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Bitcoin funds see $13 million in outflows while ether, XRP buck the trend

Digital asset investment products experienced a $6.5 million net weekly outflow, bucking a trend that saw $742 million pour in over the prior four weeks. 

Bitcoin, the usual frontrunner, experienced outflows to the tune of $13 million. Ether proved to be an exception, drawing in $6.6 million of inflows last week, hinting at a slow sentiment shift for the crypto asset, according to CoinShares’ latest report.

Meanwhile, XRP also showed signs of investor confidence, CoinShares said. Following Ripple’s partial victory in its legal battle with the Securities and Exchange Commission, XRP products saw another $2.6 million in inflows over the last week, now accounting for 8% of current assets under management at providers such as Grayscale, Bitwise and ProShares. Solana, Uniswap and Polygon also attracted minor inflows.

Weekly crypto asset flows. Image: CoinShares.

Weekly crypto asset flows. Image: CoinShares.

Short bitcoin investment products continued a 13-week outflow streak with $5.5 million in outflows last week. The short bitcoin share of total bitcoin investment products under management fell to its lowest level in over a year at 0.4%.

Trading volumes fell below the weekly average to $1.2 billion, compared to $2.4 billion the week before.

Regionally, the North American market was the primary contributor to overall outflows, accounting for nearly 99% ($21 million). However, this was partially offset by $12 million of inflows into Switzerland and $1.9 million into Germany.

The overall reversal in flows comes as bitcoin dropped to its lowest level in a month today, currently trading at $29,177, down 2.4% over the last 24 hours, according to CoinGecko data. Ether fell 1.4% to $1,848 during the same period.

© 2023 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: James Hunt

First Mover Americas: Bitcoin Starts Week in the Red

The latest price moves in bitcoin (BTC) and crypto markets in context for July 24, 2023. First Mover is CoinDesk’s daily newsletter that contextualizes the latest actions in the crypto markets.

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Author: Jamie Crawley, Omkar Godbole

Vitalik Buterin outlines ‘four major risks’ with Worldcoin following token launch

Ethereum co-founder Vitalik Buterin highlighted four potential pitfalls of Worldcoin’s iris-scanning identity verification solution, co-founded by OpenAI CEO Sam Altman, which launched its WLD token earlier today.

Buterin pointed to privacy, accessibility, centralization and security as the major risks associated with Worldcoin’s Proof-of-Personhood (PoP) construction and proposed an alternative solution to mitigate against them in a blog post on Monday.

PoP is a system designed to authenticate the uniqueness of a user in a decentralized way without relying on a central authority or revealing personal information. Use cases include avoiding Sybil attacks by preventing multiple account creation, event tickets, airdrops and DAO voting.

Worldcoin users install an app and have their irises scanned by a device called the “Orb.” The Orb verifies the user’s humanity and iris uniqueness, creating an iris hash. This process results in a unique “World ID” for each user, who can then prove their uniqueness without revealing their specific identity, ensuring privacy and security.

Risks in Worldcoin’s construction

As the Worldcoin project involves iris scanning, it raises substantial privacy concerns, according to Buterin. Even though the system currently only stores hashed versions of iris scans, not the actual images, and aims to protect user identity with ZK-SNARKs and other cryptographic techniques, there is an inherent risk of identity-related information being misused or leaked, Buterin said. “At the very least, if someone else scans your iris, they can check it against the database to determine whether or not you have a World ID. Potentially, iris scans might reveal more information,” he added.

Buterin also had accessibility concerns, with users needing to physically access a Worldcoin Orb to participate, limiting the project’s reach. Unless enough Orbs were created so that anyone could easily access one, it could lead to an imbalance of Worldcoin distribution favoring urban centers where Orbs are likely to be more available. However, Worldcoin has previously highlighted phone number verification as an alternative to the Orb biometric imaging device.

The third risk Buterin put forward was centralization. The integrity of Worldcoin’s Orb hardware device construction can’t be verified, leaving the possibility of backdoors, Buterin said. Even if the software layer is decentralized, the Worldcoin Foundation has the potential to insert a backdoor and create fake human identities, he added. Worldcoin’s governance and proprietary algorithms are further centralization concerns, according to Buterin. Though, “to Worldcoin’s credit, they have also committed to decentralize over time,” Buterin added. 

Finally, the security of the Worldcoin system was also a risk for Buterin. Phone hacking, coercion into scanning irises for someone else, selling or renting IDs and 3D-printed “fake people” used to dupe the scan for World IDs were examples of such risks, Buterin said. Though, these issues are not specific to Worldcoin’s solution.

Buterin did find the concept behind Worldcoin valuable, arguing that not having any proof-of-personhood systems involves risks too. But more progress on the types of systems was needed.

