BlackRock’s BUIDL Fund

What is BlackRock's BUIDL Fund?

The BlackRock USD Institutional Digital Fund (BUIDL) is the first tokenized money fund launched by BlackRock, the world’s largest asset manager. This fund allows traditional financial products to be traded as crypto tokens through blockchain networks. Money market funds are investment funds that invest in short-term, highly liquid debt instruments such as cash, its equivalents, and government bonds with a high credit rating, such as US Treasury bills. They aim to provide investors with a place to temporarily invest capital with a stable return, without large fluctuations in value. BlackRock now offers such products through blockchains such as Ethereum and Solana, combining the security and structure of traditional finance with the transparency and speed of decentralized technologies. The fund has seen explosive growth – from $667 million to $1.8 billion in assets under management in just three weeks. Until March 31, 2025, it continued to attract capital, especially from crypto investors, and now operates on seven blockchain networks: Ethereum, Solana, Aptos, Arbitrum, Avalanche, Optimism, and Polygon. The launch of the BUIDL fund marks one of the most important institutional integrations of traditional finance and blockchain technology, while also confirming BlackRock’s strategy of getting closer to the crypto market and its ever-expanding financial acceptance. This institutional presence further legitimizes the digital asset space and can spur a new wave of investment from the traditional financial sector.

Source: cointelegraph

How does the BUIDL fund work?

BUIDL is a tokenized fund that invests in assets denominated in U.S. dollars, such as U.S. Treasury bills, cash, and repurchase agreements. Investors buy and sell BUIDL tokens, which are pegged to the value of the dollar and pay dividends daily, which are delivered directly to the investor’s wallet each month in the form of new tokens.

This model allows investors to generate returns while maintaining the safety and reliability of traditional finance instruments. It is a form of real-world asset tokenization (RWA), where physical or traditional assets are digitally represented through tokens on the blockchain.

These digital tokens, similar to cryptocurrencies, can be traded on relevant decentralized networks. Unlike traditional asset transfers, which often take days and are characterized by low capital efficiency, tokenized forms allow for near-instant trading and settlement, with better automation and lower costs.

This hybrid approach creates a bridge between traditional and crypto finance, providing investors with benefits from both worlds – the stability of regulated financial products and the speed, transparency, and efficiency of blockchain technology.

Source: cointelegraph

Why is the BUIDL fund essential for crypto?

BlackRock’s BUIDL fund represents a new level of institutional legitimacy within the crypto ecosystem. Thanks to it, regulated financial institutions can now step into the world of blockchain with greater confidence – especially through proven networks like Ethereum and the increasingly popular Solana.

This fund shows how blockchain technology can have concrete and beneficial applications beyond speculative investments. For years, investing in crypto was reserved for those brave (or curious) enough to trade tokens directly or study the complexities of decentralized finance (DeFi), which was too risky for most institutional investors.

On top of that, vague regulatory frameworks have often made it completely impossible for institutional funds, such as BlackRock, to get involved in the crypto space altogether.

For many years, the crypto community has sought recognition and acceptance from the traditional financial sector. BUIDL is not just a sign of acceptance – it is a green light for the active participation of the biggest players in global finance. Its rapid success could be the trigger for a wave of institutional investment as crypto moves closer to widespread, mainstream use.

Source: cointelegraph

The Impact of the BUIDL Fund on Traditional Finance

The BUIDL fund represents a high-profile example of how traditional finance products can be improved through tokenization and blockchain technology. It shows the potential for further tokenization of money markets and real-world assets (RWAs), opening the door to a more innovative design of financial instruments.

“In the year since the launch of BUIDL, we have witnessed a significant increase in demand for tokenized real assets, which confirms the value of institutional product offerings on the blockchain,” said Carlos Domingo, CEO and co-founder of Securitize, BlackRock’s partner in the launch of the BUIDL fund on the Solana blockchain. As the market for tokenized treasury bills and RWAs gains momentum, switching to Solana – known for its speed, scalability, and low cost – was the logical next step.

Unlike traditional money market funds, which often operate within a limited time frame, tokenized funds like BUIDL provide uninterrupted, 24-hour access and liquidity, transforming the way investors manage their cash and short-term assets.

BlackRock is not the only player in the tokenized fund space. Franklin Templeton developed a similar product on the blockchain, whose market capitalization exceeded $600 billion by February 2025, while Figure Markets launched its own interest-bearing stablecoin – YLDS.

Interestingly, BUIDL attracts not only traditional institutions – but also blockchain-native projects. For example, just a week after the launch of the BUIDL fund in March 2024, Ondo Finance moved as much as $95 million from its own tokenized short-term bond fund to BUIDL, confirming confidence even among the most innovative players in the DeFi space.

Source: cointelegraph

Benefits of the BUIDL Fund for Investors

Traditional MMFs have been around for decades, but BUIDL brings a number of key advantages that adapt them to the modern digital age. By using blockchain technology, the fund offers greater speed, availability and transparency compared to traditional financial products.

Improved speed and efficiency: When investing in BUIDL, transaction settlement times are significantly shorter than in traditional finance. This reduces administrative costs and burdens, making the entire process more investment-efficient.

Greater liquidity and availability: Investors can buy and sell the fund’s tokens 24 hours a day, seven days a week – with no closed markets or weekends. This means that assets always remain liquid, thereby improving capital efficiency.

New ways to earn returns: BUIDL targets a stable value of $1 per token, and dividends are calculated daily and paid monthly in the form of new tokens directly into the investor’s wallet. This approach can potentially bring higher returns compared to classic forms of fixed income investments.

Transparency and security: All transactions and assets of the fund are tokenized and recorded on relevant blockchain networks, allowing investors full visibility over their own investments and a higher level of security and accountability.

Source: cointelegraph

Risks and Challenges of the BUIDL Fund

The rapid growth of the BUIDL fund represents a positive shift in connecting traditional finance and blockchain technology. However, with this innovation comes new risks that many investors may not yet fully understand – which is especially important for MMF markets where liquidity and technological reliability are key factors.

