Cardano Rumor Rundown June 30, 2022

Hey Everyone!

Let's go...

Newly covered today:

1. IOG proposes a “Proof-of-Useful-Work” protocol for Bitcoin to minimize energy cost and carbon footprint. https://twitter.com/InputOutputHK/status/1542166680071278594
2. DeadPXLZ have announced that they will build out a location in Cardano Island. https://twitter.com/pxlzNFT/status/1541853395283329025
3. Lots of additional Virtua Cardano Island information in the AMA from June 28. https://twitter.com/VirtuaMetaverse/status/1541789941130223616
4. For a while Cardano’s Pavia was showing up higher on Google searches than the actual city of Pavia. https://twitter.com/Pavia_io/status/1542237468644282368
5. Lots of good info from World Mobile in this AMA including some discussion of the move into North America. https://twitter.com/WorldMobileTeam/status/1539880960564633600

Previously Covered but still interesting:

1. Cointelegraph writes an entire article about the need for mass adoption of liquid staking and manages to avoid mentioning that it’s already alive and well for some time in Cardano. https://cointelegraph.com/news/the-truth-behind-the-misconceptions-holding-liquid-staking-back
2. Pavia gives us a peek at a mystery building. Is it a garage? A hanger? An incinerator? https://twitter.com/Pavia_io/status/1528695835734822914
3. The Pavia Builder Tool is coming in June! https://twitter.com/Pavia_io/status/1528755541169913858
4. Algorand appears to be suffering collective insanity as they consider giving their DeFi projects double votes in governance elections. https://twitter.com/danny_cryptofay/status/1528729769843597313
5. Don’t forget, yesterday was the day that Laszlo traded 10k bitcoins for a couple of pizzas twelve years ago. https://twitter.com/IOHK_Charles/status/1528733380124151809
6. It looks like South Korea is trying to find deep pockets to compensate Luna holders and may hold the exchanges responsible. https://twitter.com/WatcherGuru/status/1528820015352389632ECB President Christine Lagarde says crypto assets are “worth nothing” and “based on nothing.” She also revealed her son had bad luck in crypto. I’m sure he appreciates his mom putting him on blast to the entire world like that. https://www.politico.eu/article/crypto-assets-worth-nothing-ecb-christine-lagarde/
7. Indigo has dropped an infographic to help describe the three phases of their token distribution. https://twitter.com/Indigo_protocol/status/1528849687142350849
8. Cornucopias will have their second NFT Tree sale today (May 25). This time, it will be fruit trees. https://discord.com/channels/829374949587419137/842583414439542805/978401966944309268
9. Apparently it’s admitted history that the Polkadot consensus protocol was coded up in two weeks. https://twitter.com/rphmeier/status/1528975796865363968
10. Charles is in DC for the Blockchain Summit 2022 to see if he can make any progress with the regulators. He reports that Senators Lummis & Gillibrand will release their comprehensive crypto bill in June. https://twitter.com/IOHK_Charles/status/1529128012884676610 https://twitter.com/IOHK_Charles/status/1529128521553018880
11. DC points out a great thread on sound protocol design in DeFi. This includes tips on when it’s a ponzi and when you are the exit liquidity. https://twitter.com/DCdoso/status/1529121840177741825 https://twitter.com/josephdelong/status/1528887299743924224
12. Today (the 26th) will be the May Cardano 360. https://twitter.com/InputOutputHK/status/1529161615354040320
13. There is now a replacement for db-sync called Carp. https://twitter.com/dcspark_io/status/1529434530511216640
14. World Mobile is now advertising air nodes to local entrepreneurs in Zanzibar. https://twitter.com/WorldMobileTeam/status/1529462461644124162
15. The future is looking…let’s call it…“interesting” for Ethereum 2.0. The beacon chain just experienced a 7 block reorg. Not a huge amount of time encompassed in those 7 blocks…but still a reorg. https://twitter.com/koeppelmann/status/1529458000011972610
16. Apparently some projects are more up front about “exploiting young talent”. https://twitter.com/josephdelong/status/1529652818197495808
17. We now have dates on the first Cornucopias Land Mint June 3-7. https://twitter.com/CornucopiasGame/status/1529873760278413319
18. Shahaf Bar-Geffen of COTI was quoted in a Forbes article on the UST/Luna Terra implosion. https://discord.com/channels/829374949587419137/842583414439542805
19. Having little buddies for the player is becoming a common theme in Cardano metaverse projects. Pavia has Pavs and Carda Station has ADA Minions. Here’s the very well done video announcing ADA Minions in Carda Station. https://twitter.com/Carda_station/status/1524823060238454784
20. Paul did a great interview with the Cornucopias team and revealed some additional new details on the upcoming land sale. https://youtu.be/-As4cwicRZ4
21. IOHK made a documentary about their visit to the Ukraine/Poland border area. https://twitter.com/timbharrison/status/1529872546081931266
22. ADA Realm and their partner Actum Games have released a VR walkthrough of ADA Realm Island. https://twitter.com/AdaRealm/status/1530624400910864385
23. Cornucopias has released info on their long awaited land sale. https://discord.com/channels/829374949587419137/842583414439542805 They’ve also released beautiful Unreal Engine 5 video highlighting some lands in their virtual world. https://youtu.be/v52pdDdPzMw Finally, there was a new Copi Cafe with additional land details.
24. Charles gave us a nice detailed report on his lobbying trip to DC. https://youtu.be/gHOO_fP75aM
25. The May Cardano 360 is out! https://youtu.be/Ar_8Lo0nV1s
26. Pavia also released another Q&A video. https://youtu.be/EZj2ZS0YtmM
27. Carda Station has just announced new indoor avatars (for when you’re not wearing the space suit). https://twitter.com/Carda_station/status/1531048666919755776 They also announced a mint for new lands where some kind of commercial activity may be possible. https://twitter.com/Carda_station/status/1529976942069440512
28. Pavia just shared this very mysterious video with a spaceman holding a flag. https://twitter.com/Pavia_io/status/1531243217450057728
29. Charles hosted a “Memorial Day Chat with Charles” Twitter space. https://twitter.com/IOHK_Charles/status/1531463312642392065
30. Cornucopias has repriced their land mint with the largest plot now going for $1k. This is probably going to make it even more difficult to actually acquire plots. https://discord.com/channels/829374949587419137/842583414439542805 https://twitter.com/CornucopiasGame/status/1531413907134349312
31. IOHK has released an article about why eUTxO (e.g. Cardano) is so much better than EVM (e.g. Ethereum) for predicting impermanent loss. Two big eUTxO advantages to understand here relate to concentrated liquidity and fee determinism. https://iohk.io/en/blog/posts/2022/05/27/everything-you-always-wanted-to-know-about-impermanent-loss-and-were-afraid-to-ask/
32. The rest of the crypto space has suddenly noticed that 5 million NFTs have been minted on Cardano. https://twitter.com/WatcherGuru/status/1531317844004294665
33. In light of all the uncertainty around algorithmic stablecoins lately, COTI has created a Djed FAQ. https://cotinetwork.medium.com/djed-frequently-asked-questions-f636735be76
34. Ethereum outdid itself in May with 1.2 million failed transactions. That’s a lot of lost gas fees. https://cryptopotato.com/over-1-2-million-ethereum-transactions-failed-in-may/
35. GeroWallet announces that they are working with a major TV network that is putting out NFTs on Cardano in the next few weeks. Is this DISH? https://twitter.com/Shawn_Gero/status/1531759992285503488
36. A Georgetown Law Professor has co-authored a work on what “legal wrapper” is best for your DAO in various circumstances including a great alternative to the oft used Swiss Foundation/Tripartite Structure . This level of published detailed direction for DAOs is long overdue. https://twitter.com/IOHK_Charles/status/1531834247505395717