“The concept of proof-of-personhood in principle seems very valuable, and while the various implementations have their risks, not having any proof-of-personhood at all has its risks too: a world with no proof-of-personhood seems more likely to be a world dominated by centralized identity solutions, money, small closed communities or some combination of all three. I look forward to seeing more progress on all types of proof of personhood, and hopefully seeing the different approaches eventually come together into a coherent whole,” Buterin said.

Buterin’s proposed solution

While Buterin said there was “no ideal form of proof of personhood” to address these risks, he suggested combining the three current approaches: social-graph-based, general-hardware biometric and specialized-hardware biometric techniques. Such a solution could provide a decentralized, scalable and privacy-conscious system that is secure against fake identities, he added.

Worldcoin launched its WLD token earlier today. The price of WLD surged 88% following listings on multiple exchanges including Binance, Bybit, OKX and Huobi. Last week, Worldcoin completed its migration to the OP Mainnet, an Ethereum Layer 2 scaling solution.

Worldcoin did not immediately respond to a request for comment from The Block.

© 2023 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: James Hunt

Worldcoin Releases Tokenomics, Report Geofenced for Some Countries

Sam Altman co-founded Worldcoin released its network on Monday.

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Author: Eliza Gkritsi, Oliver Knight

Dogecoin Rises After Twitter Rebranding, Bitcoin Slides to $29K

One analyst pointed out the $27,000 level could be a short-term target for bitcoin amid the lack of positive news.

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Author: Shaurya Malwa

Bitcoin Long-Term Holders Control 75% of Circulating Supply: Glassnode

The balance kept in addresses that hold coins for at least 155 days has increased by $1.87 billion this month.

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Author: Omkar Godbole

Worldcoin’s WLD Token surges 88% after listing on multiple exchanges

Worldcoin’s WLD token has surged 88% after listing on multiple crypto exchanges, as Sam Altman’s crypto project begins its international rollout.

Cryptocurrency exchanges such as Binance, Huobi, Bybit and OKX have listed the token.

The value of Worldcoin’s $WLD surged 88.4% after multiple listings to $3.14 at 5:00 a.m. EDT, according to Coingecko. The token now has a fully diluted valuation of almost $27 billion (a figure calculated from the current price multiplied by the total supply, including tokens that are not yet in circulation).

Worldcoin listed on multiple exchange

Huobi and Bybit have already listed the token and both deposits and trading are available. Bybit will make withdrawals available on Tuesday at 6 a.m. EDT. OKX deposits for WLD were enabled at 3:00 a.m EDT. The exchange stated that, “once token deposit meets requirements, OKX will list WLD/USDT.” Withdrawals for WLD on OKX will be enabled at 6:00 a.m. EDT on Tuesday.

Binance listed the token on Monday, with users able to trade Worldcoin in spot trading pairs WLD/BTC and WLD/USDT from 5:00 a.m. EDT. Withdrawals of WLD on Binance are tentatively set to open on Tuesday July 25 at 5:00 a.m. EDT.

Exchanges such as MEXC, Bitget, BitMart, LBank, Bitrue, Bithumb, KuCoin, have announced WLD listings.

What is Worldcoin?

The company behind Worldcoin is San Francisco and Berlin-based Tools for Humanity. The project was co-founded by Sam Altman, Alex Blania and Max Novendstern in 2019. Users are encouraged to sign up for a World ID via an iris scan using Worldcoin’s “orb.”

So far, the project has 2 million users from its beta period. With Monday’s launch, Worldcoin claim they are scaling up their “orbing” operations to 20 countries across the globe.

© 2023 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: Brian McGleenon

Implications of Ripple-SEC Court Ruling for Wider Crypto Industry Are Unclear: Bank of America

Ripple’s XRP offerings are unique, and the implications of the court’s ruling are difficult to determine, the report said.

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Author: Will Canny

Founder of defunct Midas Investments launches new DeFi investment platform Locus Finance

Iakov Levin, f0under of the defunct custodial crypto investment platform Midas Investments, has launched a new decentralized finance platform.

Locus Finance will give users access to high yield-bearing tokenized vaults, the company said in a statement. Locus will initially offer three yield-bearing products pinned on Ethereum staking, DeFi growth and Arbitrum trading. 

“Investors don’t want to worry about blockchains, protocols, transaction costs, and daily portfolio management,” Levin said in a statement. “They need specific exposure in a set-and-forget style. Vaults represent a unique approach necessary for maturing the retail yield market, allowing for optimal wealth generation for retail investors.”

Founded in 2018, Midas Investments amassed over $250 million assets under management at its height in 2021. However, after market conditions turned in 2022, Midas lost over $50 million.

Levin announced the closure of Midas Investments in December of the same year.

© 2023 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

Elon Musk Rebrands Twitter to X, Spurring Scores of Wannabe Tokens

One token zoomed 1,200% even though its related project closed in May, data shows.

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Author: Shaurya Malwa


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