It is important to understand the following potential challenges:

Liquidity issues: Liquidity is critical to the success of any asset class, especially for derivative products. BUIDL currently targets qualified investors, which can limit wider market adoption and create some illiquidity in trading.

Technical vulnerability: The foundation of the BUIDL fund uses smart contracts on the Ethereum network to tokenize U.S. Treasury bills. Any vulnerability in these smart contracts can expose the fund to technical failures or hacker attacks.

Market manipulation: The crypto market is notorious for volatility, often caused by manipulative tactics such as “wash trading” and “pump-and-dump” schemes. As a new tokenized product with limited trading volume and liquidity, BUIDL may be vulnerable to such manipulations.

Counterparty Risk: While BlackRock has a strong reputation and represents security from the traditional side, there is significant risk from brokers in the crypto space. For example, if an exchange that trades BUIDL tokens runs into financial difficulties, this can negatively impact the availability and reliability of the fund.

We hope you enjoyed reading today’s blog, and that you learned something new and useful. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

Mark Uyeda – New SEC Chairman

Uyeda's educational and professional background

Mark Toshiro Uyeda graduated from Georgetown University with a degree in business administration in 1992 and received his legal education at Duke University School of Law, where he served as an editor at the Duke Law Journal. He began his career as a lawyer at the renowned law firms of K&L Gates (1995–1996) and O’Melveny & Myers (1997–2004), specializing in securities and financial law. From 2004 to 2006, he served as a senior advisor to the California Department of Corporations before moving to the Securities and Exchange Commission (SEC), where he held a number of key positions, including advisor to the chairman and trustee. His rich career in regulatory institutions and expertise in financial law have cemented his reputation as one of the leading capital markets experts in the US.

Source: cointelegraph

A Turning Point for Crypto Regulation

Under the leadership of Mark Uyeda, the Securities and Exchange Commission (SEC) is taking key steps towards clearer regulation of cryptocurrencies. One of the most important initiatives in this direction is the establishment of the Crypto Task Force on January 21, with the aim of creating a secure regulatory framework for crypto startups. This working group focuses on strengthening cooperation between regulators, harmonizing rules globally, and developing transparent guidelines for business compliance in the crypto sector. Particular emphasis is placed on public involvement and open discussions on future policies. After a period of uncertainty caused by the aggressive regulatory approach of former SEC Chairman Gary Gensler, Uyeda’s strategic and balanced approach brings new hope for the long-term development of the industry. Also, under his leadership, the SEC is considering new rules for DeFi projects, which would create a legal framework for decentralized finance for the first time in the US.

Source: cointelegraph

Trump's SEC strategy for 2025 and beyond

The Securities and Exchange Commission’s (SEC) strategy under the Trump administration, which began with the appointment of Mark Uyeda, is aimed at reducing regulatory barriers and boosting economic growth. Trump’s policy of deregulation, visible during his first term, continues in his second term, which began on January 20, 2025. This will have a significant impact on the crypto industry, which under former SEC Chairman Gary Gensler has been subjected to strict regulation and legal action against leading companies such as Binance, Ripple, and Coinbase. Uyeda, on the other hand, advocates the opposite approach – instead of restricting the market, it will focus on clearer regulation and encouraging innovation in blockchain technology, which could open up space for a new wave of development in the digital asset sector.

Source: cointelegraph

Uyeda's attitude towards the crypt

Mark Uyeda advocates a consistent and transparent regulatory framework as a key factor for the growth of digital assets. In addition to launching the Crypto Task Force, its policy could bring clearer legal classifications for cryptocurrencies, thereby reducing legal uncertainty in the sector. Unlike his predecessor Gary Gensler, Uyeda is expected to be a leader who will work closely with industry leaders, promoting a business-friendly approach. His vision is aimed at creating a regulatory environment that will prevent the outflow of crypto companies to areas such as Dubai or Singapore, which could allow the US to maintain its competitiveness in the global digital economy.

Source: cointelegraph

Uyeda and crypto regulations: what to expect?

The United States has faced vague and tightly regulated crypto legislation for years, but under Mark Uyeda’s leadership, significant changes could occur. Its policy is aimed at eliminating legal uncertainty and providing clear guidelines for crypto businesses. Among the key regulatory priorities is defining the status of digital assets – whether cryptocurrencies will be classified as securities or commodities – which could be resolved in cooperation with the Commodity Futures Trading Commission (CFTC). Also, the Uyedin SEC could encourage institutional adoption of cryptos and the expansion of investment products, especially after the approval of the spot Bitcoin ETF, while the application for a Litecoin ETF from Canary Capital is still under consideration. Although he did not explicitly comment on regulations related to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, it is possible that he will try to find a balance between regulatory measures and encouraging innovation in the digital asset market.

Source: cointelegraph

Is Uyeda an advocate of blockchain technology?

Although blockchain technology is not Mark Uyeda’s primary focus, he does not deny its potential. Compared to its predecessor, its regulatory approaches lean more towards fostering blockchain innovation, except when it comes to companies operating in legal gray areas. The Trump administration has already shown interest in adopting blockchain as a tool to improve the efficiency of financial markets, which opens up space for strategies that could encourage its wider application. There is the possibility of launching incentive programs for companies involved in fraud prevention, smart contract development, and decentralized finance (DeFi). Also, the SEC’s Crypto Task Force, launched in 2025, is the first regulatory unit within the SEC dedicated exclusively to blockchain and digital assets, highlighting the growing importance of this technology in the U.S. financial system.

Source: cointelegraph

SEC and crypto regulations around the world

The regulation of cryptocurrencies in the United States is closely monitored around the world, as the SEC’s decisions often affect the regulatory approaches of other countries. If the SEC, led by Mark Uyeda, establishes a clear regulatory framework for digital assets, many states could follow a similar model to stay compliant with global financial standards. This could have a positive impact on the retention of capital and talent within the US, as innovation in a business-friendly environment stimulates economic growth. Currently, many crypto companies have moved their operations to countries like Singapore, Switzerland, and the UAE, where regulation is more favorable and predictable. Uyeda’s success in reducing regulatory uncertainty through the Crypto Task Force could reverse this trend, benefiting investors and accelerating the growth of blockchain technology in the US market. Time will tell whether the SEC under his leadership will be able to consolidate the position of the US as a global leader in the digital economy and encourage international regulatory cooperation. We hope you enjoyed today’s blog. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

The first Spot Ethereum ETF in the U.S. has been approved

What are we talking about today?

