Elon Musk introduces Twitter monetization avenues for content creators

April 29, 2023 Coin Telegraph

The latest user-centric revamp is targeted at improving follower engagement and creating new revenue streams on the social media platform.

Adding to the growing list of radical implementations to improve Twitter’s bottom line and promote citizen journalism, Tesla CEO Elon Musk announced that creators on the social media platform can now monetize their content.

Ever since Musk’s takeover of Twitter, the company has taken several drastic measures to turn itself into a profitable business, which include mass layoffs and introducing Twitter Blue subscriptions. While many previously-verified individuals retaliated the ask for a monthly fee to get a ‘Blue checkmark’ on Twitter, Musk saw it as a much-needed revenue stream for the company.

The latest user-centric revamp — which allows users to monetize all forms of posts on Twitter globally — is targeted at improving follower engagement and creating new revenue streams on the social media platform.

Content creators can now enable subscriptions to their text, pics & video worldwide on this platform! https://t.co/XzrFMLPytB
— Elon Musk (@elonmusk) April 28, 2023

The ‘Subscriptions’ feature allows Twitter users to charge followers a monthly price “from one of the price points made available by Twitter.” Once, paid, the subscribers get access to the creator’s exclusive content, unviewable in public.

Twitter will allow creators to keep up to 97% of the revenue until $50,000 in lifetime earnings, following which the revenue split will be dropped to 80% for the creators. The social media has partnered with payments processor Stripe to payout the creators on Twitter.

However, the revenue share will begin only after the users earn the minimum threshold of $50. The subscription services are non-refundable even if a creator’s Twitter account gets suspended for any reason. In such scenarios, users are required to manually unsubscribe to avoid auto-monthly payments to inactive Twitter accounts.

Members of Crypto Twitter, who have garnered credibility and a massive following on Twitter owing to years of posting, welcome the introduction of content creator subscriptions with arms wide open.

Musk’s ongoing initiatives to redesign Twitter will also see the use of artificial intelligence (AI) to detect and deter misinformation on the social media platform.

In the months ahead, we will use AI to detect & highlight manipulation of public opinion on this platform.

Let’s see what the psy ops cat drags in …
— Elon Musk (@elonmusk) March 18, 2023

Musk reportedly purchased nearly 10,000 graphics processing units (GPUs) to build the upcoming AI tools despite warning the world against AI development due to societal concerns.

Bitcoin mining revenue jumps up 50% to $23M in one month

January 30, 2023 Coin Telegraph

Bitcoin mining

As Bitcoin remains well-positioned for a steady recovery, the mining industry witnessed a 50% growth in revenue in terms of US dollars.

As Bitcoin (BTC) shows a minor bull run, the connected sub-ecosystems’ year-long struggle for survival has started to pay off. For starters, the Bitcoin mining community experienced a 50% increase in revenue — through mining rewards and transaction fees — in the first month of 2023.

On Dec. 28, 2022, Bitcoin mining revenue dipped to $13.6 million for the first time since October 2020. This, coupled with rising energy prices amid geopolitical tensions, imposed tremendous financial pressure on the companies running mining operations – forcing a few to shut shop.

As Bitcoin remains well-positioned for a steady recovery, the mining industry witnessed a 50% growth in revenue in terms of US dollars, as shown below.

*Bitcoin mining revenue increased by 50% in January 2023. Source: Blockchain.com*

Bitcoin mining revenue jumped from $15.3 million on Jan. 1 to nearly $23 million in the span of 30 days.

As more miners join to power and secure the decentralized Bitcoin network, the hash rate continues to attain new all-time highs. At the time of writing, the Bitcoin hash rate stood at around the 300 exahashes per second (EH/s) mark.

One of the biggest criticism of Bitcoin remains the high energy requirement for running the proof-of-work consensus mechanism. In October 2022, Cointelegraph reported that Bitcoin witnessed a 41% increase in energy consumption year-on-year (YoY).

However, a drive for sourcing greener energy to power Bitcoin mining facilities aims to solve the predicament. Most recently, a mining company tapped into a source of stranded energy in Malawi, a landlocked country in southeastern Africa.

1600 families connected to this remote hydro minigrid in the mountains of southern Malawi. They have 50kW of stranded energy that we are testing out as a new Bitcoin mining site.

Videos for context.

Still working on venting, wiring, etc. pic.twitter.com/Sxf8ABGPWH
— Gridless (@GridlessCompute) January 21, 2023

As Cointelegraph reported, the project — undertaken by Gridless — uses 50 kilowatts (kW) of stranded energy to test out as a new Bitcoin mining site.

