Decentralized finance (DeFi) The industry has a variety of innovative ways to generate an attractive return on cryptocurrency investments.

In addition to staking and interest accounts, DeFi yield farming is also a way to make your crypto tokens work for you.

What exactly is DeFi yield farming? DeFi yield farming represents a feature provided by DeFi platforms that allows users to earn interest on their dormant digital assets. This mechanism allows you to secure an attractive Annual Percentage Yield (APY) on the tokens you hold.

To do this, you should choose the best cryptocurrency to use in DeFi Yield farming. In this article, we’ll show you everything you need to know about our top picks and what risks you need to consider.

chain link

chain link was one of the best performing cryptocurrencies this month. Despite the struggle of many major crypto assets in the market Chainlink price has seen steady increases in recent weeks. Since the beginning of this month, LINK’s price has increased by 23%.

One of the reasons for the Chainlink price increase is the movement of LINK tokens to exchanges. Technically, a price increase occurs when new LINK supplies hit exchanges and buyers simply snap up the available coins.

LINK’s price is at $7,382 and this unique positive price movement has allowed it to stand out from the crowd this month.

Spirit

Aave is a credit and lending protocol which has gained popularity in the DeFi ecosystem. Users can earn interest on their assets by lending them or borrowing assets using their existing assets as collateral. It is native token AAVEgrants users governance rights and a share of protocol fees.

Aave has continued its upward trend and recorded significant gains throughout the week. Buyers are actively trying to make profits, accounting for 57.27% of the long/short positions.

There is a recent AAVE price review that suggests a price rally opportunity for bulls. They made the most of it and the weekly chart shows a massive rally. However, buying pressure was evident as the RSI quickly rose to 65.

Last month SPIRIT rose 8.75% and is currently trading at $61.18, with a 24-hour trading volume of $60.68 million.

Uniswap

Uniswap has become an innovative DeFi project as it offers opportunities for traders, developers and liquidity providers.

Interestingly, there are quite a few features in its ecosystem. The Uniswap Foundation has provided grants to 40 projects. In fact, a total of $4.5 million in capital was committed. Additionally, over 1 million Polygon LP positions have been opened at the top of the DEX.

Last week UNI traded between $4.45 and $4.46 and is now trading at $4.29.

Five years after its launch, the number of transactions completed on the network has exceeded 200 million. However, Uniswap has seen a decline in trading volume and user activity in recent months.

With only a few days left for the month, Uniswap has recorded $14.85 billion in trading volume, an 80% decline in monthly trading volume since its peak of $73 billion in March. Despite this, Uniswap’s TVL remains stable.

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Gamers around the world have embraced the Play-to-Earn (P2E) revolution. P2E games take the concept of in-game rewards to the next level by integrating blockchain assets. Non-fungible tokens and other blockchain assets have allowed players to take real ownership of their rewards for the first time. Here are the top 10 play-to-earn games you need to know, in no particular order.

1. Sandbox

Sandbox is a popular Metaverse title that takes the concept of digital land development to the next level. The game is divided into thousands of NFTs representing each location. Users can collect, buy, sell and renovate these properties to create unique experiences and generate income.

Source – Sandbox homepage

Sandbox is available on desktop and offers free download and gameplay for new users. This advanced metaverse uses standard ERC-20 protocols and is available on the Ethereum and Polygon networks. The main utility token is SAND, which users must own in order to acquire ownership and interact with the ecosystem.

To learn more about this project, visit our guide to investing in the sandbox.

2. Alien worlds

Alien Worlds is an interstellar journey into the future where you have to search alien planets to find valuable resources. Trillium is the most valuable of these assets to mine. Users can explore six different worlds with unique characteristics.

Interestingly, each planet has its own DAO management, giving it true autonomy. Alien Worlds uses the WAX ​​blockchain, which is specifically designed to handle NFT and gaming applications. There are also over 500 NFT properties that you can trade and build on.

To learn more about this project, visit our guide to investing in alien worlds.

3. Gods Unchained

Anyone interested in NFT trading card games should check out Gods Unchained. Players collect special cards with unique powers and functions. Use the powers of light, deception, nature, death, war or magic to wreak havoc on your opponents and win tokens and collectibles.

Gods Unchained gameplay

Gods Unchained runs on the Immutable X and Ethereum ecosystems. Users can use GODS tokens to gain access to the market and cards. Once you have a nice selection of maps, you can choose battle mode and compete against other players in PvP action while forging NFTs.

To learn more about this project, visit our guide to investing in Gods Unchained.

4. Splinterlands

Another popular trading card style game is Splinterlands. In this title you have to build your deck to achieve more power and control. You can secure additional cards by winning, purchasing, or trading on the in-game market. The winner of these battles will receive Dark Energy Crystals that unlock more powerful attacks and options.

Splinterlands works on Hive, WAX, Ethereum, Steem, Binance Smart Chain and Tron. Therefore, you will find a huge range of assets in this game. The game is free to enter, but participating in competitions requires the purchase of a spell book worth at least $10.

5. Phantom galaxies

Phantom Galaxies is an intergalactic role-playing game set on the Polygon network. Unlike the competition, this triple-A title offers stunning graphics and top-notch first-person gameplay. Users can command mechs and spaceships and fight against opponents.

Phantom Galaxies is currently in testing but is fully playable. Unlike many previous titles, participation is not free. To gain access, a minimum NFT purchase of $5 is required.

6. Galaxy Fight Club

Galaxy Fight Club continues to gain momentum due to its cross-platform capabilities. This game allows you to battle NFTs from across the blockchain space. Imagine pitting a Cryptokittie against a monkey from the Bored Ape Yacht Club.

Source – Galaxy Fight Club Homepage – Play to Earn Games

This structure is cool because it increases the chances of winners. It also allows you to fight with familiar avatars, which is always fun. Players must defeat their opponents in one-on-one battles to earn rewards and collectables.

7. Axie Infinity

Axie Infinity is one of the largest and most successful blockchain-based P2E titles on the market today. Users collect special creatures called Axies. Each of these creatures is represented as an NFT with unique characteristics and abilities.

You build your collection and put it into battle like many other titles on this list. The difference with Axie Infinity is that you can also farm your NFTs to create new, unique combinations. Additionally, there are now properties you can own and develop to increase your power and influence.

To learn more about this project, visit our guide to investing in Axie Infinity.

8. Robot farm

Robots Farm improves the gaming experience by introducing gasless transactions. Robots Farm is a complete gaming ecosystem that includes a powerful DEX to facilitate in-game trading. Users embark on space quests in search of valuable resources such as Freemont to receive rewards.

In particular, Robots Farm integrates DeFi features such as liquidity pools. These low-risk options allow players to improve their results without increasing the risk of loss. Therefore, Robots Farm is a great place for P2E gamers to start their journey into the market.

9. SecondLive

SecondLive is a title that allows you to live a completely different existence in the metaverse. This immersive gaming title begins with you creating a custom avatar to suit your needs. From there you can join the community and engage in a variety of activities, from shopping to relaxing with friends.

SecondLive users achieve ROI opportunities through content creation and sharing. The system allows content creators to generate NFTs and sell or trade them for a profit. This structure has made SecondLive a favorite for content creators looking to explore the metaverse.

10. Wild forest

The Wild Forest P2E title puts your strategic skills to the test against your opponents in an exciting card game. The title allows you to collect and distribute selected resources to improve your chances of survival. Whoever makes the best use of their finite resources will surely achieve victory over their opponents in this title.

The play-to-earn movement is here to stay

Now that you know some of the best P2E gaming titles for those looking to make real profits, you’re ready to expand your repertoire. Nowadays you can convert your victories into real profits.

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Safeth: A newcomer shaking up the crypto scene and Bitcoin’s Fibonacci connection

In the fast-paced world of cryptocurrencies, where innovations and new entrants are emerging at breakneck speed, a new entrant has caught the attention of investors and analysts alike. Safeth, a cryptocurrency with a unique market approach, has been making waves, and some believe it could be the key to understanding the mysterious world of Fibonacci values ​​in Bitcoin.

The cryptocurrency market is no stranger to volatility and cycles, and Bitcoin, as the pioneer and bellwether of the industry, often exhibits patterns that baffle even the most experienced traders. Recently, a theory has emerged that Bitcoin’s price movements follow the Fibonacci sequence, a mathematical pattern known for its prevalence in nature and various aspects of human existence. The bold claim is that Bitcoin could reach its next big goal within the next six months to a year, and Safeth could play a crucial role in this unfolding story.

To understand this fascinating connection, it is important to delve into the analyzes underlying this theory. Elliot Wave analysis, a crowd psychology-based method for predicting market trends, has found that Bitcoin maintains Fibonacci retracement levels with amazing precision. If this theory is true, it means that Bitcoin’s price action may be more predictable than previously thought.