Today we are talking about one of the most exciting events in the world of cryptocurrencies – the approval of the first Spot Ethereum ETF in the United States of America. This historic moment took place on 23.5.2024, and trading of the new ETF is expected to start at the earliest at the beginning of the seventh, and no later than in the ninth month of this year. A spot Ethereum ETF allows investors to gain exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without having to own or manage it directly. This approval represents a significant step forward for the wider adoption of Ethereum, as it provides institutional and retail investors with a new opportunity to participate in the market. Below, we’ll explore in more detail what this ETF means for the future of Ethereum, and compare this approval to that of the Spot Bitcoin ETF.

Source: cointelegraph

What is a Spot ETF?

A spot ETF is an exchange-traded fund, that is, a type of financial product that tracks the price of an underlying asset in real time, in this case Ethereum (ETH). Unlike a futures ETF, which is based on future-price contracts, a Spot ETF reflects the current market price of an asset. This means that investors through the Spot Ethereum ETF can indirectly own Ethereum without the need for direct buying, storage, or security measures that come with owning cryptocurrencies. This simplifies the investment process and reduces the risks associated with the technical aspects of managing cryptocurrencies, making them more accessible to a wider range of investors. In short, this ETF should enable more people to invest in Ethereum, and thus push the price of it up.

Source: cointelegraph

Comparison with Spot Bitcoin ETF

When the Spot Ethereum ETF launches, we can expect similar market reactions as with the launch of the Spot Bitcoin ETF. The spot Bitcoin ETF, which was launched earlier, opened the door to institutional investors and significantly increased Bitcoin’s legitimacy as an investment vehicle. In a similar vein, the Spot Ethereum ETF is likely to increase interest in Ethereum, leading to higher trading volume and potentially higher prices. Parallel to the Bitcoin ETF, the Ethereum ETF can also contribute to stabilizing the market, as it will allow for a wider range of investors, including those who may not be willing to invest directly in cryptocurrencies due to technical and security challenges. Overall, the launch of the Spot Ethereum ETF represents a significant step for the cryptocurrency market, increasing the accessibility and acceptance of Ethereum globally, and we can expect that if all goes well, the launch of ETFs for numerous other cryptocurrencies will go smoothly.

Source: cointelegraph

Ethereum and SEC

The relationship between Ethereum and the U.S. Securities and Exchange Commission (SEC) has long been the subject of debate within the financial community. Currently, the SEC does not classify Ethereum as a security, and this was an important factor when approving the Spot Ethereum ETF. If the situation had been different, that is, if Ethereum had been classified as security, the ETF would very likely not have been approved. This also gives institutional investors a certain amount of security, given that the SEC confirmed with this move that Ethereum is not and will not be classified as security, which could not be known with certainty in the earlier period.

Source: cointelegraph

Launch of the Spot Ethereum ETF

The launch of the Spot Ethereum ETF is predicted by some Bloomberg analysts as early as the beginning of July. However, there is a broader consensus that the ETF will launch in September at the latest. These different time frames indicate optimism and excitement in the market, as the regulatory processes nearing completion. The expected launch within these frameworks may further boost investor interest and increase trading volume, providing a new impetus to the Ethereum market.

Source: cointelegraph

Ethereum in a wallet or in an ETF

When investors are considering investing in Ethereum, there is a crucial decision they must make: keep Ethereum in their own wallet or invest through an ETF. If we keep money in an ETF, technically speaking, that money is not directly owned by us. In the event of complications, although very unlikely, we can lose access to all our money. On the other hand, if we keep Ethereum in our personal wallet, there is a risk of losing access to the wallet, either due to a forgotten password or technical problems, which can also result in losing money. The final choice depends on personal preference and comfort level with different types of risks. It is recommended to thoroughly research what suits you best, but if you can be responsible and careful with your private keys, it is always more recommended to keep Ethereum on your own wallet for greater control and security.

Source: cointelegraph

Conclusion

The launch of the Spot Ethereum ETF in the U.S. marks a significant step forward for the cryptocurrency market, providing investors with the opportunity to own Ethereum without directly managing it. The ETF’s approval, which is expected between July and September, could increase liquidity and stabilize Ethereum prices. Spot Ethereum ETFs are likely to attract more institutional investors and improve the legitimacy of cryptocurrencies. However, investors must decide between investing through an ETF or directly owning Ethereum in their own wallet, taking into account the risks and benefits of both options. This decision depends on personal preference and comfort level with different types of risks. Regardless of the choice, the approval and launch of the Spot Ethereum ETF represents a significant step for the wider acceptance and stability of the cryptocurrency market, and is likely to contribute to increasing the number of investors in Ethereum and other cryptocurrencies. We hope you enjoyed reading today’s blog, and that you learned something new. If you have any questions or suggestions, you can always contact us via our social networks (Twitter, Instagram).

Bitcoin bonds in El Salvador

What are we talking about today?

Today, we look at the significant steps that El Salvador is taking in the world of cryptocurrencies, especially in the context of Bitcoin bonds. After 2021. In the year bitcoin became legal tender, El Salvador announced the issuance of Bitcoin bonds, with the aim of attracting investment for the development of the Bitcoin city and encouraging bitcoin mining. While the bonds were initially postponed due to poor market conditions, they have now been given regulatory green light, after which they were expected to be issued in the first quarter of 2024. years. This move joins other initiatives such as the Freedom Visa program, anyone who donates one million dollars in bitcoin receives El Salvador citizenship, making El Salvador a globally attractive destination for bitcoin holders. All of these initiatives indicate that El Salvador is striving to be a pioneer in the adoption of digital assets, opening a new chapter in its financial future.