Speaking about the overall impact of the initiative, Erik Hersman, CEO and co-founder of Gridless stated, “The power developer had built these powerhouses a few years ago, but they weren’t able to expand to more families because they’re barely profitable and couldn’t afford to buy more meters to connect more families. So, our deal allowed for them to immediately buy 200 more meters to connect more families.”

In addition, the environmental footprint of the Bitcoin mining facility is low as it runs purely off a river-based hydro powe.

Romania Carries Out Raids as Part of Crypto Tax Evasion Probe

January 8, 2023 Bitcoin.com

Metaverse is a new frontier for earning passive income

November 28, 2022 Coin Telegraph

Coin Telegraph

Those looking to earn passive income in the metaverse have several available options, but how profitable and durable these are isn’t yet clear.

When new technologies and platforms are created, there are incredible discovery phases in which economic activity eventually picks up and starts taking shape. The metaverse is arguably in that discovery phase, with many entrepreneurs finding ways to earn passive income on it.

As economic activity in the metaverse rises, new passive income opportunities are seemingly being created on a regular basis, as are opportunities to actively earn income. While what works and what doesn’t is still up for debate, there are some in the vanguard of metaverse passive income.

What is the metaverse?

Before digging into passive income opportunities in the metaverse, it’s first important to analyze what is actually is. The term “metaverse” has been one of the most popular buzzwords in the Web3 space over the last few months, while millions are moved in digital economies focusing on it.

The word “metaverse” comes from Neal Stephenson’s 1992 cyberpunk sci-fi novel Snow Crash. In the Web3 space, the term is used to describe a digital world where people actually own the assets within it.

The metaverse differs from past digital worlds, like those created in video games, through the use of nonfungible tokens (NFTs). These unique blockchain-based tokens can be freely traded by users but cannot be duplicated or copied. What can be done in the metaverse is still being explored, but so far, real businesses have been created within these metaverses.

Another defining characteristic of the metaverse is interoperability. Virtual worlds like that of popular videogame Roblox could be thought of as metaverses, but unlike the new, blockchain-based iterations, players don’t exercise control or ownership over their assets.

Various companies have been moving into the metaverse, with Walmart seemingly gearing up to enter the space, while fashion brands like Ralph Lauren and Gucci have signaled that virtual clothes could be a major growth area for them. Companies are entering the space as it grows rapidly and is expected to become an $800 billion industry within two years.

Given the potential size, earning passive income in the space could be a great opportunity. Taking advantage of passive income opportunities can be easy for those already deep into the metaverse, but how long each opportunity will allow entrepreneurs to earn isn’t clear.

Renting out metaverse land

One of the most well-known ways of earning passive income in the metaverse is by owning property in it and renting it out. Metaverse platforms like Decentraland and The Sandbox let users rent land for a fee to others.

Recent: Canada crypto regulation: Bitcoin ETFs, strict licensing and a digital dollar

There currently isn’t a lot of data on what type of earnings metaverse landlords can expect, as that information isn’t being widely shared. Nevertheless, it’s known to be an attractive market as companies look to host events on the metaverse.

Pavel Sinelnikov, co-founder and CEO of Ethereum layer-2 scaling solution Metis DAO, told Cointelegraph that metaverses aim to achieve “digital land ownership and the ability to buy, sell, and rent land and other virtual items,” adding:

“Metaverses create an abstraction of real-life, where there is a living virtual economy in the game that is not locked and restricted to the digital domain, but instead extends outside of it; these are real and valued assets, holding value outside of the digital realm.”

According to Sinelnikov, the economies seen within metaverses like Decenraland and The Sandbox impact the “greater and real-world DeFi [decentralized finance] ecosystem,” while allowing for more interoperability opportunities.

Leasing assets

Another way to earn passive income in the metaverse involves leasing out assets, as some users may not want to directly purchase expensive NFTs.

One well-known example of NFTs being leased to other users to earn passive income comes from the popular game Axie Infinity. The game is based on NFTs called on Axies that were, at one point, rather expensive as the game’s popularity exploded during the bull market.

In the game, Axies were needed to compete and earn rewards in the form of Smooth Love Potion (SLP) tokens. Players who could not afford Axies would receive them from so-called team managers in exchange for some of the SLP tokens they managed to earn. The managers were, in essence, earning passive income from their Axies as other players — called scholars — used them to earn rewards. The practice was so popular that some “scholars” in Venezuela were making a living off of leased Axies.