37. Pavia has a new partnership related to an “NFT Bridge”. https://twitter.com/Pavia_io/status/1531999174920704001
38. Solana once again decided to surprise no one by going down. However, this time even mainstream media appears to be subtly mocking them for the many outages and restarts. https://twitter.com/SolanaStatus/status/1532043450107015168 https://www.cnbc.com/2022/06/01/solana-suffered-its-second-outage-in-a-month-sending-price-plunging.html
39. Cornucopias has released a full deck on their land sale. https://twitter.com/CornucopiasGame/status/1532123583870287872
40. Another great thread from Sooraj. This time on the “marriage made in Hell” that is the Ethereum account balance system + Solidity. https://twitter.com/Soorajksaju2/status/1532020250522296322
41. IOHK has released a Basic Cardano Onboarding Guide and they would like the community’s help to make it even better. https://www.essentialcardano.io/article/your-cardano-onboarding-guide
42. Ethereum is still facing significant potential challenges with complexity overload, the full spectrum of MEV, Cartelization of the network due to liquid staking derivative platforms, attack surface related to slot leader schedule, the history of PoW validators actually being the same people hiding under multiple different pool names, and other forms of centralization. You can hear ETH devs discussing these issues here in this podcast put up a few days ago: https://www.youtube.com/watch?v=8UPFwKyaQOE
43. Specifically on the danger of cartelization of the network, it looks like Ethereum’s choice of slashing in their proof-of-stake model has created this ripple effect problem via derivatization of staked assets in platforms like Lido that creates this potential for cartelization of the network. Here an Ethereum foundation researcher details those risks. https://twitter.com/dannyryan/status/1531383030786314240
44. Here’s a new Cardano 360 update on the big things World Mobile is doing. https://twitter.com/IOHK_Charles/status/1532521282947915779
45. New York lawmakers just passed a bill to ban crypto mining related to carbon based sources. It’s been obvious this was coming for a while ever since the reports of mining operations dumping hot waste water into the finger lakes and affecting the ecology. In a place like New York, that kind of thing won’t go unnoticed. https://www.cnbc.com/2022/06/03/heres-whats-in-new-yorks-new-bitcoin-mining-ban-.html https://www.cnbc.com/2022/06/04/new-york-crypto-mining-bill-senator-anna-kelles-interview.html
46. Reports are also coming in that the Biden Administration crypto plans due in August will target Bitcoin and other proof-of-work chains over their “sky high” energy consumption. I think we all knew this would eventually come despite the wide spectrum of clever rationalizations regarding Bitcoin’s energy use by its maximalists. https://www.forbes.com/sites/billybambrough/2022/06/02/report-reveals-game-changing-white-house-crypto-plans-that-could-have-a-serious-bitcoin-and-ethereum-price-impact/
47. Coinbase is really slamming the brakes on growth. They’re actually rescinding employment offers right now due to the “macro environment”. https://blog.coinbase.com/update-on-hiring-plans-bcedfa634989
48. Apparently Martin Lawrence is bringing an NFT series to Cardano? https://twitter.com/nftmakerio/status/1533371577928404992
49. Here’s a great thread from u/sobizR revealing the strong trend toward centralization in Ethereum proof-of-stake with a current minimum attack vector of only 3! https://twitter.com/sobizR/status/1532412816619368454
50. Coincidentally, it looks like the MAV in Bitcoin is also currently 3! https://twitter.com/liberlion17/status/1533752691171770368
51. Today (June 7), we may get the Lummis-Gillibrand Comprehensive Crypto Bill. Even if it has only a very low chance of getting a foothold, it may be a good indicator of the potential for positive regulatory treatment of cryptocurrencies to come down the road. https://twitter.com/SenLummis/status/1532746920866762754 https://twitter.com/bot_slam/status/1533973084889403392
52. It sounds like Carda Station is minting the land under their central dome today (June 8). https://twitter.com/JoyeousT/status/1533954184399048705
53. Bitcoin maximalists REALLY don’t like this data about how concentrated Bitcoin mining was in the early days. https://archive.ph/fqMp3 https://twitter.com/nic__carter/status/1533986647938932737 https://twitter.com/CaitlinLong_/status/1534008506847666176
54. Binance now finds itself under the SEC microscope. Is anybody surprised by this? The sale of atoken related to the most notoriously centralized large cap blockchain that is also related to a giant company running a giant unregulated token exchange might not pass the Howey Test? Clutch your pearls immediately. https://www.engadget.com/sec-is-investigating-binance-over-its-bnb-token-000556001.html https://www.bloomberg.com/news/articles/2022-06-06/us-probes-binance-over-token-that-is-now-world-s-fifth-largest
55. The Lummis-Gillibrand Responsible Financial Innovation Act has finally been introduced into the US Senate. https://www.gillibrand.senate.gov/imo/media/doc/Lummis-Gillibrand%20Responsible%20Financial%20Innovation%20Act%20%5bFinal%5d.pdf
56. Several mainstream media outlets are reporting that there was a press call with “people familiar with the drafting of the bill” where Cardano was mentioned as falling under the “ancillary asset” category in the Lummis-Gillibrand Bill. Fortunately, it is actually the courts who get to interpret law (when it’s actually passed) in the US and not anonymous people on press calls. https://twitter.com/SquawkCNBC/status/1534122462065184768 https://decrypt.co/102180/lummis-gillibrand-bill
57. Here’s a video from Charles on the Lummis-Gillibrand Bill. https://twitter.com/IOHK_Charles/status/1534210747982442496
58. Caitlin Long’s Custodia Bank is finally suing the Federal Reserve to get a master account. https://www.forbes.com/sites/michaeldelcastillo/2022/06/07/bitcoin-bank-custodia-sues-federal-reserve-demanding-decision-on-master-account/
59. Solana gets a terrible technical risk score from DefiSafety due to its downtime. https://twitter.com/DefiSafety/status/1534249102032216067
60. IOG has begun unveiling its long awaited new light wallet, Lace! https://twitter.com/InputOutputHK/status/1534726874152173569
61. By all accounts, the Cardano event at Consensys was massive and thoroughly enjoyed by all. https://twitter.com/SpaceApeAstro/status/1534678462274969605 https://twitter.com/InputOutputHK/status/1534689602291867651 https://twitter.com/InputOutputHK/status/1534689148912664577 https://twitter.com/RichardMcCrackn/status/1534682942802481152 https://twitter.com/InputOutputHK/status/1534689617877815296
62. Here’s the livestream of Charles’ fireside chat at DcentralCon. https://twitter.com/InputOutputHK/status/1534657863875969025
63. Coti is now listed on Kraken (June 9). https://twitter.com/COTInetwork/status/1534588566185168902
64. Dish is launching a decentralized identity and loyalty coin system through Atala and Cardano.
65. Ethereum’s Ropsten testnet goes to PoS. Shortly thereafter: “We do have some missing block proposals”. https://twitter.com/TimBeiko/status/1534568861319671808
66. Apparently there is going to be a “Cardano Island” metaverse for our Cardano Summit 2021 NFTs? https://twitter.com/IOHK_Josh/status/1535666494046085122
67. Lido’s staked Ethereum derivative (stETH) depegged from ETH causing concerns over the solvency of a centralized crypto lending platforms (June 11). https://twitter.com/hodlKRYPTONITE/status/1535536331732185089 https://twitter.com/LidoFinance/status/1536756933054676992
68. IOG has released the EVM sidechain alpha (June 10). https://twitter.com/InputOutputHK/status/1535679688139497472
69. IOG’s new Lace light wallet will include a dApp store with dApp certification. https://twitter.com/IOHK_Charles/status/1535851975031545856