Source: cointelegraph

El Salvador Bonds

El Salvador’s bonds are in 2023. year, with returns ranging between 5.5% and 9.75%, were among the most profitable. Bloomberg ranked them there, and their connection to bitcoin and cryptocurrencies is still the subject of analysis and research. S&P Global Ratings positively revised the rating of the bonds, which resulted in an increase in their price and value, and President Nayib Bukele points out that the traditional media unjustifiably predicted the country’s bankruptcy because of its “Bitcoin bet”, but El Salvador successfully paid off the debt of $ 800 million.

Source: cointelegraph

"Volcanic bonds"

El Salvador has laid the groundwork for its financial future with “Volcanic Bonds,” an initiative named after a planned Bitcoin city, which will be powered by energy from the Conchagua volcano. This 33-page bill, introduced in November 2022, allows El Salvador to raise $1 billion for key national projects. The funds raised from the Vulcan bonds will be directed towards resolving the national debt and financing the construction of a Bitcoin city, as well as encouraging the development of bitcoin mining infrastructure. The bonds, denominated in US dollars, offer investors an attractive annual return of 6.5% over a ten-year period, with a five-year lock-in period. As an added incentive, investors can take advantage of the accelerated path to El Salvador citizenship, thereby increasing the attractiveness of this investment product.

Source: cointelegraph

The Road to Economic Prosperity

El Salvador stands out as a country that attracts foreign direct investment (FDI). Foreign Direct Investment (FDI)), especially in the Bitcoin and sustainable energy sectors. Recently, Volcano Energy announced a $1 billion investment for a 241-megawatt bitcoin mining project in the Metapán region, an example of how El Salvador is using innovation to attract capital. This investment not only confirms El Salvador’s ambitions to become a key player in the Bitcoin ecosystem, but also highlights the economic benefits that come with attracting foreign investment. Given that Tether, the issuer of the USDT stablecoin , plays a significant role in this financial endeavor, it is clear that El Salvador is making progress towards economic prosperity. The mining site in Metapán uses renewable energy, with 169 MW from solar sources and 72 MW from wind power, and thus aims to raise computing power to an impressive 1.3 exahashes per second (EH/s).

Government cooperation and strategic ownership

In projects related to Bitcoin bonds, the government of El Salvador is not only the initiator but also a strategic partner. Their central role in planning and implementation ensures that the government generates a “preferred share equivalent to 23% of revenue”, which is crucial for aligning state interests with the private sector. This partnership allows the government to have significant influence while also attracting outside investors who own a 27% stake in the venture. Such structured cooperation is crucial for attracting foreign capital and fosters El Salvador’s international financial integration.

Source: cointelegraph

Economic impact and global recognition

El Salvador has become a global phenomenon in 2023. year with a $1 billion renewable energy project, attracting investment from major companies like Tether. This influx of foreign investment highlights the economic viability of renewable energy projects related to bitcoin mining. El Salvador’s approach to using rich renewable energy sources to mine bitcoin sets the standard for other countries exploring to improve their economies through mining initiatives, or the use of natural energy resources.

Contributes to economic growth and technological progress

Volcano Energy has pledged to contribute 23% of net revenue from mining operations to the government of El Salvador, demonstrating the country’s commitment to economic growth. The reinvestment of mining profits in energy transmission and infrastructure further encourages technological progress in this Central American country. This approach not only positions El Salvador as a leader in bitcoin acceptance, but also makes it an example of sustainable economic development through strategic foreign investment.

Source: cointelegraph

Conclusion

Ultimately, El Salvador’s initiative to harness the potential of bitcoin and renewable energy to drive economic prosperity and technological advancement positions the country as a leader in the global crypto scene. Their innovative approach to attracting foreign investment, including Volcano Energy’s commitment to bitcoin mining and its partnership with Tether, not only indicates the economic feasibility of such projects, but also sets the standard for economic models. The government’s cooperation with the private sector, along with the commitment to reinvest profits in infrastructure projects, shows a clear vision towards the future that combines technological progress with sustainable development. Through these initiatives, El Salvador is not only positioning itself as a leader in the world of cryptocurrencies, but also as an example to other countries looking for ways to improve their economy and technological infrastructure. We hope you enjoyed today’s blog, and that you learned something new, if you have any questions or suggestions, feel free to contact us on our social networks (Twitter, Instagram).

Ethereum Dencun upgrade

What is dencun upgrade?

The Ethereum network has undergone a significant upgrade known as Dancun, which is a technical “hard fork” implemented in the 269,568 epoch. This upgrade, finalized in just 15 minutes, brings revolutionary changes aimed at reducing the price of transaction fees and improving the overall scalability of Ethereum. The Dancun upgrade is particularly significant because it introduces “proto-danksharding,” an innovative concept that allows Layer-2 solutions like Polygon, Arbitrum and Optimism to store transaction data outside the main chain. This not only reduces fees for users on L2 solutions, but also frees up the Ethereum network to process essential transactions. Dancun comes as the successor to the Shanghai upgrade, which enabled the withdrawal of the acquired Ether (ETH), and represents a key step in Ethereum’s evolution towards greater efficiency and affordability. With “proto-danksharding” as a harbinger to complete “danksharding,” Dancun opens the door to massive improvements in scalability, positioning Ethereum as a leading blockchain platform ready for the future of decentralized applications.

Source: cointelegraph

What is EIP-4844 ("proto-danksharding")?

EIP-4844, known as “proto-danksharding”, represents an innovative approach in the Ethereum ecosystem with the aim of improving the efficiency and scalability of storing transaction data on Layer 2 networks. This upgrade proposal introduces “blobs” of data, which will replace the currently used “calldata” transactions. “Calldata” is limited data that is stored on a chain and requires permanent maintenance by nodes, which creates a large burden on validators. With “proto-danksharding,” Ethereum is turning to using “blobs” that allow larger amounts of data to be managed outside the chain, thus freeing rollups for more scalable data storage. This new method of storing transactions is expected to reduce the load on Ethereum nodes, reduce network congestion, and optimize its size for better performance. Lower transaction prices resulting from this system will increase the usability and efficiency of applications on L2. “Blobs” are usually deleted after about two weeks, allowing validators to optimize disk space. EIP-4844 also introduces cryptographic tools like the KZG obligation scheme, which ensure that data stored in “blobs” can be verified as valid without disclosing the data itself, thereby maintaining the integrity and security of the network. This proposal is a key step towards reducing costs and increasing the availability of the Ethereum platform for widespread use.