Other metaverse assets can be leased, depending on the platform. Sinelnikov commented that lending, renting and asset fractionalization are interactions that have already been formed on the metaverse, with the best part about them being that “no single provider can restrict the usage or control the market, since the assets belong to you and not to an individual provider.”

Secondary market royalties

Some NFT artists have earned extensive royalties through the secondary market as their creations are traded among collectors. The same type of interaction is possible in the metaverse.

Prakash Somosundram, co-founder and CEO of blockchain game launchpad Enjinstarter, told Cointelegraph that “any wearable creator can earn royalties when the assets they create are sold on the secondary market.”

John Burris, chief of strategy at metaverse app IMVU, told Cointelegraph that the metaverse is “filled with opportunities to earn,” stating that while some metaverse worlds are play-to-earn and others “host gig-like economies,” almost all of them offer item creation and sales:

“With blockchain and NFTs we’ve finally unlocked a true ownership and royalty model where royalties can and will continue to flow back to the original creator, providing well-deserved passive income as those items change hands.”

Per Burris, the metaverse “serves as a great way for people to make money no matter who they are, or where they’re from, in the real world.” The ability to create, own and sell goods, he said, opens up opportunities to people that they would not get otherwise.

Virtual games

Gaming is one of the metaverse’s largest use cases, with most metaverse worlds either being completely focused on gaming or having a large portion of users focusing on it. Some involve gambling, while others generate their revenue in other ways.

Decentral Games’ ICE Poker virtual casino is one of the most popular metaverse gambling operations out there and since it’s based in the metaverse, a lot of the costs traditional casinos have aren’t present.

Other games, however, aren’t related to gambling at all. Some generate revenue through asset sales, secondary market royalties or donations. Roderik van der Graff, the founder of global investment firm Lemniscap, told Cointelegraph that one of the firm’s portfolio companies has launched a tower defense game to generate revenue through the metaverse.

The game is called Spark Defense and allows users to “monetize their land and complete quests to collect, earn and own NFTs which they can use across the game,” van der Graff said.

Advertising

Our final way to make passive income in the metaverse is through advertisements. Setting up large billboards in popular areas can draw in advertisers looking to get the crowd’s attention to sell their products or services, whether these are in the metaverse or outside of it.

Finding advertisers for these billboards may mean the income isn’t completely passive, as after a campaign ends, an advertiser may lose interest and the billboard owner may have to start looking for someone else to rent.

In fact, most of the options above are likely to require some involvement from the entrepreneur. Then again, true passive income doesn’t really exist, as even the most passive investments have to be monitored from time to time.

Is passive income in the metaverse worth chasing?

If generated income isn’t entirely passive, some may consider it not worth chasing, given the drawbacks. According to Burris, downsides include engaging in speculation and dealing with the volatility of the cryptocurrency space, as most transactions are conducted in either NFTs or crypto tokens:

“It’s important users and creators looking to create income in the metaverse examine the platforms and metaverses they use, and look at the product as a whole. Is the team experienced? Is the metaverse active? Can it sustain itself through economic downturns?”

Somosundram said that the sustainability of an income stream “depends on the success of the specific metaverse and/or game where you generate your passive income,” which may mean often moving on to another venture.

It’s also worth pointing out that entrepreneurs may end up betting on a metaverse world that is later on abandoned, making their investment worthless as every passive income opportunity in the metaverse relies on heavy traffic.

On the bright side, Somosundram said that passive income from the metaverse is a “great means of diversification along with traditional financial instruments,” and there can be a rapidly expanding number of opportunities out there as the metaverse industry grows.

As exact figures aren’t widely shared, it’s up to entrepreneurs whether they want to bet on the metaverse and start building their income streams on it or whether they prefer to focus their attention elsewhere. Those who risk making it in the metaverse may have to innovate to stand out, however.

Making it in the digital world

While renting property or a digital billboard won’t require significant innovation, some of the more prolific earners are taking different approaches. Somosundram told Cointelegraph the story of a Singapore-based entrepreneur that created a GameFi guild that built up a pool of assets to lease for a fee.

In another potential example, he pointed to tattoo artists using a service to “mint wearable tattoo art that generates passive income from the secondary market royalties.”

