1. Home
  2. Coin Telegraph

Coin Telegraph

Coinbase takes a shot at Tether, encourages users to switch to USDC

Coinbase’s request comes just a couple of months after Binance ceased support for USDC.

United States-based cryptocurrency exchange Coinbase has asked its customers to convert their Tether-issued USDT (USDT) stablecoin to USD Coin (USDC), a USD-pegged stablecoin issued by Circle and co-founded by Coinbase in 2018.

The cryptocurrency exchange suggested that USDC is a much more secure alternative in the wake of the FTX collapse saga and has also exempted any fee on the conversion of USDT to USDC on its platform. The firm said:

“We believe that USD Coin (USDC) is a trusted and reputable stablecoin, so we’re making it more frictionless to switch: starting today, we’re waiving fees for global retail customers to convert USDT to USDC."

Stablecoins started out as an onboarding tool for the crypto exchanges in the early days of crypto, but today they have become a key market player and liquidity source. However, there has always been some form of scrutiny around their reserves backing these stablecoins. A stablecoin, by definition, must be backed by 1 USD or equivalent.

The reserve debate intensified in the aftermath of FTX collapse as many firms with exposure to the tainted exchange and its sister company Alameda Research went bankrupt. There was another allegation about Binance CEO Changepeng Zhao trading barbs with former FTX CEO Sam Bankman-Fried and accusing him of trying to depeg USDT.

Tether published its latest quarterly attestation on Nov. 10, just a day before the exchange filed for bankruptcy. The report noted that 82% of Tether’s reserves are held in cash, cash equivalents and other short-term deposits as of Sept. 30, 2022.

Coinbase also stressed that USDC is 100% backed by “cash and short-dated U.S. treasuries held in U.S. regulated financial institutions,” and it is always redeemable 1:1 for U.S. dollars.

Related: Circle co-founder says converged dollar books on Binance would be good for USDC

Apart from the debate over reserve audits, there is a growing “stablecoin war” among crypto exchanges as well. Coinbase’s request to convert USDT to USDC comes just a couple of months after Binance, another global player, cut support for USDC leading to a drop of $3 billion in the market cap of the Coinbase co-founded stablecoin.

Tether-issued USDT is the largest stablecoin by market share with a market cap of $65 billion, USDC currently sits at a $42 billion market capitalization but has rapidly eaten into USDT’s market share. Binance’s stablecoin, BUSD, currently has a market cap of $22 billion.

Tether didn’t respond to Cointelegraph’s requests for comments at press time.

Remote work triggers move to DAOs in the post-pandemic world: Survey

A survey from a sample of the general U.S. public suggests that millennials are more likely to join a DAO than any other age group.

A survey sample of working Americans suggests that millennial and Generation Z workers are far more in favor of joining decentralized autonomous organizations (DAOs) and working remotely in the post-Covid-19 world.

Over 1,100 Americans took part in a survey conducted by MetisDAO Foundation which explores trends in remote working preferences and the emergence of DAOs in recent years. A key consideration is the effect that Covid-19 has had on worker sentiment and the growth of DAOs in corporate governance.

Citing a research report on DAOs published by the Harvard Law School Forum on Corporate Governance, the results of the survey highlight how DAOs saw their treasuries swell from $400 million to $16 billion in 2021.

This coincided with growing participant figures, up from 13,000 to 1.6 million people during the same period. Drawing comparisons to some of the largest multinational corporations, global DAO workforce numbers are equal to one Amazon, 18 Facebooks, seven Microsofts or 11 Google.

Related: Toss in your job and make $300K working for a DAO? Here’s how

The impact of Covid-19 is a primary driver of Metis’ report investigating workers readiness for decentralized employment opportunities. The unexpected, rapid shift to remote working conditions of the pandemic has seemingly driven knowledge and understanding of DAOs and decentralized autonomous companies (DAC), particularly among millennial and generation Z workers.

A major takeaway from the results is that nearly 75% of respondents believe that companies will need to adapt how they run their businesses to offer more remote work options. Millennials working in hybrid or remote settings offered the most positive responses on how DACs offer workers opportunities to help govern a company.

47% of the respondents also indicated that they would be open to working for a DAO or DAC as a contracted employee. The survey also indicates that millennial workers are more willing to work for a DAO or DAC than any other age group.

Meanwhile, Gen Z respondents most accurately defined a DAO compared to respondents from other age groups and a majority of Gen Z participants also defined DAOs as ‘revolutionary movement changing the future of work’.

