Bitcoin and many other cryptocurrencies are often referred to as pseudonymous. Everyone can view records on a public ledger, but not necessarily know who’s behind each address or transaction. But what does pseudonymity look like in practice? How are cryptocurrencies tracked? And can you really unmask someone on the blockchain? Let’s find out.
The public nature of blockchains allows for a certain degree of predictive analysis, enabling researchers to associate addresses and transactions with entities and sometimes individuals. Anybody can look at blockchain, but what makes a difference is the accurate interpretation of this public data, as well as corroborating it with other types of information gathered externally. Once combined such data can be used for blockchain analytics.
Blockchain analytics is widely used for market intelligence, trend analysis, and investigations, among many emerging spaces. The main objective of blockchain analytics is attribution — linking specific assets and events to particular entities or even individuals.
Attributing ownership, however, is often nuanced because outside observers can only infer it depending on factors such as availability and quality of the evidence. Evidence means proof that indeed an address belongs to an individual or entity. Unless you own an address yourself, it is very difficult to say with absolute certainty who an address is owned by. This is why it’s more fitting to consider blockchain analytics more of an art than science.
Let’s understand the basics of blockchain analytics and learn why attribution is often more complicated than it looks.
Attribution Basics
Can you tell what entity this address belongs to:
1JxXMEbYX6juuEK7QPe6CxGXywQ91ZB5mZ?
Is it an exchange? Is it a darknet market? Or maybe a private (otherwise known as an unhosted) wallet? To answer this question we need to dig for some ground truth.
1. Ground Truth Evidence
A search for truth often starts with plain googling or crowd-sourced sites like BitcoinAbuse.com:
Websites like BitcoinAbuse.com can be used by anyone to anonymously report BTC addresses linked to suspicious activity. Sadly, the reliability of such information can be very low. According to Blockchain.com, our address of interest received over 767 BTC. WalletExplorer.com implies this address is linked to a large offshore cryptocurrency exchange, which is corroborated by commercial blockchain analytics tools.
Indeed, commercial blockchain analytics tools identify this address as belonging to a large offshore cryptocurrency exchange.
So what about the nature of the activity? Is the exchange user involved in ransomware?
Further research connects this address to an exchanger called Coinguru.pw:
Coinguru allows users to swap between various cryptocurrencies, providing nothing more than an email address.
At this point you’re probably asking yourself: so who does this address belong to?
the BitcoinAbuse crowd-reported ransomware operator?
A large offshore cryptocurrency exchange?
Coinguru?
…all of the above?!
Well, the answer is complicated.
We have first-hand evidence of 1JxXMEbYX6juuEK7QPe6CxGXywQ91ZB5mZ being used by Coinguru, an exchange service operating an account on a large offshore cryptocurrency exchange. Exchangers like Coinguru often use bigger platforms’ infrastructure to reduce costs and get access to liquidity. We refer to these as nested services. These also cater to users who might not want to go to the trouble of creating their own accounts on an exchange. In fact, some nefarious actors may use these services to cash out of illicit funds.
For labeling purposes, it would suffice to say this is an exchange-owned address. If a regulator or a law enforcement agency investigating ransomware related transactions decides to enquire about the details, the cryptocurrency exchange will refer them to Coinguru who would be best positioned to provide further information on specific transactions.
2. Evidence quality and standard of proof
Evidence can vary in quality and blockchain analytics is no exception. Sometimes you might stumble upon a “smoking gun”, but it’s more likely you will need to spend time corroborating incomplete, circumstantial, fragmented or straight out misleading evidence. Nevertheless, even the weakest evidence can hint on a particular activity or entity behind it.
As we’ve already witnessed, crowd-reported sources such as BitcoinAbuse stand on the bottom of the reliability ladder. Not that they should be fully discounted, but evidence leading to attribution of crypto addresses is best gathered directly from the source. In the case of exchange services, the source would be their website displaying a deposit address.
The ultimate attribution comes from the ability to interact with the service, earning such evidence the highest confidence score. However, this is often prohibited, especially when investigating activities such as terror funding (TF). In cases like these, research shifts into the world of open source intelligence (OSINT). Much can be learned from aggregator websites, online forums, chat groups, mobile communication platforms, hidden domains on the Tor network and information scraping in an automated fashion by third party vendors. But even the best evidence is not helpful without proper investigative tools.
3. Deconflicting misattribution
Blockchain investigation tools include blockchain analytics software, private and open source databases, search engines, etc. The best investigative practice is to combine a mix of these tools, including commercially available software, and corroborate evidence using independent sources. Sometimes, however, those sources can offer conflicting information.
For instance, consider this address: 1N9SxKeNvFoBFuFKEDU8yFCwPwoeHqgmhu.
Imagine an investigator receiving intelligence linking this address to the sale of Child Sexual Abuse Material (CSAM). Attribution of this address will vary depending on which blockchain analytics tool you consult: some don’t have it labeled at all, while others attribute it to a merchant service. Open source research confirms this particular service allowed users to upload files and sell them for various cryptocurrencies. Addresses like the one above were generated for every user and were all connected to different types of activity, depending on what an individual user was buying.
While some uploads to this merchant service have been benign, some were identified as illicit, according to the Internet Watch Foundation (IWF), a non-profit combating the distribution of CSAM. Reportedly, the same merchant service was also used for ransomware decryptor key uploads. So, can the address of interest belong both to an illicit vendor and to the merchant service? Yes.