Additionally, the Hurst cycle theory lends further credence to this idea. This theory posits that Bitcoin follows a cyclical rhythm of lows and highs, a pattern that has been consistent since 2015. Notably, every major low was within a logarithmic buy zone, while every cyclical high was within its sell zone. This regularity is both intriguing and puzzling, suggesting a recurring pattern that Safeth may be able to clarify.

One of the tools used to confirm these patterns is the Fisher transform, a technical indicator that shows possible turning points in Bitcoin’s price movements. If the Fisher transform agrees with the proposed theories, it could indicate the presence of another significant turning point in the BTC/USD pair. Some speculate that this could be the last bullish impulse before the current cycle comes to an end.

Safeth’s role in all this remains fascinating. It is a relatively new cryptocurrency on the market, and its unique approach could provide insights into the cyclical nature of Bitcoin’s price movements. As investors and analysts continue to monitor Safeth and his impact on the crypto scene, one thing is clear: the cryptocurrency market is as unpredictable as it is fascinating, and Safeth’s appearance on the scene has added another layer of intrigue to the ever-evolving world of digital currencies.

Retail tokens, the placeholder tokens for $Hbars (the native cryptocurrency of the Hedera Hashgraph platform), have the potential to play an important role in paving the way for the next major bull market in Bitcoin and other digital assets. Here’s how:

1. **Accessibility**: Retail tokens often focus on making cryptocurrencies more accessible to the general public. They are user-friendly and aim to bridge the gap between traditional finance and the crypto space. By simplifying the process of acquiring and using digital assets, retail tokens can attract more retail investors to the market, potentially increasing overall market liquidity.

2. **0% Lending and Flexible Payments**: The 0% lending and flexible payments feature that retail tokens offer can be game-changing. This can encourage more people to use cryptocurrencies for everyday transactions as they don’t have to worry about interest rates or rigid payment schedules. Introducing digital assets into daily life can increase their utility and value.

3. **Double Staking**: Double staking, which involves staking tokens for rewards while providing liquidity to decentralized platforms, can attract investors who want to earn passive income. This may result in a larger proportion of tokens being locked in staking, reducing circulating supply and potentially driving up prices.

4. **Increased Liquidity**: Retail tokens can create liquidity pools that facilitate trading between different digital assets. Making more assets easily tradeable can improve the overall liquidity of the cryptocurrency market. Higher liquidity is often accompanied by lower price volatility and increased investor confidence.

5. **Market Sentiment**: The presence of successful retail tokens can improve investor sentiment. As retail tokens gain popularity and offer valuable features, they may draw more attention to the broader cryptocurrency market, including Bitcoin. Positive sentiment tends to drive prices higher as more investors enter the market.

6. **Innovation and Competition**: Retail tokens can drive innovation in the crypto space. As they compete to provide users with better features and benefits, this may lead to the development of new technologies and improvements across the cryptocurrency ecosystem. This innovation may attract greater interest from institutional and private investors alike.

7. **Educational Initiatives**: Many retail token projects are also investing in educational initiatives to raise awareness about cryptocurrencies and blockchain technology. Educating the public can demystify the crypto market and make it more accessible, which can attract a new wave of investors.

8. **Market Dynamics**: Positive developments in the retail token space may create momentum that impacts other digital assets, including Bitcoin. When investors see gains in one area of ​​the market, they may be more inclined to explore and invest in other assets, increasing demand.

In summary, Safeth’s emergence on the cryptocurrency scene coincides with an intriguing theory that suggests Bitcoin’s price movements follow the Fibonacci sequence. If true, this theory could provide investors with a new tool for predicting Bitcoin’s future price targets. It remains to be seen whether Safeth will be the key to solving this mystery or just another player in the volatile crypto market, but one thing is certain: the crypto world is in for an exciting ride in the coming months.

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Evertwine

Exordium is committed to inclusivity and strives to create a fair and vibrant ecosystem where every player can forge their own path.

Zagreb, Croatia, September 26, 2023 (GLOBE NEWSWIRE) — Evertwine proudly presents its revolutionary approach to play-to-earn gaming, built on four core pillars: integrated tokenomics, NFTs, staking and yield farming, all empowered by advanced technologies become protocols.

These components work together to provide an improved and optimized experience for players and are aimed at both beginners and experts in card game mechanics and blockchain game trading.

Exordium is committed to inclusivity and strives to create a fair and vibrant ecosystem where every player can forge their own path. Whether participants prefer player-versus-environment challenges, intense player-versus-player duels, or a combination of both, Evertwine promises a rich selection of options tailored to all play styles. Importantly, this innovative model maintains the joy of gameplay and community engagement.

Additionally, Evertwine’s open marketplace is a beacon for community-oriented commerce. In this space, players autonomously determine the value of cards and items, allowing them to determine the trajectory of this digital domain.

With the goal of broadening crypto adoption, Evertwine aims to transform blockchain concepts into exciting, real-world experiences. Their goal is to provide users with an effortless and enjoyable journey and benefit from these groundbreaking products.

In a time characterized by fleeting market trends and volatility, Evertwine finds security in the pillars of decentralization, immutability and ownership. Their vision is a harmonious fusion of blockchain and gaming.

Evertwine will strive to achieve the perfect balance between blockchain and gaming

Evertwine recognizes the immense impact of video games on the entertainment sector and believes they provide the foundation for global blockchain adoption. By intricately intertwining blockchain with gaming, Evertwine paves the way for limitless possibilities and exposes players to its profound potential. They invite everyone to explore the world of Evertwine and usher in a new era of play-to-earn gaming.

The story goes on

For a complete experience, learn more about Evertwine:

About Exordium Games

Exordium is a leading developer committed to pushing the boundaries of gaming and blockchain integration and creating experiences that delight, educate and empower users worldwide.

CONTACT: Martin Lisak info-at-exordiumgames.com

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There was recent turmoil in the financial sector when Citibank announced a platform using blockchain technology to convert institutional savings into tokens. This news attracted interest from various quarters, including prominent financial educator and “Rich Dad Poor Dad” author Robert Kiyosaki, who linked it to Bitcoin.

About the platform

Citibank’s entry into tokenization

Citibank’s recent entry into blockchain technology marks a significant shift for the institution. Their new offering, a tokenization service, focuses specifically on cash management in the financial sector.

This latest development is tailored to the individual needs of institutional clients and leverages the features and smart contracts of blockchain technology.

The bank’s announcement provides a deeper insight into the vision behind this initiative. According to the update, Citibank intends for these smart contracts to serve as a modern replacement for long-standing banking instruments such as bank guarantees and letters of credit.

The decision symbolizes not only an adaptation to current technology trends, but also a reaction to the changing dynamics of the financial world. At its core, Citibank’s strategy revolves around recognizing and meeting the growing demand for “always-on” and flexible financial services.

TIts demand comes at a time when businesses are operating globally and the need for instant transactions is paramount. To address this issue, Citi Token Services is poised to change the way institutions handle their finances.

The service promises to enable uninterrupted cross-border payments, ensure liquidity and provide automated trade finance solutions, all available 24/7.

Kiyosaki’s request and the crypto community’s response

Kiyosaki’s query on the The crypto community reacted quickly and dismissed any looming threats to Bitcoin due to Citibank’s tokenization initiative.

See more

Goodbye Bitcoin and US Dollar? Citibank announced today that it is offering banking blockchain technology to convert institutional savings into Citibank tokens that can be used for instant, 24/7 cross-border transactions. Bye BC & US$?

— Robert Kiyosaki (@theRealKiyosaki) September 26, 2023

Shivam Sharma, an X Platform user, highlighted Bitcoin’s unique value proposition, noting that Citibank’s tokens are essentially digital ledgers. He suggests they operate in a different space than Bitcoin, which has carved out its niche as a decentralized currency.

Another user named Happenings NFT said:

A software is not an asset and other banks do not trust other banks. Banks will need a third party to enable instant cross-border payments because they don’t trust each other. This is why JPM coin didn’t work.”

Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Featured image from iStock, chart from TradingView

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This is our ninth monthly bulletin for 2023, aiming to help companies identify important and significant legal developments governing the use and acceptance of blockchain technology, smart contracts and digital assets.

While the use cases for blockchain technology are vast, this bulletin will be primarily on the use of blockchain and or smart contracts in the financial services sector. With respect to digital assets, we have organized our approach to this topic by discussing it in terms of traditional asset type or function (although the types and functions may overlap), that is, digital assets as:

• Securities
• Virtual currencies
• Commodities
• Deposits, accounts, intangibles
• Negotiable instruments
• Electronic chattel paper
• Digitized assets

In addition to reporting on the law and regulation governing blockchain, smart contracts and digital assets, this bulletin will discuss the legal developments supporting the infrastructure and ecosystems that enable the use and acceptance of these new technologies.