MetisDAO concludes by highlighting the influence of prolonged remote working conditions driving the desire for more decentralized and autonomous work environments.

“The survey results show that a majority of respondents seek all of the things that DACs provide; remote work opportunities, independence from management, and influence over the organizations they work in.”

MetisDAO’s survey came from a sample of 1112 respondents through SurveyMonkey in November 2022. The DAO forms part of Metis, an Ethereum layer-2 rollup solution.

FTX reportedly gets 3 more months to stop all operations in Japan

Japanese authorities have postponed FTX Japan’s suspension deadline because the firm has so far failed to return assets from custody to creditors.

The Japanese subsidiary of the now-defunct cryptocurrency exchange FTX has received approval from local regulators to continue sorting out issues with withdrawals until next year.

The Kanto Local Finance Bureau, a local financial regulator, running under the Ministry of Finance of Japan, has issued a statement regarding FTX Japan operations, Reuters reported.

The Japanese authority has postponed FTX’s business suspension deadline until March 9, 2023, extending the original time limit by three months. In mid-November, Japan’s Financial Services Agency (FSA) initially requested FTX Japan to suspend business orders by Dec. 9.

According to the announcement, the Kanto Local Finance Bureau has ordered the extension of the deadline because FTX Japan has so far failed to return assets from custody to creditors. The regulator emphasized that FTX Japan’s trading system continues to be out of function.

FTX Japan subsequently confirmed the latest news in a blog post, stating that the exchange is proceeding with a “business improvement plan” that the firm submitted to the Kanto Local Finance Bureau on Nov. 16. The exchange noted that the platform has been out of function, adding that it’s “not possible to quickly return customer’s assets.”

Related: FTX-owned Liquid exchange pauses all trading after withdrawal halt

The news comes shortly after FTX Japan on Dec. 1 released a roadmap to resume withdrawals. The exchange previously confirmed that its customers’ assets were not part of FTX’s bankruptcy proceedings. The firm was initially planning to resume withdrawals by the end of 2022.

As previously reported, FTX launched its Japanese arm in June 2022 after acquiring Japanese crypto exchange Liquid in February.

Turkey has an obsession with crypto — specifically Dogecoin: Study

A new study reveals Turkey in second place for crypto-related searches worldwide and first place for Dogecoin-related searches.

The crypto market slump doesn’t mean interest in crypto is also down. A new study from the cryptocurrency education platform CryptoManiaks revealed that many countries are still scouring the internet, hungry for crypto-related information.

According to the study, the Netherlands and Turkey take the top two spots, with 8.2% and 5.5% of the population, respectively, searching for crypto-related terms. Turkey particularly accounted for 4.7 million searches, leading the searches with sheer numbers.

The study analyzed the combined number of searches for a select set of popular cryptocurrencies into a percentage of the population for each country in order to calculate the percentage of locals searching each month.

While it was in second for overall searches, Turkey came in first place for searches related to the memecoin Dogecoin (DOGE), with 812,000 monthly searches. This is nearly double that of Ethereum (ETH), the country’s third most searched crypto.

A spokesperson from CryptoManiaks commented on the DOGE curiosity, particularly over the last 12 month:

“Dogecoin’s popularity has surpassed that of Ethereum in a significant number of countries, with nearly 2 million more monthly searches worldwide for the coin.”

The cryptocurrency DOGE has remained a popular digital asset and crypto cultural phenomenon after it was adopted as the poster crypto for internet icon Elon Musk.

Some of the cryptocurrencies included in the search terms were Bitcoin (BTC), Solana (SOL), and Binance Coin (BNB), among others. 

Following the Netherlands and Turkey in the ranks were Germany, Canda and the Czech Republic.

Related: DeFi sparks new investments despite turbulent market: Finance Redefined

While the United States and the United Kingdom are major players in the global cryptocurrency industry, neither ranked in the top spots due to the number of searches equivalent to their population sizes. The U.S. ranked 15th with 1.9% of the population searching for these terms, while the U.K. takes the 12th spot with 2.6%.

Recent research from Cointelegraph also revealed that despite market conditions, major institutions still remain interested in the industry and continue to pour millions into crypto-related projects.

Bitcoin price targets stretch to $19K as BTC jumps 4% from daily lows

Bitcoin retains $17,200 after an overnight squeeze takes BTC price action to within reach of one-month highs.

