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Argo Blockchain and Core Scientific swap bitcoin mining fleets

Argo Blockchain and Core Scientific have agreed to swap thousands of bitcoin miners as part of Argo’s pivot to operating its own crypto mining farms.

The fleet swap agreement published on Monday will see Core take delivery of Argo’s existing Bitmain Antminer S19 bitcoin miners already hosted at Core. This fleet with a capacity of 958 petahashes per second (PH/s) means that Core will be receiving approximately 10,000 units since the maximum hash rate of the Antminer S19 is 95 terahashes per second (TH/s).

Argo, on the other hand, will receive Core’s previously ordered fleet of Bitmain Antminer S19J Pro bitcoin miners with a total capacity of 967 PH/s. Since the S19J Pro has a maximum hash rate of 110 TH/s, Argo will be receiving approximately 9,000 units.

Argo is currently building an 800-megawatt facility in Texas, known as Helios, that could cost up to $2 billion to construct. These S19J Pro miners will be put to work on-site and will represent 60% of the company’s total mining capacity. Argo is also among companies set to purchase Intel’s bitcoin mining chips.

According to the announcement, the fleet swap agreement will lower the publicly traded bitcoin miner’s costs as it moves away from third-party hosting to running its own facilities. In November 2021, Argo announced plans to raise funds for its Helios facility via a public offering.

Argo will receive its bitcoin miner consignments in batches to prevent significant loss of hash rate during the fleet swap process. The delivery process will take place between May and July.

According to The Block Research’s Wolfie Zhao, Core’s operations are likely to suffer even less significant disruptions given that the fleet swap agreement means that it can continue mining with Argo’s hardware already hosted on-site.

“They [Core] are swapping nearly 1EH/s of equipment, which is 9k to 10k S19 miners. Simply unplugging that amount of equipment would take a lot of time,” Zhao added.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Osato Avan-Nomayo

Bitcoin mixing service CoinJoin starts blacklisting BTC tied to illegal activity

Bitcoin mixing service CoinJoin has started blacklisting bitcoin tied to illegal activity in a move derided by some advocates of crypto privacy.

CoinJoin, a bitcoin mixing service that’s part of the privacy-focused Wasabi Wallet, will start blocking bitcoin tagged with certain identifiers, according to an announcement on Sunday.

Mixing services let you obfuscate the transaction history of your coins, allowing users greater privacy but also attracting those seeking to launder stolen bitcoin. The person who hacked Twitter in 2020 and sent out fake giveaway messages from high-profile accounts, for example, sent the loot through CoinJoin, according to blockchain analytics firm Elliptic. Another report showed that the funds from the KuCoin hack flowed through it too.

While CoinJoin has banned such illegitimate use for some time according to its terms and conditions, it’s now taking a more active approach to prevent it.

“We are trying to protect the company and the project by minimizing the amount of these hackers and scammers using the coordinator and getting us in trouble,” according to a Twitter post from a user called Rafe, who was named as part of the Wasabi Wallet developer team in a blog post last year. “This should be in the rights of the company to do but believe me, none of us are happy about this.” 

The blacklisting applies to those using the zkSNACKs coordinator run by the Wasabi team. The coordinator is the machine that organizes the mixing of bitcoin among multiple people’s wallets. The blacklisting doesn’t apply to anyone who uses alternative coordinators, which, as Rafe pointed out, can be set up by anyone.

According to the announcement, the coordinator will reject certain UTXOs from using the service. A UTXO — which stands for Unspent Transaction Output — is essentially what’s created every time someone spends bitcoin. In most cases, it’s what’s left in their wallet after they’ve spent an amount. This means the service can specifically block an amount of bitcoin that was stolen.

Wasabi Wallet founder Adam Fiscor acknowledged that “blacklisting” has arrived to CoinJoin, calling it a major setback to bitcoin’s fungibility — the notion that each bitcoin is interchangeable with any other bitcoin.

Shortly after the announcement, Fiscor reminisced about the “glorious days” when, in 2013, the Bitcoin community pushed back against such blacklisting. In the original post he linked to, the author rallied against these restrictions and instead advocated for mixing services, such as CoinJoin.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Tim Copeland

Standard Chartered’s crypto custodian to help clients earn yield on token holdings

A crypto custody startup spearheaded by financial services giants Standard Chartered and Northern Trust is plotting new products aimed at generating yield for institutional investors.

Maxime de Guillebon, Zodia’s CEO, told The Block in an interview that the business is ready to launch collateral management products that will help big investors generate income on their crypto holdings. Any launch would require sign-off from regulators, but de Guillebon is hoping the products will be live this year. 

“Given the rapid expansion and sophistication of the crypto asset industry, Zodia’s institutional clients are looking for more than spot exposure to digital assets,” said de Guillebon.

