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Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.

Top Stories This Week

Cardano launches smart contracts after successful hard fork

After years of anticipation, Charles Hoskinsons brainchild, Cardano, finally launched its smart contract functionality via the Alonzo hard fork on Monday. Youd think the result of this would be some bullish price action for ADA but, alas, its price dropped 10% following the rollout.

While Cardano was keen to celebrate the milestone, it also emphasized in a blog post that its still in the early days of the project, adding that now is when the mission truly begins.

The team also urged its community to not be overzealous in boarding the hype train just yet, and to be patient with the smart contract functionality in its formative stages:

There are high expectations resting on this upgrade. Some unreasonably so. Cardano watchers may be expecting a sophisticated ecosystem of consumer-ready DApps available immediately after the upgrade. Expectations need to be managed here.

 

Fake news: Litecoin price surges 35% following Walmart adoption hoax

While real news made the price of ADA drop, fake news made the price of Litecoin (LTC) pump this week.

Numerous publications reported Monday that Walmart planned to have a pay with Litecoin option for its e-commerce websites starting on Oct. 1 as part of a partnership with the Litecoin Foundation. Following the spread of the fake report, the price of LTC surged 35% before sharply falling within hours.

A spokesperson from Walmart confirmed that the news was fake within an hour, while the Litecoin Foundation’s director of marketing, Jay Milla, also told Cointelegraph that the announcement did not come from Litcecoin’s side of things.

The Litecoin Foundation has yet to enter into a partnership with Walmart, said Milla.

 

Vitalik Buterin makes list of Time magazines 100 most influential people in 2021

Ethereum co-founder Vitalik Buterin was named by Time Magazine as one of the 100 most influential people of this year, joining the likes of Naomi Osaka, Britney Spears, Xi Jinping and Elon Musk.

Buterin was featured in the Innovators section of the Time 100 list, with Reddit co-founder Alexis Ohanian authoring his profile. Ohanian highlighted Buterins work in building the Ethereum network and encouraging the development of decentralized apps and NFTs.

No one person couldve possibly come up with all of the uses for Ethereum, but it did take one persons idea to get it started, Ohanian said. From there, a new world has opened up, and given rise to new ways of leveraging blockchain technology.

 

Coinbase increases junk-bond offering to $2B after investors swarm

After seeing enormous demand for its $1.5 billion junk-bond offering that was announced on Monday, Coinbase reportedly increased the size of the sale to $2 billion.

According to a report from The Economic Times, there was at least $7 billion worth of orders that were placed in competition for seven- and 10-year bonds offering interest rates of 3.375% and 3.625%, respectively.

Coinbase stated on Monday that the raised funds will be put towards continued investments in product developments and potential investments in or acquisitions of other companies, products, or technologies in the future.

The funds might also come in handy when the U.S. Securities and Exchange Commission, or SEC, comes knocking on the door with a lawsuit if the USD coin lending program is actually launched.

 

US lawmakers propose adding digital assets to wash sale rule and raising capital gains tax

Reports surfaced this week that Democrats in the U.S. House of Representatives proposed tax initiatives that could swipe some extra profits from the gains of certain high-income crypto users.

According to a document released by the House Committee on Ways and Means on Monday, the proposal would increase the tax rate on long-term capital gains from the existing 20% to 25%.

On the same day, President Joe Biden said he planned to nominate acting chairman of the Commodity Futures Trading Commission, Rostin Behnam, to assume the role permanently, while also naming Kristin Johnson and Christy Goldsmith Romero to fill two other vacant commissioner seats.

In a private meeting held on Sept. 8 between Fidelity Digital Assets President Tom Jessop, six of the firms executives and several SEC officials, the executives outlined a number of reasons why the enforcer should finally approve the Bitcoin (BTC) exchange-traded fund.

These examples included increased demand for digital assets, the prevalence of similar funds in other countries, and the rise of Bitcoin adoption all of which sound like reasons that would fall on deaf ears for the SEC.