The correct way to attribute this service in a blockchain analytics tool would be to take all of the known addresses associated with the service and label them accordingly. Then, as a result of investigating individual addresses and their related activities, specific labels should be applied in accordance with documented findings. Labeling the whole service as illicit would be a misattribution. It can negatively impact tools and services that rely on blockchain analytics data, such as transaction monitoring systems or law enforcement subpoenas, leading to increased false positive alerts and erroneous leads.
4. The unknown unknowns
Back in October 2019, a medium article was published with a flashy title — “Huge Ethereum Mixer”. A Russian data scientist analyzed ETH flows between February and September 2017 claiming that “…68% of total Ethereum transaction value [is] controlled by one system… Funds come and leave within one hour, and addresses are never used again.” The researcher spent a great deal of effort analyzing the behavior of the “mixer”, its transaction patterns, and share of total transactions across Ethereum over time. At the center of the article was this diagram:
Notice how most large exchanges at the time are present: Kraken, Poloniex, Bitfinex, etc. Can you guess which one(s) are missing?
Hopefully, at this point it’s fairly evident that an external observer cannot possibly gain a full picture or claim 100% confidence in attribution. Keep in mind, when it comes to blockchain, everyone is an external observer, with the exception of addresses you control.
Stay tuned for the second part, where we’ll dive deeper into examples of how blockchain analytics can both enlighten and confuse.
Bad facts make bad law. We see this in jurisdictions all over the world, especially when it comes to digital assets. Unfortunately, we are about to see this again — this time in the European Union — in the form of a revision to the Transfer of Funds Regulation. If adopted, this revision would unleash an entire surveillance regime on exchanges like Coinbase, stifle innovation, and undermine the self-hosted wallets that individuals use to securely protect their digital assets. The vote will likely take place this week so time is running out.
Here are the bad “facts”:
(1) digital assets like Bitcoin, Ethereum and others are a primary way criminals hide and move money
(2) law enforcement has no way to track these movements
(3) requiring collection and verification of personal information associated with self-hosted is not a violation of their privacy
State of play
The truth is that digital assets are in general a markedly inferior way for criminals to hide their illicit financial activity. That’s why, according to the best research available, by far the most popular way to hide illicit financial activity remains cash. Unlike with cash, law enforcement can track and trace digital asset transfers with advanced analytics tools. None of this requires upsetting the settled privacy expectations of wallet holders because the open architecture underlying digital assets is public and offers unprecedented transparency into transaction details. The records are also permanent — no one (not crypto companies, not governments, not even bad actors) can destroy or alter information. In short, digital assets and the immutable nature of their blockchain technology actually enhances the ability to detect and deter illicit activity. But rather than embracing and leveraging the benefits that arise from the increasing use of digital assets, the EU’s proposal would cast them aside and impose a host of new privacy invasions on wallet users.
For example, all crypto transactions will be deemed “travel rule eligible”. This means crypto is treated differently to fiat (which has a 1,000 EUR threshold), which establishes a clear advantage for traditional financial service providers over new technology, with significant anti-competition and anti-innovation implications.
Among the worst of the proposed provisions are new obligations on exchanges to collect, verify and report information on non-customers using self-hosted wallets. For instance, one provision requires exchanges to not only collect personal data about wallet users who are not their customers, but to also verify the data’s accuracy before allowing a transfer to one of their customers. In fiat terms, this would basically mean you cannot take money out of your bank account to send to someone else until you share personal data with your financial institution about that person and verify their identity. Not only is this verification requirement nearly impossible to do but requiring exchanges to engage in extensive data collection, verification, and retention about non-customers runs against core EU data protection principles of data minimization and proportionality.
Another dangerous provision would require exchanges to inform “competent authorities” of every single transfer from a non-customer’s self-hosted wallet equal to or greater than 1,000 EUR — regardless of any suspicion of bad activity. The proposal even leaves the door open to a total ban on transfers to self-hosted wallets even though there is no evidence that such a ban would have any impact on illicit activity at all. Like we said, bad facts make bad policy.
Make your voice heard
There’s precious time to act and we need to makeour voices heard. A vote on Parliament’s draft proposal could come as early as Thursday, March 31st. If you care about protecting the privacy of individuals, and focusing the law on solutions that actually address legitimate concerns about the illicit use of digital assets, now is the time to speak up and be heard. We must speak with one, strong voice against this proposal before it’s too late.
In an effort to increase the security of users, DigiThree Labs and LCX recently announced a collaboration. Both companies have partnered to provide a formal Proof-of-Concept agreement.
According to the details shared by LCX, the new partnership will enhance user security and will eventually play an important role in the growth of the digital asset ecosystem. Founded in 2018, LCX is a regulated platform for buying and selling of digital currencies.
LCX highlighted the importance of a secure and efficient login procedure. The company added that it will pilot the DGMV Authenticator to secure its login procedures and safeguard passwords. LCX mentioned that the DGMV Authenticator is a highly secure authentication method based on blockchain technology.
Monty Metger, CEO of LCX, said: “Security threats are rising, and phishing attacks are often targeting login details of users. That’s why we are excited to work with DigiCorp Labs to pilot the latest cyber security technologies and in particular the DGMV Authenticator.”
LCX noted that the initial rollout will be in the second and third quarters of 2022. The exchange is headquartered in Vaduz with offices in Zug and New Delhi.