INSIGHTS

SEC settlement with Stoner Cats may signal agency’s intent to assert its authority over unregistered securities in the NFT space

By: Eric Hall

The SEC has announced it has brought and settled charges against Stoner Cats 2 LLC (SC2), the company behind Ethereum-based NFT project Stoner Cats – a generative collection of 10,420 illustrated cat themed NFTs that SC2 minted in July 2021 to fund its production of the eponymous animated web series. The project raised roughly $8 million and produced six episodes, featuring A-list celebrity talent, that can only be viewed by owning a Stoner Cats NFT. Read more.

IRS and Treasury issue proposed regulations outlining new digital asset reporting regime

By Tom Geraghty and Kali McGuire

Enacted in November 2021, the Infrastructure Investment and Jobs Act expanded Section 6045 of the Internal Revenue Code to require tax reporting by brokers of transactions involving the sale or exchange of digital assets. Nearly two years later, on August 25, 2023, the IRS and Treasury Department promulgated proposed regulations that clarify and adjust the rules regarding the tax reporting of information by brokers, so that brokers for digital assets are subject to the same information reporting rules as brokers for securities and other financial instruments. While DLA Piper is preparing a thorough client alert on the proposed regulations, below are some of the highlights. Read more.

Federal court dismisses putative class action against DEX developer Uniswap Labs: key takeaways

By Eric Hall

On August 30, the US District Court for the Southern District of New York dismissed a putative class action against Uniswap Labs, Inc., the developer behind one of the most popular decentralized exchanges (DEX) on the Ethereum blockchain, as well as the company’s CEO and founder, the Uniswap Foundation, and several high-profile VCs and shareholders of Uniswap. The lawsuit also targeted some large “liquidity providers,” ie, entities that had deposited substantial quantities of virtual currencies into the DEX so that traders could buy and sell into their liquidity pools. Read more. 

STATUTORY AND AGENCY DEVELOPMENTS

FEDERAL DEVELOPMENTS

Commodities

Coinbase receives NFA approval as an FCM. On August 16, Coinbase announced that the National Futures Association (NFA) approved Coinbase to operate a Futures Commission Merchant (FCM) and offer eligible US customers access to crypto futures. Eligible US users can now trade futures on the platform. Coinbase asserts that it “will now be the first crypto-native leader to offer access to regulated, leveraged and cash-settled crypto futures.”

CFTC GMAC to hold meeting on digital asset markets. The CFTC announced that on October 5, from 1:00 pm to 5:00 pm Eastern, the Global Markets Advisory Committee (GMAC) will hold an in-person meeting for GMAC members at the CFTC’s Washington, DC headquarters, with options for the public to attend in-person and virtually. At this meeting, the GMAC will hear a presentation from the GMAC’s Digital Asset Markets Subcommittee on the Subcommittee’s workstreams involving industry standards and best practices for tokenized asset markets, the regulation of non-fungible tokens (NFTs) and utility tokens, and identification of other issues to address in digital finance and tokenization of assets, non-financial activities and Web3, and blockchain technology and consider recommendations from the Subcommittee on such workstreams. Written statements from the public will be accepted through the CFTC website on or before October 12, 2023.

CFTC issues new proposed rules. On September 6, the CFTC issued a notice of proposed rulemaking to amend regulations under the Commodity Exchange Act (CEA), in part, to allow self-certification of entities, and to allow registered entities to submit new products for trading and clearing, which may include cryptocurrency and other digital asset derivatives, and virtual currency futures. Comments to the proposed rules must be received on or before November 6.

OFAC

Federal court upholds OFAC designation of Tornado Cash. On August 17, 2023, the US District Court for the Western District of Texas granted summary judgment for the US Treasury Department in a case brought by users of Tornado Cash, a so-called cryptocurrency mixing service that allowed users to obscure the movements of cryptocurrency on the blockchain. The order affirms a decision by the Treasury Department’s Office of Foreign Assets Control (OFAC) to add Tornado Cash to its Specially Designated Nationals list. Being added to the Specially Designated Nationals list means that Tornado Cash would be effectively inaccessible in the US. According to OFAC, Tornado Cash had been used to launder money cybercriminals had stolen in high-profile hacks, including $455 million stolen by the Lazarus Group, a DPRK-affiliated hacker ring. Read more.

Federal Reserve

FRB seeks authority over stablecoins. In a speech at the Federal Reserve Bank of Philadelphia Annual Fintech Conference on September 8, Federal Reserve Board (FRB) Vice Chair for Supervision Michael S. Barr discussed FRB prior guidance for banks to obtain a supervisory non-objection before issuing, holding, or transacting in “dollar tokens,” but noted that this guidance only covers activities of banks over which the FRB has supervisory authority. Barr asserted that “big risks” exist when the FRB “does not have direct supervisory and regulatory authority. … [S]tablecoins are a form of money, and the ultimate source of credibility in money is the central bank. If non-federally regulated stablecoins were to become a widespread means of payment and store of value, they could pose significant risks to financial stability, monetary policy, and the US payments system.” Barr added that the FRB looks forward to further engaging with Congress to ensure a “robust federal framework.”

Securities

SEC Chair Gensler testifies that crypto industry is “rife with misconduct.” On September 12, SEC Chair Gary Gensler testified before the US Senate Committee on Banking, Housing, and Urban Affairs on a variety of topics, including the virtual currency and digital asset industry. Noting that the cryptocurrency industry is becoming increasingly interconnected with the traditional financial system, he stated that he had “never seen an industry so rife with misconduct.” Warning that the lack of regulation is a source of risk for investors and the financial system as a whole, Gensler said the SEC is working to bring more clarity and transparency to the cryptocurrency industry through enforcement actions, rulemaking, and education. Specifically, he pointed to enforcement actions against a number of cryptocurrency companies for fraud and other violations and previewed rules that would require cryptocurrency exchanges to register with the agency and to comply with certain requirements, such as know your customer (KYC) and anti-money laundering (AML) procedures. Gensler also testified that the SEC is considering whether to regulate certain cryptocurrency products, such as stablecoins. Notably, Senator Sherrod Brown (D-OH), Chair of the committee, agreed with Gensler’s characterization of the industry. “The problems we saw at FTX are everywhere in crypto,” Senator Brown commented. The Senator’s remarks suggest meaningful consensus on pending crypto legislation is unlikely in this Congress.

FBI

FBI warns of scams regarding NFT developers and crypto recovery companies. The Federal Bureau of Investigation (FBI) published the following two public service announcements warning of scams involving non-fungible tokens (NFTs) and cryptocurrencies:

STATE DEVELOPMENTS

Virtual currency

NYDFS updates virtual currency guidance. On September 18, the New York Department of Financial Services (DFS) announced, effective immediately, a new General Framework for Greenlisted Coins, and also issued for public comment updates to DFS guidance regarding listing of virtual currencies. This updated guidance sets forth the following expectations for which DFS is seeking public comment:

• Heightened risk assessment standards for coin-listing policies and tailored, enhanced requirements for retail consumer-facing products or service offerings and
• New requirements associated with coin-delisting policies.

Public comments must be submitted to innovation@dfs.ny.gov and will be accepted until October 20.

INDUSTRY DEVELOPMENTS

NFTS

OpenSea disables NFT royalty enforcement tool. On August 17, OpenSea announced that, starting August 31, it has moved to optional creator fees by sunsetting its royalty enforcement tool, OpenSea Operator Filter and, for those that used the filter through that date, it will enforce royalties on all secondary sales through February 29, 2024, after which fees will become optional. According to the announcement, “creator fees aren’t going away – simply the ineffective, unilateral enforcement of them.” In response to this announcement, Yuga Labs stated, “Yuga Labs will begin the process of sunsetting support for OpenSea’s SeaPort for all upgradable contracts and any new collections, with the aim of this being complete in February 2024 in tandem with OpenSea’s approach. For as much as NFTs have been about users truly owning their digital assets, they’ve also been about empowering creators. Yuga believes in protecting creator royalties so creators are properly compensated for their work.”

Digital assets

FASB updates rules for accounting of cryptocurrencies and digital assets. On September 6, the Financial Accounting Standards Board (FASB) tentatively voted to finalize updates to FASB accounting standards requiring companies to account for digital assets at fair market value on the balance sheet, capturing price fluctuations and recording gains and losses on the income statement; and expanding disclosure requirements, including cost basis, restrictions on sale, and reconciliation of cryptoasset activity. The updated standards apply to cryptocurrencies such as bitcoin and ether, and to stablecoins backed by fiat currencies. However, the updated standards will not apply to non-fungible tokens (NFTs) and tokens representing a claim on other digital assets. The updated standards will take effect for fiscal years beginning after December 15, 2024.

Swift reports successful blockchain experiments. On August 31, the Society for Worldwide Interbank Financial Telecommunication (Swift) announced the release of results from a series of experiments “that show its infrastructure can seamlessly facilitate the transfer of tokenised value across multiple public and private blockchains.” Swift worked with several major financial institutions and a leading Web3 services platform to conduct the experiments which “successfully demonstrated that [Swift] can provide a single point of access to multiple networks using existing, secure infrastructure” and “that existing Swift infrastructure can provide a secure, scalable way for financial institutions to connect to multiple types of blockchain.”