Bitcoin (BTC) stayed higher after a $17,000 liquidity grab on Dec. 9 as traders targeted further upside.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin attempts new monthly high

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD cooling volatility once more after hitting $17,300 on Bitstamp.

The pair had begun by taking liquidity at the Dec. 8 Wall Street open, this snowballing to see it challenge one-month highs from Dec. 5.

For those already betting on upward continuation, the move came as little surprise, with the coast still clear to add to the gains.

“The move to 18-19k $BTC continues,” popular trader Credible Crypto summarized.

A previous tweet from Dec. 7 explained the rationale, with invalidation set at $16,000 support.

“Lows cleaned up and as if on cue Binance apes showing up to support the mid 16k's,” part of accompanying comments read.

“Maybe one more push into 16.4-16.5k and then expecting a reversal back up and continuation to 18-19k targets.”
BTC/USD annotated chart. Source: Credible Crypto/ Twitter

Fellow trader Cheds meanwhile eyed potential continuation of volatility, with BTC/USD tagging its upper Bollinger band on 4-hour timeframes.

At the time of writing, 4-hour candles remained near the upper band, with both still expanding in a classic prelude to increased volatility.

BTC/USD 4-hour candle chart (Bitstamp) with Bollinger bands. Source: TradingView

“Expecting continuation for Bitcoin as long as we stay above $17K,” Michaël van de Poppe, founder and CEO of trading firm Eight, added, likening the overnight move to the breakout from the end of November.

Liquidations fuel BTC price run-up

Further analysis of overnight BTC price action highlighted increased liquidations of short positions.

Related: Bitcoin 2022 bear market ‘usual’ despite key trend line loss — Analyst

In a sign of the extent to which market participants assumed further downside would enter, short liquidations on BTC totaled $7 million in a single hour on Dec. 8, data from Coinglass shows. Altcoin short liquidations added another $11 million to the tally.

"Liquidations have been relatively small since the early November crash but short liquidations helped fuel that recent move," analytics resource On-Chain College confirmed.

BTC liquidations chart. Source: Coinglass

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Kevin O’Leary lost the $15M he was paid to be FTX’s spokesperson

Kevin O’Leary fessed up to making a massive mistake with FTX, and is working to find out where his money went amid the bankruptcy.

Shark Tank star and investor Kevin O’Leary, known in some circles as Mr. Wonderful, has claimed he has all but lost the $15 million FTX paid him to be its official spokesperson.

Speaking at CNBC’s Squawk Box on Dec. 8, O’Leary outlined that after taxes, agents fees, a $1 equity investment into FTX, and buying a whole lot of crypto that's now stuck on the FTX exchange, he's got nothing left to show for his time with FTX.

“Total deal was just under $15 million, [...] I put about $9.7 million into crypto. I think that’s what I’ve lost. It's all at zero, I don’t know cos my account got scraped a couple of weeks ago. All the data, all the coins, everything.”

“It was not a good investment [...] I don’t make good investments all the time, luckily I make more good ones than bad ones, but that was a bad one,” he added.

He will probably be just fine without the funds however, as the 68-year-old is estimated to have a net worth of around $400 million — if such estimates are anything to go by.

Kevin O'Leary on Squawk Box: CNBC

Mr. Wonderful was also questioned on what initially drove him to jump on the FTX bandwagon back in August 2021, given that he previously indicated that he held back from crypto in its early days due to his own rigorous compliance standards.

In response, he essentially fessed up to making a massive error, noting “I obviously know all the institutional investors in this deal, we all look like idiots, let's put that on the table.”

“We relied on each other’s due diligence but we also relied on another investment theme that I felt drove a lot of interest in FTX. Sam Bankman-Fried is an American, his parents are American compliance lawyers. There were no other American large exchanges to invest in if you wanted to invest in infrastructure plays,” he said.

O’Leary reiterated that he is currently working to find out where his capital on FTX actually went and how he can get it back. He also added that he has “agreed” to testify at the upcoming Senate Committee hearing set for Dec. 14.

Related: Sam Bankman-Fried misses deadline to respond to testimony request, now what?

Despite the whole debacle, O'Leary has previously said he would still have SBF on his team, and in an tweet on Dec.8, he reiterated that he is not scared off investing in entrepreneurs that have massive failures as “failure is often the best teacher.”

During another interview with Yahoo Finance on Dec. 6, O’Leary stated that SBF should be treated as innocent until proven guilty as he called for FTX to be audited in the wake of its collapse.