Recent: After FTX: Defi can go mainstream if it overcomes its flaws

Burris noted that on the platform he represents, there are “over 200,000 active creators, making over 350,000 new items for sale every month.” He stated:

“As more and more people spend their time in virtual worlds, and begin looking toward it as a way to earn a living, it’s important to have both passive and active income opportunities — just like in the real world.”

Whether entrepreneurs want to move forward with passive income ideas for the metaverse, it’s worth pointing out that there are no guarantees that the time or money invested will generate returns, as the space is constantly evolving.

Economic activity in the metaverse is still at an embryonic stage, as many are still figuring things out. As the metaverse evolves, new opportunities will likely present themselves the same way they’re presenting themselves in the broader cryptocurrency space.

Lebanese Mint, Keep, Spend Crypto Amid Crisis, Report Unveils

November 7, 2022 Bitcoin.com

Vietnam Crypto Miners Complain About Losses From Ethereum’s Merge

September 19, 2022 Bitcoin.com

How to earn passive crypto income in a bear market?

September 17, 2022 Coin Telegraph

Coin Telegraph

For experienced investors, a bear market is nothing out of the norm. It has happened in the past, and it will happen again — even in cryptocurrency.

The majority of new investors are in the middle of their first crypto winter, during which most digital assets have depreciated by more than 70% from their November 2021 highs. While a bear market is tough for everyone, it can be especially challenging for those who are new to the space and don’t have much experience dealing with market volatility.

That said, there are still opportunities to earn passive income during a bear market — crypto traders just have to know where to look. In this article, we will look at how Wall Street traders persevere and what simple things can be done to make money. Is it time to buy more assets? What are some of the easiest ways to generate cash in a recession? Are there any investment techniques that work during bear markets? What assets to invest in while Bitcoin (BTC) is in a bear market in 2022?

What is a bear market?

In traditional markets, a bear market is described as any time stock prices fall by more than 20% from a previous high. In cryptocurrency, a bear market refers to an extended period of time where prices fall significantly and market confidence plummets.

How long do crypto winters last? While there is no set time period, most people agree that a bear market in cryptocurrency lasts for at least three months. The current crypto winter began in November of 2021 and, as of this writing, shows no signs of abating. So, how long will this bear market last?

This is impossible to say for certain, but based on past trends, it could take a while. The last bear market in cryptocurrency lasted over two years, from 2017 to late 2020. If the current bear market follows a similar timeline, we might be in for a long winter.

More often than not, during a bear market, every asset falls in value with only very brief deviations. Later on, investors spot assets that are selling at bargain prices and purchase them, ending the bear markets for good.

Bear markets are defined by low investor confidence and pessimism. During a bear market, investors tend to ignore any positive news and sell rapidly to drive asset prices down. The cryptocurrency market has already seen three bull markets since Bitcoin’s inception in 2009 and is currently experiencing its third bear market, having declined by almost 70% from its all-time high.

Can you predict a crypto bear market? Predicting a bear market is nearly impossible, and most investors do not anticipate one until they have lost at least 5% of the value of their investment portfolio.

How to survive a crypto bear market?

Given the current market conditions of continued volatility and uneasiness about the future, it’s okay to feel overwhelmed as an investor. It can be difficult to make logical decisions or take any required actions when your portfolio is continuously taking a hit. When the crypto market becomes bearish, nearly all assets in the market begin to fall, even if they report positive news or developments.

The key to surviving a bear market is to have a long-term vision and focus on the project’s fundamentals rather than its current price. Although bear markets typically result in increased prices, many portfolios that were harmed by bear markets may take longer to recover. Some, on the other hand, never return. A bear market is a good example of how capital preservation is important in making investments.

However, as Warren Buffett noted, “you must be greedy when others are fearful” in the long run. As a result, there are advantages to the bear market. There are a number of platforms in the cryptocurrency industry that help earn passive income, which can help investors take advantage of the bear market, as explained in the below sections.

Benefits of a crypto bear market

Although a bear market can be discouraging for investors, it actually has some benefits. Here are some of the advantages of a crypto bear market:

Buy low, sell high: When the price of something is falling, smart investors know that it’s a great time to acquire. They take advantage of the reduced prices by acquiring assets and selling them when the market rebounds and prices rise again. Although it may be difficult to find assets that have not been impacted by the market crash, there are still some digital assets that are selling at a discount.
Investors learn to master their emotions: One of the most important lessons to take away from a bear market is how to manage your emotions while trading. It can be difficult not to panic when the value of assets is dropping, but it is crucial to remember that bear markets are temporary and prices will eventually rebound.
Enables disciplined and consistent investors: A bear market separates the long-term, disciplined investors from those who are in it for the quick buck. Those who are able to weather the storm and continue to invest during a bear market are usually the ones who come out ahead in the end.
Investors can gauge their risk resistance: A bear market is an opportunity for investors to test their risk tolerance. Those who sell all of their assets during a crash may realize that they are not as comfortable with risk as they thought. On the other hand, those who continue to invest may find that they are more tolerant of risk than they previously thought.