He explained that clients are calling for “efficient access to liquidity, leverage and yield” through a range of products familiar in traditional asset classes, such as derivatives, financing, and lending and borrowing services.

Zodia is also exploring staking products — which involve locking up crypto to earn rewards — and connecting clients to DeFi protocols, de Guillebon said, again subject to regulatory approval.

“By expanding our offering and giving clients the opportunity to generate yield, Zodia will be the only crypto asset servicing firm looking to facilitate via crypto native and traditional finance structures,” he added.

Zodia, which currently offers custody of bitcoin and ether, also plans to widen the range of tokens it supports in April, according to de Guillebon.

Scaling crypto

SC Ventures, Standard Chartered’s innovation and ventures unit, partnered with asset servicing giant Northern Trust to begin working on Zodia in December 2020.

The London-based company officially launched a year later, after getting registered by the UK’s Financial Conduct Authority in July 2021. But it had been doing business since October, and was chosen to provide custody services for a new bitcoin exchange-traded product launched by Invesco In November.

Zodia has garnered attention because of the potential scale it could bring to crypto markets. Chicago-based Northern Trust held $12.6 trillion in assets under custody as of December 2021, according to its website. Standard Chartered, a London-based investment bank, operates in 59 countries and employs some 85,000 people.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Ryan Weeks

Ukraine’s NFT collection will be ‘like a museum of the war,’ minister says

Ukraine revealed more details about its mooted plan to raise funds selling non-fungible tokens (NFTs) on Sunday, saying they would feature art representing news stories about its war with Russia.

The NFT collection will be “like a museum of the Russian-Ukrainian war,” Alex Bornyakov, Ukraine’s deputy minister of digital transformation, told The Guardian. “We want to tell the world in NFT format.”

Ukraine has received more than $60 million in crypto donations since launching an appeal last month following Russia’s invasion. Bornyakov tweeted on Friday that these funds have helped to buy thousands of bulletproof vests, packed lunches, medicine items and other supplies for the armed forces.

The government first mentioned a proposal to sell NFTs on March 3 after cancelling a planned airdrop to people who’d donated crypto. 

Bornyakov’s comments to The Guardian imply that Ukraine has been working to perfect its NFTs before releasing them to the world.

“We want it to be cool, good-looking, and it takes time,” he said. 

 

 

 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Andrew Rummer

El Salvador could launch its bitcoin bond next week, but some key details remain unclear

Quick Take

  • An El Salvador official says the country is still considering a timeline between March 15 and March 20 to launch its bitcoin bond, although the war in Ukraine is a factor that could affect the timing.
  • Bitfinex Securities is still waiting for the green light to apply for a license, a crucial step ahead of launching the first bitcoin bond.

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Author: Kristin Majcher

New amendments on EU crypto legislation put forward that could limit proof-of-work cryptocurrencies

Language regarding proof-of-work cryptocurrencies has once again been added to a proposed legislative framework set to be voted by a European Parliament committee on Monday, sparking a new round of controversy. 

As previously reported, the Markets in Crypto-Assets Directive, or MiCA, previously faced industry criticism and pushback after some of the included language appeared primed to outlaw proof-of-work cryptocurrencies, namely bitcoin, over concerns about energy usage. The provisions were ultimately stripped, but according to statements made over the weekend and a newly obtained version of the text, a more watered-down provision appears to have been included once again.

A “compromise” version, also dubbed v9, reviewed by The Block, now states that “Crypto-assets shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.” The European Commission, the EU’s executive branch, would be required to set “minimum environmental sustainability standards for consensus mechanisms used for validating crypto-assets transactions” and “the date or the dates from which the requirement to comply with the minimum environmental sustainability standards takes effect, including a phase-in period.”

“Crypto-assets that are issued, offered or admitted to trading in the Union before [please insert the date of entry into force of this Regulation] shall set up and maintain a phased rollout plan to ensure compliance with such requirements,” the text also states. 

The language further includes a carve-out for “small-scale” networks, and the Commission would be tasked to determine “the conditions under which a consensus mechanism shall be deemed operated on a small scale.”

According to CoinDesk, another compromise version is in flux with softer language than the provision above. 

As expected, the newly released version has sparked more pushback. 

French crypto hardware company Ledger issued a statement on Friday, saying: “Individuals and organizations should be free to choose the technology most appropriate to their needs. Policymakers should neither impose nor discriminate in favor of a particular technology. This is deeply concerning and would have serious consequences for Europe.”

The vote is set to take place on March 14. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Michael McSweeney

Ukraine turns crypto donations into 5,550 bulletproof vests, 500 helmets and more

As millions of dollars in cryptocurrency have flowed into Ukraine, the country has turned such donations into thousands of bulletproof vests, packed lunches, medicine items and other supplies for the armed forces.