ENFORCEMENT ACTIONS AND LITIGATION

FEDERAL

Securities

SEC brings a first enforcement action against an NFT project. On August 28, the SEC announced it had brought and settled an enforcement action against Los Angeles-based entertainment company Impact Theory for alleged unregistered offering of crypto asset securities in the form of NFTs marketed by the company as” Founders Keys.” The SEC enforcement action is the first of its kind against an NFT project. In its order, SEC alleged that Impact Theory raised approximately $30 million through sales of its NFT, and that the company encouraged buyers to view their purchase as an investment in “the next Disney.” The company promised its holders “tremendous value, telling them, “If you’re paying 1.5 [ETH], you’re going to get some massive amount more than that.” They further told buyers that, “as Impact Theory is enriched, as [its founders] are enriched, as our team here at Impact Theory is enriched, that you guys also are enriched.” The order alleges violations of Section 5 of the Securities Act and requires Impact Theory to pay more than $6.1 million in disgorgement and civil penalties. Impact Theory also must destroy all NFTs in its possession, publish notices of the order on its social media, and forgo royalties from any secondary trading.

Commissioners Hester Pierce and Mark Uyeda dissented from the settlement, disagreeing with the SEC’s application of Howey, the Supreme Court’s oft-cited test for an “investment contract.” Though the dissenting commissioners shared the agency’s concern about this NFT project and the bold promises Impact Theory made buyers, Commissioners Pierce and Uyeda rejected the notion that these promises rendered the NFTs “investment contracts” requiring registration under the Securities Act. They further questioned whether enforcement was appropriate given that Impact Theory had already offered its holders refunds of their purchase prices.

DC Circuit reverses SEC’s rejection of Grayscale Bitcoin ETF. In Grayscale Investments, LLC. v. Securities and Exchange Commission, 2023 WL 5536704 (Ct. App. DC, August 29, 2023) the US Court of Appeals for the DC Circuit issued a unanimous decision on August 29 reversing the SEC’s rejection of Grayscale’s application to list its spot bitcoin exchange traded product (ETP) and finding that Grayscale had presented substantial evidence that it was similar to other SEC-approved bitcoin futures ETPs. Specifically, the court held that the SEC’s denial of registration was “arbitrary and capricious” as the SEC “failed to explain its different treatment of similar products.” The SEC is now required to again review Grayscale’s application taking into consideration the court’s opinion.

SEC settles charges against Linus Financial without civil penalties. On September 7, the SEC announced that it had settled charges against Linus Financial, Inc. for its failure to register offers and sales of its virtual currency lending product. Notably, SEC declined to impose civil penalties because of the “company’s cooperation and prompt remedial actions.” According to the SEC’s order, Linus Financial started offering “Linus Interest Accounts” in the US promising investors interest on their cash deposits. To generate that interest, Linus converted the deposited cash into virtual currencies, then used it to provide liquidity on decentralized exchange platform which generated protocol fees and yield. In March 2022, Linus became aware of an SEC enforcement action against a similar product and voluntarily ceased offering Linus Interest Accounts and instructed customers to withdraw funds. The SEC’s order does not impose civil penalties but enjoins Linus Financial from further violation of the Securities Act.

NFTs

Former OpenSea employee sentenced for NFT insider trading. On August 22, DOJ announced that Nathaniel Chastain, a former product manager at NFT marketplace OpenSea, was sentenced to three months in prison for insider trading. Chastain used his knowledge of which NFTs would be featured on OpenSea’s homepage to buy them before they were listed, and then sell them at a profit after they were featured. This is the first time that anyone has been sentenced to prison for insider trading in digital assets. The US Attorney for the Southern District of New York, said that Chastain’s crime “shows that even in the world of cryptocurrency, fraudsters will be held accountable.” He added that the sentence should “send a strong signal to all participants in the digital asset markets that the laws decidedly do apply to them.” For more information on the case, see our July 2023 issue.

Commodities

CFTC settles charges against three DeFi protocols. On September 7, the CFTC announced it had brought and settled charges against three DeFi protocols, Opyn, Inc., ZeroEx, Inc., and Deridex, Inc. Each were charged with violating the Commodities Exchange Act and CFTC regulations. Deridex and Opyn allegedly failed to register as swap execution facilities, designated contract markets, or futures commission merchants, even though none of them were alleged to have accepted funds or otherwise benefited from the protocols. They further allegedly failed to adopt customer identification programs in compliance with the Bank Secrecy Act. While Opyn attempted to block US IP addresses, CFTC found those steps insufficient. And Deridex allegedly took no such steps to block US users. All three protocols, including ZeroEx, were charged with offering illegal leveraged and margined retail commodity transactions in digital assets. Commenting on the orders, Director of Enforcement Ian McGinely stated, “Somewhere along the way, DeFi operators got the idea that unlawful transactions become lawful when facilitated by smart contracts. They do not.” Opyn, ZeroEx, and Deridex have been ordered to pay $250,000, $200,000, and $100,000 respectively. The CFTC claimed that its civil penalties were reduced in recognition of each protocol’s cooperation with the Division of Enforcement.

Money transmission

Regulation by indictment: DOJ charges Tornado Cash founders – key takeaways. On Wednesday, August 23, 2023, in a joint press release, the Department of Justice, FBI, and US Attorney’s Office for the Southern District of New York announced they had indicted Roman Storm and Roman Semenov, two of the three founders of Tornado Cash, the once popular cryptocurrency mixing service. On the same day, the OFAC also sanctioned Semenov and eight cryptocurrency wallet addresses belonging to him. The third founder already faces trial in the Netherlands following his arrest a year ago. The indictment charges conspiracy to commit money laundering, conspiracy to violate sanctions, and conspiracy to operate an unlicensed money transmitting business in connection with the founders’ creation, operation, and promotion of Tornado Cash. Read more.

Virtual currency

OneCoin co-founder sentenced to 20 years. On September 12, the US Attorney’s Office for the Southern District of New York announced Karl Sebastian Greenwood was sentenced to 20 years in prison and ordered to pay $300 million in forfeiture. Greenwood was the co-founder of OneCoin, a fake cryptocurrency that claimed to have a $4 billion market capitalization. OneCoin was marketed as a “new bitcoin” but had no real value. The scheme collapsed in 2017 after investors began to realize that OneCoin was not a real cryptocurrency. Greenwood and his co-founder, Ruja Ignatova, aka the Cryptoqueen, conned investors in 175 countries out of billions of dollars through a multi-level marketing scheme. Greenwood was arrested in Thailand in 2018 and extradited to the United States in 2020. He pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. In sentencing Greenwood, the court said he had “orchestrated one of the largest fraud schemes ever perpetrated,” adding that Greenwood’s crimes had “devastated countless victims around the world.” Cryptoqueen Ruja Ignatova, who is wanted by the FBI and Interpol, is still at large. For more information on OneCoin, see our April 2023 issue.

Bitcoin-for-cash exchange founder pleads guilty to AML failures. The US Attorney’s Office for the Central District of California announced on September 5 that Charles James Randol, owner of California-based Digital Coin Strategies LLC, a cryptocurrency-to-cash exchange company, agreed to plead guilty for failing to maintain an effective AML program. Randol is accused of allowing his company to be used by scammers and drug traffickers to launder millions of dollars in criminal proceeds through in-person transactions and a network of automated kiosks throughout Southern California that converted cash to bitcoin and vice versa. Though he advertised compliance with the Bank Secrecy Act and registration with the Financial Crimes Enforcement Network, he repeatedly violated the requirements of both. Randol faces up to five years in federal prison.

Former New Jersey corrections officer charged with cryptocurrency fraud scheme that targeted law enforcement. On August 23, the USAO for the District of New Jersey announced that a former New Jersey corrections officer was arrested and charged with orchestrating two different fraud schemes, including a cryptocurrency scheme that resulted in losses of more than $600,000 from more than 200 investors. The criminal complaint charges John DeSalvo with two counts of wire fraud, two counts of securities fraud, and two counts of money laundering related to the two fraud schemes. In one scheme, DeSalvo allegedly targeted law enforcement and first responders to invest in a so-called “crypto pension” called Blazar Token that he falsely claimed was SEC-approved and listed on cryptocurrency exchanges. DeSalvo used the proceeds to pay off earlier investors and fund personal expenses. He is also alleged to have used false testimonials from purported law enforcement officials to promote the investment. In the other scheme, DeSalvo allegedly solicited $100,000 from 20 individuals for a fake investment group on the Brokerage-1 platform. After converting the funds to his own private accounts, he generated fake trading records to convince investors that their money had been lost due to market conditions. DeSalvo faces up to 20 years in prison for each of the wire fraud, securities fraud, and money laundering counts plus fines up to $5 million. The SEC has brought civil charges against DeSalvo on the same conduct.