Ways to make passive income in a crypto bear market

Although it may be difficult to locate digital assets that have not been harmed by the market downturn, there are still a few methods to generate passive income in a bear market. The reverse of the adage is that there are still plenty of possibilities with a 100% Annual percentage rate (APR) and even more.

Below are a few methods of generating passive income in a bear market:

Staking

Bear markets are a reminder of the importance of holding tokens to generate passive income. Staking can be a great way to generate income, as well as increase your position in a project.

Staking is the process of locking your coins on a particular platform to gain interest. Most platforms provide two options: flexible staking (withdraw at any time) or fixed staking (where you commit your assets for a set period, like one month or more).

Tokens can be staked on centralized platforms such as Binance, Crypto.com, Kucoin or Bybit. In addition to that, there are many decentralized exchanges (DEXs) available such as Uniswap, Balancer and Curve, where investors can provide liquidity and earn a share of the trading fees.

Crypto trading

Trading cryptocurrency during a bear market can be a good opportunity to buy at a discount and sell when prices rebound. Earning passive trading can be a great way to offset any losses during a bear market. Although finding profitable trades may be more difficult, those who are able to capitalize on market conditions may earn a significant amount of money.

How do crypto traders make money in a bear market? Investors can trade cryptocurrencies on a number of different exchanges, including centralized ones like Binance and Kraken or DEXs like Uniswap and dYdX2. There are also a number of social trading platforms, such as eToro and Robinhood, that can help investors get started in the market. Social trading platforms provide a way to learn from other investors and develop strategies for trading during a bear market.

Mining

Mining is another way to generate passive income in a bear market. Although the rewards may be lower than in a bull market, mining can still be a profitable endeavor.

Cryptocurrency miners can either go it alone or join a mining pool. When you solo mine, you’re trying to solve the next block by yourself. Pool mining is when a group of miners work together to find the solution faster and then share rewards based on each person’s hashing power contribution.

Affiliate marketing

Affiliate marketing is a form of business in which a person promotes a product or service and gets paid if someone buys the item as a result of their advertising. This may be achieved through various platforms, including social media, blogs and email lists.

Affiliate marketing in the cryptocurrency space is another way to generate passive income during market downturns. Many projects offer high commission rates and some even pay out rewards in the project’s native token.

Airdrops

Airdrops have become a popular way to generate passive income in down market conditions. Airdrops are tokens that projects give away for free to promote their project or increase awareness.

Investors can join airdrops on websites like Airdrop Alert, CoinMarketCap and Earn Crypto. It’s critical to remain vigilant against fraud since there are several fraudulent airdrops distributed in order to acquire people’s private keys. Only sign up for airdrops from reliable providers and conduct due diligence before giving any personal information.

Dollar-cost average

One way to make passive income is to dollar-cost average your investments. This means buying a fixed amount of an asset on a regular schedule, regardless of the price. Buying into an asset at different prices can mitigate the risk of buying in at the top and losing all. This approach may be used to invest in initial coin offerings (ICOs), buy altcoins or even acquire Bitcoin. In the long run, the average price of the digital asset will even out, and investors have a good chance of making a profit when the bull market returns.

Dollar cost averaging (DCA) offers numerous advantages for investors who use tax-advantaged savings vehicles on a regular basis. Contribution and employer match contributions account for about two-thirds of the amount, while investment profits make up the remaining one-third. This indicates that many 401(k) contributors may quickly replenish their accounts following bear markets.

A few considerations before applying the dollar-cost-averaging (DCA) investment strategy

Stablecoin investment strategies

Stablecoins are digital assets that are pegged to a stable asset, such as gold or the United States dollar. This means that they are not subject to the same volatility as other cryptocurrencies. As a result, stablecoins can be a great way to store value and generate passive income in a bear market.

Investors with a lower risk tolerance who are seeking a more dependable passive income during bear markets may find that pegged stablecoins, such as Tether (USDT) or USD Coin (USDC), fit their needs.

