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How GameFi contributes to the growth of crypto and NFTs

The GameFi sector has achieved unprecedented growth over the past couple of years and is attracting investors.

The crypto industry has grown tremendously over the past couple of years, and one of its biggest drivers is the GameFi industry. 

GameFi — a portmanteau of gaming and finance — enables gamers to earn rewards while playing.

The market has been growing steadily and presently has a token market cap of approximately $9.2 billion. Notably, GameFi networks have continued to thrive despite the crypto winter. Indeed, the industry is forecasted to reach a $74.2 billion valuation by 2031.

How GameFi networks work

GameFi ecosystems are based on blockchain technology and use different in-game economic setups to reward players. The rewards are usually in the form of nonfungible tokens (NFTs) that are tradable on major marketplaces. The items are typically in the form of virtual lands, costumes and weapons and are instrumental in diversifying user experiences.

The difference in gaming strategies and economic setups is what makes each game unique.

One of the most popular GameFi economic setups is the play-to-earn (P2E) model. The model is designed to keep users engaged while enabling them to earn rewards.

It allows players to indulge in the games without spending any money. However, progress can be curtailed due to the lack of assets needed to compete successfully. As such, gamers are sometimes compelled to purchase in-game items in order to advance to top levels where they can obtain bigger rewards.

Popular blockchain gaming networks utilizing the P2E GameFi model include Decentraland, The Sandbox, Axie Infinity and Gala.

Why GameFi is popular

The GameFi world has attracted millions of users over the past couple of years. This is impressive considering that the industry was practically non-existent before 2015.

Today, the industry attracts over 800,000 daily players. Many of them are drawn to GameFi due to the medley of benefits it provides.

One of them is the ease of trading digital assets. A recent market report published by CoinMarketCap found that about 75% of gamers are willing to trade in their in-game assets for some form of currency. This advantage is one of the main reasons why GameFi is so attractive to players.

Some virtual assets, such as land, can also be rented out to other gamers. Users who wish to generate passive income without playing games can also indulge in liquidity mining by staking assets. This is a huge incentive for retail investors and people who wish to monetize their gaming time.

Recent: ETH Merge will change the way enterprises view Ethereum for business

Another merit that many GameFi players appreciate is the low transaction costs. GameFi environments usually utilize cryptocurrencies, and this makes fund transfers relatively easy to execute and cheap.

This is a major bonus when compared to conventional money transfer modes, which are expensive, especially when it comes to making cross-border payments. This aspect was highlighted in the 2021 Blockchain Game Alliance (BGA) survey report, in which 17% of participants named lower transaction costs as a major GameFi benefit.

Another innovative element that captivates GameFi players is the support for user-generated content. This capability not only allows GameFi platforms to engage users with different tastes but also encourages creativity among players while propagating an autonomous environment in which assets can be created, listed and traded publicly. In the 2021 BGA survey, 47% of respondents ranked creativity and gameplay among the top reasons why they liked GameFi.

These distinctive advantages, as well as other auxiliary factors, contribute to the consistent growth of GameFi.

How GameFi boosts growth

GameFi projects rely on cryptocurrencies to settle transactions, and this has contributed greatly to the increased adoption of digital currencies in recent years.

According to a recent report published by DappRadar — a platform that tracks activities on decentralized applications (DApps) — the number of unique active wallets (UAW) wallets tied to the blockchain gaming sector rose sharply in the third quarter of 2021, accounting for approximately 49% of the 1.54 million daily UAWs registered during that period. The data confirms the disruptive potential of GameFi and the increased use of cryptocurrencies in the sector, subsequently promoting their use and adoption.

Another related survey report released by Chainplay — an NFT game aggregation platform — recently revealed that 75% of GameFi investors got into the crypto market through their involvement in GameFi, showcasing GameFi’s growing impact on crypto adoption.

Besides advancing the use of cryptocurrencies, GameFi has also contributed immensely to the rise of the NFT industry. GameFi relies heavily on NFTs for in-game assets, and this increases their use on the blockchain. Not surprisingly, the rise of the GameFi market in 2021 coincided strongly with the NFT boom.