70. Interesting questions and responses are posted regarding the security of the IOG EVM sidechain in relation to that of Milkomeda. https://twitter.com/theuttermost/status/1535983805743382528 https://twitter.com/IOHK_Charles/status/1536138950628327425
71. Our own Whale makes a good point in that in the Island/Pond/Ocean analogy, it’s much better to have one foot in the ocean than in the financially toxic pond right now as the Celsius related events unfold. https://twitter.com/cardano_whale/status/1536231971210563584
72. Celsius is having a very very bad month. https://twitter.com/CelsiusNetwork/status/1536169010877739009
73. Three Arrows Capital is also having a very, very bad month. https://twitter.com/thedefiedge/status/1537465349976694786
74. Charles has been asked to speak before the U.S. House of Representatives Committee on Agriculture. This is an important committee for crypto since they have subcommittees that deal with things like commodities exchanges and they hold hearings with names like “The Future of Digital Asset Regulation”. https://twitter.com/IOHK_Charles/status/1537613316381503489 https://agriculture.house.gov/subcommittees/subcommittee/?IssueID=14897
75. A Solana protocol just voted to take over a whale’s account so that they can liquidate the whale’s position via OTC markets to avoid open market liquidation. Does anyone think this is how it’s supposed to work in DECENTRALIZED finance? https://realms.today/dao/7sf3tcWm58vhtkJMwuw2P3T6UBX7UE5VKxPMnXJUZ1Hn/proposal/HuaL6cDtuNtfnJgvwMnYiZDHVCoLAuDtVFgJD8kYChJ4 https://twitter.com/FatManTerra/status/1538448035885240321 https://twitter.com/solendprotocol/status/1538483675913805824
76. The ADA Realm heatmap is back in action with some new and improved features. https://3dkiwi.io/marketmap/adarealm
77. Ardana clarifies the status of its treasury in light of the Three Arrows Capital revelations. https://twitter.com/ArdanaProject/status/1537717199627923456
78. In the recent CopiCafe there was mention of “land staking…coming soon”. Land staking is also mentioned in the Cornucopias CopiWiki. https://youtu.be/vPgKJxPlXks?t=1809
79. The Vasil hardfork combinator event has been pushed back to the last week of July. No big deal. Just more time on testnet for the dApp developers to work on integrating the new Vasil tools into their platforms. https://iohk.io/en/blog/posts/2022/06/20/vasil-upgrade-the-state-of-play/
80. On-chain voting for governance initiatives is beginning to sprout in Cardano via Voteaire. https://twitter.com/theadaape/status/1536788771210940417 https://twitter.com/voteaire/status/1535012082776694788
81. Here’s the first clip of actual gameplay from Cornucopias. https://twitter.com/RobGreig3/status/1538663042623340546
82. Here’s a look at some of the buildings that will be available on Virtua’s Cardano Island. https://twitter.com/Terra_Virtua/status/1538964324038877190
83. Dirk Hohndel, Chief Open Source Officer at IOHK sat down for a fireside chat with Linus Torvalds. https://twitter.com/linuxfoundation/status/1539255990863941633
84. A video alleging possible hidden Nazi symbolism in BAYC (the biggest NFT collection in crypto) is provoking discussion. https://twitter.com/optictopic/status/1539087280865828865 https://youtu.be/XpH3O6mnZvw
85. A Cloudflare outage knocked out big chunks of the internet and a lot of crypto dApps with it. https://techcrunch.com/2022/06/20/cloudflare-outage-knocks-popular-services-offline https://twitter.com/AltcoinPsycho/status/1539142458101096448
86. Here’s the link for the hearing with Charles before the U.S. House of Representatives Committee on Agriculture. https://twitter.com/InputOutputHK/status/1539273885719269376
87. We have now reached the stage where people are mortgaging their Pavia parcels to access the liquidity. https://twitter.com/FluidTokens/status/1539277134488817666
88. Cardano is now a Gold Member of the Linux Foundation. https://twitter.com/linuxfoundation/status/1539613003422760965
89. One of the biggest crypto youtubers seems to be really mad about a social media exchange with a Cardano Ambassador. https://twitter.com/Bitboy_Crypto/status/1538673146064252929 https://twitter.com/Fabian_vBergen/status/1538443734458806274 https://www.youtube.com/watch?v=_bTxXEum57s
90. MinSwap appears to be asking its community to decide on issues around revenue sharing. https://twitter.com/MinswapDEX/status/1539644300237377536
91. The EVM world gets confronted with the possibility that eUTxO might bring some new solutions to the table on the impermanent loss issue. https://twitter.com/Welikethetrees/status/1539633419780513794
92. Here’s the video of Charles testifying before Congress! https://youtu.be/K4ZM2AlGT-s
93. There will be a World Mobile & Charles AMA next week on Tuesday, June 28th! https://twitter.com/WorldMobileTeam/status/1539880960564633600
94. Pavia has revealed that the mysterious structure image they posted is actually the gigantic entrance to the stadium. https://twitter.com/Pavia_io/status/1539992780394708997
95. The Robbery Forest continues doing its thing with yet another $100MM hack. This time it’s the Harmony Horizon bridge. YAY for interoperability!!!! https://twitter.com/harmonyprotocol/status/1540110924400324608
96. It looks like the LIDO community has overwhelmingly voted to NOT self-limit their control of Ethereum PoS delegation. This is a blow to decentralization in ETH when compared to a blockchain like Cardano. https://twitter.com/sobizR/status/1540728451124015104
97. IOG has released Cardano Node 1.35.0 which will be the final candidate for the Vasil mainnet hardfork! https://twitter.com/InputOutputHK/status/1540711787468795904
98. The 3AC contagion seems to be wiping out all the big centralized crypto lenders. The last link explains some very general concepts about the liquidations and restructuring that might be in store for these entities. https://twitter.com/twobitidiot/status/1540830959825731584 https://twitter.com/CoinDesk/status/1540806206456864769 https://twitter.com/BowTiedNightOwl/status/1540864129312837637
99. Virtua gave us a little overhead glimpse of Cardano island. https://twitter.com/VirtuaMetaverse/status/1541126648631812097
100. The mainstream is starting to figure out that ETH’s move to PoS will not solve its scalability problems. https://www.coindesk.com/business/2022/06/27/morgan-stanley-gpu-demand-likely-to-slow-if-ethereum-moves-to-proof-of-stake/
101. At this time, BTC is the only crypto asset that Chair Gensler of the SEC is willing to call a commodity. https://twitter.com/HaileyLennonBTC/status/1541436307246698496
102. Testnet adoption of Node 1.35.0 is now at 50%. Once they hit 75% they will trigger the Vasil hardfork on testnet. https://twitter.com/timbharrison/status/1541445849548472320
103. JCrypto hosted a great Twitter Space with Virtua with a lot of information about the Cardano Island metaverse project. https://twitter.com/greyskulledm/status/1541527588295921665
104. Sam Bankman-Fried says there are some third tier crypto exchanges that are already secretly insolvent. https://www.forbes.com/sites/stevenehrlich/2022/06/28/bankman-fried-some-crypto-exchanges-already-secretly-insolvent/
105. There’s something about the crypto space. Maybe it’s the history of hardforked coins that end up being near clones. But, for some reason, people seem to feel it’s okay to just straight up copy things in crypto. https://twitter.com/Indigo_protocol/status/1541821473538572295 https://www.theverge.com/2022/6/28/23184747/bored-apes-yuga-labs-ryder-ripps-lawsuit-trademark-infringement
106. Front running losses to users on Ethereum due to miner extractable value enabled by the fee market are crazy! Over $30k in one recent hour according to https://twitter.com/ravanave/status/1541816518031327234.
107. The proposal to trigger the Vasil hardfork combinator event on testnet has now been submitted (June 28). https://twitter.com/InputOutputHK/status/1541800451460431872