Why are stablecoins so important in a crypto winter? A sound stablecoin investment strategy accounts for market volatility. Stablecoins provide a shield against the inflationary trends and bear markets characteristic of the current economic climate. By doing so, stablecoins preserve an investor’s buying power while also generating competitive interest rates--a potent combination in today’s economy.

Stablecoins are not the most volatile category of digital asset but they are not without danger. The failure of the UST stablecoin in May 2022 is a case in point, demonstrating that even stablecoins have risk. When selecting a stablecoin for investment, it is important to consider the peg and do thorough due diligence on the project.

Create your own nonfungible tokens

Nonfungible tokens (NFTs) are digital assets that represent a wide range of items, including art, collectibles and in-game items. NFTs are stored on a blockchain and can be bought, sold or traded like other cryptocurrencies. One way to generate passive income with NFTs is to create your own. This can be done by minting NFTs with platforms like Rarible or OpenSea. Artists, photographers and other creatives can use these platforms to sell their work as NFTs.

Though you may not become a multimillionaire like the artist Beeple, if you’re intrigued by NFTs and have a great idea, why not learn how to create them?

Work in the crypto industry

Even during the bear market, there are opportunities to make money in crypto. One way is to find a job in the industry. With the growing popularity of cryptocurrencies, there is an increasing demand for workers with blockchain and crypto experience. There are a variety of jobs in the industry, ranging from marketing and social media to engineering and product management, many of which pay in cryptocurrency (which will rise in value when the bear market ends).

Be optimistic and look for ideal opportunities

There is no secret formula for generating money during a bear market, but there are several techniques that investors may employ to safeguard their investments and even make some money.

In any case, buying low and selling high may be an ideal way to make money from market downturns. Keep in mind that the crypto winter will come to an end and that there are always opportunities to profit from decentralized finance (DeFi) platforms. Trading volumes play a crucial role in turning a profit, but for those investors who don’t mind waiting it out, dollar-cost averaging may be a suitable strategy when the BTC bear market is over.

Purchase a licence for this article. Powered by SharpShark.

Fireblocks records $100M+ revenue in subscriptions amid bear market

September 12, 2022 Coin Telegraph

Fireblocks records 0M+ revenue in subscriptions amid bear market

Coin Telegraph

As a software-as-a-service provider, Fireblocks witnessed overwhelming interest in decentralized finance, blockchain and Web3 technologies.

Fireblocks, a New York-based blockchain security service provider, made over $100 million in Annual Recurring Revenue (ARR) this year, confirming the rising interest in the crypto ecosystem that contradicts negative investor sentiments.

ARR relates to the recurring revenue earned by a company based on subscriptions. As a software-as-a-service provider, Fireblocks witnessed overwhelming interest in decentralized finance, blockchain and Web3 technologies.

The reason behind increased revenue amid an ongoing bear market can be attributed to an overall change in mindset, as companies and investors seem more inclined toward exploring crypto use cases rather than chasing market volatility for a quick buck.

Sharing insights into its growing customer base, Fireblocks co-founder and CEO Michael Shaulov stated:

“We have seen first-hand the innovation happening among fintechs, Web3 start-ups, banks and payment service providers who are diligently bringing new digital asset products to market.”

In addition, consumer brands, gaming companies, and crypto start-ups have contributed to Fireblocks’ $100 million revenue in 2022 as well. As crypto continues to seep into global financial infrastructure, Fireblocks expects to grow stronger as an enabler for businesses delivering secure crypto products.

In its announcement, Fireblocks further disclosed working with industry leaders including BNP Paribas, Six Digital Exchange, ANZ Bank, FIS, Checkout.com, MoonPay, Animoca Brands, and Wirex.

Speaking about the company’s future, Fireblocks CTO Idan Ofrat confirmed Fireblocks’ commitment to delivering solutions for emerging market entrants and use cases such as stablecoin issuance, nonfungible token (NFT) treasury management, and crypto payments.

In 2021, crypto exchange FTX witnessed a 1000% hike in its revenue as bulls took over the crypto market, as revealed by leaked internal documents.

Audited financials for FY 2020-2021 showed that FTX’s revenue grew from $90 million in 2020 to $1.2 billion in 2021, according to CNBC. The report further claims that FTX possessed $2.5 billion in cash by the end of 2021 with a profit margin of 27%.

However, a subsequent bear market coupled with regulatory hurdles is expected to bring down the impressive revenue numbers across the crypto ecosystem.