GameFi NFT sales rose to $5.17 billion in 2021, up from the $82 million recorded in 2020. The sales numbers helped to solidify the growth of the NFT market.

GameFi attracts more investors and gaming companies

Droves of investors are injecting money into promising GameFi projects. The development is bound to help the blockchain industry gain greater credence in mainstream markets as a viable investment space.

According to data derived from Footprint Analytics — a blockchain data analytics firm — over $13 billion has been raised so far by blockchain gaming companies. Over $3.5 billion of this was raised during the first half of 2022.

Speaking to Cointelegraph, Ilman Shazhaev, the founder and CEO of GameFi project Farcana, said that the industry is rapidly evolving, hence the rising interest among investors:

“Investors are particularly interested in GameFi because it represents a sector of the broader blockchain ecosystem that has earned a genuine interest worldwide. They are betting on the future, as only a few industries have a chance of attracting more users in the long run than GameFi.” 

He added that the sector was still at a very nascent stage with significant room for improvement, especially when it comes to innovation.

As things stand, major enterprises, including mainstream gaming companies, are jumping on the GameFi bandwagon as the industry continues to advance.

Eminent gaming powerhouses such as Ubisoft are already making moves to conquer the GameFi frontier. Earlier this year, the gaming firm announced a partnership with Hedera and the HBAR Foundation to come up with Web3 GameFi games for the brand. The gaming behemoth is behind the popular Far Cry and Rainbow Six franchises.

Zynga, another renowned game developer, also announced plans at the beginning of the year to unveil its own NFT-based games. The mobile gaming giant said that it was working toward building a blockchain team and making alliances with accomplished blockchain partners in order to bring to life its own collection of NFT games.

Mainstream tech conglomerates such as Tencent, the Chinese multinational technology company, have also started investing in the GameFi sector. The company was recently named among the top contributors in Immutable’s $200 million fundraising event. Immutable is the developer behind NFT games such as the Gods Unchained and Guild of Guardians.

The entry of such players indicates increased competitiveness for a share of the space. This is likely to increase GameFi investments and drive innovation over the long term.

Cointelegraph had the chance to catch up with Anton Link, the co-founder and CEO of NFT rental protocol UNITBOX, to discuss this phenomenon.

Link said that the industry’s highly positive growth indicators were among the main reasons why investors are flocking to the sector.

“Unlike other application areas, it [GameFi] allows for implementing of tech here and now, and the sector’s growth forecasts and indicators speak for themselves.”

He also noted that some game developers were looking to dabble in GameFi in order to obtain a more engaged demographic.

Some challenges that the GameFi industry is experiencing

While the GameFi sector attracts hordes of players, investors and gaming companies, there are still some significant issues to overcome before it captures a sizable pie of the overall gaming industry.

Security issues

The GameFi market has faced some serious hacks in the recent past that are likely to negatively impact user sentiment in the sector.

One of them is the Ronin bridge hack attack that happened earlier this year. It caused Axie Infinity players to lose over $600 million in crypto. Most recently, a newly launched Web3 game dubbed Dragoma suffered a rug pull that caused users to lose $3.5 million.

These are just a few of the reported losses from GameFi intrusions and scams. Such incidences continue to erode trust in the industry.

Poor gaming experience

Furthermore, blockchain-based games suffer from playability issues. While they allow players to control and transfer their in-game assets, graphics, immersion and gameplay often lag far behind their mainstream competitors. 

Many blockchain games lack game mechanics beyond “grinding,” i.e., completing repetitive tasks to be rewarded with assets.

Complaints from gamers show that the appeal of blockchain-based tokens isn’t everything and that players still value the vivid experiences offered by popular mainstream games over the benefits provided by GameFi.

Uncertain regulations

Additionally, many GameFi platforms are operating in a regulatory gray area and are likely to face major headwinds in the next couple of years. Right now, the United States Securities and Exchange Commission (SEC) is considering whether to classify blockchain gaming tokens as securities due to the “expectation of profit.”

Classifying them as such would bring them under the purview of the regulatory authority. This would oblige many GameFi platforms to make extensive disclosures about their clients and revenue models. Networks that fail to meet SEC requirements are usually forced to bar U.S. investors and players from joining their platforms to avoid fines and sanctions. This is likely to undercut the growth of the sector.