Source: cointelegraph

Reducing fees on layer 2 networks

The Dencun upgrade represents a significant step forward in reducing fees on Layer-2 networks that are built on Ethereum. This technology allows for the grouping of transactions within L2 networks, resulting in a reduction in costs before their final transfer to the main Ethereum blockchain. A key innovation that Dencun brings is proto-danksharding, which was introduced through EIP-4844. This functionality allows L2 solutions to keep transaction data off-chain, significantly reducing costs and facilitating scaling. Proto-danksharding has thus reduced the financial burden on users and encouraged greater efficiency and speed of transactions.

Source: cointelegraph

Improved security

The Dencun upgrade brings with it several key security improvements that were not in the primary focus but were implemented as part of the upgrade. With the introduction of EIP-4788, Dencun has strengthened the communication link between the layers of consent, where validators play a key role in network protection, and the execution layer, where transactions are processed. This improved communication between layers makes Ethereum more resistant to potential attacks, as it makes it difficult to exploit weaknesses within individual layers. In addition, the EIP-6780 changes the functionality within smart contracts, some of the new features allow contracts to “self-destruct”. This change reduces the possibility of abuse of this function by attackers, thereby increasing the security of smart contracts on Ethereum.

Source: cointelegraph

How does Dencun upgrade affect users and developers?

The Dencun upgrade to Ethereum brings significant changes that directly affect users and developers. Proto-danksharding, a key element of the upgrade, reduces transaction costs for L2 solutions, thus providing users with a more economical experience, particularly when using NFTs and DeFi services. For developers, Dencun simplifies transaction management processes and consent mechanisms, leading to a better development experience. This makes it easy to build and deploy decentralized applications (DApps) on Ethereum, making the whole process faster and more intuitive. The improvements that Dencun brings not only enrich the current Ethereum ecosystem, but also fuel a wave of innovative projects. Through these changes, Dencun is bringing Ethereum closer to the goal of achieving a truly scalable and user-friendly platform, ready for wider adoption and a brighter future.

Source: cointelegraph

Ethereum roadmap

On the road to ethereum development, developers focus their work on innovations that simplify the production of blocks, such as separating proponents and executors. They also work on data availability solutions, ensuring that off-chain data can be verified even if certain validators are offline. The final goal is to implement a complete Danksharding system that will split the Ethereum blockchain into fragments (shards), with each of them processing different groups of transactions. This separation will allow for mass scalability. The next upgrade on Ethereum’s path is Petra, which brings together the Prague and Electra upgrades. While details are still the subject of debate, potential features include Verkle trees for efficient data storage and laying the foundation for “The Verge,” which aims to simplify block verification. This focus on scalability creates a path for Ethereum that will be more convenient for users. The exact time to complete Danksharding is unknown; estimates range from several years to decades. Nevertheless, the successful implementation of Dencun demonstrates the commitment of ethereum developers to continuous development. We hope you enjoyed today’s blog, we would love to hear your opinion on the recent upgrade, and what do you think the future of Ethereum is. You can share your opinion, as well as any questions or suggestions with us on our social networks (Twitter, Instagram).

SEC attack on Ethereum

What are we talking about today?

In the world of cryptocurrencies, where innovation and regulation often clash, recent developments between the Securities and Exchange Commission (SEC) and Ethereum have provoked many reactions. The central question that arises is: is Ethereum, the first and largest smart contract platform and the second largest cryptocurrency by market capitalization, actually a security in the eyes of regulators? This blog will explore the implications of the SEC’s potential decision to declare Ethereum a securities . Security), and how it could affect the future of decentralized finance, innovation in blockchain technology, and the entire crypto market in general.

Source: cointelegraph

What is a security (eng. Security)

A security in financial terms represents a negotiating financial instrument that has a certain monetary value. In the United States, the Securities act of 1933. It was the first federal law regulating the U.S. securities market, and later the Securities and Exchange Commission (SEC) was created to regulate and implement 1. Although the term “securities” is often associated with stocks and bonds, the U.S. Supreme Court gives a much broader interpretation of this term. In Howey v. SEC (1946), the court found that the sale of land and agricultural services constituted an “investment contract” – although there were no traces of stocks or bonds. This case established a four-part Howey test, which states that an investment can be regulated as a security if: there is an investment of money, the investment is made in a “joint venture”, investors expect profit from their investment, and any expected profit or return is due to the actions of a third party or promoter. This rule implies that it does not matter whether the offer of securities is formalized by a legal contract or equity certificates; any type of investment offer can be a security.

Source: cointelegraph

History of Ethereum and the SEC

Ethereum, the second largest cryptocurrency by market capitalization, was founded in 2015. In 2011, the company had a vision of creating a decentralized platform that enables the execution of smart contracts and the construction of decentralized applications. Since its inception, Ethereum has undergone a series of technical upgrades, including the transition from a Proof of Work model to a Proof of Stake role model in 2022. year. This transition has attracted the attention of the SEC, which has begun considering classifying Ethereum as a security, which could have significant implications for its future and regulatory status. Bill Hinman, former head of the SEC’s corporate finance division, previously stated that Ethereum is not a security because it is “decentralized enough.” However, recent research and reports suggest that the SEC may be reconsidering this classification, especially after a change in ethereum’s security model.

Source: cointelegraph

What does this mean for Ethereum?

If the Securities and Exchange Commission (SEC) classifies Ethereum as a security, it could have far-reaching consequences for the entire Ethereum ecosystem and the wider cryptocurrency market. First and foremost, Ethereum would be subject to stricter regulatory requirements, which could limit its ability to act as an open, global platform. This could also lead to legal challenges, including the ability to remove ETH from Crypto exchanges in the US, which would significantly affect liquidity and market capitalization, that is, would lead to a loss in the value of ETH. In addition, projects that are built on the Ethereum blockchain could face uncertainty and potential obstacles, as using a registered security for everyday transactions, such as paying transaction fees, would be impractical. This could slow or even stop innovation and development in the field of decentralized finance (DeFi) and other applications that rely on Ethereum. Given that Ethereum has already switched to a Proof of Stake model, which allows ETH owners to stake their coins in exchange for rewards, similar to interest paid on bonds, this change could be a key factor in the SEC’s decision.