~Army of Spies

Why Proof of Work, once and for all.

Since block 0, people have been arguing and debating the utility and security of Proof of Work and what exactly makes it so special.

The biggest controversial aspect of Proof of Work is its apparent wasteful use of energy, leading to questions of whether we can achieve the same result with more energy-efficient systems. That is, can we achieve: security, consensus, immutability, and decentralization without all the expensive energy usage?

Over time, alternative systems, such as Proof of Stake, appear to have answered this question positively. After all, they seem to be holding up fine, right? So what was so special about Proof of Work? Why do the work?

I'm here to explain how most people have entirely missed the point on Proof of Work.

Proof of Work is not about security:

We can ignore the longest chain.

Example: "it's a malicious attack, ignore it!"

(if we can ignore the longest chain "for free" what was the expensive energy waste for?)

It's not about consensus:

We can subjectively follow whichever chain we like.

Example: "PoW longest chain is relevant only inside our rules! which are the best!"

If that chain splits, then the consensus splits. So PoW is in consensus until it is not. So why the work?

PoW is not needed for "fork choice". A new node will not become "confused" because in the real world, there are many people online observing what is happing and humans are sufficiently capable of maintaining robust and decentralized reputation-based social networks; perfectly capable of guiding you to the correct fork (based on your ideology).

People join consensus and break consensus regardless of PoW or "longest chain". Nobody is getting confused about the chains. That is a myth. So why the hard work?

It's not about solving double spending:

We can use alternative systems to select a leader and follow his perspective.

Example: Proof of stake leader selection algorithms.

Also, chain splits due to politics create two systems that together track double-spending. Choosing one and saying "that is the real one" is subjective and political.

Saying chain A is the "real one" because it is objectively the longest is also subjective. Why does "longest" = correct? Who says? why?? Why cannot it just be ignored? What if it's defined as invalid? Who gets to define that?

It's not about immutability:

We can abandon PoW, change the system, and then change data/history records. (because what system is the valid tracker of "the data" can be subjectively-collectively decided by people)

Example: Ethereum, DAO reorg event, PoW to PoS change -> "PoW is obsolete! history record should be maintained by coin holders and community!"

PoW is not immutable if it is possible to later ignore it. What system tracks the transaction history is a concept inside our brains (it is a convention). It is not locked into any chain or technology. It is only immutable so long as we decide it is so.

And it's not about decentralization:

Bitcoin is an open, competitive, economic game. Just like with any industry, there are winners and losers. There will always be more winners than losers which creates a "centralized" small group of winners relative to the rest. This leads to economies of scale and it's why mining becomes a game run by a few big players.

Full nodes (who just store the chain and validate for themselves) follow this same pattern. Some are more important than others. Some are exchanges and big businesses. Social hierarchy will always influence what chain we end up supporting. Societies form hierarchical structures and Bitcoin does not change that. There is no equality amongst us.

________

It is much much more than that...

Proof of Work is about sacrifice and commitment. It's about building the most powerful, strong, recognizable, significant, famous, sacrificed for, valuable, fought over, contentious, competed for, and important record of history, in all of history.