“I am of the ilk and of the group of people that says, ‘You’re innocent until proven guilty.’ That’s what I believe. And I want the facts. And so, if you tell me that you didn’t — you did or didn’t do something, I’m going to believe you until I find out it’s a falsehood,” he said.

7 class action lawsuits have been filed against SBF so far, records show

Sam Bankman-Fried has been the subject of many lawsuits and investigations since the collapse of FTX, with more likely to follow.

The number of lawsuits against former FTX CEO Sam Bankman-Fried has been racking up since the fall of his crypto empire, with the former “white knight” of crypto finding himself a defendant in seven class action lawsuits filed since FTX’s bankruptcy.

These lawsuits are separate from the numerous probes and investigations examining FTX and Sam Bankman-Fried, such as a reported market manipulation probe by federal prosecutors and the Federal Election Commission’s likely investigation into Bankman-Frieds dark money donations to the Republican Party.

Below is a summary of the class-action lawsuits brought against Sam Bankman-Fried since Nov. 11. 

Dec. 7: Podalsky et al. v. Bankman-Fried et al.

In this class action lawsuit brought by Gregg Podalsky and four other individuals, the former FTX customers accuse Golden State Warriors, Bankman-Fried and numerous other celebrities and FTX executives of fraudulently inducing “unsophisticated investors” into purchasing unregistered securities in the form of yield-bearing accounts, resulting in customers losing billions of dollars.

Other public figures also named in the lawsuit are Tom Brady, Kevin O‘Leary, Stephen Curry, Trevor Lawrence and Shaquille O’Neal, with Podalsky demanding that the case have a jury trial.

Dec. 5: Jessup v. Bankman-Fried et al.

FTX customer Michael Elliott Jessup has brought a class action lawsuit against Bankman-Fried, former Alameda CEO Caroline Ellison and other FTX executives accusing them of fraud, unjust enrichment and conversion.

Unjust enrichment in legal cases refers to situations where one person is enriched at the expense of another, in circumstances which the law sees as unjust, while conversion refers to situations where one person ‘converts’ another person's property for themselves.

Jessup, who has also demanded the case have a jury, alleges that customers who held funds on FTX had rightful possession of their crypto assets, and that the defendants transferred these assets to Alameda Research without the authority to do so — which constitutes conversion in the eyes of Jessup’s lawyers.

Dec. 2: Hawkins v Bankman-Fried et al.

Filed in California, this lawsuit is a class action brought by Russell Hawkins — a FTX customer who held funds on the exchange — on behalf of all those similarly situated and alleges that customers were misled by unfair and deceptive practices.

The defendants include Bankman Fried and other FTX executives, as well as accounting firms Armanino and Prager Metis who had issued certified reports deeming FTX to be in good financial health, with the filing noting:

“As set forth herein, the Individual Defendants made statements regarding YBAs [Yield-bearing accounts] and the FTX Entities that were untrue or misleading. They publicly represented that the FTX Entities and YBAs were a viable and safe way to invest in crypto, a statement designed to deceive consumers into investing with the FTX Entities.”

Nov. 23: Pierce v. Bankman-Fried et al.

With the same defendants as the Hawkins case, FTX customer Stephen Pierce filed a class action lawsuit in California accusing Bankman-Fried of being “one of the great frauds of history,” and that he “and his inner circle treated those assets as a slush fund to fund their own proprietary investments and a variety of personal boondoggles.”

A jury has once again been demanded by the plaintiff (Pierce), who alleges that the Racketeering Influenced and Corrupt Organizations Act (RICO) has been violated.

Racketeering is a type of organized crime in which an illegal coordinated scheme or operation is set up which enables the perpetrators to consistently collect a profit.

Nov. 21: Kavuri v. Bankman-Fried et al.

FTX customer Sunil Kavuri has filed a class action lawsuit in Florida similar to Podalsky v Bankman-Fried, in that the defendants listed includes celebrities or public figures that have endorsed or otherwise promoted FTX, allegedly without disclosing their payment or stake in the company.

It is also a case that the Securities and Exchange Commission may be keeping a close eye on, with Kavuri alleging that FTX were promoting unregistered securities which were fraudulently presented as securities in an effort to attract customers and generate interest.

Nov. 20: Lam v. Bankman-Fried

Hong Kong resident and FTX customer Elliot Lam is the plaintiff in another class action lawsuit filed in California, who alleges that Bankman-Fried, Ellison and the Golden State Warriors have violated California’s false advertising and unfair competition laws, and have also committed fraudulent concealment and civil conspiracy.

