ValteFri, Jul 30, 2021 3:00 PM
Weekly Digest: MiamiCoin & Coke NFT Collectibles
Every week we make a digest about the most significant news in crypto with bloggers and crypto community members, but this week we decided to find out what companies’ representatives and media think about all things crypto.
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Amazon has denied the latest news revealed by the British Newspaper City A.M saying it will start accepting Bitcoin as early as before the end of this year. The news leaked as it’s said by “a company insider” also stated that Amazon will roll out its own coin in 2022, but this appeared to be misinformation too. Just after the comments on the fake announcement Bitcoin’s price fell about 7,5%. Though E-commerce giant admitted they’re interested in exploring crypto and will continue doing it. It’s most likely that the fake conclusions were caused by Amazon’s desire to hire cryptocurrency and blockchain lead.
Miami state of USA is planning to issue its own in-house-use crypto only for the residents. Its planned to be named MiamiCoin (MIA) and is supposed to boost the city's economy by injecting millions of dollars. The coin will be created using the CityCoin platform and the city administration will make an agreement with Join Free Hold for the token creation. The plans to create the token were on since June and just became known through the Twitter post. The coin holders will be able to win Bitcoin rewards just by having MIA. It’s expected that issuing digital coin will bring more people to Miami which is also supposed to boost the economy of the city. The economics of the coin was thought of in a way that it will help to solve local problems. For example, 70% of money out of issued coins will go to miners, while 30% will be put to fund a program for fighting homelessness.
“Being the first-ever crypto coin designed for a city, this coin could pioneer a wave of similar coins implemented in various cities across the world. This would fuel crypto adoption.” — Cryptopolitan
Crypto.com published a new study showing the incredible increase in cryptocurrency users from the beginning of this year. The amount of crypto users reached 221 million in June 2021, beating the previous record of 100 million in just 4 months. And it trumped the record of last year when the amount of crypto users grew from 65 million to 100 in 9 months. The increase of users mainly happened thanks to Bitcoin having its massive rally in the first 2 quarters of this year when it reached the price of $65 thousands and started to be adopted by major institutional and corporate players. But there was also a lot happening with the altcoins adoption with popular dog-themed meme coins SHIB and DOGE, with the last one increasing its price over 2000% since January. Same gain got SHIB but in much shorter time, and both cryptocurrencies attracted about 100 million new users in crypto in April.
Cross-chain DeFi protocol ThorChain experienced an exploit that cost it $8 million in losses. At the moment the incident is still being investigated, but the developers concerned it was a “whitehat” attack meaning the hack was done to highlight the insecurities of the platform and the funds are to be returned soon. In the official Twitter the representatives of Thorchain call it the sophisticated attack and say that the hacker purposely limited the damage they can make. The hack was centered around showing the vulnerability of the “ETH Router” and also the hacker left a message saying they took less than it was possible and requested 105 bounty, that ThorChain is willing to pay. Even though, with it being the second attack in a month, it brings serious questions to the safety. Previously another problem was found by the “whitehat” attack. The vulnerability related to ERC-777 token providing more complex functions than the standard ERC-20. And just a week ago ThorChain lost $5 million to the hackers.
“Nonetheless, ThorChain remains defiant in saying this won’t break the project or change its vision.” — Cryptoslate
According to On-Chain data the users have lost about 310 ETH because of the failed mints of Stoner Cat NFTs, which is approximately $700 000 in failed transactions which shows the flaws in Ethereum protocol. In particular, the issue was connected to the possibility of setting the gas limit high enough, and as a result the transactions went into limbo when the miners tried to change the transaction limits. And also in Ethereum even when the limit wasn’t high enough the transaction doesn’t fail unless it runs out so the gas was used even though the transaction wasn’t successful. High gas prices on Ethereum are caused by bad scalability that comes to sight when the number of transactions reaches the network capacity. The fault for the gas limits not being set high enough are on the developers, but also most likely the traffic caused by highly anticipated Stoner Cats NFTs wasn’t processed correctly. The first supply of 10, 420 tokens was sold in record 35 “meow-nutes” and raised 3’647 ETH equivalent to $8,4 million.
“Stoner Cats is an adult animated show about cats who attain a higher level of consciousness and features A-listers, including Mila Kunis, performing the voiceovers. Ethereum co-founder Vitalik Buterin is also featured” — Cryptoslate
A leading e-commerce platform Shopify that allows websites to add storefronts and accept payments has added support for NFTs so the store owners can sell the collectibles directly without relying on the external marketplace. So now the merchants will have more control over the sale and in customer relationships. They can also choose to sell NFT on Flow or Ethereum but it's a promise that soon they will have more choices with other blockchains. The news was revealed by the Shopify president Harley Finklestein who tweeted about it the same day. He also mentioned the NFT drop made by the NBA Chicago Bulls last week calling it one of the first examples of tech being used by a Shopify partner. The functionality now is limited to a selected few partners with the possibility to expand later.