UFC fighter will receive full salary in Bitcoin, shrugs off crypto market volatility

July 19, 2022 Coin Telegraph

Brazil

Brazilian UFC fighter Luana Pinheiro becomes the first female sportswoman in Latin America to receive her entire salary in BTC.

Ultimate Fighting Championship (UFC) fighter Luana Pinheiro announced that she has partnered with Bitwage to receive her salary in Bitcoin (BTC). Pinheiro said she continues to receive fiat payments from her sponsors but converts them to BTC immediately through Bitwage.

Pinheiro is currently ranked 15th in her UFC division and has won eight consecutive fights. The fighter said she chose to receive her salary in Bitcoin after her boyfriend and fellow mixed martial artist Matheus Nicolau encouraged her.

Comparing Bitcoin to her fighting style, jiu-jitsu, Pinheiro highlighted that she prefers to get paid in BTC and that she does not care about the volatility of the cryptocurrency. According to her, volatility is the key factor that drives asset appreciation.

“If it weren't volatile, it wouldn't go up either,” she said, further explaining:

“Think about it: it takes an average of 10-15 years for an individual to obtain a black belt in Brazil in Jiu Jitsu, so my time preference here is just as long, if not longer. Everything else is just noise to me and the lower the price, the more Bitcoin I can secure for the future.”

The Brazilian also revealed that, for her, Bitcoin works as a hedge against inflation, since over the years the purchasing power of fiat currencies has been deteriorating with inflation, while BTC, despite its corrective movements, continues in an uptrend.

“Don't forget I'm from Brazil, so I know a thing or two about inflation and its effects. I was born around 1994, around the time the Brazilian currency Real was introduced and pegged 1:1 to the U.S. dollar at the time. It is now 5 BRL for 1 USD. Bitcoin is for that, to protect against inflation,” she said.

In addition to Nicolau and Pinheiro, professional soccer players Alex Barrett, Achara Ifunanyachi, and Alex Crognale also receive their income in Bitcoin.

UFC has forged several partnerships with crypto companies. In April, UFC joined forces with crypto exchange Crypto.com, enabling fighters to receive their fan bonuses in BTC. The fan bonus is paid out by Crypto.com to the top three fighters of upcoming pay-per-view events.

Separately, in June, UFC entered into a multi-year marketing partnership with blockchain logistics firm VeChain Foundation worth $100 million.

CeFi interest on the wane: Will BlockFi, Ledn and Nexo rates trend lower?

May 30, 2022 Coin Telegraph

Analysis

Cointelegraph spoke to CeFi leaders to understand where interest rates are going and what the future holds for CeFi.

Generating a yield on crypto is increasingly tricky. The Terra ecosystem implosion — where up to $50 billion was wiped out — led to a decline in decentralized finance (DeFi) protocols offering interest.

At the other end of the table, centralized finance, or CeFi, where all processes are rooted through a central body, has endured a comparatively peaceful bear market, yet interest rates are trending down.

On the first of the month, investors who have an account with a CeFi provider such as Ledn, Celsius, BlockFi or Nexo generally receive emails detailing the interest rate for the following month.

A blow for those looking for passive income, the interest paid from CeFi providers has ground down since the 2021 bull market. Giving up custody of a crypto asset for a miserly interest payment has encouraged some crypto enthusiasts to take control of their private keys, even drawing comparisons to legacy banking.

In the table below, three of the largest custodians of Bitcoin (BTC) and crypto assets have fallen, taking into account both the interest rate and the amount of interest paid on each asset.

*CeFi interest rates have all but trended down over the past year. Source: Data was taken from each individual provider’s site.*

Cointelegraph spoke to three of the largest lenders of Bitcoin and other crypto assets to understand whether interest rates from CeFi providers may eventually hit rock bottom, aka 0.01% interest — like at banks — and why these lenders and interest providers exist.

Interest rates will continue to be attractive

Representatives from Ledn, Nexo and BlockFi agreed that while interest in crypto is lower, it outcompetes legacy lending. Mauricio Di Bartolomeo, co-founder of Canada-based Ledn, told Cointelegraph, ”We are still five to 10 years away from Bitcoin rates coming anywhere close to those of fiat bank accounts.”

“Most legacy bank savings accounts are paying out mere basis points (between 0.01% and 0.05%). Interest rates for our Bitcoin Savings Account product are still 5.25% APY for the first 0.1 BTC and 2% APY for balances above 0.1 BTC as of today.”

In a tweet thread, Di Bartolomeo shared that “changing market conditions” have obliged lenders to drop their rates, as the difficulty level of turning a profit on arbitrage opportunities and the futures basis trade has risen.