Source: cointelegraph

Other cryptocurrencies and investors

The designation of Ethereum as a security by the Securities and Exchange Commission (SEC) could also affect a wide range of altcoins. Investors could become more cautious when investing in cryptocurrencies in general, which could lead to a decrease in the value of Ethereum and related altcoins, causing significant losses. In addition, if Ethereum were classified as a security, it could drastically affect other cryptocurrencies and tokens, potentially attracting heightened regulatory oversight and affecting investor confidence. For crypto exchanges and platforms, such a classification could require changes in the way Ethereum and similar tokens are traded, including the need to register and adhere to stricter regulatory standards. Also, it is possible that regulatory uncertainty for development projects and startups in the crypto space would increase, which could slow innovation and the development of new technologies.

Source: cointelegraph

Conclusion

As the Securities and Exchange Commission (SEC) prepares to potentially classify Ethereum as a security, the entire crypto world is preparing for this decision, which could not only redefine the legal status of Ethereum, but could serve as a precedent for future regulations in the cryptocurrency space. The history of Ethereum and the SEC shows the complex relationship between innovation and regulation, where every move is closely monitored. If Ethereum becomes “Security,” it could mean significant changes for investors, not just in Ethereum, but in the entire crypto market. It will certainly be interesting to observe how the relationship between Ethereum and the SEC will unfold. You can of course write your opinion to us on our social networks, or if you have any questions or suggestions you can contact us on them (Twitter, Instagram).

Coinbase and Base network

Coinbase – the largest crypto exchange

Coinbase is one of the largest and most popular crypto exchanges in the world. This 2024. In 2018, the exchange became crucial for institutional investors, providing custody and other services for Spot Bitcoin ETFs in the US, which further strengthened its position in the market. With an impressive revenue of $3.1 billion in 2023. In 2018, Coinbase showed that they are operating successfully regardless of the bad year in the crypto world, and they are additionally supported by the realized profit of 273.4 million dollars in the last quarter of the same year. This success confirms to us that cryptocurrencies and their vision will live in the future, and Coinbase’s ability to adapt to the market, considering that they have been successfully operating since 2012. years. As we have already said, probably the biggest advantage over other crypto exchanges is given by the newly created spot bitcoin ETFs, which have just chosen coinbase as the bitcoin holder for these same ETFs. We can expect this to further increase Coinbase’s earnings in 2024, and solidify the exchange as an industry leader.

Source: cointelegraph

Business

Coinbase operates as a remote company and does not have a physical headquarters. As part of its filing with the SEC, the company reported 43 million verified users, 7,000 institutions and 115,000 partners in more than 100 countries. Likewise, Coinbase is publicly known to hold approximately 1 million bitcoins in various wallets, which is definitely an enviable figure. However, of those 1 million, only about 9,000 are actually owned by the company.

Source: cointelegraph

Coinbase launches its network

The Coinbase exchange itself decided on August 9, 2023. take a significant step forward by launching the Base Network, its version of the Ethereum Layer 2 solution. This move will enable the development and implementation of smart contracts, which is essential to modernize and expand the services offered by Coinbase, given that these networks will be fully decentralized. The base network, which uses the Optimism OP Stack (a type of layer 2 network), provides a high level of security, scalability and interoperability, which opens the door to faster transactions and lower costs. Given that Coinbase has already established a network of over 110 million users and more than $80 billion in assets within the network itself, the Base network has apparently successfully attracted even more users to cryptocurrencies. In the long term, this initiative is expected to not only improve user experience but also significantly increase Coinbase’s revenue, given that Coinbase receives a small percentage of each transaction fee on the network itself. This is just another proof of Coinbase’s innovation and commitment to improving its services, which will guarantee them a secure place among the leading companies of the crypto industry in the future.

Source: cointelegraph

Coinbase Shares

Investing in Coinbase shares is one way to invest in this crypto exchange. As a publicly listed company, Coinbase offers investors the opportunity to become a partial owner of the company, thereby potentially making good money if Coinbase’s business expands successfully. Coinbase shares are directly traded on NASDAQ, which has attracted a lot of attention from investors. The positives include the potential for the stock to grow due to the expansion of the crypto market and the innovations that Coinbase is introducing, such as the Base network and various financial products. Also, Coinbase is known for its security and ease of use, which can be attractive to investors. In other words, it is currently very likely that Coinbase will operate with increasing profits in the future, so investing in the shares themselves could pay off many times over. On the other hand, the downsides can include the volatility of the crypto market which directly affects stock performance. Also, increased competition and potential regulatory challenges may pose risks for investors. Investing in Coinbase stock requires an understanding of market trends and potential risks associated with the crypto industry. So this will remain just an idea that needs to be analyzed in detail, because nothing listed is financial advice.

Source: cointelegraph

Conclusion

In today’s blog, we introduced you to Coinbase as one of the leading crypto exchanges, as well as the largest crypto companies. We connected the newly created spot Bitcoin ETFs in the USA with Coinbase’s operations, and briefly introduced you to their Base network. We believe that Coinbase is a truly promising company with huge potential that has so far done a great job of innovation and adaptation to the crypto market. If it continues on the same path in the future, we can expect an increase in income, and thus profits, and an increasing number of Coinbase users, and thus cryptocurrencies. We hope you enjoyed reading today’s blog and learned something new. If you have any questions or suggestions, you can always contact us on our social networks ( Twitter , Instagram ).

Argentina – cryptocurrency country

What are we talking about today?

Argentina is a country that is known for its rich culture, beautiful nature and, for many, for its football. But Argentina is also a country that faces many economic challenges, such as high inflation, an unstable currency and limited access to foreign exchange. In such circumstances, many residents of Argentina have turned to cryptocurrencies as an alternative way of saving, paying and investing. In November 2023. Argentina elected a new president, Javier Milea, who surprised the whole world with his libertarian orientation. Milei is an economist and media star, who advocates for a free market, a smaller role of the state, and therefore also supports cryptocurrencies. He proposed replacing the Argentine peso with the US dollar, abolishing the central bank and reducing the number of ministries, which would reduce government spending and transfer most government jobs to the private sector. How will Milei lead Argentina in the coming period, and what will be his influence on cryptocurrencies in the country? We talk about that and other things in this blog.

