Hey there crypto friends, obviously we are back again with our weekly crypto compilation. Presenting all relevant crypto news that occurred in the past week. In brief, we this week’s news features Cardano, Ton, Coinbase, and unquestionably the main topic in recent crypto FTX.
Coinbase Is In Bad Shape
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Due to the implosion of FTX, the latest news is that Coinbase took heavy damage. Following the FTX collapse, Coinbases shares went down more than 8% this Monday. Consequently pushing Coinbase to its lowest point since its market debut in April 2021. Just 19 months after going public with a colossal market cap of 85BN it managed to fall below 10BN this Monday.
Marking their worst results in the past 4 trading sessions. Following this, an avalanche of sell-offs occurred across all trading platforms. Resulting in massive trading suspensions across multiple low-liquidity exchanges, making us question everything we thought we knew about crypto.
Latest News – Is Coinbase Fading Away
In addition trading volume went down 30-40% below their yearly average. The whole situation is bad news, surprisingly pushing Coinbase shares down 83% compared to this time last year. Recent revelations acted as some kind of stress test for all of Crypto. Resulting in the closure of many exchanges, even the big names had to make big cuts in their expenses. For example, Just in June Coinbase had a big deficit of 545m forcing them to cut their workforce by 18%. Lastly, let us hope Coinbase will endure and save further losses for everyone.
Energy Consumption of relevant Crypto assets BTC, ETH, and ADA
We took a look at the energy consumption of Cardano, Bitcoin, and Ethereum and filtered all the relevant stuff worth writing a post about.
Cardano
When first introduced they hailed it as being 1.6m times more energy efficient than Bitcoin will ever be. Undoubtedly Cardano is quite energy-efficient as a cryptocurrency. In this situation, it’s because ADA uses a proof-of-stake consensus mechanism instead of proof-of-work which is widely used but heavily criticized. The first step of this consensus is the most critical having the biggest environmental impact/energy consumption. Ouroboros’ proof-of-stake protocol will choose the right miner to be in charge to execute the block mint. Thus resulting in zero fees.
Bitcoin
Following a recent study Bitcoin blockchain as of November 2022 used around 116 TWh yearly, Which is quite impressive for a power-hungry blockchain. In comparison, a nuclear power plant produces around 8 TWh. The moment when we hit the peak of this cycle bitcoins energy consumption rose to 205 TWh caused by abnormally high network usage.
Ethereum
Finally, let’s take a look at our favorite Ethereum. Eth blockchain at its peak consumed 94 TWh which is nearly half of BTCs usage. However, after merging from PoW to Pos ETHs energy consumption dwindled to 0.01 TWh. Resulting in a 99.98% drop in consumption making it quite eco-friendly and sustainable.
South Korean Authorities Seized 104M in Crypto from Terra Co-Founder
Terras Co-Founder Shin Hyun-Seong found himself in trouble after S.Korean authorities sized over 100m from him. Surprisingly, prosecutors tighten the leash around Terra ( Luna ) executives. Resulting in blocking his funds. Hyun was also involved in another firm called Chai Corporation where he was the general manager of payments. Therefore it’s unclear in which state Chai Corporation is. It’s crystal clear that only Hyon could have leaked the information to Terra. In brief, he’s accused of selling his pre-issued tokens to customers unaware of the firms’ situation and leaking confidential information.
Effects on other Crypto protocols
Many protocols that were used or were backed by Terra soon after shared the same face. Terra initially collapsed in May, and since then numerous reports have shown irregularities in every department of Terra. Accordingly, Interpol decided to jump in on this case. Issuing a red notice for Kwon calling for his arrest. Even though he still refuses to turn himself in, at least he took responsibility for the collapse. Saying it was his fault and only his. Trying to save his colleagues from consequences.
Cardano is on Fire, Launching a New Privacy BlockChain and Token
Charles Hoskinson CEO of Cardano finally confessed that a new network is underway. Its main goals are to preserve privacy while simultaneously providing access to regulators. We ain’t 100% sure how this will work out, but time will tell. Midnight has chosen Dust as their native token. Input Out Global (the firm behind Cardano) is working hard to link as many side chains as possible around Cardano. It’s already clear that their main focus will be delivering zero-knowledge-proof smart contracts.
Anonymity Delivered By Midnight
Providing total anonymity as long as no rules are broken. If done so, the system can grant permission to access its data set. A Zcash or Monero rip-off. We think this is just a try to fight the problem which was caused by the recent fall of FTX. In conclusion, an interview done by CoinDesk Hoskinson made sure this method is completely new.
Telegram Launches Username Auction ON TON Blockchain
Telegram finally announced a username auction where you can finally acquire up to 5 new character handles. The first Telegram marketplace will open its doors on Thursday. Following Telegram’s latest press release Toncoin will be their currency of choice. TON short of The Open Network is a community-driven blockchain founded by Telegram which is highly scalable and shardable while still being a layer one blockchain. Therefore providing quick and energy-efficient blockchain transactions.
Telegram Enables Users To Send Crypto
Finally, enabling Telegram users to send Crypto within the messaging app. Detach website Fragment.com will act as a host for the auction providing the possibility of participation. Users will get the chance to buy exclusive rights to handles just like “bank”, “casino” and even “auto” with minimum bids starting at 30.000 TON. To illustrate, this will be TONs second domain/name auction this year. The first one generated 2.393.002 TON which is worth nearly 3M. The Securities and Exchange Commission (SEC) sued GRAM for conducting a 1.7 BN unregistered sale resulting in GRAMs failure.