Technical complexities

Novel blockchain concepts usually experience myriad teething problems. The decentralized finance sector, for example, experienced many of these problems because many users found the platforms hard to understand and use.

GameFi is experiencing some of these issues as well. Buying and selling of NFTs, for example, is a complex affair and remains a major hurdle for newcomers.

The sector is still bound to the wider crypto market

GameFi is a subset of the crypto industry and is therefore affected by the booms and busts of the digital currency market. Consequently, the GameFi sector experiences a rise in activity during uptrends, but the opposite happens when there is a downtrend.

To maintain interest in GameFi platforms, developers face the uphill task of developing enthralling games to help ecosystems weather market slides.

Recent: What the Ethereum Merge means for the blockchain’s layer-2 solutions

Currently, GameFi investors are focused on improving gaming experiences to build on sustainability, but the task is easier said than done.

Developers face myriad challenges, but if they are successful in attracting players with top-tier gameplay, the future of blockchain-based gaming looks bright.

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How does high-frequency trading work on decentralized exchanges?

High-frequency trading allows cryptocurrency traders to take advantage of market opportunities that are usually unavailable to regular traders.

Following the decentralized finance (DeFi) boom of 2020, decentralized exchanges (DEXs) solidified their place in the ecosystems of both cryptocurrency and finance. Since DEXs are not as heavily regulated as centralized exchanges, users can list any token they want. 

With DEXs, high-frequency traders can make trades on coins before they hit major exchanges. Plus, decentralized exchanges are noncustodial, which implies that creators cannot pull an exit fraud — in theory.

As such, high-frequency trading firms that used to broker unique trading transactions with cryptocurrency exchange operators have turned to decentralized exchanges to conduct business.

What is high-frequency trading in crypto?

High-frequency trading (HFT) is a trading method that uses complex algorithms to analyze large amounts of data and make quick trades. As such, HFT can analyze multiple markets and execute a large volume of orders in a matter of seconds. In the realm of trading, fast execution is often the key to making a profit.

HFT eliminates small bid-ask spreads by making large volumes of trades rapidly. It also allows market participants to take advantage of price changes before they are fully reflected in the order book. As a result, HFT can generate profits even in volatile or illiquid markets.

HFT first emerged in traditional financial markets but has since made its way into the cryptocurrency space owing to infrastructural improvements in crypto exchanges. In the world of cryptocurrency, HFT can be used to trade on DEXs. It is already being used by several high-frequency trading houses such as Jump Trading, DRW, DV Trading and Hehmeyer, the Financial Times reported.

Decentralized exchanges are becoming increasingly popular. They offer many advantages over traditional centralized exchanges (CEXs), such as improved security and privacy. As such, the emergence of HFT strategies in crypto is a natural development.

HFTs’ popularity has also resulted in some crypto trading-focused hedge funds employing algorithmic trading to produce large returns, prompting critics to condemn HFTs for giving larger organizations an edge in crypto trading.

In any case, HFT appears to be here to stay in the world of cryptocurrency trading. With the right infrastructure in place, HFT can be used to generate profits by taking advantage of favorable market conditions in a volatile market.

How does high-frequency trading work on decentralized exchanges?

The basic principle behind HFT is simple: buy low, sell high. To do this, HFT algorithms analyze large amounts of data to identify patterns and trends that can be exploited for profit. For example, an algorithm might identify a particular price trend and then execute a large number of buy or sell orders in quick succession to take advantage of it.

The United States Securities and Exchange Commission does not use a specific definition of high-frequency trading. However, it lists five main aspects of HFT:

Using high-speed and complex programs to generate and execute orders

Reducing potential delays and latencies in the data flow by using colocation services offered by exchanges and other services

Using short time frames to open and close positions

Submitting multiple orders and then canceling them shortly after submission

Reducing exposure to overnight risk by holding positions for very short periods 

In a nutshell, HFT uses sophisticated algorithms to continually analyze all cryptocurrencies across multiple exchanges at very high speeds. The speed at which HFT algorithms operate gives them a significant advantage over human traders. They can also trade on multiple exchanges simultaneously and across different asset classes, making them very versatile.