Yes, Proof of Work is energy expensive. So you either follow everyone's sacrifice, what you know everyone cares about, or you are building in the sand, only to have what you built washed away into irrelevance and forgotten eventually.

PoS chains are sand castles. Longest (heaviest) Proof of Work chain is the Cathedral. It has a strong, difficult-to-build, mathematical structure that signifies its significance and truth.

Unus pro omnibus, omnes pro uno

It's true, building a sand castle is more energy-efficient. That's why it's not important. That's why zero-work/2nd-place chains are not important.

Whose sand castle is this? Probably was not important anyway...

Bitcoin is not about decentralization, it's about independence, it's a global collective-competitive sacrifice to create a financial history book with the strongest signal-of-importance that nobody can control and everyone contributes towards.

Everyone builds on everyone else's proven highest preference. It is a game where every player is independent and the scoreboard is independent of anything or anyone in particular. Sacrifice is the only needed ticket. Energy is the currency of choice. Unity of commitments is the collective reward.

​

Easy is infinite, difficult is scarce, we build what is hard so everyone cares. Only top gun gets to list; there are no points for second place for those who resist. Natural selection will pick the winner from the best. That's why Bitcoin will never rest.

​

By sacrificing, nodes also signal their health, honesty, and long-term commitment to the network. Dishonest nodes cannot survive long because malicious chains cost money to produce but can be ignored for free; eventually, they run out of resources. A node must provide economic value to survive: It's an evolutionary process that produces healthy-strong nodes and a chain worth sacrificing for.

In other words, Bitcoin is so independent, that it's actually running us. We are like the software in its natural-selection evolutionary game. We are the inputs of this machine. The output is a unifying attractive signal of past sacrifices and commitments. Proof of work is ultimately an attractive meta-psychological mechanism to get people to agree to follow a single story of history that is engraved in collective energy sacrifice.

(Energy sacrifice = importance, significance, and meaning = attraction = everyone is attracted to follow a single story of events)

He was delivered over to death for our sins and raised to life for our justification (Romans 4:25)

Proof of Work is about sacrificing for our inability to unite so we can justify building on each other's commitments.

Proof of Work, therefore, has no limits on scope, no limits on perspective, and no limits on context. In the end, It will always signal a choice no matter what we believe:

[double spends = double perspectives = double rules]

Because of this, it cannot and will never "die". It is guaranteed to win because it will keep forking until it is successful. People will keep feeding it because if they don't build on the most significant story, somebody else will. Somebody else will get to write history.

The only winning move then is to play. That is why Nodes always consider the longest chain to be the correct one and will keep working on extending it.

This is not a rule. It is a law of human psychology:

This is where everyone has gotten it so completely wrong. Proof of Work's security is based on psychology and nothing else. Even the most secure system, is vulnerable to the simple act of not using, turning it off, or abandoning it later on.

If the security is a function of everyone following a rule, we may as well of have had a rule saying "everyone must not attack or fork the network". That's not security, that is just words on paper. In PoW, longest chain is psychology. People follow it because it has an attractive signal of importance and significance.

All other systems that don't use work such as PoS, are 100% social network-based security regardless of how their systems work. Their "security mechanics" are pseudoscience. They are not bound by anything but themselves. It's just them... deciding. People on the outside care about them like they care about abounded sand castles on the beach on a rainy day.

In contrast, when we hear on the news how Bitcoin uses the "energy of an entire country!", that controversy, that noise, is precisely the point! That right there is the security of Proof of Work. Everyone sees the sacrifice and asks what is this chain doing that could possibly be worth sacrificing all that energy for?

Why is THIS CHAIN so important?

...and now, "longest" can no longer be ignored.

_________________________________________________________________

At its core, Proof of Work stops us from pressing the "off button" because there is no off button because sacrifice has meaning; that is the name of the Bitcoin game. This is what makes it the most secure and independently uncontrollable system ever invented. It's not a computer program, it's a human program, we follow what is meaningful; so it is.

Did you forget? 15 Reasons Why Loopring is about to be the hottest thing on the market

"Most people give up just when they're about to achieve success. They quit on the one-yard line. They give up at the last minute of the game one foot from a winning touchdown." -- Ross Perot

There was a post today that inspired this one that I believe is complete FUD. One thing I have seen in this sub over and over again is 1) forgetfulness of tech, past events, information, and connections, and 2) FUD/lack of resiliency. I would like to remind you all of 15 items from 1) that may help remind you:

See commentary below this list for explanations

1. GameStop is releasing their NFT marketplace that is built on Loopring between now and the end of July, likely mid-July
2. This marketplace burns LRC, reducing supply and increasing value
3. The marketplace requires items to be bought in Ethereum or LRC, increasing demand for LRC tokens
4. Loopring is looking to soon launch their zkEVM
5. Loopring is looking to soon launch Loopring Earn, aka staking LRC
6. The GameStop partnership is nothing to scoff at. Here a list of confirmed partners, speculated partners, and creators who are inherited through partnership with ImmutableX: a. Confirmed: Microsoft, **Disney (including Marvel and DC), TikTok, Habbo, Pokemon, ESL, Illuvium (AAA game launching w/ marketplace release), Guild of Guardians, Ember Sword, Gods Unchained, Planet Quest, HRO, Book Games, Cyber Galz, Blocklords, IMVU, VF, VY World, Green Park, Token Trove, Kinguin, GET Protocol (NFL ticketing), G4TV, Skate of the Art (SOTA), Kongregate, and many NFT artists b. Speculated: Corvette, Snoop Dogg + other artists, LEGO, Puma, xQc related products (largest Twitch streamer), Adidas, Riot Games, Sea of Thieves, Nike and Nike's RTKFT, and lastly, Robbie from ImmutableX has mentioned that multiple AAA games are applying to sell through them / GameStop
7. Loopring is working (with GameStop) in conjunction with several other NFT / DeFi companies, which include 0x and Taiko, not including all of the various bridges for ramps.
8. Daniel Wang, ex-CEO of Loopring, previously stated that the unveiling of Loopring's involvement with GameStop (and whatever else is set to release) would be worth 10 quarterly reports.
9. Loopring has been shouting Be Your Own Bank for months and months now. They're targeting DeFi--they're working on something that is going to use smart contracts to bring DeFi applications to their wallet, or GameStop's, or some new application
10. Beyond the partners from point 6, the marketplace will inheriting assets listed for sale from all of ImmutableX's marketplace partners. This includes OpenSea, Rarible, HRO, NFTrade, OKX, and four others, not including GameStop's marketplace. This does not mean integration with those marketplaces, but rather a sharing of asset liquidity
11. Loopring's involvement with GameStop, once again, is monumental. This NFT marketplace will be the first multi-sector launch, featuring assets from 10 confirmed sectors, introducing the true utility of smart contracts on L2
12. Vitalik (co-founder of Ethereum) has name-dropped Loopring several times now for the tech. Similarly, GameStop's new wallet (built on Loopring) has already reached the top ratings for NFT wallets, and you can't even buy anything yet lol
13. GameStop has hired 200+ executives and directors / managers from the top tech giants. They are compensated mostly in stock, with minimal salaries compared to other executive / director level positions at the companies they came from. Similarly, Loopring employees are paid primarily in LRC. Both GameStop and Loopring executive / director level employees have not sold any of their stock / coins, and instead, several have increased their positions
14. In their 10-K form, GameStop's CEO Matt Furlong stated that GameStop intends to establish a larger cash position this year. We can infer from this that 1) They believe they are going to have profitable quarter(s) by EOY, which in turn means, 2) An increase in revenue of around 250 - 300 million at minimum per quarter, which we can infer would come from their NFT marketplace
15. As Ethereum upgrades to PoS and other upgrades such as sharding, Loopring / GameStop will be affected by increased transactions speeds. Currently, Loopring transactions rival that of Mastercard or other credit card companies. After Ethereum upgrades, Loopring will be 20x to 40x faster than traditional credit card companies