 

 

Winners and Losers

 

 

At the end of the week, Bitcoin is at $46,951, Ether at $3,376 and XRP at $1.07. The total market cap is at $2.11 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Curve DAO Token (CRV) at 41.73%, Hedera Hashgraph (HBAR) at 41.16% and Avalanche (AVAX) at 33.23%.

The top three altcoin losers of the week are Arweave (AR) at -19.24%, Solana (SOL) at -21.27% and Revain (REV) at -17.11%.

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

 

 

Most Memorable Quotations

 

Many platforms have dozens or hundreds of tokens on them. While each tokens legal status depends on its own facts and circumstances, the probability is quite remote that, with 50, 100, or 1,000 tokens, any given platform has zero securities.

Gary Gensler, U.S. Securities and Exchange Commission chairman

 

One can even see an inscription about the regulators obligations on the banknotes, while cryptocurrency is not backed by anything.

Behzod Khamraev, Central Bank of Uzbekistan deputy chairman

 

Advocates say crypto markets are all about financial inclusion, but the people who are most economically vulnerable are the ones who are most likely to have to withdraw their money the fastest when the market drops. […] High, unpredictable fees can make crypto trading really dangerous for people who arent rich.

Elizabeth Warren, U.S. senator

 

Rising valuations across asset classes, massive price swings in cryptoassets and event-driven risks observed in 1H21 amid elevated trading volumes raise questions about increased risk-taking behaviour and possible market exuberance.

The European Securities and Markets Authority

 

Its a no-brainer that your crypto earnings are taxable like other income and should be declared in the Income Tax Returns. As of now, it is not clear whether the GST would be applied on the amount of cryptocurrency bought or on the transaction fees paid by the user.

Nischal Shetty, WazirX CEO

 

If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment.

Javier Argueta, legal adviser to El Salvadors president, Nayib Bukele

 

While it might be helpful for the SEC to provide advisory guidance to companies, it has no obligation to do so.

Marc Powers, former SEC Division of Enforcement officer

 

In a situation where the relevant taxation infrastructure is not sufficiently established, the deferral of taxation on virtual assets is not an option, but an inevitable situation.

Noh Woong-rae, South Korea National Assembly member

 

Prediction of the Week

 

New Bitcoin price model suggests BTC won’t go below $39K again

Analyst William Clemente came up with a new metric for Bitcoin price boundary forecasts, posting the tool on Twitter this week. Called the Illiquid Supply Floor, the chart merges PlanBs stock-to-flow metric and on-chain Bitcoin supply data from Glassnode. The result? A chart showing Bitcoins current price against the backdrop of possible upper and lower price range boundaries.

Bitcoins price rallied this week, showing recovery after the asset took a sizable dive down to the $43,000 range during the week of Sept. 7.

According to Clementes chart, the $39,000 price range could be the current bottom limit for Bitcoins price should it drop once again, given a price floor based on Bitcoins real-time scarcity Clementes description of the lower limit on the chart.

FUD of the Week

 

Solana and Arbitrum knocked offline, while Ethereum evades attack

The recent Solana-rama was temporarily brought to a halt this week after the supposed ETH killer suffered a denial-of-service disruption for around 45 minutes.

Twitter account Solana Status explained that a large increase in transaction load to 400,000 per second overwhelmed the network, creating the denial-of-service and causing the network to start forking. The incident appears to have slightly damped enthusiasm in SOL, as the price is down 26% over the past seven days.

Ethereum layer-two rollup network Arbitrum One also reported its sequencer had gone offline for roughly 45 minutes this week, while Ethereum was also the subject of an unsuccessful node attack from an unknown identity.

 

OpenSea exec used the platforms influence to pump his own NFTs

Earlier this week, OpenSea head of product Nathan Chastain was named and shamed after he was outed for hyping NFTs he purchased and then featuring them on the homepage of the popular marketplace.

While being bullish on NFTs is nothing new, getting caught for tokenized insider trading is and Nathan Chastain is estimated to have earned at least 18.875 Ether (ETH), $65,700 at time of writing, from his antics.

OpenSea officially confirmed the accusations on Wednesday, noting that it was incredibly disappointing, and emphasized that the behavior did not represent the firms values. Chastain then proceeded to hand in his resignation the following day with his tail between his legs.