Security
With the growing popularity and user base of digital assets, exchanges have introduced several efficient methods in the past few years to increase the overall security of users in the crypto ecosystem.
Jozua van der Deijl, CEO at DigiCorp Labs, said, “DigiCorp Labs is excited that LCX is taking user security very seriously, and we hope this sets an example for other exchanges to integrate DGMV Authenticator as an extra level of security on their platforms.”
“With our consistent and friendly relationship with DigiCorp Labs, we are confident in the DGMV Authenticator and believe that it will digitally transform security in every industry,” the company added in the press release.
In an effort to increase the security of users, DigiThree Labs and LCX recently announced a collaboration. Both companies have partnered to provide a formal Proof-of-Concept agreement.
According to the details shared by LCX, the new partnership will enhance user security and will eventually play an important role in the growth of the digital asset ecosystem. Founded in 2018, LCX is a regulated platform for buying and selling of digital currencies.
LCX highlighted the importance of a secure and efficient login procedure. The company added that it will pilot the DGMV Authenticator to secure its login procedures and safeguard passwords. LCX mentioned that the DGMV Authenticator is a highly secure authentication method based on blockchain technology.
Monty Metger, CEO of LCX, said: “Security threats are rising, and phishing attacks are often targeting login details of users. That’s why we are excited to work with DigiCorp Labs to pilot the latest cyber security technologies and in particular the DGMV Authenticator.”
LCX noted that the initial rollout will be in the second and third quarters of 2022. The exchange is headquartered in Vaduz with offices in Zug and New Delhi.
Security
With the growing popularity and user base of digital assets, exchanges have introduced several efficient methods in the past few years to increase the overall security of users in the crypto ecosystem.
Jozua van der Deijl, CEO at DigiCorp Labs, said, “DigiCorp Labs is excited that LCX is taking user security very seriously, and we hope this sets an example for other exchanges to integrate DGMV Authenticator as an extra level of security on their platforms.”
“With our consistent and friendly relationship with DigiCorp Labs, we are confident in the DGMV Authenticator and believe that it will digitally transform security in every industry,” the company added in the press release.
Reactions have been pouring in from stakeholders in the crypto and digital assets industry in India following the approval of the country’s Finance Bill 2022 on Friday by Lok Sabha, the lower house of India’s bicameral parliament.
While some stakeholders were pessimistic of the section of the Bill mandating a capital gains tax of 30% on crypto transactions, others were optimistic that the law would relax with time.
Nirmala Sitharaman, India’s Finance Minister, during a budgetary speech delivered before the House in February had said the government would impose 30 percent taxation on the transfer of virtual assets from the financial year 2022-2023.
She also disclosed the government’s intention to lay a 1% tax deducted at source (TDS) on the purchase and sale of cryptocurrencies in the country. She added that any gifts made in digital currencies will also be taxed at the hands of the recipient.
The finance minister had also confirmed that crypto holders cannot offset their losses from cryptocurrencies with the capital gains tax, which is allowed for stock investors.
However, despite the industry’s call for the government to tone down the crypto taxation, the bill was passed into law, with Sitharaman insisting that the government was taxing crypto because people are profiting from it.
With the passage, the crypto taxes will come into effect on April 1, while the TDS will start on July 1.
Mixed Industry Reactions
Nischal Shetty, the Chief Executive Officer of WazirX, one of India’s biggest cryptocurrency exchanges, said the passage “is poised to do more harm than good,” adding that the law could shoot down patronage of Indian exchanges and a subsequent increase in capital outflow to foreign ones.
Sathvik Vishwanath, co-founder and CEO of Unocoin, was particularly concerned about the effect the law will have on crypto traders in the country.
“This will have some repercussions on traders, especially the 1% TDS assessment. This will not only affect traders but also tax collections. We hope that in the subsequent years the crypto industry gets treated like other investment-related industries,” he explained.
Abhay Aggarwal, CEO and founder of non-fungible token (NFT) marketplace, Colexion, said the law will hamper the overall growth of the sector by reducing countrywide adoption and credibility.
On the positive side, however, Coinstore, a Singapore-based crypto exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term that recently started operations in India, believes that the crypto tax is a good move that “will open the doors for crypto regulation in one of the largest democracies in the world.”
“India is a tech powerhouse and it has the potential to lead the world in the crypto and blockchain revolution. Some may feel that the tax structure is on the heavy side but it may undergo adjustments to match global expectations as the crypto industry in India enters a more mature phase. We are hopeful that Indian regulators will reach a consensus with the crypto industry soon,” said Charles Tan, Head of Marketing at Coinstore.
Lennix Lai, Director of OKX, formerly known as OKEx, the Seychelles-based cryptocurrency exchange
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world.
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world. Read this Term, also toed Tan’s line, noting that taxing an certain asset class indicates that those assets are recognized as a tradable asset class by country’s regulator.
“That gives the industry a lot more clarity on the legal status of crypto and its derived income. Hence it’s good news for the industry in India with respect to building a more regulated operating environment for crypto,” Lai added.
Distrust in Cryptocurrencies?
For some time now, the Indian government has been mulling over the possibility of launching its own central bank digital currency (CBDC). In a budgetary speech in February, Shitaraman had said the Reserve Bank of India (RBI) was going to introduce the CBDC in the country’s next financial year.