Pennsylvania man sentenced to three years in prison for cryptocurrency fraud and extortion scheme. On August 18, the USAO for the Northern District of California announced that Anthony Francis Faulk was sentenced to 36 months in prison for his role in a conspiracy to defraud more than a dozen cryptocurrency owners. The scheme involved “SIM swapping,” in which Faulk and his co-conspirators duped cellphone companies into giving them control of victims’ cellphone numbers, which they then used to hack into email and other victim accounts, and ultimately steal the victims’ cryptocurrency or digital assets. Faulk also admitted to extorting cryptocurrency from victims by threatening to release their private information online. He pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit extortion. The court ordered forfeiture of more than $20 million in ill-gotten gains and ordered Faulk to pay $2,816,433 in restitution to 11 victims of the scheme.

Banking

Federal Reserve issues enforcement action with Farmington Bank. On August 17, the Federal Reserve Board announced an enforcement action against Farmington State Bank and its holding company, FBH Corporation. The FRB alleges that Farmington changed its business plan without notifying the bank’s supervisors and obtaining prior FRB approval for those changes. Specifically, the Order to Cease and Desist Issued Upon Consent explained that Farmington entered “into a non-binding memorandum of understanding with a third party whereby the Bank committed to ‘work with’ the third party ‘to design the necessary IT infrastructure’ to facilitate the third party’s issuance of stablecoins to the public in exchange for receipt of 50 percent of mint and burn fees on certain stablecoins, and took material steps to implement that memorandum of understanding. The FRB asserts that its action “ensures the bank’s operations will wind down in a manner that protects the bank’s depositors and the Deposit Insurance Fund.” Farmington had previously announced the voluntary sale of its loans and deposits to the Bank of Eastern Oregon.

SPOTLIGHT ON INTERNATIONAL DEVELOPMENTS

Singapore: Monetary Authority finalizes stablecoin regulatory framework. The Monetary Authority of Singapore (MAS) announced on August 15 the features of a new regulatory framework “that seeks to ensure a high degree of value stability for stablecoins regulated in Singapore.” The framework will apply to “single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currency, that are issued in Singapore.” Issuers of SCS will be required to fulfill key requirements related to value stability, capital, redemption at par and disclosure.

UK: FCA adopts travel rule. On August 17, the UK Financial Conduct Authority (FCA) announced that, from September 1, cryptoasset businesses in the UK will be required to collect, verify, and share information about cryptoasset transfers, known as the “Travel Rule.” The FCA established its expectations that UK firms “take all reasonable steps and exercise all due diligence to comply with the Travel Rule … even when using third-party suppliers,” including when sending and receiving a cryptoasset transfer to/from a jurisdiction without the Travel Rule.

IOSCO report outlines recommendations for regulation of DeFi. The International Organization of Securities Commissions (IOSCO) announced the release of Policy Recommendations for Decentralized Finance (DeFI) Consultation Report. The Report provides recommendations and guidance with a focus on identifying those who should be responsible for investor protection and market integrity, such as founders and developers, those who profit from the protocol, and those who have access to insider information. The Report suggests that regulators carefully examine any “claim” that the protocol is “purportedly” decentralized to the point that no persons/entities are responsible. The recommendations are:

• Analyze the products, services, arrangements, and activities to assess the appropriate regulatory response
• Identify “responsible persons”
• Achieve common standards of regulatory outcomes
• Require identification and addressing of conflicts of interest
• Require identification and addressing of material risks, including operational and technology risks
• Require clear, accurate, and comprehensive disclosures
• Enforce applicable laws
• Promote cross-border cooperation and information sharing
• Understand and assess interconnections among the DeFi market, the broader crypto-asset market, and traditional financial markets.

Alongside the report, IOSCO has opened a “public consultation” period during which the organization is seeking comments until October 19. Comments on the consultation paper should be sent to DeFiconsultation@iosco.org.

FSB and IMF report on approach to risks associated with cryptoassets. On September 7, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) announced the publication of a joint report “outlining a comprehensive policy and regulatory response to crypto-asset activities.” The report illustrates macroeconomic and financial stability implications of cryptoasset activities and encourages implementation of the Financial Action Task Force (FATF) AML/CFT standards. The report finds that, to address macroeconomic risks, jurisdictions should safeguard monetary sovereignty and strengthen monetary policy frameworks, guard against excessive capital flow volatility, and adopt unambiguous tax treatment of cryptoassets. The report sets out a roadmap “to ensure the effective implementation of the FSB’s and IMF’s recommendations and standards.”

RECENT EVENTS

Global Digital Forum – Adapting to a digital future for real world assets and content, taking place September 28, 2023, brings together leading representatives from government, regulatory bodies, and international business to discuss the implications from operating in the new digital environment and how this is likely to change the way products and services are structured, traded, held, and delivered in global markets and economies. Margo Tank will speak on the panel, “The regulatory outlook for real world assets,” and James Williams will speak on the panel, “The opportunities and challenges created by a new US framework.”

DLA Piper secures litigation win for Curve DeFi developer Michael Egorov

The Legal 500 ranks DLA Piper Tier 1 in FinTech: Crypto. DLA Piper was also ranked in Tier 2 for FinTech, and Margo Tank was ranked as a “Leading Individual.”

DLA Piper’s Commodities, Digital Assets, and Carbon Compliance and Enforcement team draws on decades of collective experience in the commodities and securities industry to help companies navigate new and complex commodities enforcement matters, including those related to agriculture, metals, energy, digital assets, and carbon/sustainable commodities, among others.

DLA Piper attorneys presented at the following events:

• Creating and monetizing carbon assets for financing, trading, and retirement, July 26, 2023, with Drew Young and Deanna Reitman.
• Cryptoassets: Emerging legal trends in common law and civil law jurisdictions. How international courts are dealing with cryptoasset disputes, June 20, 2023, panel chaired by Christina Sharma and Michael Fluhr, with speaker Ewald Netten, Dan Jewell, Andrea Pantaleo, Matthew Miller and Deborah Meshulam. Key takeaways from the webinar may be found here.
• NFT legal overview: Copyright, trademark, and Uniform Commercial Code (Articles 2 & 12) [Part I], available on demand, with Tom K. Ara.
• NFT Legal Deep Dive: Copyright, trademark, and Uniform Commercial Code (Articles 2 & 12) [Part II], available on demand, with Margo Tank and Gina Durham.
• NFT Legal Deep Dive: Securities law, entertainment unions, and licensing [Part III], available on demand, with Martin Bartlam, Katherine Imp and Michael Fluhr.

PUBLICATIONS

Cryptocurrency and Digital Asset Regulation, published by the American Bar Association and co-edited by Deborah Meshulam and Michael Fluhr, includes chapters by Meshulam and Fluhr and by Margo Tank.

Terms of Service Are Instrumental in Determining Rights to Digital Assets – The Holding in Celsius Network LLC, published in The Computer & Internet Lawyer, May 2023, by Margo Tank, David Whitaker, Liz Caires and Emily Honsa Hicks.

Digital Digest, the inaugural edition of our bi-monthly newsletter from Martin Bartlam, Dan Jewell, Sam Gokarn-Millington, and Marina Troullinou of the UK DLA Piper Finance and Litigation teams. Digital Digest provides updates on key issues to be considered when doing business in the digital and crypto space in or from the UK.

Read

Action on 2022 amendments to the Uniform Commercial Code – South Dakota governor vetoes act

Supreme Court opens door to challenging FTC and SEC in district court

SDNY holds NBA Top Shots NFTs might be unregistered securities under Howey

US Supreme Court: Interlocutory appeals of denials of motions to compel arbitration automatically stay district court proceedings

Contacts

Learn more about our Blockchain and Digital Assets practice by contacting any of our editors:

Margo Tank
James Williams
Liz Caires
Eric Hall
Martin Bartlam

Contributors to this issue

Michael Fluhr

Tom Geraghty

Kali McGuire

The editors send their thanks and appreciation to Marc Aronson and Raymond Janicko for their contributions to this and prior issues.

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This article contains referral links. Learn more.

In the collective memory, DeFi or decentralized finance represents one of the most resonant trends in the cryptocurrency space.

After the “Defi mania” that peaked between 2020 and 2021, there were many voices in the industry calling an end to the golden age of these platforms.

However, recent signs suggest that DeFifar from having died and without the desire to be forgotten, could be on the eve of a rebirth.

Interest in DeFi has not gone away

If we go to the Google Trends tool, which allows us to see the progress of a specific search term over time, this is obvious Mass interest in DeFi waned after its peak. As can be seen in the image below, Google searches for the term “DeFi” are at 2019 levels, a far cry from their all-time high reached at the end of 2021.

Over time, search for the term “DeFi” on Google. Source: Trends.google.com

However, this decline in attention from the general public is not an indication of a cessation of activity or innovation in the industry.

An example that DeFi is still alive is his growing virtual communities. Specialized Telegram groups, for example “Seed Latam” or “DeFi for Beginners”, are proof that the cultists of decentralized finance remain active and these platforms continue to attract new followers.