Source: cointelegraph

The new president of Argentina

Javier Milei is the new president of Argentina, who is up for election in November 2023. defeated the current president Alberto Fernandez, who led the center-left coalition. Milei is a libertarian by orientation, which means that he is fully in favor of the free market and as little government regulation and interference in economic matters as possible. He believes that the state is the main cause of Argentina’s economic crisis, which has lasted for decades, and that the only solution is a radical reform that will reduce taxes, public spending and debt. Milei is also a critic of the welfare state, which, in his opinion, creates dependence and irresponsibility among citizens. Milei’s views and program are in complete contrast to Argentina, which had a long tradition of populism, interventionism and protectionism. Argentina was one of the richest countries in the world at the beginning of the 20th century. century, but since then it has experienced a series of political and economic crises, which have led to a decline in living standards, poverty and inequality. Argentina was also influenced by different ideologies, from Peronism, which combined nationalism and socialism, to Kirchnerism, which advocated the redistribution of wealth and state control of key sectors. Milei, on the contrary, is an advocate of classical liberalism, which is based on individualism, freedom and the right to property. It will certainly be interesting to observe how this radical change will affect the economic situation in Argentina in the coming years.

Source: cointelegraph

Bitcoin as a currency

Javier Milei made the decision that anything two parties decide to use as a medium of exchange is also a legal medium of exchange, and it was specifically noted that this includes Bitcoin . This decision is part of his plan to reshape Argentina’s economy with an emphasis on freedom, privacy and innovation. Milei believes that Bitcoin offers great advantages such as transactions without the need for intermediaries or regulators, transparency and security, as all transactions are recorded on a public and indelible blockchain, and perhaps most importantly independence and sovereignty, as Bitcoin cannot be banned, confiscated or censored by governments or banks. Likewise, the president hopes that his decision will encourage other countries to do the same, creating a global network of countries that support Bitcoin and the crypto-industry. He believes that this is the way to stimulate economic growth, technological progress and social welfare.

Source: cointelegraph

Stablecoins in Argentina

Stablecoins are cryptocurrencies that are tied to an asset, such as the US dollar, and have a constant value. Many residents of Argentina have turned to stablecoins as an alternative way to save, pay and send money, without the need for third parties such as banks. Stablecoins also provided access to international markets and services, which were otherwise limited or unavailable because no one in the world accepted the Argentine peso. According to Bitso, one of the leading crypto-platforms in Latin America, 60% of crypto-transactions in Argentina were in dollars or stablecoins, such as USDT and USDC. These stablecoins were more in demand than Bitcoin, which is usually the most popular cryptocurrency. The reason for this is that Argentinians were looking for security and stability, not speculation and risk, that is, investments. The new changes made by President Milei, which support cryptocurrencies as a legal medium of exchange, will further improve the situation for all of Argentina. Stablecoins will become even more accessible and accepted, both by individuals and by companies and institutions.

Source: cointelegraph

Conclusion

In today’s blog, we commented on the recent political and above all economic changes in Argentina. A country that has recently elected a new president who has a completely different view of the economy than the rest of the world. He advocates the idea from which Bitcoin was born, so it will be interesting to observe how Bitcoin will behave in Argentina, where until now the use of cryptocurrencies was popular initially due to high inflation, but also due to other unfavorable economic reasons. We hope you enjoyed reading today’s blog, and that you learned something new, and if you have any questions or comments, you can always contact us on our social networks ( Instagram , Twitter ).

Ethereum is becoming centralized

What is happening with Ethereum?

Ethereum creator Vitalik Buterin has published a new roadmap (a proposal for the future of Ethereum) in which he proposes to reduce the network load associated with a high number of validators. The number of validators is currently approximately 895,000. This large number enables decentralization and gives ordinary individuals the opportunity to participate in staking, but it burdens the network due to the huge number of signatures it has to process. According to Buterin, the workload and technical complexity are currently too high and need to be addressed. Buterin claims that the current signature collection system processes approximately 28,000 signatures per slot (12 seconds), creating complexity and not achieving the ultimate goal of as many transactions as possible for as little cost as possible.

Source: cointelegraph

What are Ethereum slots?

A slot is the name for a unit of time on the Ethereum network. A time period of 12 seconds is called a slot and is given for the network to choose a random validator to propose a block. Vitalik believes that reducing it to 8,192 signatures per slot (instead of the current 28,000) would reduce the technical complexity, and that the price of transaction fees would be drastically reduced, thereby enabling even greater acceptance and use of Ethereum on a global level.

Source: cointelegraph

Staking pools – ETH becomes centralized (option 1)

Ethereum is currently one of the most popular and innovative platforms for smart contracts and decentralized applications. However, its future may not be as decentralized as expected. Recently, Vitalik Buterin proposed three possible ways to increase the number of transactions per second and reduce transaction fees. One of these possibilities is to increase the minimum amount of ETH required for staking to 4096 ETH, and also the number of validators would be limited to only 4096. Given that staking would become drastically more expensive, and the number of validators would be limited, the centralization of Ethereum would inevitably occur. This would mean that only the richest and most powerful players on the network would be able to participate in maintaining the safety and stability of Ethereum, while small and average stakers would be forced to join decentralized staking pools or give up staking altogether. This could lead to more centralization and inequality on Ethereum, which would contradict its initial vision of an open platform for Web 3.0.

Source: cointelegraph

Two-layer staking (option 2)

Alternatively, Buterin proposed the introduction of a two-layer staking system, where validators would be divided into a “heavy” layer and a “light” layer. The heavy layer would be composed of validators with a minimum deposit of 4096 ETH, who would be responsible for the basic consensus mechanisms. A lightweight layer would include validators with no minimum deposit, which would contribute to the overall security of the network without the same level of direct participation in consensus, this option is slightly better, but will still contribute to the centralization of Ethereum in the long run.