Ukraine’s deputy minister of Digital Transformation Alex Bornyakov shared Friday a list of supplies that have been bought since March 1 using funds stemming from those crypto donations. It includes 5,550 bulletproof vests, 410,000 packed lunches and 500 helmets.

“Crypto assets proved extremely helpful in facilitation of funding flows to the Amed (sic) Forces of Ukraine,” said Bornyakov, who has been at the helm of the country’s efforts to secure cryptocurrency.

As much as $100 million worth of cryptocurrency has been donated since Ukraine’s initial donation appeal. Besides different types of digital coins, the government has also received non-fungible tokens (NFTs), notably including CryptoPunk #5364, which sold for tens of thousands of dollars last year.

At least $15 million of those donations had been spent by last Friday, Bornyakov told Bloomberg. The minister also shared with CoinDesk that some weapons suppliers were actually accepting payments directly in crypto.

The same can’t be said about any type of weapon.

“We obviously can’t buy nuclear bombs or rockets,” Michael Chobanian, the chief executive of Ukrainian exchange Kuna.io that has helped the government manage crypto donations, told the Washington Post.

The way Ukraine moved to leverage crypto in the initial days of the conflict has drawn significant attention.

After Russian forces moved into Ukrainian territory, government officials called for donations in crypto and posted addresses on social media. And amid economic sanctions imposed against Russia by numerous countries, Ukrainian leaders have tried to pressure crypto exchanges into banning Russian accounts.

In the US, legislators and regulatory bodies have voiced concerns over whether crypto could be used to evade sanctions, though there have been no definitive signs of this type of action to date.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Catarina Moura

LootLARP is ’embedding’ NFTs into physical objects for a real-life role-playing game 

The bearded man crumpled to the floor, clutching his stomach and steadying himself with his medieval mace. His killer beamed in victory, the weapon — a broadsword made out of foam — still in hand. 

The audience cheered for the victor. The bearded man returned to his feet, steadied his mace, and resumed battle. Foam struck against foam. Shoulders jerked to avoid fake blades as the two men circled each other in the taped-off square arena. 

I have never seen non-fungible tokens (NFTs) used this way before. 

Two people squaring off with a fake sword and mace at a LootLARP event. Photo by MK Manoylov.

In fact, the fight was a live-action role play (LARP). So, no actual death or injury occurred here at this repurposed warehouse in south Denver, Colorado.

I’m in Denver for the Ethereum-focused conference, ETHDenver. I came here hoping to get a sense of the most cutting-edge trends in the Ethereum world. I did not expect any of these to involve Loot. 

In case you don’t remember Loot, it was one of the most talked-about things in crypto for a few weeks in the late summer and early fall of 2021. Enthusiasts were buying Loot NFTs attached to images of nothing but white text on a black background. The text, which included things like “warhammer,” “crown” and “Necklace of Perfection” is supposed to refer to items in a yet-to-be-created fantasy game. 

The Loot hype then seemed to die down almost as quickly as it had taken off. But Loot still has enthusiasts — and some of them have been busy tying the game’s NFTs to real-world objects, for use in a real-world version of the game. 

LootLARP weapons with chips in them. Photo by MK Manoylov.

Live-action Loot

What I have just witnessed was your standard LARP experience — with a web3 twist.

The whole battle arena was put on by LootLARP, an organization that creates physical elements and designs gameplay for Loot. 

Loot itself was born last August when Vine co-founder Dom Hofmann published a link to an Ethereum contract that people could use to create a limited number of “bags” of “randomized adventure gear.” The bags were actually just lists of words.

A Loot NFT.

The simplicity inspired LootLARP’s core contributor, who goes by ndimwit online and prefers to remain pseudonymous. “A Loot NFT is literally just text — it’s the most low-fidelity thing there could be,” said ndimwit. “So I figured, why don’t we try to actually physicalize the universe?”

LootLARP partnered with a Quebec-based manufacturer to create foam role-playing items like swords, maces and magic tomes. And it worked with Kong, a company that primarily makes chips for crypto payment cards, to “embed” NFTs into the items. 

The LootLARP broadsword I had a chance to hold felt about as heavy as a bottle of wine. The firm foam of the blade yielded in my palm when squeezed. On the butt of the sword, the exposed chip looked like a small, black navigational compass with a yellow face. 

The LootLARP team showed me how their app scans LootLARP NFTs, tracks player data and displays quests. The team is still developing LootLARP’s quests and game world as well as methods to privatize user data, but it’s supposed to be finished in time for the NFT NYC conference in June. The plan is to let people use LootLARP’s tech to play at the conference. 

