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Cryptocurrency

NFT: Paying for air or an asset?

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NFT is the most discussed digital trend right now. While some users have joined the chase for the most unusual crypto-art, others do not understand the real value of tokens. 

NFTs are incorrectly classified as digital currencies because they are digital certificates of ownership; that is, they are intellectual property objects, as they are the result of human intellectual activity.

Let’s deal with the concept of NFT

Often “token” refers to any cryptocurrency or crypto-asset, which, in fact, only creates more confusion. The closest to the truth defines a token as a certain unit of account, which itself is not a cryptocurrency. In fact, it is a special registry entry that certifies that a certain person owns the right to a certain asset.

The term non-interchangeable can also be replaced with the word “unique” – its specificity is that each token is specific and cannot be exchanged or replaced with another token of the same kind.

It turns out that NFT is a unique record in the registry, confirming a person’s right to a particular asset. As a rule, NFT is used to secure the right to unique objects from the virtual world, which are most often intellectual property objects.

NFT copyright. Is it real?

An NFT is only a certain record that confirms the right to a unique object – the token itself cannot be copyrighted.

This is because the non-interchangeable token itself, although it has its expression in objective form, was not created by creative labor, and this is the key criterion for recognizing a particular object as a copyright object. Also, the attribution of the NFT itself to intellectual property objects simply does not fit into the logic of its essence: the NFT – something that certifies the right to the object of intellectual property.

BAYC monkeys – a club for a select few

NFTs are now actively used to sell digital objects. For example, one of the most popular has become a collection of NFT BoredApeYacht Club (BAYC), which presents a collection of pictures of “cartoon” monkeys, which are procedurally generated by an algorithm. Why did the creators of these pictures decide to use NFT to distribute their works?

NFT contains information about the rights to the image to which it is “attached”. In the case of BAYC, this is exactly the situation: ownership of NFTs gives their owners access to a closed online club, exclusive in-person events, and also certifies their exclusive right to the said image and the character depicted in it.

In this case, non-exchangeable tokens are very much like uncertified securities, which also certify binding and other rights and also have no tangible medium.

Where are the borders?

For many people, it is not obvious that an NFT associated with a work or an object from the real world may not give the owner of a token any exclusive rights to that object. Unless the terms of purchase specifically state that an NFT certifying an exclusive right to an intellectual property object is transferred to the purchaser, it must be assumed that the NFT merely certifies ownership of a digital copy of a particular object.

By acquiring NFT, its new owner can not dispose of the rights for the work itself, to prohibit third parties from using or independently process the work without the consent of the right holder. He can only determine the fate of the copy he has inherited, without becoming the copyright holder for the work itself. The rights holder himself/herself is not restricted to create a few more digital copies of his/her work, issue new NFTs to certify ownership of them, and sell them to other purchasers.

It will work the same way in the other direction – if a person is not the owner of the exclusive right to a work, he is not entitled to issue an NFT certifying the right to such a work either.

Conclusions

It may seem that an NFT is just a risky investment which cannot perform any useful function. That’s not entirely true: in addition to selling images of monkeys and other digital art, NFTs can be used for more useful purposes

Recently the Japanese startup ABCRECORDS created a marketplace where anyone can buy NFTs entitling them to use a piece of music in their social networks and, subject to a special questionnaire and an agreement with the rights holder, the owner of the token can also obtain the right to use the music for commercial purposes.

If the NFT is resold, these rights will pass to another person, and the author of the work whose rights are certified by the NFT will receive a certain percentage of the resale amount.

Cryptocurrency

Ethereum Foundation, Whales, and Hackers: What’s Driving the ETH Sell-Off?

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TL;DR

  • Whales, hackers, and the Ethereum Foundation wallets moved over $500M in ETH through large sales and withdrawals.
  • Ethereum transfers rose to 4.6M ETH, nearing the monthly high of 5.2M recorded in July.
  • Staking inflows hit 247,900 ETH, the highest in a month, locking more supply from trading.

Large Withdrawals and Whale Activity

Ethereum (ETH) has seen heavy movement from major wallets over the past few days. On-chain data from Lookonchain shows a newly created wallet pulled 17,591 ETH, worth $81.62 million, from Kraken in just two hours. 

Over three days, two new wallets withdrew a combined 71,025 ETH, valued at $330 million, from the exchange.

One of these wallets, address 0x2A92, has withdrawn 53,434 ETH, worth $242.34 million, in two days. This includes a recent purchase of 30,069 ETH, valued at $138.46 million, during a market drop.

Major ETH Holders Offload Millions Amid Price Rally

In contrast, several separate entities have been disposing of some ETH holdings. A wallet tied to a hacker address 0x17E0 sold 4,958 ETH for $22.13 million at $4,463, securing a profit of $9.75 million. Earlier this year, the same address sold 12,282 ETH at $1,932 and later bought back part of the amount at higher prices.

A different whale sold 20,600 ETH for $96.55 million over the past two days, generating a profit of more than $26 million after holding the position for nine months. 

Meanwhile, an Ethereum Foundation-linked wallet, 0xF39d, sold 6,194 ETH worth $28.36 million in the last three days at an average price of $4,578. 

Recent sales from the same wallet included an additional 1,100 ETH and 1,695 ETH for over $12.7 million combined.