Meanwhile, the Indian government had initially made efforts to impose a complete ban on cryptocurrencies as a payment mode with a bill that recommended strict jail terms for violators who could be arrested without any warrant.
The Cryptocurrency and Regulation of Official Digital Currency Bill had also sought to ban all private cryptocurrencies in the country, although it wanted to allow for “certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
Tax evasion has also been a problem in the Indian cryptocurrency space. A raid on six Indian crypto exchanges earlier this year had uncovered $9.4M in unpaid taxes with WazirX alone evading $6 million in taxes.
Reactions have been pouring in from stakeholders in the crypto and digital assets industry in India following the approval of the country’s Finance Bill 2022 on Friday by Lok Sabha, the lower house of India’s bicameral parliament.
While some stakeholders were pessimistic of the section of the Bill mandating a capital gains tax of 30% on crypto transactions, others were optimistic that the law would relax with time.
Nirmala Sitharaman, India’s Finance Minister, during a budgetary speech delivered before the House in February had said the government would impose 30 percent taxation on the transfer of virtual assets from the financial year 2022-2023.
She also disclosed the government’s intention to lay a 1% tax deducted at source (TDS) on the purchase and sale of cryptocurrencies in the country. She added that any gifts made in digital currencies will also be taxed at the hands of the recipient.
The finance minister had also confirmed that crypto holders cannot offset their losses from cryptocurrencies with the capital gains tax, which is allowed for stock investors.
However, despite the industry’s call for the government to tone down the crypto taxation, the bill was passed into law, with Sitharaman insisting that the government was taxing crypto because people are profiting from it.
With the passage, the crypto taxes will come into effect on April 1, while the TDS will start on July 1.
Mixed Industry Reactions
Nischal Shetty, the Chief Executive Officer of WazirX, one of India’s biggest cryptocurrency exchanges, said the passage “is poised to do more harm than good,” adding that the law could shoot down patronage of Indian exchanges and a subsequent increase in capital outflow to foreign ones.
Sathvik Vishwanath, co-founder and CEO of Unocoin, was particularly concerned about the effect the law will have on crypto traders in the country.
“This will have some repercussions on traders, especially the 1% TDS assessment. This will not only affect traders but also tax collections. We hope that in the subsequent years the crypto industry gets treated like other investment-related industries,” he explained.
Abhay Aggarwal, CEO and founder of non-fungible token (NFT) marketplace, Colexion, said the law will hamper the overall growth of the sector by reducing countrywide adoption and credibility.
On the positive side, however, Coinstore, a Singapore-based crypto exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term that recently started operations in India, believes that the crypto tax is a good move that “will open the doors for crypto regulation in one of the largest democracies in the world.”
“India is a tech powerhouse and it has the potential to lead the world in the crypto and blockchain revolution. Some may feel that the tax structure is on the heavy side but it may undergo adjustments to match global expectations as the crypto industry in India enters a more mature phase. We are hopeful that Indian regulators will reach a consensus with the crypto industry soon,” said Charles Tan, Head of Marketing at Coinstore.
Lennix Lai, Director of OKX, formerly known as OKEx, the Seychelles-based cryptocurrency exchange
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world.
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world. Read this Term, also toed Tan’s line, noting that taxing an certain asset class indicates that those assets are recognized as a tradable asset class by country’s regulator.
“That gives the industry a lot more clarity on the legal status of crypto and its derived income. Hence it’s good news for the industry in India with respect to building a more regulated operating environment for crypto,” Lai added.
Distrust in Cryptocurrencies?
For some time now, the Indian government has been mulling over the possibility of launching its own central bank digital currency (CBDC). In a budgetary speech in February, Shitaraman had said the Reserve Bank of India (RBI) was going to introduce the CBDC in the country’s next financial year.
Meanwhile, the Indian government had initially made efforts to impose a complete ban on cryptocurrencies as a payment mode with a bill that recommended strict jail terms for violators who could be arrested without any warrant.
The Cryptocurrency and Regulation of Official Digital Currency Bill had also sought to ban all private cryptocurrencies in the country, although it wanted to allow for “certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
Tax evasion has also been a problem in the Indian cryptocurrency space. A raid on six Indian crypto exchanges earlier this year had uncovered $9.4M in unpaid taxes with WazirX alone evading $6 million in taxes.
Coinbase’s Applied Researcher, Yehuda Lindell, has won the prestigious “Test-of-Time” award for 2022 from the International Association of Cryptologic Research (IACR). The “Test-of-Time” award recognizes papers published 15 years ago that have had a lasting impact on the field of cryptography. Yehuda’s pioneering work was published a year before another important paper you may be familiar with: “Bitcoin: A Peer-to-Peer Electronic Cash System”.
His 2007 paper, “An Efficient Protocol for Secure Two-Party Computation in the Presence of Malicious Adversaries,” was the first to outline a two-party multi-party computation (MPC) protocol that was efficient enough to be implemented. In layman’s terms, secure two-party computation allows two “people” to solve a problem while keeping critical information private. For example, it solves the classic millionaires’ problem by allowing two people to understand who has more money without revealing their respective net worths. Yehuda’s work laid the foundation for future practical constructions.
Why cryptography is critical
Beyond their shared etymology related to something “hidden” or “secret”, cryptocurrency and cryptography are very intertwined. Cryptography’s mathematical and technological innovations underpin the entire crypto industry. The Bitcoin white paper makes this clear by introducing a cryptographic protocol in place of a trusted third party to validate transactions. This shift makes decentralization possible by “allowing any two willing parties to transact directly.”