Commentary:

1. SOTA's most recent post revealed that their products are launching mid-July, so it would make sense that GameStop's marketplace will be launching by or before then.
2. Looking into burning and the tokenomics behind burn rates is an important factor which will affect LRC's demand. One good speculation into these tokenomics can be seen here:
3. No comment
4. The zkEVM is the zero-knowledge Ethereum virtual machine that is going to pair with zkRollups to allow smart contracts to be deployed much more easily. An article on this can be found here:
5. No comment
6. Gods Unchained alone has over 10 million NFTs. The launch of all of these products is looking to eclipse billions in trading volume within the first month of launch. If LRC is an option for trading, which it is, LRC is going to see a substantial increase in demand
7. Daniel Wang, ex-CEO of Loopring, has navigated to working at Taiko, which in turn is working with DApps and zkRollups for L1/L2 migrations. Seems like he's continuing to work with Loopring, but is just wearing a different hat. 0x works to aggregate liquidity to help power DeFi applications
8. The implication here is that this launch isn't going to result in LRC trading sideways. He is saying that this is really going to grab attention, hype-LRC holders, and really bring out a lot of information on what has been going on.
9. This could very well be why the reveal is going to be worth '10 quarterly reports'. There is a surprise factor here, along with what GameStop is doing with 'stealth-startups' [Ryan Kagy], like GME Entertainment, that is going to cause a splash.
10. It would be in the creator's best interest (the ones selling NFTs) to sell through a marketplace that boasts the lowest gas costs, the highest liquidity, and the best benefits. GameStop's marketplace will be running on Loopring, so they will have the lowest gas prices. GameStop's marketplace will have the highest liquidity--all assets sold within ImmutableX will be available through GameStop's marketplace, but not all assets sold through GameStop will be available on other marketplaces. The benefits of being a creator through GameStop is unknown right now, at least to the public. All of this also means that it is highly likely that NFT creators are going to flock to GameStop's marketplace, since they will hold all these advantages over competing marketplaces (and other advantages like security and the decentralization of Loopring)
11. These sectors include art, gaming, comics, physical products, ticketing, books, music, TV series, movies, and collectables / wearables, which are the confirmed sectors. There could very well be more companies or individuals from different sectors of the market that are also launching their products with this marketplace
12. I've watched many podcasts from Vitalik. He knows his stuff when it comes to blockchain, despite other wacky opinions on other subjects. His support of Loopring brings support from cryptocurrency communities
13. Ryan Cohen, Attal, and Cheng have increased their positions. It is unknown whether Loopring employees have increased their positions. Here's a post in regards to Loopring employees not selling their coins: post. It is speculative, but well-researched nonetheless
14. Furlong's exact words indicated that this build-up in cash position would come from operational cash flow, aka revenue from selling stuff. In order to build up your FCF, you need to not be losing money... and GameStop has been spending lots of money on SG&A and inventory such that they have been in the red. So, to build up that cash position, it requires additional revenue to exceed those expenses, or the expenses to go down. Considering GameStop has been hiring for the purposes of this new marketplace, SG&A isn't likely to go down, but inventory spending could. Regardless, the math would indicate that GameStop expects an increase of $200M to 350M (somewhere in that range) at minimum per quarter to account for taking home profits. This equates to $800M to $1400M per year in revenue from the marketplace. That money flow will be going through Loopring's tech and will facilitate the use of their coin.
15. An article on these upgrades: article. There's probably better articles/posts

---

I've heard a lot of talk about bear markets that I also think is FUD. Growth can happen in bear markets, it is just a rarer event. For example, take Netflix. Netflix was able to do quite well during the 2008 recession, despite the economics of the time, which by the way, was outwardly a lot worse than it is right now. Cash is king, and GameStop and Loopring both seem to believe that this launch is going to position themselves very well moving forward. I tend to agree.

I have also heard various nonsense about BitCoin being 'connected' to Loopring in some way. I could see why major owners might sell or short coins at the same time, but if a large influx of people decide that LRC is a good coin to grab and LRC pumps 20%, 50% or 100%, I can tell you with certainty that BTC isn't going to also grow by 20%, 50%, or 100%. Don't be fooled into the conspiracies of TA. Fundamentals drives value, not the other way around. The LRC pump last year wasn't driven by fundamentals, rather it was by hype. Hype dies and fundamentals stay. So whatever happens upon this release, whatever legacy Loopring establishes as they begin to be used with these markets, that will define the new standard of trade.

Also, if you want sources on these things, I've got them. But you're going to have to find them if you're interested. I have a compilations of emails I have been writing on GameStop and Loopring (mostly). You can find this document here which has sources to the various partnerships, statements, and other events that I have talked about in this post

Most people give up when they're one foot from the finish line. Our 'one foot' is less than one month away. Don't be fooled by the distractions and people that say scary things but have no proof for it.

Disclaimer: This is not financial advice. I do own both GME stock and LRC. Do your own DD and invest at your own discretion

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Here is a Market Recap for today Wednesday, June 29, 2022

Psycho’s Market Recap - Wednesday, June 29, 2022

US stocks finished Wednesday’s extraordinarily choppy session modestly lower as the market digests new economic data. Today, first-quarter US GDP was revised down to show a 1.6% annualized contraction, as personal consumption came in weaker than previously reported. This follows a report earlier this week that showed consumer confidence in the US fell to the lowest level in nine years. On the other hand, Bitcoin (BTC) continues to fight to stay above the critical $20k level amid extreme volatility in crypto markets.