Lam claims that the defendants sold and marketed to the public who could not have known the “true nature of FTX and YBAs,” and that had the public had the same information as the defendants they would not have chosen to use FTX’s products — thus constituting fraudulent concealment.

Nov. 15: Garrison v. Bankman-Fried et al.

This lawsuit once again includes the full suite of celebrity actors and public figures which are understood to have endorsed or been involved in marketing campaigns for FTX, the class action lawsuit filed by Edwin Garrison in Florida alleges that FTX’s YBAs were illegally offered securities.

Related: Sam Bankman-Fried misses deadline to respond to testimony request, now what?

Garrison also accuses FTX as having engaged in deceptive and unfair business practices, and was engaged in a “fraudulent scheme” which intentionally took advantage of “unsophisticated investors.”

Once these complaints and the necessary documents were filed, they were given a docket number and immediately assigned to a judge. From there, each of the defendants is served with a summons and complaint, and the judge will set out a schedule outlining the next steps.

Approach with caution: US banking regulator’s crypto warning

The Office of the Comptroller of the Currency (OCC) said the digital asset industry was maturing but was “not yet robust” in its risk management.

A United States banking industry regulator warned banks of the “emerging risks” of cryptocurrencies saying the sector should take a “cautious approach” and seek permission in some cases when engaging with crypto or crypto firms.

Citing “dislocations” in the crypto market over 2022 the Office of the Comptroller of the Currency (OCC) highlighted what it said were “several key risks” of crypto in its Dec. 8 Semiannual Risk Perspective for Fall 2022 report.

Its three main concerns are that “stablecoins may be unstable,” the crypto industry lacks mature risk management practices and has a high risk of contagion due to the “high degree of interconnectedness.”

The space’s lack of “consistent or comprehensive regulation” and the volatility of crypto along with the increased range of firms offering “bank-like products and services” using crypto and tokenized assets were also cited as concerns, which the OCC believes raises questions regarding financial stability.

The depeg and collapse of the TerraClassicUSD (USTC) algorithmic stablecoin in May was given as an example of stablecoins’ “run risk,” and how asset-backed stablecoins also saw minor depeg events as a result.

It highlighted stablecoin backings have “incrementally evolved” since, but believes most “remain susceptible to run risk.”

Discussing risk management the OCC said practices at crypto firms were maturing but are “not yet robust” with firms appearing “unprepared for the stresses and surprises” over the past year that saw losses for millions of investors, it added:

“Hacks and outages are frequent, and fraud and scams remain high throughout the industry. In some cases, ownership rights, custody arrangements, and financial representations have created a high degree of confusion.”

The crypto market over 2022 also revealed the industry’s “interconnectedness [...] through a variety of opaque lending and investing arrangements” according to the OCC.

Related: US lawmakers question federal regulators on banks' ties to crypto firms

It remarked crypto participants “may be engaging in highly leveraged trading” which resulted in the noted contagion risk.

In its advice to banks, the OCC said institutions considering engaging with crypto or crypto companies “should take a careful and incremental approach.”

The OCC advised national banks that crypto-related plans should be discussed “with their supervisory office” before they engage in any activities as some potentially require permission.

Crypto companies have moved to improve transparency in the wake of the bankruptcy of FTX with many exchanges introducing proof-of-reserves so users can verify crypto backings along with some conducting public third-party audits.

Sam Bankman-Fried misses deadline to respond to testimony request, now what?

The Senate banking committee set a deadline for Sam Bankman-Fried to respond to the request on Dec. 8 at 5pm ET.

Crypto’s public enemy number one, Sam Bankman-Fried has missed a crucial deadline to confirm his appearance at an upcoming Senate Committee hearing.

The former FTX CEO missed a Thursday 5pm ET on Dec. 8, deadline for responding to a Senate Banking Committee request that he testify at the Committee meeting on Dec. 14. This has set up the possibility of a congressional subpoena.

On Dec. 8, the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, Sherrod Brown, and ranking member of the Committee Senator Pat Toomey released a statement on the request.

“FTX’s collapse has caused real financial harm to consumers, and effects have spilled over into other parts of the crypto industry. The American people need answers about Sam Bankman-Fried’s misconduct at FTX,” they stated before adding:

“The Committee has requested that he testify at our upcoming hearing on FTX’s collapse, and will consider further action if he does not comply.”