Cryptography is essential to enabling transactions that are anonymous, secure, and “trustless.” The final point is the least obvious and perhaps most important. You don’t need a bank, credit card company, government, or other third-party intermediary since cryptographic tools such as public-private key encryption provide secure, direct confirmation.
Coinbase invests in fundamental research
Coinbase cares deeply about the security and reliability of our systems and the crypto industry as a whole. Investing in fundamental research is a core part of our mission to increase economic freedom in the world. We are honored to have Yehuda on our team and to support research that advances our mission.
If you feel strongly about advancing the field of cryptography, come work with us.
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD hitting multi-week highs of $45,137 Friday as Wall Street got underway.
As $45,000 reappeared for the first time since the start of the month, however, so did all-too-familiar behavior among some of Bitcoin’s biggest investors.
Attention turned to exchange Bitfinex on the day, a platform famous for large-volume traders, or whales, guiding short-term price action with their trades.
As noted by popular trader Pentoshi, the entity which had purchased BTC at the last low near $34,000 had now put in a significant ask position beginning at $45,000.
The finex whale who made the bottom (same signature) just showed up with a lot of asks presumably to close out those 34k longs. Something to watch in the coming days $BTCpic.twitter.com/gDR8qvBVEl
Blockware lead insights analyst William Clemente agreed, telling Twitter users that it was now “popcorn time” for the market.
For Cointelegraph contributor Michaël van de Poppe meanwhile flagged “a dozen” possible lower price targets should BTC/USD sweep liquidity at previous rejection points from March, these also lying just above $45,000.
“I’m not saying I’m bearish at this stage, but while we’re making this build-up, I’m not really interested into longs at this point,” he said in his latest YouTube update.
Only a rechallenge of $50,000, he added, would form the impetus to consider long positions.
“No longs” on Ethereum, says trade
Van de Poppe added that altcoins were also on the radar and that it would be interesting to see how Ether (ETH) in particular deals with upcoming resistance.
Related: What are the BTC price levels to watch as Bitcoin nears March peak?
The top ten cryptocurrencies by market cap showed clear copycat strength on daily timeframes, led by ETH/USD which matched Bitcoin’s 5% gains.
Overall still watching how #Bitcoin is going to react at resistance, and especially how $ETH will handle it there.
Cardano (ADA), while dropping several percentage points on the day, was still up 35% compared to the same time last week, making it the top-ten’s best performer.
As part of our mission to build a more fair, accessible, efficient, and transparent financial system enabled by crypto, we actively monitor for security threats not only to Coinbase but to the crypto ecosystem as a whole. As we have discussed in our previous blog posts on industry-wide crypto security threats and airdrop phishing campaigns, malicious activity against any crypto user or business is bad for the industry. That’s why it’s important to have a community mindset when we see security threats in the wild. As they say, rising tides lift all boats.
Recently, our security teams have uncovered ongoing mining pool scams targeting users of self-custody wallets. These scams have primarily leveraged malicious smart contracts on the Ethereum network. Based on blockchain research into known scammer wallets, Coinbase estimates these have resulted in the theft of over $50 million in crypto assets from a variety of non-custodial wallet applications. These scams target those using any decentralized wallet browser (e.g. Coinbase Wallet, Metamask, Trust, etc).
The scam typically follows this chain of events:
Victims are contacted via social media and/or other messaging services by scammers claiming to offer an attractive crypto investment opportunity to stake USDT (Tether) in their wallet for a guaranteed return
Victims are directed to visit a fraudulent website that can only be accessed via a crypto wallet browser or extension. These websites generally contain fake reviews, endorsements, live-feed payouts, and partner lists to add an appearance of authenticity
Scam sites will often fraudulently claim to be sponsored by or partnering with recognizable crypto brands such as Coinbase, Binance, and MetaMask
Example mining pool landing page
Source: Scam Site
Clicking the ‘Receive’ button displays a pop up similar to this
Source: Scam Site
Clicking this ‘Receive’ button will then display a fake pop-up designed to impersonate the Coinbase Wallet interface. The permissions that are displayed are not the true permissions that are actually being requested and are intentionally displayed in a way to attempt to trick users into clicking ‘Connect’
Source: Scam Site
Viewing the smart contract via a trusted token approval checker shows the true permissions being requested. The scammer gains delegated transaction approval status with an unlimited transaction allowance within the victim wallet, meaning the scammer can approve USDT sends of any amount on behalf of this wallet.
Source: etherscan.io
Attackers will remove USDT from the victim’s wallet and the scam site will show that their balance is increasing. Scammers will frequently reassure victims that if they add more funds, they will get more USDT in returns by mining.
At the end of the period, the funds are not returned to the victim and no profits will be received.
If the victim contacts customer support via the fraudulent website, the attacker may indicate they detected irregular activity on the account and that in order to fix that issue, the victim would need to pay additional USDT to ‘release’ the funds. However, no funds are ever returned regardless of whether or not the victim makes payment.
The following security steps can be taken to defend your assets:
Be wary of investments that claim a guaranteed return
Be wary of investment advice and opportunities from unknown or untrusted sources
Do not visit or connect self-custody wallets to any unknown site
Do not hold high value assets in the same wallet used to regularly interact with dapps. Use cold storage or custodial solutions such as the freely available Coinbase Vault.