HFT algorithms are built to detect trading triggers and trends not easily observable to the naked eye, especially at speeds required to open a large number of positions simultaneously. Ultimately, the goal with HFT is to be the first in line when new trends are identified by the algorithm.

After a large investor opens a long or short position on a cryptocurrency, for instance, the price usually moves. HFT algorithms exploit these subsequent price movements by trading in the opposite direction, quickly booking a profit.

That said, large cryptocurrency sales are typically harmful to the market because they usually drag prices down. However, when the cryptocurrency rebounds to normal, the algorithms “buy the dip” and exit the positions, allowing the HFT firm or trader to profit from the price movement.

HFT in cryptocurrency is made possible because most digital assets are traded on decentralized exchanges. These exchanges do not have the same centralized infrastructure as traditional exchanges, and as a result, they can offer much faster trading speeds. This is ideal for HFT, as it requires split-second decision-making and execution. In general, high-frequency traders execute numerous trades each second to accumulate modest profits over time and generate a large profit.

What are the top HFT strategies?

Although there are too many types of HFT strategies to list, some of them have been around for a while and aren’t new to experienced investors. The idea of HFT is frequently connected to conventional trading techniques that take advantage of cutting-edge IT capabilities. However, the term HFT can also refer to more fundamental ways of taking advantage of opportunities in the market.

Related: Crypto trading basics: A beginner’s guide to cryptocurrency order types

Briefly put, HFT may be considered a strategy in itself. As a result, instead of focusing on HFT as a whole, it’s important to analyze particular trading techniques that employ HFT technologies.

Crypto arbitrage 

Crypto arbitrage is the process of making a profit by taking advantage of price differences for the same cryptocurrency on different exchanges. For example, if one Bitcoin (BTC) costs $30,050 on Exchange A and $30,100 on Exchange B, one could buy it on the first exchange and then immediately sell it on the second exchange for a quick profit.

Crypto traders who profit from these market inconsistencies are called arbitrageurs. Using efficient HFT algorithms, they can take advantage of discrepancies before anyone else. In doing so, they help stabilize markets by balancing prices.

HFT is highly beneficial to arbitrageurs because the window of opportunity for conducting arbitrage strategies is usually very small (less than a second). To rapidly seize short-term market opportunities, HFTs rely on robust computer systems that can scan the markets quickly. In addition, HFT platforms not only discover arbitrage opportunities but can also make trades up to hundreds of times faster than a human trader. 

Market making

Another common HFT strategy is market making. This involves placing buy and sell orders for a security at the same time and profiting from the bid-ask spread—the difference between the price you’re willing to pay for an asset (ask price) and the price at which you’re willing to sell it (bid price).

Large companies called market makers provide liquidity and good order in a market and are well-known in conventional trading. Market makers can also be linked to a cryptocurrency exchange to guarantee market quality. On the other hand, market makers that do not have any agreements with exchange platforms also exist—their aim is to use their algorithms and profit from the spread.

Market makers are constantly buying and selling cryptocurrencies and setting their bid-ask spreads so that they make a small profit on each trade. They may, for example, buy Bitcoin at $37,100 (the ask price) from someone wanting to sell their Bitcoin holdings and offer to sell it at $37,102 (the bid price). 

The $2.00 difference between the bid and ask prices is called the spread, and it’s mainly how market makers earn money. And, while the difference between the ask and bid price might seem insignificant, day trading in volumes can result in a significant chunk of profit.

The spread ensures that the market maker is compensated for the inherited risk that accompanies such trades. Market makers provide liquidity to the market and make it easier for buyers and sellers to trade at fair prices.

Short-term opportunities

High-frequency trading is not intended for swing traders and buy-and-holders. Instead, it’s employed by speculators wanting to wager on short-term price fluctuations. As such, high-frequency traders move so quickly that the price might not have time to adjust before they act again.

For instance, when a whale dumps cryptocurrency, its price will typically drop for a short time before the market adjusts to meet the supply-demand balance. Most manual traders will lose out on this dip because it may only last for minutes (or even seconds), but high-frequency traders can capitalize on it. They have the time to let their algorithms work, knowing the market will eventually stabilize.