 

Protesters burn Bitcoin ATM as part of demonstration against El Salvador president

Anti-Bitcoiners and protesters of El Savador President Nayib Bukeles policies destroyed a BTC ATM in the nations capital city on Wednesday.

Local news outlets shared images of the ATM burning in San Salvador within a crowd of journalists and protesters. The booth hosting the BTC ATM was defaced with anti-BTC graffiti and a sign saying democracy is not for sale.

Despite maintaining a strong approval rating, Bukele appears to have caused a stir with his forceful approach to politics. There have now been multiple protests in El Salvador regarding adoption of BTC, with activists taking the streets as early as July to voice their concerns.

 

Best Cointelegraph Features

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El Salvador’s Bitcoin day: The first of many or a one-off?

Thanks to El Salvadors daring move, digital money looms large on global policymakers radars.

Fidenza: Tyler Hobbs wrote software that generates art worth millions

I started wondering if I could write a program that would create a painting.

Viral Philanthropic App Dreamr® Announces the Return of Charlie Rocket’s Dream Machine Tour

Viral Philanthropic App Dreamr® Announces the Return of Charlie Rocket’s Dream Machine Tour

Viral Philanthropic App Dreamr® Announces the Return of Charlie Rocket’s Dream Machine TourPRESS RELEASE. Social media dream builder Charlie Rocket and Dreamr Labs announce 2nd nationwide tour with $1 million traveling giveaway kicking off at Life is Beautiful Festival in Las Vegas, 9/17 Click to tweet: Hit the road with Charlie Rocket and @dreamr_app as they travel the country building dreams and giving away $1 million in […]

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

Defi TVL Climbs Higher, Optimism Use Rises, 270K BTC on ETH, Lending on ETH Taps $44 Billion

Defi TVL Climbs Higher, Optimism Use Rises, 270K BTC on ETH, Lending on ETH Taps  BillionIn mid-September, the total-value locked (TVL) in decentralized finance (defi) continues to climb higher, as the value held on Ethereum, Binance Smart Chain, Avalanche, Solana, and more blockchains has risen dramatically to $171 billion today. On the Ethereum network, there’s 270,783 bitcoin held in TVL worth more than $13 billion and $15 billion has been […]

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

New Jersey and Texas Turn Up the Heat on Crypto Lender Celsius Network for Allegedly Selling Unregistered Securities

Two US states are filing legal actions against a cryptocurrency lending company they claim is selling unregistered securities. Texas and New Jersey are taking legal measures against London-based Celsius Network (CEL) for allegedly raising funds through sales of unregistered products. New Jersey is issuing a cease and desist order for unlawful sales of “interest-earning cryptocurrency […]

The post New Jersey and Texas Turn Up the Heat on Crypto Lender Celsius Network for Allegedly Selling Unregistered Securities appeared first on The Daily Hodl.

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

Bitcoin is great, but real crypto innovation has moved elsewhere

Bitcoin will always be the boss, but the real innovative and groundbreaking developments are happening in layer-2 solutions, DAOs, NFTs with utility and the emerging Metaverse.

Something is brewing, and those with finely tuned noses can smell it. As traders have come to expect, Bitcoin (BTC) is doing “Bitcoin things” by bouncing around between the usual “key” support and resistance levels, and to be honest, it’s all starting to feel a bit boomerish.

Bitcoin’s long-awaited “moon” depended on institutional investor buy-in, breaking the previous all-time high at $19,000, and a set of other firmly held beliefs. Well, all that happened, and the run to $64,900 exceeded many investors’ wildest dreams. But despite this, the entire BTC situation just feels predictable and boring if you are of the opinion that the top-ranked cryptocurrency will eventually top out around $100,000 in the current bull market.

So, back to what else is brewing…

Decentralized autonomous organizations (DAOs) are hot, nonfungible tokens (NFTs) are hot, play-to-earn gaming is hot and the Metaverse is hot.