In Times Square, a town crier will direct players to pick up their weapons from the LootLARP truck. Players will then scan the chips in their items. The chips, which the project’s website calls “low-cost, durable, secure elements that can be cryptographically linked to an Ethereum smart contract,” sign transactions that tie the object to the blockchain and confirm that the owner has entered the game’s universe.  

From there, players can tackle various quests, which the LootLARP team is creating to demonstrate various use cases and to quickly create a compelling and cohesive experience, set in the Lootverse,” according to ndimwit

To receive admission to the game, users must mint a so-called Redemption NFT, which ndimwit said is essentially a ticket. They must also have one of the original Loot NFTs, or an mLoot NFT — an offshoot of the original Loot project which stands for “More Loot” — to “activate” their item, according to LootLARP’s website. 

The in-game transaction fees should be low since LootLARP uses Ethereum scaling platform Polygon. Still, ndimwit said the team is considering covering the fees for the NFT.NYC event.

In the true spirit of Loot, the project’s ultimate goal is to let the players build the game. The current LootLARP platform only consists of the chip-enabled physical items and player app, but the team plans to build features in which users can create their own quests.

“What we’re building is essentially like a platform for people to make quests and games for each other, so that they can collectively build the world together,” ndimwit said. 

“Something about [Loot] really captured the spirit of web3 for me, in a way where it’s opening up creative use cases like world-building as a decentralized process,” he says. With LootLARP, “we can do something that’s at the bleeding edge of crypto.”

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: MK Manoylov

Bored Apes creator Yuga Labs acquires IP for CryptoPunks and Meebits

Yuga Labs, the creator of popular non-fungible token (NFT) project Bored Ape Yacht Club, has just acquired the rights to two of the most popular NFT collections on the market.

Yuga Labs announced Friday that it acquired the intellectual property rights of CryptoPunks and Meebits NFT collections from Larva Labs.

“This means that we now own the brands, copyright in the art, and other IP rights for both collections, along with 423 CryptoPunks and 1711 Meebits,” said the announcement, which stated that “the first thing we’re doing is giving full commercial rights to the NFT holders.”

This means CryptoPunks and Meebits holders will be granted the same rights as holders of Yuga Labs’ existing collections. It’s currently working with its legal team to draft new terms and conditions for the holders of CryptoPunks and Meebits.

“By handing over these rights, we’re further aligning CryptoPunks and Meebits with the web3 ethos, and we expect a wide-range of third party developers and community creators to incorporate CryptoPunks and Meebits into their web3 projects. We’ll be building the overall brand right alongside them.”

But CryptoPunks and Meebits won’t necessarily take on the “club” model that BAYC utilizes. Yuga said BAYC will continue to be the central project, while CryptoPunks is a “historic” collection. Indeed, CryptoPunks was one of the first major NFT collections to gain broader attention. Yuga Labs will, however, look to add utility to the CryptoPunks and Meebits collections.

Larva Labs founders Matt Hall and John Watkinson, also the creators of the CryptoPunks and Meebits collections, will remain at Larva Labs. They called Yuga the “ideal stewards” for their early projects to continue on as “vital, thriving projects in the emerging decentralized web.”

Bored Apes and CryptoPunks are the two highest-value collections by market capitalization and floor price, according to CoinGecko data. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Aislinn Keely

Block’s wallet will have a fingerprint sensor, not a screen

Payments firm Block is planning to include a fingerprint sensor in its forthcoming crypto wallet design, according to a Friday product update.

Block first announced its plans to build a hardware wallet in July of last year. At that time, the firm said the wallet would offer multi-signature transactions, which require two or more private keys to sign and send the transaction.  

In October, Block issued the first of its update posts, which would give insight into the development of the product. In that notice, it said it was building a combination of hardware product and mobile application. The idea is that customers will primarily use the app, and leverage the hardware in combination with the app for larger transfers.

Today, the firm issued an additional update post, sharing that the wallet hardware would include a fingerprint sensor as an alternative to passwords and seed phrases. 

“For transactions that require using the wallet hardware, we want our customers to be able to unlock their wallets securely, but with ease – an unlikely combination that historically has not existed in the market,” said the post. “We believe PINs, passwords, and seed phrases are confusing and often not secure given the workarounds normal people have to create given all the friction.”

Consequently, the wallet won’t have a display since users will have “the ease of placing a finger on the sensor rather than manipulating tiny, failure-prone buttons on a difficult-to-read screen,” as the update puts it. Instead, customers will utilize the mobile app for inputs. Block said it plans to share more on the screen-less experience in a future post. 

Still, the firm said it’s aware that some users might want more than a fingerprint standing between a transfer. As Block builds the wallet, it says it will evaluate additional access methods that customers could choose. 

The wallet will also be powered by a rechargeable lithium-polymer battery with a USB-C port charger. 

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Author: Aislinn Keely


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