Source: cointelegraph

Rotating participation (option 3)

As a last option, Buterin proposed a rotating participation approach, where for each slot a subset of 4096 validators would be randomly selected to participate in the consensus. This would ensure a diverse and dynamic set of validators while maintaining the efficiency, scalability and most importantly the decentralization of the network.

Source: cointelegraph

Conclusion

The proposed changes presented by Vitalik Buterin will drastically change the structure of Ethereum. With Ethereum taking a prominent position as the second largest cryptocurrency, these changes could reshape the Ethereum network itself and potentially impact the broader context of the crypto industry. It is important that these changes that occur in order to increase the overall efficiency of the Ethereum network take place while taking care of maintaining the decentralization of the network, and not that the network is only centralized and thereby achieve greater efficiency temporarily. We hope that you enjoyed today’s blog and that you learned something new. If you have any questions or suggestions, feel free to contact us on our social networks ( Twitter , Instagram ).

The first spot Bitcoin ETF in the US

US Spot Bitcoin ETF Approved

After more than ten years of waiting and rejection, the US Securities and Exchange Commission (SEC) has finally approved the first spot Bitcoin ETF (exchange-traded fund). In fact, the SEC is 10th. January 2024 approved as many as 11 spot Bitcoin ETFs, and gave investors more options for investing in the most popular cryptocurrency. Spot Bitcoin ETFs are funds that invest directly in bitcoin, and not in derivatives that follow the price of bitcoin. If you are interested in more detail about what a Bitcoin ETF is, you can read about it on one of our previous blogs . The decision of the SEC was made by voting, where 5 members were in favor of approval and 3 members were against. With this, Bitcoin became even more easily accessible to the largest capital market in the world, and turned another new page in its history.

Source: cointelegraph

How much is this ETF trading?

In the first three days of trading, spot Bitcoin ETFs generated a total volume of around $10 billion. However, not all spot Bitcoin ETFs are equally popular. Grayscale Bitcoin Trust (GBTC) dominated the competition, with more than half of the total trading volume in the first days. This is most likely a temporary phenomenon, as some investors are selling their GBTC shares in order to buy newly available alternatives. Other leading players in terms of trading volume were BlackRock (IBIT) with more than $1 billion and Fidelity (FBTC) with more than $700 million.

Source: cointelegraph

How many bitcoins have the funds accumulated?

The Spot Bitcoin ETFs collectively own about 650,000 bitcoins, representing approximately 3% of the maximum supply of 21 million bitcoins. However, most of these bitcoins have previously belonged to the Grayscale Bitcoin Trust (GBTC). GBTC currently holds about 581,000 bitcoins, which is almost 90% of the total amount of bitcoins held by ETFs, or funds that manage them. Other spot Bitcoin ETFs have significantly fewer bitcoins in their reserves. For example, BlackRock’s ETF (IBIT) has about 25,000, while Fidelity ETF (FBTC) has about 20,000 bitcoins. Grayscale’s share is expected to decrease, given the fact that other ETF providers have offered much more favorable terms for holding bitcoins with them. Likewise, in the long term, we believe that the total amount of bitcoins owned by these ETFs, or funds, will increase drastically, but it is still impressive that in just one week, more than 85,000 bitcoins have been accumulated.

Source: cointelegraph

How much will individual ETFs earn?

All these funds charge a commission for holding bitcoins in their reserves. This commission is deducted from the value of the fund and represents a cost for investors. However, given that there is a lot of competition among issuers of spot Bitcoin ETFs, some of them have temporarily reduced or eliminated their commissions to attract more investors, but generally these commissions will be minimal. For example, Fidelity will charge 0% until the 31st. July 2024 year, and then will increase the commission to 0.25%. Similarly, Invesco will charge 0% for the first six months or the first $5 billion in assets, then increase the fee to 0.59%. Other spot Bitcoin ETFs have different commissions, ranging from 0.20% for iShares Bitcoin Trust (IBIT), which is the cheapest, to 1.50% for Grayscale Bitcoin Trust (GBTC). Fees at these new funds are significantly lower than those of others, such as Grayscale’s trusts for other cryptocurrencies that charge between 2% and 3%, or bitcoin futures ETFs that charge around 0.95%.

Source: cointelegraph

Bitcoin in a wallet or in an ETF

One of the key questions raised after the approval of these ETFs is whether it is better to hold Bitcoin in your digital wallet or in an ETF. Many crypto enthusiasts will say that it is better to have Bitcoin in your wallet, because it means that you have full control over your money, rather than handing it over to a third party. Bitcoin is a decentralized currency that does not depend on any institution or government. This means that there is no one who can freeze, seize or censor your transactions. Also, by having Bitcoin in your wallet, you can take advantage of all the advantages offered by the crypto ecosystem, such as speed, transparency, privacy and innovation. On the other hand, investing in a Bitcoin ETF has its drawbacks. First, you don’t own the actual Bitcoin, just a portion of the fund that tracks it. This means that you are exposed to the risk of the fund failing, being hacked or its rules being changed. Second, you pay high fund management fees, which reduce your earnings. Third, you are limited to market hours and regulations that may affect your ability to trade. Fourth, you lose some of the anonymity and security that Bitcoin provides, because you have to reveal your identity and entrust your money to someone else. Therefore, if you are a crypto enthusiast who values ​​freedom, independence and innovation, it is better to keep Bitcoin in your wallet than in an ETF. On the other hand, if you are afraid of losing your money, losing your keys or access to it, and prefer to trust a third party such as one of the funds that hold the ETF, then an ETF may be a better option for you.

Source: cointelegraph

Conclusion

After more than ten years of waiting, we got not only one but eleven Spot Bitcoin ETFs in the USA, the country with the largest capital market, and thus the greatest potential for investing in Bitcoin. In today’s blog, we showed you the results of trading these ETFs in the first week, and it will definitely be interesting to see how the whole situation with ETFs will develop further. We also answered the question, should you keep real bitcoin in your wallet or buy it through ETFs. We hope you enjoyed today’s blog and learned something new, if you have any questions you can always contact us on our social networks ( Twitter , Instagram ).