Volume trading

Another common HFT strategy is volume trading. This involves tracking the number of shares traded in a given period and then making trades accordingly. The logic behind this is that as the number of shares traded increases, so does the market’s liquidity, making it easier to buy or sell a large number of shares without moving the market too much.

Related: On-chain volume vs. Trading volume: Differences explained

To put it simply, volume trading is all about taking advantage of the market’s liquidity. 

High-frequency trading allows traders to execute a large number of transactions quickly and profit from even the smallest market fluctuations.

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Entrepreneurs must learn to tackle business risks in the Metaverse

The Metaverse is fraught with risks. Implementing effective safeguards — both physical and virtual — will be critical to entrepreneurs seeking to do business there.

Hyped as it is, the Metaverse remains largely undefined. It’s a challenge to answer the question “What is the Metaverse?” in part because its definition depends on whom you ask. As it stands today, the “Metaverse” includes virtual reality and what we might previously have called “cyberspace” — including digital assets like non-fungible tokens (NFTs), cryptocurrencies and more.

In the rush to become the first to innovate in metaverse technology, companies are deprioritizing risk management. But risk management is as critical in the Metaverse as in our physical world — all risk is linked and must be managed in a connected way. If new entrants to the Metaverse are meant to protect against the overwhelming scale and cost of cyber risks, they must learn to identify these risks, continuously monitor for threats, and make informed decisions for a strong future based on information gained from past threats and attacks.

Here are three types of metaverse risks expanding the attack surfaces for businesses.

Physical hardware risks

From headsets to chips with highly efficient computing power, virtual worlds need hardware to operate. The physical hardware used to run the Metaverse can create a cyber risk of its own.

As people create, expand and join metaverse worlds, the huge and powerful potential of this virtual space creates new attack surfaces for bad actors to test and breach. The assemblage of hardware from multiple sources required to successfully enable entry into this digital reality invites increased threats like the man-in-the-middle (MITM) attacks we’ve seen (in real life) at ATMs and on mobile applications.

Related: The dark side of the metaverse and how to fight it

To ensure safety, companies entering or experimenting in the Metaverse will have more places to monitor as part of their risk management strategy. Companies will need to create more advanced and comprehensive security controls for physical hardware as well as digital gateways while continuously managing their compliance.

Risk in cryptocurrency assets

In the Metaverse, crypto trades have been huge sources of risk. While cryptocurrencies started as a controlled niche industry driven by experts who were very concerned with security and privacy, growth in the crypto space has brought with it more opportunity for risk.

Growing numbers of consumer traders, new companies, and hackers all increase the risk factors in crypto transactions. Crypto also has become the de facto currency for ransomware; as a result, cyberattacks against crypto accounts are on the rise. The growing number of metaverse technologies will continue to endanger crypto security until companies catch up and begin dedicating resources toward addressing this type of risk.

Tracking fraudulent activity and implementing secure authentication can make a significant difference against cybersecurity threats, particularly in crypto. Threats happen faster than ever before, so continuous monitoring of risks is a necessity.

Organizations can only do so much, as individual users — the holders of crypto wallets — are a large part of the risk. Scams, hacks and password threats target vulnerabilities at the individual level. Individuals share an important responsibility in conducting due diligence against crypto threats in the Metaverse.

Identity risk

By design, the Metaverse is based on anonymity and fluidity. A digital reality, unlike the offline world, allows users to cloak their identities and reinvent their characters. Digital avatars assume characteristics chosen by their owner, and these identities are not carefully regulated — as on the internet, aliases are changeable.

This opens individuals, as well as the companies that operate metaverse territories, up to even greater potential risk. With innovation rapidly expanding and security a lower priority, it is difficult for users and metaverse technologists to tell the “good guys” and the “bad guys” apart. Increasing calls for controls around identity risk in the Metaverse stem from incidents relating not just to unintentional data-sharing between human players and automated “mimic” avatars (bots), but also alleged episodes of player-to-player verbal abuse and even sexual harassment.

Related: 34% of gamers want to use crypto in the Metaverse, despite the backlash

Implementation of safeguards against these breaches in privacy will only increase in difficulty if the future metaverse ideal — one large, interconnected web of metaverse territories where identities and assets are entirely portable — comes to fruition.