Network Activity on the Rise

CryptoQuant data shows Ethereum’s total tokens transferred have been climbing since August 9. After ranging between 1 million and 3 million ETH through late July and early August, transfers have risen to 4.6 million ETH, approaching the monthly high of 5.2 million recorded in mid-July. This increase has occurred alongside a price rally from about $3,400 to $4,600.

Ethereum (ETH) Tokens Transferred (Total)
Source: CryptoQuant

Interestingly, staking inflows generally stayed between 20,000 and 80,000 ETH per day over the past month. On August 14, inflows jumped to 247,900 ETH, the highest in the period. 

At the time, ETH was trading near $4,600. Large staking deposits reduce the amount of ETH available for immediate trading, as staked coins are locked for a set period.

Ethereum (ETH) Staking Inflow Total
Source: CryptoQuant

In the meantime, ETH trades at $4,647 with a 24-hour volume of $68.25 billion, down 2% on the day but up 19% over the week.

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Cryptocurrency

Massive DOGE Whale Activity Hints at $1 Breakout

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TL;DR

  • Whales bought two billion DOGE this week, lifting their combined holdings to 27.6 billion coins.
  • A single 900M DOGE transfer worth $208M to Binance drew attention to large exchange movements.
  • DOGE broke key resistance, with momentum building for a possible push toward the $1 price mark.

Price and Market Moves

Dogecoin (DOGE) traded at $0.23 at press time, slipping 4% over the past day but still showing a 2% gain for the week. Daily turnover came in at about $6.18 billion. 

Meanwhile, the broader crypto market saw over $1 billion in liquidations. Hotter-than-expected US Producer Price Index data pushed traders to scale back expectations of a near-term Federal Reserve rate cut. DOGE had roughly 290,500 coins liquidated during the sell-off.

On the two-week chart, analyst Trader Tardigrade notes that DOGE has cleared a downward-sloping resistance line after completing what appears to be a “wave V” in an Elliott Wave sequence. Similar setups in the past, where prolonged declines stayed within falling channels before breaking higher, have been followed by sharp rallies.

Momentum gauges are also turning up. The Stochastic RSI, which had dropped into oversold territory, is now heading higher. Previous reversals from this zone have coincided with sustained upward moves. The current formation points to a possible run that could carry DOGE past the $1 mark.

Heavy Whale Buying and Large Transfers

As reported by CryptoPotato, blockchain data shows large investors have added two billion DOGE in the past week, spending just under $500 million. That brings their holdings to about 27.6 billion coins, or 18% of the supply. The buying streak has prompted speculation within the community. 

Recently, Whale Alert flagged a 900 million DOGE transfer worth about $208 million into Binance. The tracking indicates that it originated from a wallet connected to the exchange, likely as an internal activity. The address involved holds 2.88 billion DOGE, one of the largest balances on the network.

Ali Martinez also reports that transactions above $1 million reached a one-month high, with activity building since early August and peaking as DOGE traded at $0.25.

Sentiment Building

Analyst Gordon described the current setup as “a nice bit of consolidation” before a potential breakout, adding, 

“This will be one of the first coins normies FLOCK to & the pump will be MASSIVE.”

With whale accumulation rising, high-value transfers increasing, and a bullish technical pattern in play, DOGE is positioned for a potential push toward $1 if momentum holds.

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Cryptocurrency

Ripple Price Analysis: XRP at Risk as Key Support Levels Could Trigger Sharp Drop

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XRP has recently entered a consolidation phase after a strong rally earlier this summer, with the price action now hovering around key resistance levels on both its USDT and BTC pairs. Yet, while momentum has slowed, the charts still indicate a generally bullish structure, with multiple key support levels remaining firmly in place.

Technical Analysis

By ShayanMarkets

The USDT Pair

On the XRP/USDT daily chart, the price is currently trading near the $3.10 mark, facing a strong resistance zone around $3.40. This follows a breakout above the $2.70 range in July, which has now flipped into a support area.

Both the 100-day and 200-day moving averages are also trending upward and recently formed a bullish crossover around $2.45, reinforcing the medium-term bullish sentiment. If the $3.40 resistance breaks, a push toward the critical $4.00 range becomes likely.

However, the RSI hovering near the neutral 50 level suggests a lack of strong momentum for now, meaning a short-term pullback into the $2.80 support zone is still possible.

This zone will be key for maintaining the bullish structure. Losing it could open the door for a deeper correction toward the 200-day moving average located around the $2.40 mark. Yet, as long as the price stays above the moving averages, the broader trend remains bullish.

The BTC Pair

Looking at the XRP/BTC chart, the pair has recently pulled back after hitting the 3,000 SAT resistance, with the price currently around 2,600 SAT.

This follows a clean breakout above the long-term descending channel and a successful retest of its upper boundary, which coincided with the 200-day moving average and the 2,400 SAT support zone. This confluence remains a key bullish technical factor, as holding above it could attract renewed buying pressure.

That said, RSI levels around 48 show that momentum has cooled after the sharp July rally, meaning XRP may continue ranging between 2,400 SAT and 3,000 SAT in the near term. A decisive close above 3,000 SAT would likely open the path to the 3,400 SAT zone, while losing 2,400 SAT could shift the bias back toward 2,000 SAT support. For now, the structure still favors the bulls as long as higher lows remain intact.

 

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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