“The NFT market swelled near the start of the year and saw an estimated $1.5 billion in total trading volume in the first quarter of the year.” — Decrypt
Coca-Cola partnered with Tafi that designed the wearables for Coca-Cola’s first ever non-fungible token collectibles for International Friendship day on July 30th. The lot will be auctioned on OpenSea in Tafi-designed digital apparel that can be worn forever in the Decentraland. The 92-hours auction starts on July 30 and the proceeds will benefit special Olympics international. Coca-Cola will present a custom Bubble jacket wearable, sound visualizer and the Friendship Card all designed in collaboration with Tafi.
“Coca-Cola is one of the most collectible brands in the world, sharing its rich heritage with consumers through simple moments of joy for decades, we are excited to share our first NFTs with the metaverse where new friendships are being forged in new ways in new worlds, in celebration of International Friendship Day and in support of our longstanding friend and partner, Special Olympics.” — Selman Careaga, President of Global Coca-Cola Trademark
Bank of Estonia (Eesti Pank) has discovered a blockchain solution that can support an almost unlimited number of payments processed at the same time. They performed an experiment with a blockchain-based digital euro using the same technology as Estonian digital society — a movement to digitize all the government-citizens’ communication, and it caused rather bold claims about the possibilities of the network. In the experiment the participants with digital identities were sending money to Lithuania, Latvia and Spain and the system managed to handle over 300’000 transactions per second with funds reaching the destination in less than 2 seconds.
“This technology does not set any essential limits on the size of the money supply. The system is able to handle the entire supply of euros in circulation and more." — Eesti Pank
Charges upon the third largest cryptocurrency in the world were on for almost a year and now the Department of Justice pays its close attention to Tether and some of the firm executives are being already held accountable. The allegations are raised due to the lack of transparency of the token as the Department of Justice claims that Tether was hiding some of the transitions from the bank and this issue leads to a major investigation. The news published by Bloomberg and the executives of Tether are to be held in charge of this. Tether meanwhile is in constant talk with the law enforcement authorities. Compared to many other cryptos Tether that accounted for about $100 million last month still remains unregulated properly and now the regulatory authorities are going to bring new reforms and regulations to change it.
“USDT is a key component among the crypto industry, as it’s the most widely used stable coin for trade. Especially when it comes to the trade of Bitcoin (BTC)” — The News crypto
The World’s largest crypto exchange plans on hiring a contingent CEO to strengthen some regulatory strategies and to show the company’s dedication to compliance. Changpeng Zhao though ensured that even after recruiting a new CEO his support and dedication to the project won’t change and that there is no plan to replace his position. Binance is also considering creating an alternative leadership community for enhancing its regulatory strategies. As for the new CEO, the person is to be on the post for 5-10 years. The main reason for hiring a new compliance CEO is to revamp and create new regulatory strategies for the organization. Moreover, Binance is planning to get the legal licenses for the exchange in Asia Pacific, Europe, Middle-East, Africa and Latin America, the company also strengthening its KYC measures that will limit withdrawal amount for unregistered users even more.
“With all these smart strategies Binance is heading forward achieving all its regulatory goals for the crypto industry.” — Thenewscrypto
Despite the circling opinion that Bitcoin will break through $40’000 and will start its way to $45’000 resistance, the main crypto remained stagnant below the coveted level. It seems like it’s going in circles trying to break through the $40’000 roof. Altcoins as well were showing indifferent behavior with most of them experiencing slight losses in the last 2 days. But it doesn’t go with RUNE, which has seen an incredible spike in the last couple of days, despite its native network being hacked twice in the last two weeks. The technical analysis says that when Bitcoin breaks through $40’000 it will get a massive boost for the further upsurge, even though it will experience resistance at $40’500. Altcoins don’t show any massive rise, neither loose in the last days showing how tightly they’re tied to BTC.
“Ultimately, the entire crypto market is pegged at $1.6 trillion, a 0.4% drop in its value on Wednesday.” — Blockdesk
The global Payment platform PayPal is looking towards the UK as the next market to expand its crypto trading services. Those ideas come after receiving the info that crypto trading has brought a good revenue to the company. According to Dan Schulman, PayPal CEO U.K is most likely to become the next country where crypto trading will be offered as soon as in the next month. The company is working on extending functionality as well as on open banking integration so it can be connected to ACH (Automated Clearing House – service for the merchants to electronically collect the payments by the direct debit of the checking or credit account) and enable faster payments. Shulman also admitted that PayPal investigates the possibilities of DeFi and the ways smart contracts can be integrated into the system. And also recently there was a leak of the video from EthCC conference in Paris showing that PayPal has been in a long negotiating process with Uniswap and other fintech firms about the DeFi integration.
“How can we use smart contracts more efficiently? How can we digitize assets and open those up to consumers that may not have had access to that before? There are some interesting DeFi applications as well. And so we are working really hard.” — Dan Schulman, CEO of PayPal