According to the official Committee website, the hearing titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers” will be webcast on Dec. 14.

So far, two witnesses have been confirmed to attend the hearing — including American University Washington College of Law Professor Hilary J. Allen, and, Actor and Author Ben McKenzie Schenkkan.

Professor Allen is an academic whose research focuses on the impact of new financial technologies on the stability of the financial system. Ben McKenzie is an anti-crypto actor-turned-commentator who played a troubled teenager on a U.S. television series called “The O.C.”

Messari founder Ryan Selkis commented on the futility of the witness selection:

Meanwhile, Cointelegraph has reached out to Ben McKenzie for comment.

Related: Texas enforcers want Sam Bankman-Fried to attend the hearing in February

Other than the Dec. 14 Senate Banking Committee hearing, Bankman-Fried has also been requested to attend a separate hearing called “Investigating the Collapse of FTX” on Dec. 13 with the U.S. House Financial Services Committee.

Bankman-Fried was first requested to attend the hearing via a Twitter post from Congresswoman Maxine Waters, but seemingly declined the invitation on Dec. 5 stating that he wasn’t sure what would happen by the hearing date, “but when it does, I will testify.”

Waters responded on Dec. 8 stating “a subpoena is definitely on the table” should Bankman-Fried fail to voluntarily testify at the hearing.

The collapse of SBF’s FTX empire has initiated a tsunami of backlash from U.S. lawmakers and regulators threatening to drown the fledgling crypto asset industry.

What’s in and what’s out for Ethereum’s Shanghai upgrade

A tentative timeline of March 2023 has been set for the Shanghai upgrade which will enable staking withdrawals, a list of EIPs have also been packaged in but EIP-4844 didn't make the cut.

Ethereum core developers have opted to prioritize the enabling of staking withdrawals via the Shanghai upgrade first before implementing The Surge-related Ethereum Improvement Proposal (EIP)-4884.

As reported by Cointelegraph, the next key milestone on Ethereum’s roadmap is the Shanghai upgrade, which will enable withdrawals for ETH stakers/validators from the Beacon Chain — among other things.

EIP-4884 is also important and was initially expected to be packaged in with Shanghai, introducing “proto-danksharding” to significantly enhance Layer 2 rollup scalability (The Surge) ahead of the full implementation of the major Sharding upgrade late next year.

However, according to Ethereum core developer Tim Beiko at the latest Ethereum Core Developers Meeting on Dec. 8, the ultimate consensus was to focus on Shanghai first to avoid any potential delays if EIP-4844 were to not be ready in time.

In a rundown thread on Twitter, Beiko noted that everyone agreed to “(1) seeing Shanghai happen quickly, ideally around March and (2) following this with a fork centered around EIP-4844.”

While EIP-4844 won't be included, the devs have agreed to include a set of EIPs that essentially upgrade the Ethereum Virtual Machine (EVM), including introducing a new EVM contract format, code/data separations and new operation codes.

Beiko noted that as these upgrades, known as EVM Object Format (EOF) are quite easy to walk back and remove from Shanghai, if devs haven’t finished working on it when Shanghai is ready for implementation, then EOF will simply be removed and shipped later.

Additionally, a set of previously agreed upon EIPs will roll out alongside Shanghai, the list includes EIP-3651: Warm Coinbase, EIP-3855: PUSH0 instruction, EIP-3860: Limit and meter initcode and EIP-4895: Beacon chain push withdrawals as operations.

EIP-3651: Warm Coinbase in particular will potentially have some cost reduction benefits for the network. Not to be confused with the name of crypto exchange, Coinbase in this context refers to the name of the software that builders use to receive new tokens on the network.

Every new transaction on the platform needs to interact with the Coinbase software multiple times, however, the initial transactions start off more expensive as Coinbase essentially needs time to warm up.

Related: Ethereum developers target March 2023 for Shanghai hard fork

With the new EIP implementation, this won’t be the case anymore and thus lowering gas fees when builders are interacting with it.

As per the Ethereum Foundation, Sharding is a multi-phase upgrade designed to significantly ramp up Ethereum’s “scalability and capacity” via the implementation of shard chains, which will give the network significantly “more capacity to store and access data.”

With the improved data storage capabilities, this will essentially enable Layer 2 solutions to offer much lower transaction fees.

After all of this is completed, the network's next major event and final part of the roadmap is the Sharding upgrade, which is expected to roll out over 2023 and 2024.