In simple terms - this means that market makers are also seeing their average returns get compressed.

Which forces them to have to lower their borrowing costs.
— Mauricio (@cryptonomista) May 4, 2022

Jonathan Haspel, senior institutional trading associate at BlockFi, agreed, stating that “yield related to crypto interest-bearing accounts is impacted by a number of factors, including market sentiment, funding rates, supply and demand, and balance sheet optimization.”

It’s true that crypto market sentiment has plummeted since the March 2020 crash, while funding rates, particularly for altcoins, have dropped to “worrying levels.” Haspel explained:

“Ultimately, compressed rates and volatility are a sign of the asset class’s maturation. Where yield was once rampant and liquidity once sparse, there are more players in the crypto game feeding its competitive financing and widespread access.”

Bullish on CeFi: The future remains bright

Zac Prince, CEO of BlockFi, told Cointelegraph that he’s still “bulllish on [...] clients’ desire to earn crypto interest back for the long term.”

In a similar note of optimism, Nexo co-founder and executive chairman Kosta Kantchev told Cointelegraph, “‘The times, they are a-changing,’ but crypto yields are still multiple times higher than those of traditional banks.” In a nod to the price of Bitcoin flatlining at around the $30,000 mark, Kantchev said:

“While interest on some assets has become more stable, this mirrors the assets themselves. I think people largely overlook the sky-high rates on some of the newer assets on the block.”

Ultimately, and in agreement with Di Bartolomeo, “regardless of how historically volatile crypto has been, the opportunity is always there.” CeFi providers will continue to offer more attractive interest rates than legacy financial institutions.

It’s important to note that Nexo operates a different model, which would explain why rates are not technically dropping (as shown in the above table). Users experience higher rates of interest if they lock up the asset or hold a proportion of the Nexo token. Contrary to the other CeFi lenders, Kantchev explained:

“Rates are not dropping. It’s more that yields on older cryptos on Nexo are ensured to be sustainable in the long run, but the eyebrow-raising rates are often available either with Nexo Tokens through our loyalty program or for some of the newer coins for which we can generate such impressive yield.”

Growing adoption and innovation, anticipating regulation

That dropping rates should not be cause for concern: Per Di Bartolomeo, not only are centralized entities “instrumental to the adoption and evolution of Bitcoin as pristine collateral,” but legacy banks may even look to “partner” with CeFi players in the future. He said:

“This means that centralized lenders, like Ledn, will act as a conduit to bring legacy capital to Bitcoin — benefiting both Bitcoiners (by letting them borrow at increasingly better rates) and capital providers (by offering them a great risk-adjusted return).”

BlockFi’s Haspel agreed, “CeFi offers a compelling use case supporting crypto’s narrative for global monetary access.” Despite the turbulent waters the crypto industry treads in spring 2022, BlockFi sees “an increase in global demand for risk-managed crypto products — such as interest accounts — in other emerging digital assets.”

“While credit checks and a lack of financial history harm individuals seeking access to capital on a global scale, CeFi lending offers a solution. By utilizing crypto assets confirmed on a transparent and immutable ledger, CeFi protocols are able to quickly verify their possession.”

For Kantchev, innovation, customers and new products are right around the corner: “Compliant, sustainable interest products that address regulatory guidance while profitably paying customers will be one of the next such products.”

“The industry has matured tremendously, [...] so I’m convinced we will continue to find risk-free strategies that yield attractive returns and be able to share these with the community.”

In Nexo’s case, that means diversifying its product offering; for BlockFi, it continues to onboard institutions, while Ledn has branched out into Bitcoin-backed mortgages.

Cointelegraph reached out to CeFi provider Celsius for comment but did not receive a response as of publishing time.

income

What is the metaverse?

Renting out metaverse land

Leasing assets

Secondary market royalties

Virtual games

Advertising

Is passive income in the metaverse worth chasing?

Making it in the digital world

What is a bear market?

How to survive a crypto bear market?

Benefits of a crypto bear market

Ways to make passive income in a crypto bear market

Staking

Crypto trading

Mining

Affiliate marketing

Airdrops

Dollar-cost average

Stablecoin investment strategies

Create your own nonfungible tokens

Work in the crypto industry

Be optimistic and look for ideal opportunities

Interest rates will continue to be attractive

Bullish on CeFi: The future remains bright

Growing adoption and innovation, anticipating regulation

Share this video