Use a token approval checker to validate actual permissioning on self-custody wallets and revoke approvals that you did not knowingly authorize.
Coinbase is working with industry partners to take down these sites and developing ways to warn users when visiting known scam sites in order to help limit the damage caused by this type of scam.
It can be overwhelming trying to figure out what to put in your crypto portfolio. Which layer 1 alternatives should you place in there? Is LUNA eclipsing SOL? What is your metaverse play, and do you have any gaming coins?
Not everyone wants to go down the metaverse and gaming rabbit holes, admittedly. There are 100X possibilities, perhaps, but it can feel like a casino, and scratch cards are available if you like gambling, which is not to discourage anyone from playing, but it’s not for everyone.
When it comes to the larger contenders, the layer 1 alternatives, the landscape, although still crowded, becomes a little more inviting. By layer 1 alternatives, what is meant is competitors to Ethereum (less so Bitcoin, which is in a category of its own), that are built to run decentralized applications and handle things like DeFi and NFTs.
Here, you are looking at networks such as Cardano, Solana, Avalanche, Fantom, Cosmos and there are more too. These are names that are big enough that any newcomer will come across them soon enough. And, in terms of what they actually do, that makes sense quickly too. As mentioned, they are, basically, competing with Ethereum (although Cosmos is a little different, as it goes about constructing an internet of blockchains).
You see praise and criticism, and it is not always clear what is true, and what is deliberately meant to steer investors in a certain direction, put out there by commenters with ulterior motives. Cardano is meticulous but takes an age to progress. Solana is speedy but not sufficiently decentralized. Fantom just had a key advisor walk away. And, so on.
It is at this point that you might decide to try some networks out and see how they work. There is nothing better than first-hand experience, but in the end that doesn’t always clear matters up, because the thing is, the contenders all work well.
You pick up some nice-looking NFTs on Cardano and Solana. Play around with the Osmosis DEX on Cosmos. Tour through various DeFi landscapes. All the wallets you’ve downloaded operate smoothly, transactions are quick, sometimes impressively speedy, rarely delayed to any greatly troubling extent.
What you find is, they all seem to function impressively and be solidly put together, and after a while, they even start to feel relatively user-friendly. And, it’s at exactly this point that it can make sense to think about changing direction and becoming a crypto conservative.
To be clear, a crypto conservative’s portfolio contains two things: Bitcoin and Ethereum.
It is instructive to look at snapshots of the top ten (or twenty or thirty) cryptos over the past few years. You’ll notice something. From position three and lower, there is constant change, names come and go, and projects appear, ascend, and then disappear into obscurity.
By contrast, the top two are ever-present and never move, except for their rapidly growing numbers, market cap and price, which constantly spin larger and larger. The top two, of course, are Bitcoin and Ethereum.
In the end, you can’t help but wonder, is it worth investing in crypto aside from these two? Sure, perhaps you can make some quick gains on the small caps and get out when you’re on top. And, then you can put your gains into, well, the top two.
At this point in what may, conceivably, be a critical stage in a global crypto transition, a multitude of projects can be skillfully built out and project all the right signals, but still, is it worthwhile challenging Bitcoin and Ethereum, and what would be the point in doing so? In this field perhaps more than any other, network effects are critical, and by that measure, there is an increasingly unassailable gap opening up.
And, besides which, although we ought to be emotionless and analytical when it comes to investing, it is difficult not to get attached to those top two, on levels that go beyond just investment and returns. Bitcoin created all this, the entire landscape, and its earliest believers are among the most dedicated and driven people around, operating with true conviction from the very start.
And, then there is Ethereum, committed, as much so as bitcoiners are, to decentralization and neutrality, and to the creation of a global computing network that enables fairness and freedom through technology and code.
We must not be overly romantic, but these seem like noble, admirably eccentric enterprises that, self-starting and deliberately out of step with all established, power-wielding structures, just might work. And, if that isn’t worth buying into for the long haul, then I don’t know what is.
Sometimes it appears, simultaneously, that Bitcoin will decentralize money, while Ethereum is decentralizing the web, and that neither of these changes can come a moment too soon. In that case, if you want to peacefully fix what is broken and at the same time have a portfolio you can feel relaxed about, then it pays to be a crypto conservative.
It can be overwhelming trying to figure out what to put in your crypto portfolio. Which layer 1 alternatives should you place in there? Is LUNA eclipsing SOL? What is your metaverse play, and do you have any gaming coins?
Not everyone wants to go down the metaverse and gaming rabbit holes, admittedly. There are 100X possibilities, perhaps, but it can feel like a casino, and scratch cards are available if you like gambling, which is not to discourage anyone from playing, but it’s not for everyone.
When it comes to the larger contenders, the layer 1 alternatives, the landscape, although still crowded, becomes a little more inviting. By layer 1 alternatives, what is meant is competitors to Ethereum (less so Bitcoin, which is in a category of its own), that are built to run decentralized applications and handle things like DeFi and NFTs.
Here, you are looking at networks such as Cardano, Solana, Avalanche, Fantom, Cosmos and there are more too. These are names that are big enough that any newcomer will come across them soon enough. And, in terms of what they actually do, that makes sense quickly too. As mentioned, they are, basically, competing with Ethereum (although Cosmos is a little different, as it goes about constructing an internet of blockchains).
