be viewed in an increasingly glowing light. Yet, how does blockchain’s decentralized foundation play into the emerging DeFi field?

    DeFi Explained

    For many, blockchain is the embodiment of the DeFi field and is the promised land of finance that Satoshi Nakamoto first imagined when he created Bitcoin. The term DeFi has turned into an all encompassing term for a range of projects, but the core values of each are pretty clear. These are open access to anyone, resistance to censorship, privacy and an open democracy of finance away from singular control. The majority of DeFi sites are run through decentralized apps or Dapps, which allow for financial services to be created and be used easily by anyone. 

    The DeFi Market

    The DeFi market is a field that has grown massively in recent months as billions of dollars are handled every hour in the sub industry. Part of DeFi’s popularity is down to its transformative effect on almost all aspects of finance. From loans to remittance markets and even insurance, the DeFi field could give financial access to people around the world as all they need is an internet connection. The technology could have an impact on the third world, where many of the population is unbanked or even in more developed financial societies as governments and financial institutions continue to lose credibility as they go from recession to recession. Sold on DeFi now? Well if so, read on for a closer look at the different blockchain applications in the field and the top companies within each subcategory. 

    What is a Decentralized Exchange?

    Exchanges are the heartbeat of the cryptocurrency traders. Most of you will have an idea of the more famous centralized exchanges like Binance and Coinbase, but decentralized exchanges (DEX’s) may be less so. The main difference between the two is that there is no central authority over decentralized exchanges, rather governance is determined in various ways, like through earning native tokens. 

    Focusing on namely cryptocurrencies, the decentralized exchanges offer a range of benefits. The first is security as you are not trusting a centralized exchange which could be susceptible to hacks with your funds. Instead trades are done through a peer to peer (P2P) trading network and a range of methods are used to facilitate this. Some DEX’s use proxy tokens, others multi-signature escrow systems and some use shares. Popular DEX’s are dYdX, Uniswap and Kyber network.

    Decentralized Stablecoins

    Much like DeFi applications, stablecoins have also seen a rise in popularity and usage in recent times. Put simply, stablecoins are less volatile tokens that are usually backed by a currency, commodity or a collection of both that enables them to keep a steady price, unlike the often wild swings of other cryptocurrencies. Some stablecoins are centralized but there is a growing amount of stablecoins that have become decentralized. These include industry favourites like DAI, USDC and Tether (USDT). To be classed as a DeFi stablecoin, there needs to be no central figure ruling the tokens or single point of failure as well as a resilient network.

    What is a Decentralized Money Market?

    Money markets are markets for borrowing and lending assets. The decentralized element means that users can borrow and lend cryptocurrencies without the control of a central figure. The lack of central authority is fixed using smart contracts and algorithms to determine the markets function. Decentralized money markets put interest earning potential in the hands of anyone with an internet connection in the world. Popular examples of decentralized money markets include Aave, Compound, MakerDao and Balancer. This area of DeFi has gained the most traction in recent times, especially with the bearish crypto market. This is because there are lots of profits to be made, with “Yield Farmers” churning in large sums from interest earned.

    Decentralized Synthetics

    Decentralized synthetics is another growing sector of the DeFi field. Synthetics or derivatives as it is also known refers to the tracking of a value for an asset. This means traders can get an insight into an asset without physically investing themselves. This representation of the asset allows traders to make educated investment decisions. There are a number of decentralized synthetic companies, the most popular ones being UMA and Synthetik. Expect more companies to pop up in the future too.

    Decentralized Insurance

    As blockchain gains exposure, more and more use cases appear, from accounting to product tracking. One industry that has taken to the technology is insurance. The bureaucratic side of the industry is perfect for blockchain technology and smart contracts, with a wide variety of usages for the technologies. The technology has the ability to revolutionise the insurance field as it cuts out added fees and reduces smart contract risk. Notable decentralized insurance companies include Nexus Mutual and Opyn.

    Conclusion

    Overall, it would appear that the DeFi field is growing and most importantly, is here to stay. People around the world are increasingly seeing the problems of a centralized method, especially in the cryptocurrency industry which has a long history of customers’ funds being lost due to hacks of centralized exchanges. Partner this with an increasingly more aware population with regards to internet privacy, you have the makings of the next big thing in the cryptocurrency industry and possibly the wider financial field. 