The Conference Board’s latest report showed the consumer confidence index for June fell to 98.7 from 103.2 in May and below expectations of 100. The report's expectations index, which is based on consumers' short-term outlook for income growth, the job market, and overall business conditions, fell to 66.4, its lowest reading since March 2013.

Lynn Franco, senior director of economic indicators at The Conference Board, said “Consumer’s grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices. Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year-end.”

(Note: The working definition of a recession is two consecutive quarters of negative GDP growth, officially declared by the National Bureau of Economic Research (NBER)).

This follows consumer sentiment data from the University of Michigan released last week that showed sentiment fell to a record low of 50.2. The University of Michigan's report had gained outsized investor attention after Federal Reserve Chair Jerome Powell mentioned the inflation expectations component of that data as "eye-catching" during testimony before Congress last week

Given these and other recent reports, some Federal Reserve officials have flagged the risk that inflation expectations will become entrenched among consumers, making the case for the central bank to maintain its aggressive, hawkish posture in the near-term. Cleveland Fed President Loretta Mester said in remarks, “The fact that the salient prices of gasoline and food remain elevated suggests that there is some risk that longer-term inflation expectations of households and businesses will continue to rise.” She suggested she would back another 75 basis point interest rate hike in July if economic conditions look similar through the Fed's meeting next month. Markets are currently pricing in a more than 80% probability that a 75 basis point rate hike will ultimately occur in July, according to CME Group data.

Highlights

• Pinterest (PINS) announced that Google and PayPal executive Bill Ready will take the place of co-founder Ben Silbermann as CEO of the company.
• Short-seller Grizzly Research accused Chinese EV company NIO of fraudulent accounting and “using an unconsolidated related party to exaggerate revenue and profitability.” Here is NIO’s response refuting the report, calling it “ without merit and contains numerous errors, unsupported speculations and misleading conclusions and interpretations.”
• Shares of Upstart (UPST) opened sharply lower after Morgan Stanley cut their price target to $19 from $88 previously. Morgan Stanley suggested the consumer lending platform would come under pressure due to the cyclical nature of the business.
• Seems like a lot of negative news today, huh. In another report, analysts at Bank of America allege Bed Bath and Beyond (BBBY) are cutting A/C in order to save money. A representative for BBBY responded saying, “We've been contacted about this report, and to be clear, no Bed Bath & Beyond stores were directed to adjust their air conditioning and there have been no corporate policy changes in regard to utilities usage.”
• Snapchat on Wednesday confirmed it's debuting a new subscription product called Snapchat+, "a collection of exclusive, experimental, and pre-release features" for $3.99 monthly.
• First Solar (FSLR) has decided against building a new factory in the US, citing uncertainties regarding trade policy and tax incentives.
• The Indian government has issued an ultimatum to Twitter Inc to comply with the country's Information Technology Rules after the social media platform's repeated failures to act on the content take-down notices sent under the act

““I haven’t failed. I’ve just found 10,000 ways that won’t work.” – Thomas Edison

3 Crypto Coins Ready To Change History

The coin market has produced many millionaires and is attracting more buyers and crypto enthusiasts by the day. This influx has resulted in the launch of new cryptocurrency projects with a wide range of features, services, and benefits. Bitcoin and Ethereum are considered mature, and the new generation of crypto coins is ready to take over, leaving the grandparents behind. Buyers are now faced with the difficult task of determining which ones are the best to withstand market volatility while displaying high growth potential. Dogecoin (DOGE), Polkadot (DOT), and RobeApe (RBA) are three such coins with limitless potential.

Dogecoin (DOGE) – Old Doge New Tricks

Dogecoin, a meme coin, went into circulation in 2013. With the public support of business magnate and entrepreneur Elon Musk, its popularity skyrocketed. DOGE had a strong run in the cryptocurrency market until the latest crypto winter in January 2022.

The decentralised digital token was at the forefront of the crypto bull runs in 2018 and 2021. Because of its characteristics, coin market influencers see DOGE as a successor to Bitcoin and Ethereum. Dogecoin's open-source blockchain architecture makes it the easiest to access and use.

DOGE is interoperable with the Binance Smart Chain, allowing faster transactions, increased efficiency, and more excellent serviceability at a lower cost. Connecting to other ecosystems with the same degree of flexibility as the Ethereum blockchain and the Solana network is possible.

Dogecoin has very high scalability and interoperability, opening up a vast horizon for developers to pioneer and profit. DOGE's acceptance as a payment currency is steadily spreading throughout the community.

Polkadot (DOT) - Be a part of The Dots!

When the first COVID-19 wave decimated financial markets in 2020, Polkadot entered the coin market. DOT defied all odds to remain resilient, while the value increased by 9900 per cent by the end of 2021. The open-source blockchain technology is a crucial driver of its expansion.

The Polkadot features extensive multi-chain interoperability. Its protocol is intended to connect all types of blockchains in the cryptocurrency market. This enables DOT users to access various ecosystems, transact, and exchange information freely. They can also build innovative crypto solutions by combining tools from multiple ecosystems. Polkadot offers tailored security for both public and private blockchain networks. These features contribute significantly to DOT's value, utility, and rising adoption at all levels.

Buyers are optimistic about Polkadot now that DOT is back in the race for multi-chain interoperability and sustainability.

RBA (Robot Ape) Beats its Chest

RoboApe presales are still a hot topic in the cryptocurrency market. The degree of governance reform and decentralisation it promises has attracted many buyers. Crypto enthusiasts have begun to refer to the RBA as the future of cryptocurrency and the catalyst for a bull market.

The RoboApe ecosystem relies heavily on a strong community ethos. Its crypto community provides users with increased accessibility, earning opportunities, and influence. RoboApe Swap pushes interoperability with other blockchains to new heights. In the coin market, users can perform cross-chain token swaps.

RoboApe includes a deflationary mechanism to protect against a potential massive drop in RBA prices. The ecosystem eliminates a fixed number of RBA coins at regular intervals to keep the cryptocurrency's value from falling.

RoboApe is planning to open a crypto learning academy. This will include a variety of crypto learning resources to educate users on various aspects of the coin market. Users can create and participate in games and eSports, host events and print and sell NFTs.

The fundamentals of these cryptocurrency projects continue to be clear and encouraging. They introduce novel features to the ever-changing cryptocurrency market, which crypto enthusiasts adore and seek to exploit. Buyers are encouraged to diversify their portfolios with **Dogecoin, Polkadot, and RobeApe**.