You see praise and criticism, and it is not always clear what is true, and what is deliberately meant to steer investors in a certain direction, put out there by commenters with ulterior motives. Cardano is meticulous but takes an age to progress. Solana is speedy but not sufficiently decentralized. Fantom just had a key advisor walk away. And, so on.
It is at this point that you might decide to try some networks out and see how they work. There is nothing better than first-hand experience, but in the end that doesn’t always clear matters up, because the thing is, the contenders all work well.
You pick up some nice-looking NFTs on Cardano and Solana. Play around with the Osmosis DEX on Cosmos. Tour through various DeFi landscapes. All the wallets you’ve downloaded operate smoothly, transactions are quick, sometimes impressively speedy, rarely delayed to any greatly troubling extent.
What you find is, they all seem to function impressively and be solidly put together, and after a while, they even start to feel relatively user-friendly. And, it’s at exactly this point that it can make sense to think about changing direction and becoming a crypto conservative.
To be clear, a crypto conservative’s portfolio contains two things: Bitcoin and Ethereum.
It is instructive to look at snapshots of the top ten (or twenty or thirty) cryptos over the past few years. You’ll notice something. From position three and lower, there is constant change, names come and go, and projects appear, ascend, and then disappear into obscurity.
By contrast, the top two are ever-present and never move, except for their rapidly growing numbers, market cap and price, which constantly spin larger and larger. The top two, of course, are Bitcoin and Ethereum.
In the end, you can’t help but wonder, is it worth investing in crypto aside from these two? Sure, perhaps you can make some quick gains on the small caps and get out when you’re on top. And, then you can put your gains into, well, the top two.
At this point in what may, conceivably, be a critical stage in a global crypto transition, a multitude of projects can be skillfully built out and project all the right signals, but still, is it worthwhile challenging Bitcoin and Ethereum, and what would be the point in doing so? In this field perhaps more than any other, network effects are critical, and by that measure, there is an increasingly unassailable gap opening up.
And, besides which, although we ought to be emotionless and analytical when it comes to investing, it is difficult not to get attached to those top two, on levels that go beyond just investment and returns. Bitcoin created all this, the entire landscape, and its earliest believers are among the most dedicated and driven people around, operating with true conviction from the very start.
And, then there is Ethereum, committed, as much so as bitcoiners are, to decentralization and neutrality, and to the creation of a global computing network that enables fairness and freedom through technology and code.
We must not be overly romantic, but these seem like noble, admirably eccentric enterprises that, self-starting and deliberately out of step with all established, power-wielding structures, just might work. And, if that isn’t worth buying into for the long haul, then I don’t know what is.
Sometimes it appears, simultaneously, that Bitcoin will decentralize money, while Ethereum is decentralizing the web, and that neither of these changes can come a moment too soon. In that case, if you want to peacefully fix what is broken and at the same time have a portfolio you can feel relaxed about, then it pays to be a crypto conservative.
With the appearance of Metaverse, GameFi projects’ popularity is increasingly growing in the blockchain space whereas Web 2.0 traditional tools seem to be obsolete and not adapted to the Web 3.0 conceptual step up. This instrumental gap is filled by a unique partnership between Secretum and Edensol. Security, transparency, decentralization and immediacy as fundamental values of Web 3.0 meet safety and stability, menaced in other gameFi projects using traditional messengers.
What is Edensol?
Edensol is a revolutionary gaming Metaverse that combines fantasy action with the use of groundbreaking NFTs on the Solana blockchain. It’s play-to-earn gaming, easy to understand, exciting, and fast-paced. The main characters of the game are heroes, warriors, rangers, mages and pets. The value of an NFT character depends on its level of personalization (special cosmetic characteristics, number of types of pets owned etc.), as well as the frequency and success of the battles.
To sell and purchase NFTs players can use NSOL tokens and go trade on the Edensol marketplace. Edensol includes various types of NFTs, among which are heroes, whose value depends on its level of personalization and strength, gear (swords, axes, traps, fireballs, magic spells and battle outfits), eggs and pets.
The prices of these NFTs vary depending on the value of their superpowers, their looks, their not-yet-unlocked potential, and the rarity of their species. Some ultra-rare gear NFT items with completely unique artistic features and effects will be also tradable on secondary marketplaces in the future.
Significant advantages of financial gaming with NFTs in Edensol
A fusion of virtual gaming with NFTs is a confluence of crypto, gaming and money. Gamification of financial systems is disrupting the traditional gaming industry as we know it. It is the next step for the cryptomarket and it has various strengths and advantages. The total value of NFTs rocketing to a new record high of $43 billion in October 2021.
In contrast to traditional gaming, where users play to win, Edensol adopts a play-to-earn model and permits the revenue capacity of NFT, which is proven to be significant.
Edensol takes advantage of the popularity of video games, combined with unique features of cryptocurrencies
Edensol provides verifiable and constant ownership for the players. All data is stored on the decentralized public Solana blockchain, which keeps track of what everyone owns. This means that players, not the game developers, own all of the in-game assets, even if a server is turned off or the gaming company suffers technical downtime. Edensol allows players to maintain ownership of all their in-game items and currency, thanks to tokenization.