This is where the real heads are right now — speculating, building, pondering, networking and doing shit that actually matters. And what is unique about those who are really putting in work in the trenches of crypto is that this grassroots approach and bottom-up building trend is leading to some of the space’s most groundbreaking projects.

Take Dom Hofmann’s “Loot” project as an example, or the recent Good Bridging and BridgeLoot drops in the Avalanche ecosystem.

Rather than putting on a suit, throwing together some c-suite-friendly presentation and chasing after venture capital dollars, Loot was minted for free by interested participants willing to pay the gas costs, and the community ascribed value to the NFTs via OpenSea sales.

The value of new ideas was agreed upon by a flurry of discussions in Discord, and anyone with an idea was free to launch their own derivative contract where Loot holders could then replicate the minting and listing cycle again.

Will Papper’s airdrop of 10,000 Adventure Gold (AGLD) to Loot NFT holders, soon became worth over $50,000 and catapulted the entire project to stardom and into the history books. It was essentially the “YFI” of NFTs, some would say.

There’s a seismic shift at hand

What’s unique and intriguing about Loot is that it has set the precedent for what is becoming a new drop model in the space. The process involves creating a product (whether it be an NFT or a protocol), mentioning it to an interested community, and allowing them to mint tokens for free within the 7,777 to 10,000 supply range. After that, creators let the community, speculators, believers and OpenSea do the rest.

Hofmann encouraged the entire fam to do what they wanted with the project — he essentially said, “This is yours! Go and build, my children!” The anon genius behind the Good Bridging (GB) token drop also did the same but with even less guidance.

Basically, 16,000 early users of Avalanche’s Ethereum-to-Avalanche bridge got an 895 GB token airdrop, which at its peak price of $2.60 per GB was worth about $2,300. Not too shabby, eh?

To add to this, GB holders who didn’t immediately liquidate the drop were eligible to mint a gasless BridgeLoot NFT as a reward, and a few hours later, the Avalanche-based NFT marketplace Snowflake verified and listed BridgeLoot, where many holders listed their NFTs for 20 to 100 AVAX.

From a markets perspective, money chases after money. Investors chase after liquidity, and that's part of what drives price action within markets.

We see this happening with all the layer-one incentive launches where hundreds of millions of dollars are shifting from ETH to Fantom, or ETH to Arbitrum, or ETH to AVAX, or ETH to LUNA, or ETH and USDC to Web3-based decentralized exchanges like dYdX and GMX.

The point is that crypto is driven by liquidity and trends. The whole Loot phenomenon let the cat out of the bag and enlightened builders on a feature that has always been present but only recently uncovered.

Bottom-up fundraises, NFTs with utility in the Metaverse, DAOs and the great liquidity suck into layer-2 ecosystem are here to stay.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

Canadian Prime Ministerial Contender Comes Out in Support of Bitcoin Days Prior to General Election

A prominent Canadian politician representing a party running in the country’s current federal election has spoken out in support of Bitcoin (BTC). Maxime Bernier of the populist, right-wing People’s Party of Canada (PPC) tells his 156,100 Twitter followers he likes crypto because he’s dissatisfied with the current central banking system. “Many people are asking if […]

The post Canadian Prime Ministerial Contender Comes Out in Support of Bitcoin Days Prior to General Election appeared first on The Daily Hodl.

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

100 years ago, Henry Ford proposed ‘energy currency’ to replace gold

Bitcoin appears to meet the definition of an energy-backed currency proposed by the famed American inventor during the interbellum period.

In 1921, American industrialist Henry Ford proposed the creation of an “energy currency” that could form the basis of a new monetary system — offering striking similarities to the peer-to-peer electronic cash system outlined in Satoshi Nakamoto’s 2008 Bitcoin (BTC) whitepaper. 

Front page of the New York Tribune dated Sunday, December 4, 1921. Source: Library of Congress

Bitcoin as an energy currency

On Dec. 4, 1921, the New York Tribune published an article outlining Ford’s vision of replacing gold with an energy currency that he believed could break the banking elites’ grip on global wealth and put an end to wars. He intended to do this by building “the world’s greatest power plant” and creating a new currency system based on “units of power.”