Right now, that technology isn’t yet available — and maybe it won’t ever be. But there’s no question that the Metaverse is emerging as a real business and consumer technology — and a real risk factor. And like every space, it requires real, proactive risk management.

Gaurav Kapoor is the co-CEO and co-founder of MetricStream Solutions & Services, where he is responsible for strategy, marketing, solutions, and customer engagement. He also served as MetricStream’s CFO until 2010. He previously held executive positions at OpenGrowth and ArcadiaOne, and spent several years in business, marketing and operations roles at Citibank in Asia and in the U.S.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Liquid staking is key to interchain security

Liquid staking allows larger proof-of-stake (PoS) blockchains to help secure smaller ones, conferring benefits to the industry as a whole.

Bitcoin’s genesis in 2009 will probably go down in history as one of the most notable technological events of all time. Demonstrating the first real use case for the immutable, transparent and tamper-proof ledgers — i.e., blockchain — it established the cornerstone for developing the crypto and other blockchain-based industries. 

Today, just over a decade later, these industries are thriving. The total crypto market capitalization hit an all-time high of $3 trillion at its peak in November 2021. There are already more than 300 million crypto users worldwide, while forecasts suggest the figure may cross 1 billion by December 2022. Although phenomenal, this journey has merely begun.

Several factors have contributed to the blockchain and cryptocurrency industry’s success so far. But above all, it’s due to certain key features of the underlying technology: decentralization, trustlessness and data security, to name a few. Leading blockchain networks like Bitcoin are pretty robust as such thanks to their proof-of-work (PoW) consensus mechanism. Globally distributed miners secure these networks by providing “hashing” or computational power. Similarly, in the proof-of-stake (PoS) consensus that Ethereum plans to adopt soon, validators secure the network by locking up or “staking” digital assets.

Related: The truth behind the misconceptions holding liquid staking back

However, the number of miners or validators matters greatly in PoW and PoS, respectively — more miners or validators means greater security. Thus, only the bigger, more established blockchains can benefit optimally from conventional consensus mechanisms. On the other hand, emerging blockchains often lack the resources to secure their networks fully, no matter their innovative potential.

Bolstering interchain security frameworks is one way of solving this rather pertinent problem. Moreover, with innovations like liquid staking, bigger PoS blockchains can help secure the emerging ones, ultimately facilitating a safer and stabler industry overall.

Interchain security matters for blockchains big and small

One might wonder why bigger blockchains would even care to share validators with the smaller ones. Isn’t it about meritocratic competition, after all? Of course, it is, but that doesn’t necessarily mean underplaying the role of interoperability or cross-chain mechanisms. Moreover, if emerging but innovative blockchains thrive, it’ll benefit them and the industry as a whole. And this is the key to blockchain technology’s mass adoption, which is the ultimate goal despite all competition.

PoS blockchains are generally more prone to various majority attacks than their PoW-based counterparts. As Billy Rennekamp of the Interchain Foundation succinctly pointed out, “If one can control one-third of a network, they can do censorship attacks and if they control two-thirds of the network, they can control governance and pass a proposal for a malicious upgrade or drain the community pool with a spend proposal.”

Having said that, over 80 blockchains already use PoS, with more to come in the near future, including Ethereum. This is primarily because of the massive energy consumption and environmental impact of PoW chains. But while this change is welcome, it could cause an industry-wide security crisis without robust measures. If that happens, the industry will lose investors’ confidence, and everyone will suffer, including the bigger chains with well-established PoS networks. Thus, enhancing interchain security is a win-win approach and, indeed, the need of the hour.

Liquid staking optimizes interchain security

So much for the rationale behind interchain security. It is, in fact, already in action, thanks to the Cosmos Hub. However, the journey is far from complete. It’s possible to take interchain security to the next level with innovations such as liquid staking.

For the uninitiated, liquid staking unlocks the liquidity of assets staked (locked up) in PoS blockchains or other staking pools. This is crucial because, otherwise, the staked liquidity remains underutilized. Users cannot use their staked assets in decentralized finance (DeFi), which restricts them from generating optimal yields. By offering tokenized derivatives of these staked assets, liquid staking allows individuals to reap the benefits of staking and DeFi simultaneously. This enables additional utility besides maximizing yield.