Cover of the Telegram group “DeFi for Beginners” with more than 6,000 members. Source: DeFi for Beginners – Telegram

Additionally, many DeFi influencers have remained active throughout the crypto winter, without aligning their publications with new trends, but perhaps evolving their content.

One of them, who uses the pseudonym Paul Ironforce, wrote on his social network account X in May 2023 that For many, the way they work – and therefore the distribution – has changedincluding:

“I personally believe that a cycle has come full circle since the Terra crash as a historical marker for everything that has happened since 2019. A cycle characterized by innocence, excess, creativity and a certain narrative openness driven by popularizers (myself included).” That DeFi has died. And it also died in me as a way of functioning. It made me more critical and disbelieving. I no longer spend as much time keeping an eye on the things that some genius invents and forces us to chase after his genius. Now I demand that you first prove it in time. Now liquidity stays at home and doesn’t run like crazy to increase TVLs that are used to attract rich people in fundraising rounds. “I no longer carry a series of governance tokens that have proven to be bait for the deluded while hiding the opportunity for treason.”

Paul Ironforce, influencer and spreader of decentralized finance

If development is focused on satisfying user demand, this should show a more robust DeFi ecosystem with sustainable products and returns over time.

DeFi is a resilient ecosystem in times of crypto winter

Although many thought the DeFi bubble had burst, the reality is this Strong capital always flowed into these platforms.

The chart below, taken from the statistics platform DefiLlama, shows that while the value deposited (TVL) is far from its all-time high reached in November 2021, it is still of significant magnitude ($37.8 billion).

Value deposited over time on decentralized finance platforms. Source: DefiLlama.

During the so-called “crypto winter” Several DeFi protocols continued to operate in secret, developing new products and improving existing ones. The evidence for this is varied and can be seen in numerous reports and analyzes published in CriptoNoticias.

For example, during the recent edition of the Ethereum conference in Argentina, this information portal had the opportunity to interview developers of the Beefy Finance platform created by Argentines. They said they have continued to add features and expand into various cryptocurrency networks since launching in 2020. The bear market was not an obstacle to further growth, providing services and making profits.

Aside from that, DeFi platforms have been able to adapt to new narratives. For example, with the introduction of Merge in Ethereum (which marked the end of mining), there was significant growth in decentralized liquid staking protocols. By March 2020, they had become the “Kings of DeFi” and dominated the industry.

And the most experienced DeFi protocols, including Aave or MakerDAO, while remaining focused on the mission with which they were launched, are constantly improving their development or incentive system to stay at the forefront.

DeFi is traditional finance on autopilot

One of the value propositions of DeFi is Ability to replicate and in many cases improve upon traditional financial servicesand put them in “autopilot” mode.

This is the case, for example, with decentralized loans and the generation of interest through cryptocurrencies (stable or volatile), similar to the investment products that already exist in the traditional system.

Carrying out these operations through DeFi platforms reduces or eliminates the need for intermediariesthanks to smart contracts that guarantee the automatic execution of agreements.

Aside from that, DeFi platforms are accessible to anyone with an internet connection and a cryptocurrency wallet, eliminating geographical and bureaucratic barriers. This means that people in regions without sufficient access to banking services can participate in the global economy by taking out loans or receiving interest on their savings.

The only requirements to use a DeFi protocol are: internet connection, cryptocurrencies and a wallet. Source: Aave.

By tokenizing certain financial instruments (described later in this text), someone could access financial services that are not available in their country without obstacles.

Even people who do not meet the minimum age to access a bank investment account or a stock broker can easily operate in a DeFi protocol.

With a bull run looming, DeFi is an investment opportunity

Given the forecast of a BTC-led bullish cycle in the 2024-2025 biennium (and taking into account that the industry has quietly evolved during the “crypto winter”), DeFi will most likely experience a powerful resurgence.

New narratives are already emerging that will permeate the DeFi world in the coming months. This includes, as CriptoNoticias detailed a few weeks ago, the tokenization of real-world assets (RWA). These include, among other things, representations of traditional financial instruments such as government or corporate bonds, real estate, stocks, ETFs, etc. on cryptocurrency networks.

In addition, integrations between centralized and decentralized financing are increasingly being observed. For example, exchanges like Binance offer the ability to invest in DeFi protocols from their platforms, making operations easier. Even if this adds intermediaries, this will be a factor that will favor the mass adoption of these types of tools.

From Binance you can invest in DeFi protocols – Source: Binance.

These examples make it clear that The resurgence of DeFi will have a good basis to expand and become a trend again.

For those looking for investment opportunities, this DeFi renaissance offers several alternatives. One of them is Purchase native tokens of decentralized protocols. More cautious and less risky investors may be interested in tokens from platforms with recognized track records that have survived one or more crypto winters. For example, the governance tokens from MakerDAO (MKR), Aave (AAVE), Uniswap (UNI), 1inch (1INCH) or PancakeSwap (CAKE), which are currently far from their all-time high prices, fulfill this property. as seen in the following TradingView chart for one of these tokens:

CAKE price on Binance exchange over time: Source: TradingView.

It is possible that the returns on these tokens will not reach “astronomical” levels, as might be the case with new tokens launched on the market. However, it is certainly a safer investment due to the recognized track record of the issuing companies or organizations. This must be considered New launches tend to have a higher chance of failure, resulting in losses for investors..

It can also be a good idea to invest in the native cryptocurrencies of the networks where these DeFi platforms are and will be developed. Ethereum takes the top spot without a doubt Due to its history, its market capitalization and the emergence of numerous scalability solutions (e.g. rollups), which also require the Ether currency (ETH) to pay commissions. The renaissance of DeFi may result in ETH – which is not currently experiencing its best moment in terms of trading – gaining new momentum. On August 30, CriptoNoticias published a report analyzing the medium and long-term potential of the ETH cryptocurrency.

You can also use the services of these platforms such as: B. Yield farming, loans, etc. This option could be particularly interesting for those who want to take their first steps in the decentralized financial ecosystem. CriptoNoticias has prepared tutorials in this regard that can be used as an introductory guide.

DeFi, an industry determined to endure

At the intersection of technology and finance, DeFi reflects the desire to reinvent and democratize the economic world. Its quiet evolution during periods of apparent calm, such as the recent “crypto winter,” underscores the determination and resilience of this ecosystem.

DeFi not only promises innovative solutions; They are a testament to the adaptability and further development of the financial sector in an increasingly digitalized world.. As the lines between traditional and decentralized finance continue to blur, a horizon of opportunity lies ahead.

In this context, the question is not whether DeFi will re-emerge, but rather how and to what extent it will continue to expand. And from an investor perspective: How can you make the most of this expansion?.

clarification: This text does not constitute an investment recommendation in a cryptocurrency or token. Each investor must conduct their own research.

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Robert Kiyosaki, a renowned author, is bullish on Bitcoin (BTC). Amid his optimism, analysts also believe that other alternatives, including VC Spectra (SPCT) and Ethereum Classic (ETC), are viable. While ETC bulls expect prices to recover, SPCT remains in an uptrend in the ongoing presale.

Summary

• Robert Kiyosaki supports gold, silver and Bitcoin.
• Ethereum Classic (ETC) could rise to $20 in October.
• VC Spectra could rise by triple digits by the end of pre-sales

Will Bitcoin Reach $120,000 in 2024?

In a Sept. 19 X post, Kiyosaki urged his followers to purchase assets like gold, silver, and Bitcoin amid the impending crash in stocks, bonds, and real estate. Additionally, Kiyosaki declared that “America is broke,” which the broader community interpreted as confirmation of his earlier claim that the future lies in cryptocurrencies.

I get asked all the time, “What will gold, silver, or Bitcoin be priced in 2025?” My answer is that that’s a stupid question. The more important question is: How many gold, silver and Bitcoins do you have TODAY? Gold, silver, Bitcoin are bargains today… but not tomorrow. America is broke. Buy GSBC…

— Robert Kiyosaki (@theRealKiyosaki) September 19, 2023

Due to increased demand, Kiyosaki predicted that Bitcoin will reach as much as $120,000 in 2024. This positive forecast is supported by factors such as the increasing number of spot Bitcoin exchange-traded fund (ETF) applications from major financial institutions.

BTC is currently trading at around $26,000 but remains dominant. While BTC may continue to rally in the coming months, some analysts are looking at VC Spectra and Ethereum Classic as viable alternatives.

VC Spectra follows Bitcoin

VC Spectra is a community-run decentralized hedge fund that allows users to invest in technology startups.

This allows SPCT holders to diversify their investments across different tokens and niche markets. VC Spectra users can also leverage the platform’s AI trading systems to explore listed viable projects.

SPCT is a deflationary BRC-20 token on Bitcoin. Holders gain access to pre-ICO discounts, voting rights for future sales, and dividends during the public presale.