Ford, who founded Ford Motor Company in 1903, told the publication:

“Under the energy currency system the standard would be a certain amount of energy exerted for one hour that would be equal to one dollar. It’s simply a case of thinking and calculating in terms different from those laid down to us by the international banking group to which we have grown so accustomed that we think there is no other desirable standard.”

The specifics around currency values “will be worked out when Congress cares to hear about it,” he said.

Although Ford was never able to advance his vision of a fully-backed currency, Bitcoin has seemingly vindicated the idea a century later. Since 2009, more than 18.8 million BTC have been created through an energy-intensive mining process that requires computers to solve increasingly complex math problems. This proof-of-work mining process has drawn heavy criticism over its alleged environmental impact — a short-sighted claim that ignores Bitcoin’s abilily to accelerate the shift to renewable energy.

Related: Satoshi Nakamoto statue goes up in Budapest

Replacing gold, ending wars

On the relation between gold and war, Ford explained:

“The essential evil of gold in its relation to war is the fact that it can be controlled. Break the control and you stop war.”

Some of Bitcoin’s most ardent supports believe the cryptocurrency’s sound money principles could eliminate war by reducing the state’s ability to fund conflict through inflation. While a gold standard makes it harder for governments to inflate their currency, “international bankers,” as Ford explained, controlled the bulk of the bullion supply. This process of controlling and accumulating precious commodities allowed financial elites to create an active market for money, which thrived during wartime.

The remnants of the gold standard were abandoned in 1971 by U.S. President Richard Nixon, who said his government would temporarily suspend convertibility between dollars and bullion. The so-called quasi-gold standard would last until 1973, with all definitions linking the dollar to bullion removed by 1976. However, in effect, the gold standard system was eliminated by the British government in 1931, with the U.S. following suit two years later.

Related: Bitcoin set to replace gold, says Bloomberg strategist on Bretton Woods’ 50th anniversary

The New York Tribune article circulated on Reddit’s r/CryptoCurrency page on Saturday, where it received considerable upvotes. While Satoshi Nakamoto never mentioned Henry Ford in online forum posts, some Reddit users speculated that Bitcoin’s creator may have been influenced by the late industrialist. Others jokingly said Satoshi was actually Ford’s reincarnate, given the latter’s apparent belief in reincarnation.

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

Valuation of Stablecoin DAI Market Swells — DAI Market Cap Increased More Than 800% in 12 Months

Valuation of Stablecoin DAI Market Swells — DAI Market Cap Increased More Than 800% in 12 MonthsRecently Bitcoin.com News covered the stablecoin tether and how the crypto asset’s market valuation jumped more than 1,500% in just over 500 days. In addition to this exponential increase, the decentralized stablecoin DAI’s market capitalization has also swelled significantly as DAI’s market valuation jumped more than 800% during the last 12 months, increasing from $696 […]

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

Ethereum Is Moving off Exchanges at a Record Rate – Here’s Why It Could Be Bullish, According to Crypto Analytics Firm

Ethereum (ETH) is moving off centralized exchanges at a record rate, according to the blockchain analytics firm IntoTheBlock. IntoTheBlock says on Twitter that $1.2 billion worth of ETH left centralized exchanges on Wednesday. The firm also notes that the last time ETH’s exchange outflows exceeded $1 billion, Ethereum’s value skyrocketed within one month. “[The] last […]

The post Ethereum Is Moving off Exchanges at a Record Rate – Here’s Why It Could Be Bullish, According to Crypto Analytics Firm appeared first on The Daily Hodl.

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18

We Are All Satoshi: Statue of Bitcoin Creator Satoshi Nakamoto Unveiled in Hungary

We Are All Satoshi: Statue of Bitcoin Creator Satoshi Nakamoto Unveiled in HungaryA statue of Satoshi Nakamoto, the pseudonymous creator of Bitcoin, has been unveiled in Budapest, Hungary. “The statue is made of bronze, the face is made of a special bronze-aluminium composite, thus every visitor can see their own face when looking at Satoshi. We are all Satoshi.” Statue Representing ‘We Are All Satoshi’ in Honor […]

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18