Related: The many layers of crypto staking in the DeFi ecosystem

If these advantages appear too money-minded to some people, it’s because they overlook a more critical aspect. The mechanism allowing liquid staking protocols to liberate locked values also enhances interchain security. In simple terms, this works by letting validators on established PoS blockchains like Cosmos — aka the provider chain — verify transactions on smaller “consumer” chains. Validators won’t go rogue in the process since that would mean losing the assets they staked on the provider chain.

However, the more specific significance of liquid staking is that it broadens the scope for interchain security. The liquid-staked assets can represent the value of assets staked on any producer chain, which can then be used to share validators with mostly any consumer chain. In other words, what’s currently possible primarily on Cosmos can be widely accessible with liquid staking.

Tushar Aggarwal is a Forbes 30 Under 30 recipient and the founder and CEO of Persistence, an ecosystem of bleeding-edge financial applications focusing on liquid staking.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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BTC price nears $21.7K as whales boost Bitcoin ‘almost perfectly’

It’s all about the big-volume buy and sell zones for Bitcoin on short timeframes, data reveals.

Bitcoin (BTC) sought to overturn August resistance on Sep. 10 as whale buy-levels dictated BTC price action.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Whales provide short-term price ceiling

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting new multi-week highs of $21,671 on Bitstamp.

The pair capitalized on a short squeeze which began early on Sep. 9, taking it around 10% higher after plumbing the lowest levels since the end of June.

Analyzing the events, on-chain monitoring resource Whalemap noted that clusters of buy-ins by whales had effectively allowed Bitcoin to put in a floor.

$19,000 had been a high-volume zone of interest for buyers previously, and this thus remained unviolated during the visit to two-month lows.

As Cointelegraph reported, two other key whale support zones lie at $16,000 and $13,000.

“Whale support at 19k worked almost perfectly to the upside,” the Whalemap team commented.

“$21,543 is now the closest resistance according to whales.”

An accompanying chart showed the significance of the mid-$21,000 corridor in which BTC/USD was acting on the day. In addition to being of interest to whales, the zone functioned as support in mid-August before flipping to resistance.

Bitcoin large wallet inflows annotated chart. Source: Whalemap/ Twitter

“Bitcoin still resting at resistance and probably consolidating here,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on the day.

“I’d like to see the high getting swept and then a consolidation. What happens in between? Probably we’ll see altcoins firing off heavily.”

After this impressive move, it would be quite logical (does that ever apply to bripto?) to cool off here

LTF sweep already happened, momentum falling bit by bit

If $BTC holds ~20.7K, then I think we’ll run this to 23K later#Bitcoin pic.twitter.com/s852sVRmF6

— Phoenix (@Phoenix_Ash3s) September 10, 2022

Trader Pheonix meanwhile called for a more substantial consolidation next, followed by a return to $23,000.

Ethereum expected to hit $1,900

Of additional interest to traders was Ether (ETH), which managed its highest since Aug. 19 on the day before retracing.

Related: Will Bitcoin’s rally sustain? DXY, SPX, GC and WTI could have the answer

$1,745 could still be beaten, popular Twitter account Il Capo of Crypto argued, before a comedown took hold.

“Going straight to the $1800-1900 resistance,” he forecast in a fresh update.

“I expect bearish continuation once this level has been reached. This could be on or before the merge date.”ETH/USD 1-day candle chart (Binance). Source: TradingView

The Merge, due Sep. 15, was already keenly eyed as a potential source of volatility on both ETH/USD and beyond.

Creditor reimbursements from defunct exchange Mt. Gox are notionally due to begin the same day, and both events will come two days after the latest Consumer Price Index (CPI) inflation data from the United States.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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MicroStrategy to reinvest $500M stock sales into Bitcoin: SEC filing

Buying the dip is essential for MicroStrategy as the company’s reserve of nearly 129,699 BTC currently suffers an aggregated value loss of over $1 billion.

MicroStrategy, the largest institutional Bitcoin (BTC) buyer, entered an agreement with two agents — Cowen and Company and BTIG — to sell its aggregated class A common stock worth $500,000,000, reveals Securities and Exchange Commission (SEC) filing.