The game becomes reality. Due to blockchain technology, Edensol adds real-world value to in-game purchases. Interior tokens and items can be traded for cryptocurrencies and, ultimately, actual cash. When a user creates an in-game account, Edensol automatically creates and links a crypto wallet to that account, which is used to store NFTs, in addition to NSOL and any other cryptocurrency. At any time, players can transfer all their in-game NFTs to their crypto wallets, and then sell them on decentralized marketplaces
These aspects make crypto gaming with Edensol a source of real income for players. It could be a passive income or even a full-time one.
Although blockchain-based crypto gaming is still vulnerable to attacks. Players can lose all of their assets in a hacking incident. For example, a Discord server by NFT marketplace Fractal got hacked, swindling members over $150,000 in crypto assets. And here comes Secretum as a perfect game-changer for crypto trading.
What is Secretum?
Secretum is unique, fully decentralized, end-to-end encrypted and secure trading on the Solana Blockchain. The major innovation of Secretum is enabling the trading of all crypto assets (fungible and NFTs) directly between users, via a hybrid messaging and trading function.
Secretum possesses a completely anonymous and secure sign-up process with only a user’s crypto wallet address. It is DeFi, metaverse compatible, OTC, P2P trading dApp with access to smart public channels. All data is safely stored on the independent and verified nodes in the Secretum network, with no central point of failure.
Secretum is just like Edensol based on the Solana blockchain. So it is fast and cheap, with low fees and instant trades due to Solana’s capability of 50,000 transactions per second and an average cost per transaction of only $0.00025.
As gameFi projects and Edensol, in particular, are sensitive to cyber-attacks Secretum is a perfect detail to solve this problem and ensure the safety of users and their assets from scammers. Secretum provides a safe connection in the web 3.0 world and keeps players’ possessions secure and private.
Edensol + Secretum: complementary partnership
Thus, Edensol will use Secretum dApp to ensure safe and end-to-end communications for users, whereas Edensol will be a perfect addition to the Secretum community as a fantasy metaverse and an actual play-to-earn income possibility, combining fun-packed action with P2E features and the use of collectible NFTs on the Solana blockchain. Edensol community members will benefit from OTC, P2P trading functionality in the Secretum dApp. They will be able to trade their $NSOL tokens and NFT gaming assets without intermediaries.
This highly qualitative partnership allows gamers to avoid scammers. All thanks to verification of $NSOL tokens possession, safety and security of Secretum, a brand new Web 3.0 era messenger and trading solution. Being a solution to most of the insecurity problems of DEXs, Secretum perfectly complements the Solana metaverse and Edensol gameFi project.
Development across the cryptocurrency ecosystem continues to move forward despite the day-to-day whipsaw price movements and this progress is furthering the public’s awareness of Web3 and the value of blockchain technology.
One project that has been climbing the charts amid a marketing push to develop better brand recognition is Fetch.ai, a protocol focused on building a token-based decentralized machine learning network capable of supporting the smart infrastructure being built around the digital economy.
Data from Cointelegraph Markets Pro and TradingView shows that the price of FET has climbed 43.13% over the past two days, rallying from a low of $0.322 on March 21 to an intraday high at $0.46 on March 23 as its 24-hour trading volume underwent a five-fold increase.
FET/USDT 4-hour chart. Source: TradingView
Three reasons for the building interest in Fetch.ai are the launch of a $150 million development fund, plans to further integrate the project into the Cosmos ecosystem and the recent launch of a large-scale marketing campaign.
Fetch.ai launches a $150 million development fund
The biggest news to come out of the Fetch ecosystem was the March 22 launch of a $150 million ecosystem development fund, in conjunction with MEXC Global, Huobi and Bybit, that is aimed at attracting developers and established projects to the Fetch.ai ecosystem.
Ecosystem development funds have become a popular theme across the cryptocurrency community as projects have found them to be a useful way of attracting new projects and users to their protocols in a field that is becoming increasingly crowded and difficult in which to gain traction.
Deeper integration with Cosmos
A second major development bridging increased attention to Fetch.ai has been its ongoing integration with the Cosmos ecosystem and Interblockchain Communication Protocol.
A new governance proposal is live!
This proposal seeks to upgrade the @Fetch_ai chain to Cosmos SDK v0.45 & IBC v2.2.0. With this, we can be enabled on Osmosis DEX/allow IBC transfers between us and other chains like @osmosiszone@cosmos
Fetch officially joined the list of projects that were launching within the interoperability-focused Cosmos ecosystem in February and it is currently in the process of upgrading the Fetch.ai chain to allow IBC transfers between supported networks.
Cosmos has been one of the most active and growing ecosystems over the past six months despite the weakness in the wider cryptocurrency market, which has the potential to benefit Fetch by bringing increased token liquidity and access to a greater pool of investors.
Related: Fetch.ai launches NFT platform for AI-generated art
A renewed marketing push
The third factor helping to increase the awareness of Fetch has been an increased focus on marketing the project to the wider public, including a partnership with Formula 1 driver Alex Albon.
On top of this Formula 1 sponsorship, marketing for Fetch has also begun to appear in highly visible areas, including digital billboards in Times Square, New York, and subway and bus terminal advertisements.
Fetch.ai has also begun to recruit crypto influencers to help increase awareness and it has benefited from being listed on the Voyager app on March 18.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for FET on March 21, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs. FET price. Source: Cointelegraph Markets Pro
As seen in the chart above, the VORTECS™ Score for FET hit a high of 80 on March 21, around one hour before the price increased 42.56% over the next two days.
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.
