Not all members of the cryptocurrency community think the decision of Ethereum developers to switch the cryptocurrency network from Proof-of-Work (PoW) to Proof-of-Stake (PoS) algorithm is right. But what to expect from the Merge fork?
Ethereum price after the Merge: What’s wrong with PoS-Ethereum
What will happen to Ethereum’s price after the Merge? One of the first to question the potential of PoS-Ethereum was a popular analyst in the cryptocurrency community, PlanB. He suggested that the fate of the BitcoinPoS project (BPS) – the PoS version of bitcoin (BTC) – may wait for ETH after the migration.
The high power consumption of PoW cryptocurrencies became the reason for discussing the possibility of banning coins that work on the algorithm. For example, such an initiative is being considered in Europe. At the same time, Messari’s research showed that bitcoin mining does less harm than many other businesses that regulators have no complaints about.
The future of PoS-Ethereum is also disbelieved by popular investor, book author and podcaster Preston Pysch in the cryptocurrency community.
“I now, on the back of the merge fork and the migration of ETH to PoS, have even more faith in bitcoin’s growth potential. There is a clear line between PoW bitcoin and all the other [projects] on PoS. This difference will be hard to ignore amid a tightening battle between hyper-consumption and network participants being paid by lies,” Preston Pysch wrote.
According to Lin Alden’s observations, bitcoin has remained the only major project in the PoW space amid the migration of ETH to PoS. And making an optimistic Merge Ethereum price prediction is not worth it. According to its calculations, BTC now occupies 94% of the Proof-of-Work market. Bitcoin’s loss of a PoW-Ethereum rival could draw more attention to the cryptocurrency.
Blockstream CEO Adam Beck joined the discussion. He believes that bitcoin, due to its characteristics, can be classified as a “commodity.” PoS-cryptocurrencies, which Ethereum has now joined, according to the developer, do not belong to this class.
Market participants who disagreed with the migration of ETH to PoS launched a PoW version of the cryptocurrency. A few hours after Ethereum’s algorithm change, the developers launched an airdrop of the token.
We previously reported on how The Merge will affect Ethereum and how the cryptocurrency market reacted to the algorithm change.
Montenegro Court Approves Do Kwon’s Extradition to the United States: Report
Nearly a year after his arrest in Montenegro, Terraform Labs co-founder and former CEO Do Kwon is reportedly set to be extradited to the United States to face criminal charges.
Both the United States and South Korea previously submitted extradition requests to Montenegro officials.
- According to local news outlet Pobjeda, on Feb. 21, the Podgorica High Court in Montenegro decided that Do Kwon would be extradited to the United States, thereby ruling out an extradition request from South Korea.
- The latest development comes after Kwon’s legal team recently won an appeal to overturn the decision of the High Court to favor the extradition requests from the United States and South Korea.
- Following his arrest by Montenegro authorities in March 2023 while attempting to flee to another country with a fake passport, the former Terraform Labs CEO was later sentenced to four months in prison.
- The US Securities and Exchange Commission (SEC) accused Terraform Labs and Kwon of “orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities” after the crash of UST in 2022, which led to massive losses for investors.
- In January 2024, the SEC agreed to a delay in the trial date regarding the Terraform case as requested by Kwon’s legal team, who said that they wanted their client to attend in person.
- It is, however, not certain when Kwon will be moved to the United States. Meanwhile, Terraform Labs’ former financial officer Han Chang-joon, who was arrested alongside Kwon, has been extradited to South Korea.
SatoshiSwap.AI Launches The World’s First DEX on Bitcoin
[PRESS RELEASE – London, UK, February 21st, 2024]
SatoshiSwap.ai stands out as a pioneering decentralized exchange operating within the Bitcoin network.
Unleash the sheer force of unrestricted trading while basking in the rock-solid security and unwavering stability that only Bitcoin can offer.
- On-chain trading: SatoshiSwap.ai facilitates peer-to-peer trading of Bitcoin-based assets directly on the blockchain, enabling trustless and transparent transactions.
- Liquidity pools: Similar to Uniswap, SatoshiSwap.ai utilizes liquidity pools for price discovery and efficient asset exchange. Users can contribute assets to pools and earn rewards in exchange for providing liquidity.
- Stacks L2 chain: Leveraging the Stacks L2 chain, SatoshiSwap.ai aims to overcome scalability limitations on the Bitcoin mainnet, offering faster and cheaper transactions.
- Swapping assets: Users can seamlessly swap Bitcoin-based assets like STX tokens and wrapped BTC within the SatoshiSwap.ai interface.
- Adding and removing liquidity: Users can contribute assets to liquidity pools and withdraw them at any time, facilitating market participation and earning potential rewards.
- Yield farming: By providing liquidity, users can earn rewards in the form of protocol tokens, incentivizing participation and contributing to the overall liquidity of the ecosystem.
Potential Use Cases:
- Decentralized finance (DeFi) on Bitcoin: SatoshiSwap.ai represents a step towards bringing DeFi functionalities to the Bitcoin ecosystem.
- Tokenized assets: As the Bitcoin ecosystem expands, SatoshiSwap.ai could facilitate the trading and exchange of various tokenized assets representing real-world entities or financial instruments.
- Increased Bitcoin utility: By offering new use cases beyond simply a store of value, SatoshiSwap could contribute to wider adoption and increased utility of the Bitcoin network.
While built on the Stacks L2 chain, SatoshiSwap.ai ultimately interacts with the Bitcoin network. SatoshiSwap.ai presents an interesting case study for exploring DeFi innovation on the Bitcoin blockchain.
Ripple CEO Says Firm is Open to Welcoming a Spot XRP ETF
Brad Garlinghouse, the CEO of financial technology company Ripple Labs, has disclosed that the crypto solutions provider and developer of the Ripple payment protocol would welcome a spot exchange-traded fund (ETF) for the network’s native token, XRP.
Ripple to Welcome Spot XRP ETF
Speaking on his thoughts about the current state of the crypto industry in a Bloomberg interview, Garlinghouse chipped in that creating multiple ETFs around different tokens is inevitable as they would further diversify the risk of trading such investment vehicles. He added that some firms may even launch basket ETFs, containing a collection of multiple crypto assets.
Likening the condition of the crypto ETF space to the earliest days of the stock market, the Ripple CEO explained that investors would not want exposure to just one stock or company, as they would prefer to diversify their risks and portfolio. For this purpose, there would eventually be other funds to diversify the risk from spot Bitcoin ETFs. However, the time of their launch would be difficult to predict.
“You know, the sad reality of what we saw with the Bitcoin ETF is it was only because the court forced the SEC’s hand and really chair Gensler’s hand that we saw that finally come to fruition. And look, in my opinion, it makes these markets safer; it makes them more robust. And so, this is good for the investment community,” Garlinghouse said.
BlackRock’s Face XRP ETF Application
In response to a question about discussions with asset manager BlackRock over the launch of a spot XRP ETF, Garlinghouse declined to comment.
“I know BlackRock has said some things publicly. We think it makes sense for the XRP community overall. Ripple obviously is a very important stakeholder in the XRP ecosystem, but we’re not the only player,” the exec stated.
Talks about a potential spot XRP ETF have been surrounded by dramatic events like the fake filing for the fund in Delaware. News broke in November that BlackRock registered a spot XRP ETF in Delaware shortly after applying for its Ethereum Trust. The news was eventually deemed false, and the case was handed to appropriate authorities.
Meanwhile, some analysts think there is little chance that an XRP ETF will be approved soon as Ripple is still entangled in a lawsuit with the US Securities and Exchange Commission.
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