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The Bubble Crash? Scrambling, speculation, bull and bear market change, the value lives forever!

https://preview.redd.it/m44kc7w0ki891.jpg?width=1920&format=pjpg&auto=webp&s=84676bc7a1fabaa2a4c4fcf9229533bf801ddcc0

Warren Buffett once said a very classic sentence: “When the tide fades, we will know who is swimming naked”. In half a year, the BTC has fallen from a high of 69,000 to 20,000, and the market has experienced a rapid bull-bear transition that many people have not yet reacted to.

Bear markets are usually accompanied by a series of black swans, starting with the de-anchoring of ust, which led to LUNA’s market capitalization of $41 billion, falling to less than $16 million in two days, a plunge of 99.9%.

The butterfly effect triggered by Luna’s return to zero also extended to the whole market little by little.

Luna’s crisis was transmitted to Three Arrows Capital. Three Arrows Capital is currently one of the largest venture capital firms and hedge funds in the crypto space. Three Arrows Capital had spent about $560 million on 10.9 million LUNAs, but instead of trading and circulating on the market, these LUNAs were almost entirely pledged on the chain. The collapse of Luna-UST came unexpectedly, and in a wave of selling in just a few days, it was left with only about $600 of its hundreds of millions of dollars invested in the Luna project.

On June 16, crypto trading platform, AEX, announced that it was suspending withdrawals from mainstream assets such as Bitcoin and Ethereum. On June 19, crypto trading platform, Hoo announced that it would stop withdrawals. The successive difficulties of the AEX and Hoo Tiger trading platforms, reflects the weakness of many second and third-tier exchanges in terms of risk control

During the bull market, everyone is excited, and the high growth of performance covers up a lot of problems. The tide is fading and we know who is swimming naked. After the crisis, we realize how important risk management and safety are.

In retrospect, we find that bull and bear transitions are often good opportunities for exchanges to bend the curve. The bear market in 2015 led to Yunbi, and the bear market in 2017 led to Binance. After the bull market in 2021, the landscape of the three major exchanges has changed.

Bear Market depends on strength!

Crypto as the most attractive market, the frontier of wealth creation, where there is no ranking, only the best service, the most solid technology, and the most perfect experience. This is the game of the brave, this is the battlefield of the young.

From the earliest Bitcoin China to the later Yunbi, OKEx, Huobi, Binance, etc., every year a large number of new players will enter and challenge the older generation of exchanges, while a number of obsolete players will gradually be eliminated by history, and the first echelon of exchanges is changing almost every quarter.

Bear markets are a time for internal work, and with each round of bull and bear transitions, there are always a number of exchanges that are silent in the bear market. There are also a few exchanges that practice their internal skills and stand out from the rest.

To test whether an exchange is reliable, you need to look at how long it has been in business. Generally, exchanges that have been established for more than four years and have traversed the bull and bear markets are relatively reliable. After all, inside a bear market, there is no bubble, it’s all about real ability.

Compliance and security are the lifeblood of exchanges!

For exchanges, compliance and security are the bottom line and the lifeline!

The thorny times of the cryptocurrency industry are over, and the trend is towards compliance. The bigger the exchange, the more they focus on compialnce, and themore they focus on compliance, the bigger they become in the end, and the further they go, which is the current state of affairs for exchanges.

CoinW, a veteran exchange founded in 2017, is at the forefront of compliance. It continues to pioneer on the basis of holding a number of national and regional financial regulatory licenses, including the US MSB financial license, Singapore MAS license, and SVGFSA license, and was recently granted a cryptocurrency regulatory license by the Financial Crimes Investigation Service (FCIS) of Lithuania.

In today’s economic environment, digital currencies are gaining weight in the economy year by year, and security is the most critical step for investors to choose the best platform. Without security, it is equivalent to scattering funds into the sea without a trace; and compliance is the only most direct judgment for investors to measure whether an exchange is reliable or not. As the compliance process moves forward, CoinW’s global development layout is becoming faster and faster. Currently there are 16 localized trading service centers in 13 countries, providing services to over 7.5 million users worldwide.

Exchanges are not an easy job. Risks come from many sources: technology, policy compliance, operations, etc. Entering the first echelon is not meant to be restful. In 2014, MT.Gox went bankrupt, and in 2019 Binance was hacked to 7,000 bitcoins worth hundreds of millions of dollars. Without strong nerves and diamond, the average person can not really take this porcelain work.

Only every moment, with fear and trepidation, putting the interests of users first, with high standards and high requirements. Then we can go through the bulls and bears market to embrace the ultimate victory.

Only by adhering to the service tenet of “ No Evil” and “User First”, we have accompanied the platform users through several times of bulls and bears. We will continue to expand the globalization of our brand by deepening the lifeline of compliance and safety. Only then can we gain the recognition of people in more countries and regions.

What’s different about this bear market?

The Olympics, the World Cup and other major world events are held every four years. The halving of the Bitcoin is also basically every four years, and there have been four bull and bear market change in the past. The beginning of each bull market is the time to release the bubble. The wealth effect attracts a large number of emerging forces to enter the market, while the bear market is a process of de-bubbling, letting speculative people out and quenching value investors. Let the worthy projects sink in.

The 2022 Crypto market crash is a little different from 2018 in two ways. This time, the industry as a whole will be less impacted than in 2018 because crypto project owners are generally funded in stablecoins.

This happened against the backdrop of the dollarization and secularization of the Crypto industry, which has largely been dollarized since 2018 as it has gradually accepted U.S. dollar stablecoins as its base currency.

Unlike 2018 when the whole industry spoke about new public chains. the narrative structure of the Crypto market has changed greatly in the past two years, and several new directions have emerged rapidly in the market, such as DeFi, NFT, GameFi, Web3 , Metaverse, etc., which have a relatively clear and secular logic of value creation and distinct competitive advantages.

Also, because of financial instruments such as DeFi, the centralized capital institutions of large-scale collateralized lending and credit lending, which were mainly hit by this crisis, were forced to liquidate their collateralized assets under short-term debt pressure, exacerbating the chain collapse of liquidity. So, unlike the blunt knife cuts of 2018, the current bear market has been characterized by a particularly fast knife.

Overall, anchoring the U.S. dollar as the currency of circulation, has made the Crypto market more accessible to the general market and made it more resilient and less volatile. The iron bottom of the current bear market is expected to be basically around $16,000-$18,000.

As the global integration process intensifies and more people in emerging countries and regions embrace the Crypto market, its value will be gradually released. This process is likely to be more than twenty years, so the industry-wide dividend is at least twenty years away.