In Phase 3 of the SPCT public presale, the token is available for $0.033. In the next phase, the token prices will increase by 33.33% to $0.044.

Overall, the presale target is $0.080. There is currently a 50% bonus on all deposits.

Will ETC retest $20?

Market analysts expect ETC to compete with BTC in the coming months, citing its utility as a store of value and social presence.

Proponents believe the coin will break $20 as buyers take over. On the other hand, if the bears take the lead, ETC could fall below $14.50 in the coming weeks.

ETC has fallen 2.80% over the past five days, falling from $15.69 on September 18th to $15.25 on September 23rd.

Still, proponents claim that SPCT will outperform ETC and extend its lead post-launch.

Furthermore, they are convinced that VC Spectra’s vision could coincide with Robert Kiyosaki’s prediction on Bitcoin.

Find out more about the VC Spectra presale here:

Presale: https://invest.vcspectra.io/login

Website: https://vcspectra.io

Telegram: https://t.me/VCSpectra

Twitter: https://twitter.com/spectravcfund

Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this site. Users must conduct their own research before taking any Company-related actions.

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In recent years, the world of cryptocurrency trading has witnessed the meteoric rise of Shiba Inu. This meme coin captured the imagination of investors worldwide; However, with this exponential rise in popularity comes a high level of price volatility. This article examines how Shiba Inu price impacts the inherent benefits and risks for traders and provides insights into effective strategies to overcome these challenges.

The volatility of the Shiba Inu price

Shiba Inu price movements are characterized by rapid fluctuations and offer traders not only lucrative opportunities but also major challenges. The coin’s value is heavily influenced by market sentiment, social media trends and speculative behavior, making it vulnerable to sudden spikes and crashes.

If the price rises, traders can make significant profits. However, the speed of these gains often leads to FOMO (Fear of Missing Out) trading, where investors make trades hastily and without a clear strategy. Conversely, during sharp declines, panic selling is typically more common, resulting in significant losses. In this dynamic environment, traders must remain vigilant and adopt innovative tactics to mitigate risks and capitalize on opportunities.

Addressing Risk: Strategies for Shiba Inu Traders

• Diversification: One of the most effective risk management strategies is diversifying a crypto portfolio. By expanding investments across different assets, it is possible to “cushion” the impact of Shiba Inu price fluctuations. Ultimately, this approach minimizes the risk of losing everything in a single volatile asset.
• Setting Stop Loss Orders: Consider setting stop loss orders at predetermined price levels to protect investments. This automatic sell order is triggered when the price falls to a certain point, limiting potential losses and allowing investors a smooth exit.
• Long-Term vs. Short-Term: Determining holdings for short or long time periods is challenging: Short-term oriented traders often seek quick profits when prices rise, while long-term oriented investors can weather periods of volatility with confidence in the coin’s future potential.

Maximizing the Benefits of Shiba Inu Investments

1. Research and Due Diligence: Conduct thorough research before engaging in the Shiba Inu market and understand the project fundamentals; By staying informed about developments, investors can predict price movements.

2. Staking and Yield Farming: Shiba Inu offers opportunities for passive income through staking and yield farming. It is possible to earn rewards from more Shiba Inu tokens by “locking” tokens into liquidity pools or staking contracts. This can be an effective way to make additional profits in a volatile market.

3. Patience and Discipline: Finally, patience and discipline are the keys to success in Shiba Inu trading; Avoid impulsive decisions, stick to a strategy and don’t let emotions dictate your actions. Ultimately, market sentiment can fluctuate quickly – it’s important to keep a cool head.

Understand technical analysis

Technical analysis is crucial to navigating the turbulent waters of Shiba Inu trading. Traders can gain valuable insight into potential price movements by studying price charts, volume trends, and critical technical indicators such as moving averages, Relative Strength Index (RSI), and Bollinger Bands.

This analytical approach allows traders to make informed decisions, identify entry and exit points, and avoid impulsive actions. Leveraging technical analysis alongside fundamental research provides Shiba Inu traders with a comprehensive toolkit that enhances their ability to profit from this volatile asset while effectively managing risk.

Community and networking

Building a strong community and networking within the Shiba Inu ecosystem can be of great benefit to traders. By interacting with other investors, participating in online forums, and joining Shiba Inu-related social media groups, you can access real-time insights, tips, and strategies.

Collaborating with like-minded people who share a passion for Shiba Inu can help traders stay up to date with market sentiment and new trends. Additionally, networking can lead to opportunities for joint ventures, pooling of resources, or sharing of experiences, fostering a supportive environment in the ever-evolving world of Shiba Inu trading.

Final note

In the turbulent world of cryptocurrency and Bitcoin trading, achieving optimal profits requires a balanced approach. Take advantage of diversification through options like Shiba Inu, use stop-loss orders wisely, and choose your trading horizon carefully. Thorough research, staking and yield farming can increase returns, while discipline and patience are your risk management allies.

Technical analysis and community engagement are essential tools for success. By combining these strategies and insights, traders can confidently navigate Shiba Inu’s volatile terrain and pursue trading profits in this ever-changing crypto landscape.

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Automated Market Makers (AMMs) are pivotal in cryptocurrencies and decentralized finance (DeFi). These innovative systems streamline trading and democratize access to digital assets.

In cryptocurrency markets, AMMs play a transformative role. They eliminate the need for traditional intermediaries, revolutionizing how users trade digital assets. Unlike conventional exchanges with order books, AMMs operate on a constant pricing model, allowing assets to be traded seamlessly at any time.

AMMs are the epitome of decentralization. Transactions are executed through smart contracts, eliminating the need for centralized authorities and enhancing security. This technology makes cryptocurrency trading more transparent and trustworthy.

What sets AMMs apart is accessibility. They enable anyone with an internet connection and a compatible wallet to participate in cryptocurrency trading. This inclusivity fosters financial empowerment and opens new horizons for users globally.

One of the fundamental aspects of AMMs is user-driven participation. Users can become liquidity providers by depositing assets into liquidity pools. In return, they receive liquidity provider tokens (LP tokens) representing their pool share. This active involvement allows users to earn fees from trades.

AMMs have simplified cryptocurrency trading and been instrumental in the growth of decentralized finance (DeFi). Their integration into DeFi protocols and applications has expanded the possibilities of decentralized financial services.

What are Automated Market Makers (AMMs)?

Automated Market Makers, often called AMMs, are a fundamental component of the cryptocurrency landscape. They are smart contract-based algorithms that facilitate the exchange of digital assets in a decentralized manner. Unlike traditional exchanges where buyers and sellers rely on order books to match their trades, AMMs operate on an entirely different principle.

AMMs are designed around a constant pricing model, ensuring that assets can be traded anytime without depending on a centralized order book. This is a significant departure from traditional exchanges, where traders must wait for matching orders to be found in the order book, leading to delays and sometimes unfavorable price slippage.

How do AMMs Differ from Traditional Exchange Mechanisms?

The key distinction lies in the absence of order books in AMMs. Traditional exchanges rely on order books to pair buyers and sellers, which can result in bottlenecks during high trading volumes and often require intermediaries to facilitate the process. AMMs, on the other hand, do away with the need to order books entirely.

In an AMM, users trade directly with a smart contract with a pool of assets. These pools, known as liquidity pools, contain pairs of assets like Ether (ETH) and a stablecoin such as USDC. Users can deposit their assets into these pools, becoming liquidity providers. This action allows them to earn fees from trades made in proportion to their contribution to the pool.

AMMs calculate prices dynamically based on the ratio of assets in the liquidity pool. As more users trade, the pool’s balance shifts, automatically adjusting the price. This constant pricing model ensures that assets are always available for trading, 24/7, without relying on a centralized order matching system.

Types of AMMs

Automated Market Makers (AMMs) come in various forms, each with its unique algorithm and purpose. Here, we’ll explore the different types you should be aware of:

Virtual AMMs

Virtual AMMs are a fascinating category of automated market makers. Unlike traditional AMMs that rely on actual assets in liquidity pools, virtual AMMs operate solely on mathematical models that govern price movements. 

Imagine them as digital wizards, where there are no tangible assets involved. Instead, these AMMs use complex mathematical algorithms to determine prices. An example of a virtual AMM is Perpetual Protocol, where traders speculate on event outcomes.

Another intriguing aspect of virtual AMMs is their ability to handle large trades without causing significant price fluctuations. They achieve this by utilizing virtual balances, effectively creating a buffer to absorb the impact of substantial transactions. Bancor’s V2 is a notable example where virtual balances are employed to maintain stability.

Constant product AMMs

Constant Product Automated Market Makers (AMMs) are the most widely used type, often represented by the simple formula x * y = k. These AMMs operate on a principle where if the supply of one asset decreases, causing its price to rise, the other asset’s price must decrease to maintain equilibrium.