    Although the industry is in its infantile stage, there are a number of interesting projects and options, most strikingly in the decentralized exchange and money market area, which users can partake in. Boxmining has a number of guides which can help you decipher more clearly which is the best project for you. For more DeFi related information and other cryptocurrency news, subscribe to our YouTube channel and newsletter. 

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    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.

  • Central Bank Digital Currencies (CBDC) Explained – New Revolution for Finance?

    Central Bank Digital Currencies (CBDC) Explained – New Revolution for Finance?

    What are Central Bank Digital Currencies (CBDC) – will they mark the start of a revolution to change the financial system forever? CBDCs are digital currencies issued by central banks that function as National Currencies (fiat). They are a direct replacement of paper money, with the exact same value and issuance policies. CBDCs are state-sanctioned and governed by the monetary authority and regulatory law.

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    Banks around the world are racing to issue out Central Bank Digital Currencies (CBDC). China has already deployed the test trial for Digital Currency Electronic Payment (DCEP), a digital version of the RenMinBi based on cryptographic technology. Japan immediately countered this announcement by plans to release a Digital Yen in “2 to 3” years. One of the key motivations behind CBDC is to drastically improve the way money is transferred around the world. Instead of relying on decade-old technologies like SWIFT, Digital Currencies can be transferred directly without friction. This will drastic impacts on all levels of banking, from the m0 reserve system to the unbanked.

    Major newspaper outlets like The Guardian and the Economist began writing opinion pieces, calling the advancement from China a big step and one that could pose a threat to US economic hegemony. On the other side, commentators in China heralded their country’s fast work and implementation. Although the US and its state banks have been slow to announce any research plans and have seemingly stopped Facebook’s Libra (a privatized answer to a CBDC) in its tracks, other western nations have quickly begun research. 

    Global effort to deploy Central Bank Digital Currencies

    Earlier this year, banks from the UK, EU, Japan Canada, Switzerland, and Sweden all began joint research on a CBDC. France has announced intentions to test a pilot CBDC in 2020.

    In Asia, the Japanese immediately announced their intentions to create a CBDC to match China’s as soon as the news began to break. The Bank of Korea is also looking at its own digital currency. Smaller national banks like Thailand, the Philippines, and Singapore are also looking into creating their own. Projects such as Singapore’s Ubin work with the Monetary Authority of Singapore are already in Phase 5 of development.

    The world is moving towards CBDC and is in agreement that this will be the currency of the future. But, what makes them so special and alluring to banks and governments? 

    Digital Currencies as a weapon to combat economic change

    The main reason is its cost-effectiveness and control. CBDCs are not subject to long processing times and costly fees. As you can see from the stable coin market, sending and receiving cryptocurrencies can be done quickly and easily, with just a phone and internet connection required. Not only that, but digital currencies are far easier to track making money laundering tracking much easier. 

    Another factor is CBDC’s resilience to political or economic changes. Often citizens from emerging economies are subject to a large disparity in their currency’s health in the market when compared to exchange rates, however, stable coins rarely have major shifts. Not only that, but big banking shutdowns, like seen in Greece and Iceland might well have had a solution if they held a financial alternative to store their money. This benefit of digital currencies could well be important as the world stares recession in the face following the economic stresses of the Coronavirus effort. 

    However, there is one major detail that is propelling some nations’ research. The threat which CBDC’s pose to the US dollar domination. ChinaDaily called the People’s Bank of China’s DCEP a “functional alternative to the dollar settlement system.” This is something politicians in Beijing want as US sanctions are made effective namely due to the dollar being the reserve currency. This means often international transfers to sanctioned states are prohibited and banks shut down, as they are using the US dollar in the exchange. 

    Challenging US sanctions

    The theoretical ability of CBDC’s to circumvent US dominance is something numerous embattled nations have looked to pounce on. Other countries who hold national digital currencies include Iran- a country ravaged by US sanctions and Venezuala- a similarly hit nation. Other US adversaries that have begun research into their own CBDC include Cuba, North Korea, and Palestine.

    Clearly, the race is on between the various competing nations to launch their own digital currencies and make a new economic framework. Who will lead the charge remains to be seen, but the answer could have major consequences for the future.