MicroStrategy, co-founded by Bitcoin bull Michael Saylor, amassed approximately 129,699 BTC over several years at an aggregate purchase price of $3.977 billion. Despite market uncertainties, the business analytics software firm continues to pursue its goal of acquiring more BTC by selling company stocks. The filing confirmed:

“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement.”

Buying the dip is essential for MicroStrategy as the company’s BTC reserve has dipped to an aggregated value of nearly $2.8 billion — resulting in a loss of over $1 billion, as shown by Bitcoin Treasuries data.

Snippet from MicroStrategy’s SEC filing. Source: SEC.gov

Coincidently, on the day of the filing, data from Cointelegraph Markets Pro and TradingView showed BTC/USD price shooting up 11% to nearly $21,500.

Related: Bitcoin could become a zero-emission network: Report

The FBI, along with two other federal agencies, CISA and MS-ISAC, asked U.S. citizens to report information that helps track the whereabouts of the hackers.

The citizens have been asked by the FBI to report on various information that would help them track down ransomware attackers, which include Bitcoin wallet information, ransom notes and IP addresses.

Bad actors prefer fiat currency to conduct illicit activities over Bitcoin because the blockchain’s immutable nature allows authorities to track down crimes easily.

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The Mysteries of Our Moon: “Something” Could Be On There or Under the Surface…

I figured that having just published an article on the mysteries of the planet Mars, I would now write one that focuses on our Moon. And, there are more than a few mysteries out there, to be sure! Our strange Moon story goes back to the 1970s, but it is still a fascinating story. According to the family of a Raymond Wallis, he was someone who, way back in 1975, took on the alias of a “Mr. Axelrod,” when a team of remote-viewers at Area 51 were focusing their attention not on the Russians or even the Chinese, but on the Moon itself. Something strange had caught the attention of those working on the program. Answers needed to be found. Reportedly, and incredibly, several of the remote-viewers had significant success in psychically uncovering evidence that there were several underground, alien bases on the Moon. So the story goes, the team hit a brick-wall because, in a rather sinister fashion, the aliens somehow knew when they were being watched. So, the team decided to do something that they rarely ever did. They decided to go outside of the box – or in their case a secure series of rooms at Area 51’s S-4 – and approach one of the leading figures in the field of remote-viewing, a man named Ingo Swann. Before we get directly to  Swann, let’s have a look at the phenomenon of Remote-Viewing.

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Rare Coin Shows 1054 CE Supernova Whose Existence was Banned by Constantine IX

On July 4, 1054, a mysterious light appeared in the sky like a sudden, silent explosion in the cosmos. The light was visible around the world during daylight hours for 23 straight days, and visible at night until April 6, 1056.

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The Earliest Architectural Depictions of Mermaids and Mermen: What Do They Tell Us?

Tales of mermaids and mermen have been with us for thousands of years. Over time, the stories have been tinged with human imagination, and the merfolk have aquired various shades of reputations, some not so flattering. If we go back to the earliest times, however, to explore the architectural depictions of mermen and mermaids, we find that the merfolk, in general, were thought of as semi-divine beings who were beneficent to humanity, and bestowed prosperity and good luck. They were an integral part of the beliefs and ritual customs of our ancestors. 

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A Haunted Horror House in India

Some of the most haunted places in the world are thoe that are wreathed in pain and suffering. Some of these have such dark histories that they are often referred to as “horror houses” and one of these lies in the country of India. The city of Hyderabad is a vast sprawling metropolis, the capital and largest city of the Indian state of Telangana. With a population of 6.9 million residents within the city limits and 9.7 million residents in the metropolitan region, it is a bustling hive of humanity sprawled out over 250 square miles, its crowded streets constantly thrumming with activity day and night. Besides being known for its thriving film industry and its reputation as one of the main business capitals of India and a modern, technologically advanced city, as well as a place for countless restaurants and listed as a UNESCO creative city of gastronomy, here one can also find historic ruins among the modernity, and if one looks they can also find some of the most haunted places in the country. One of these is a nondescript house that despite its rather mundane appearance holds a dark history and possibly evil supernatural forces. 

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