For instance, a well-known example of a constant product AMM is Uniswap. Uniswap has recently introduced the UniswapX protocol, which offers an enhanced trading experience across various AMMs. It brings improvements such as increased liquidity, zero transaction failures, and even gas-free swapping. This innovation is poised to elevate the concept of constant product AMMs to new heights.

Hybrid AMMs

Hybrid Automated Market Makers (AMMs) are versatile creatures in decentralized finance (DeFi). They can uniquely adapt their operating principles depending on the situation. 

For regular trades, they function like constant product AMMs, maintaining balance with the x * y = k formula. However, when the price of an asset becomes exceedingly volatile, posing a risk of liquidation, these hybrids can seamlessly transform into probabilistic AMMs.

A prime example of a hybrid AMM is Balancer. Balancer’s adaptability allows it to navigate stable and turbulent market conditions effectively. It’s like having a financial chameleon that changes its strategy to minimize risks and optimize outcomes.

Weighted Average Price AMMs

These Automated Market Makers (AMMs) operate on a unique principle. Instead of relying solely on one asset to determine its price, they consider both assets in the liquidity pool. This unique formula calculates the price based on the combined value of both assets. An excellent example of this approach is Curve Finance, a platform specifically designed for trading stablecoins.

Custom Mean AMMs

The pricing mechanism in these automated market makers follows a custom mean formula. This customization allows precise control over how assets are priced within the AMM, catering to specific requirements and preferences. Notional is a prime example of a custom mean AMM.

Benefits of Automated Market Makers (AMMs)

Automated Market Makers (AMMs) have revolutionized the cryptocurrency trading landscape by offering a range of benefits that have attracted users and investors worldwide. Below, we will explore the top 10 benefits of AMMs, shedding light on their significance in decentralized finance (DeFi).

Liquidity Provision

AMMs empower users to become liquidity providers, a crucial role in the cryptocurrency ecosystem. Users can contribute their assets to liquidity pools, smart contract-managed reserves of digital currencies. By depositing their assets into these pools, users effectively become market makers, facilitating the trading of assets.

How AMMs Allow Users to Become Liquidity Providers

Asset Deposits: Users deposit their cryptocurrency assets into a liquidity pool. Each pool typically contains two assets, such as ETH and DAI, in an ETH-DAI pool.

Liquidity Pool Tokens: In return for their deposits, users receive liquidity pool tokens, often denoted as LP tokens. These tokens represent their share of the liquidity pool. For instance, if you deposit ETH and DAI into a pool, you receive LP tokens representing your portion of that pool’s assets.

Earning Rewards: Liquidity providers earn rewards through transaction fees paid by traders who use the pool. These fees are proportional to the amount of liquidity a user provides. The more assets you contribute, the more rewards you can earn.

Constant Pricing Model

The Constant Pricing Model is a fundamental concept used by AMMs to facilitate trading and maintain liquidity within decentralized exchanges. Here, we’ll describe this model and emphasize how it ensures the continuous availability of assets.

Describing the Constant Pricing Model:

The Constant Pricing Model is based on a simple mathematical equation known as the “constant product formula,” often represented as x * y = k. In this equation:

• x and y represent the quantities of two different assets in a liquidity pool.
• k is a constant value.

The model’s key principle is that the product of the quantities of these two assets should always remain constant. This means that as one asset’s supply increases or decreases, the other’s quantity adjusts to maintain the product at the same value (k).

For example, consider a liquidity pool with ETH and DAI. If traders buy ETH from the pool, reducing its supply, the price of ETH in the pool increases. To maintain the constant product (k), the quantity of DAI in the pool decreases. This ensures that the product of ETH and DAI quantities remains unchanged.

User-Driven Participation

User-Driven Participation is a core principle of AMMs that empowers individuals to actively take part in the decentralized exchange ecosystem by depositing their assets into liquidity pools. This participation plays a pivotal role in ensuring the availability and efficiency of trading markets.

Users become liquidity providers by depositing their assets into liquidity pools, which are smart contracts that contain a pair of assets. These liquidity pools serve as the backbone of AMMs, facilitating the trading of various cryptocurrencies.

For instance, if a user possesses both ETH (Ethereum) and DAI (a stablecoin), they can contribute an equal value of both assets to a liquidity pool. In return, they receive liquidity provider tokens (LP tokens), which represent their share of the pool’s assets.

The Role of Liquidity Provider Tokens (LP Tokens)

LP tokens are the key to user-driven participation. These tokens represent the user’s stake in the liquidity pool and can be traded or redeemed at any time. They entitle the holder to a portion of the trading fees generated within the pool.

When users deposit assets and receive LP tokens, they effectively become stakeholders in the pool. Their participation contributes to the pool’s overall liquidity, making it easier for traders to buy and sell assets without significant price slippage.

Decentralization

Decentralization is a core principle of AMMs, and it plays a pivotal role in transforming the traditional financial landscape. Here, we’ll explore the concept of decentralization and explain its importance in the context of AMMs.

Decentralization refers to the distribution of control and decision-making across a network of nodes or participants, rather than relying on a central authority or intermediary. In the context of AMMs, decentralization manifests in several ways:

No Central Authority: Unlike traditional financial institutions and centralized exchanges, AMMs operate without a central authority or intermediary. They rely on smart contracts and blockchain technology to execute trades and manage liquidity pools. This eliminates the need for a trusted third party, reducing counterparty risks.

Peer-to-Peer Trading: AMMs enable peer-to-peer trading directly between users. Participants interact with smart contracts rather than intermediaries, allowing for trustless and permissionless transactions. This empowers users by giving them control over their assets and trading decisions.

Security through Smart Contracts: Decentralized exchanges powered by AMMs utilize smart contracts to automate trading processes. These contracts are executed on the blockchain, providing transparency and security. Transactions are recorded immutably, reducing the risk of fraud or manipulation.

Resilience to Censorship: Decentralized exchanges are resistant to censorship and government intervention. Since there is no central entity to regulate or shut down, users can access and trade assets freely, even in regions with strict financial regulations.

Accessibility

One of the remarkable advantages of AMMs is their inclusivity. Anyone with a compatible wallet and internet access can participate in cryptocurrency trading through AMMs, promoting financial inclusivity and accessibility to a global user base.

Democratizing Finance: AMMs have significantly contributed to democratizing finance. They enable anyone with access to the internet and a compatible wallet to participate in cryptocurrency trading. This inclusivity breaks down barriers that traditional financial systems often impose.

No Need for Intermediaries: Unlike traditional financial institutions, which may require extensive paperwork and approvals, AMMs allow users to interact directly with the blockchain. This eliminates the need for intermediaries like banks or brokerage firms, making trading accessible to individuals worldwide.

Lower Entry Barriers: Traditional financial markets often have high minimum investment requirements, excluding many potential participants. AMMs have low entry barriers, allowing users to start with small amounts of cryptocurrency. This empowers even those with limited resources to engage in trading.

Global Access: AMMs operate on blockchain networks, which are decentralized and accessible globally. Users from various regions can access these platforms, promoting financial inclusion on a global scale.

Elimination of Traditional Intermediaries

AMMs eliminate the need for traditional intermediaries like centralized exchanges. Users can trade directly from their wallets, reducing fees and counterparty risks associated with third-party intermediaries.

Continuous Trading Availability

AMMs provide 24/7 trading availability, a significant departure from traditional exchanges with specific trading hours. This continuous availability caters to global traders in different time zones, enabling them to trade conveniently.

Liquidity for Less Common Assets

AMMs offer liquidity even for less common or low-volume assets that may not be readily available on centralized exchanges. This benefit is desirable to users interested in trading unique or niche cryptocurrencies.

Transparency

Transactions on AMMs are recorded on the blockchain, ensuring transparency and accountability. Users can verify trades and pool activities, fostering trust and confidence in the platform.

Growth of DeFi

AMMs have played a pivotal role in the growth of decentralized finance (DeFi). They are fundamental to various DeFi protocols and applications, facilitating lending, borrowing, yield farming, and more.

Conclusion

Automated Market Makers (AMMs) have emerged as transformative tools in the world of cryptocurrency and decentralized finance (DeFi). AMMs offer benefits such as liquidity provision, constant pricing models, user-driven participation, decentralization, accessibility, elimination of traditional intermediaries, continuous trading availability, liquidity for less common assets, transparency, and their contribution to the growth of DeFi.

Their ability to enable users to become liquidity providers and the importance of liquidity in cryptocurrency trading cannot be overstated. Additionally, the constant pricing model ensures continuous asset availability, making trading more efficient and accessible.

In the crypto and DeFi landscape, AMMs play a pivotal role in enhancing accessibility, reducing barriers to entry, and fostering financial inclusion on a global scale. They eliminate the need for traditional intermediaries, reduce fees, and provide round-the-clock trading opportunities.

As AMMs continue to evolve and innovate, they are expected to further shape the future of finance, offering new possibilities and disrupting traditional financial systems. Their transparency, decentralization, and user-friendly nature make them a driving force behind the growth of DeFi and the democratization of finance.

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