Cryptocurrencies To Watch

Author: Jonathan Agozie

  • Polygon Network Announces Date for MATIC Upgrade to POL Token

    Polygon Network Announces Date for MATIC Upgrade to POL Token

    Developers must update their projects for POL compatibility, and users need to be aware of these changes to interact smoothly with the network.

    Polygon will upgrade its mainnet on September 4, 2024, changing from its MATIC token to a new POL token and updating its smart contracts. This transition follows community approval, and POL will keep MATIC’s tokenomics, distribution, and total supply.

    At first, POL will replace MATIC for gas fees and staking on the network. Later, POL might get more uses, especially in the AggLayer, depending on community feedback.

    POL’s Transition Plan and Migration Steps

    The POL upgrade went live on the Polygon testnet on July 17. This gives the community six weeks to find and fix any issues before the mainnet upgrade. The community will use this time to thoroughly test and ensure a smooth transition.

    Current MATIC holders on the Polygon PoS network will automatically switch to POL, requiring no action from them. However, MATIC holders on Ethereum, the Polygon zkEVM, or centralized exchanges must follow specific steps by core developers to ensure a smooth transition to POL. These steps will be detailed and easy to follow to help everyone make the switch without issues. 

    Developers and stakeholder groups with MATIC on Ethereum will also automatically convert to POL, but they can opt-out if they choose. This migration will require many decentralized finance protocols, decentralized applications, and infrastructure to update to support the new POL token. Developers will need to update their projects to ensure compatibility with POL, and users will need to be aware of these changes to interact smoothly with the network.

    Polygon’s Scaling and Security Upgrades

    Polygon uses two scaling solutions: the Polygon PoS sidechain and the Polygon zkEVM zero-knowledge rollup network. They plan to launch the Polygon 2.0 architecture to create a unified liquidity framework that improves interoperability and shared state functionalities across multiple ZK-Rollup chains. This architecture aims to enhance the overall efficiency and performance of the Polygon network. 

    The AggLayer will connect the Polygon 2.0 chains and secure them by settling ZK-based security proofs on Ethereum. This layer will play a crucial role in maintaining the security and integrity of the network. Polygon introduced “zkPoS Phase 1,” a plan to link Polygon PoS with the AggLayer as part of moving Polygon PoS to a zkEVM Validium. This phase is an essential step in the overall upgrade process.

  • Winklevoss Twins Donate $1M in Bitcoin to Deaton for Election

    Winklevoss Twins Donate $1M in Bitcoin to Deaton for Election

    Last month, the Winklevoss twins donated $2 million in Bitcoin to Trump to oppose Biden’s strict stance on cryptocurrencies.

    Tyler and Cameron Winklevoss, the founders of the crypto exchange Gemini, each pledged $500,000 in Bitcoin to a PAC supporting John Deaton. The pro-crypto lawyer Deaton wants to challenge and possibly end Senator Elizabeth Warren’s twelve-year political career.

    They directed these donations to the Commonwealth Unity Fund, a new super political action committee (PAC) focused on replacing Senator Warren with Deaton. The committee will use these funds to support Deaton’s campaign through various ad campaigns.

    The Battle for the GOP Nomination

    The crypto community often criticizes Democratic Senator Warren for her strong stance against the industry. She worries about user protection, financial crimes, environmental impact, and national security. Many in the crypto industry see these government actions as a threat to their growth in the United States.

    The Winklevoss brothers announced their donations on their X (formerly Twitter) accounts. Tyler Winklevoss called Warren “public enemy number one” for crypto and praised Deaton for supporting the industry.

    He also criticized SEC Chairman Gary Gensler and FDIC Chairman Martin Gruenberg, calling them Warren’s “lap dogs and attack dogs.”

    Tyler said the SEC constantly targets “good actors” in the crypto industry. Last year, the SEC it has sued Gemini, accusing it of breaking securities laws with its lending platform’s crypto token offerings. This lawsuit is part of a larger crackdown affecting companies like Coinbase, Kraken, and Ripple.

    Banking regulators, including the FDIC, have stopped banks from working with crypto firms. Tyler said, “Elizabeth Warren is behind these illegitimate actions, and these are her lieutenants and foot soldiers who follow her orders.”

    The Winklevoss twins’ donations followed Ripple’s $1 million contribution to the Commonwealth Unity Fund for Deaton on July 16. James Murphy, the PAC’s fundraising lead, thanked Ripple and the Winklevoss twins. Last month, the twins also donated $2 million in Bitcoin to former President Donald Trump to oppose Biden’s strict stance on cryptocurrencies.

    Deaton has two rivals for the GOP nomination to challenge Warren: Ian Cain and Robert Antonellis. The official challenger for Warren will be decided after the Massachusetts State Primary on September 3.

  • BlockFi Confirms July Start for Crypto Distributions via Coinbase

    BlockFi Confirms July Start for Crypto Distributions via Coinbase

    BlockFi will notify eligible clients via email in July, urging them to update their email addresses to avoid delays, with the process continuing in batches.

    Bankrupt crypto lender BlockFi announced it will start its first interim crypto distributions through Coinbase this month. This move is part of a partnership with Coinbase to handle these distributions systematically and efficiently.

    In a post on X, BlockFi shared its distribution plans. The process will begin in July and will continue in batches over the next few months. Eligible clients will receive notifications via the email linked to their BlockFi accounts. BlockFi urged clients to update their email addresses to avoid delays in receiving these notifications.

    Non-US clients face a significant restriction due to regulatory requirements and cannot receive funds now. BlockFi explained that this limitation is necessary to comply with current laws and regulations, and they are working on finding solutions for affected clients in the future.

    BlockFi’s Bankruptcy Filing

    BlockFi filed for bankruptcy after FTX collapsed in November 2022. BlockFi announced its shutdown and a plan to refund customers’ digital currency holdings, setting a deadline of April 28, 2024, for withdrawal requests. BlockFi partnered with Coinbase to help clients access and withdraw funds as it prepared to shut down its web platform.

    In September 2023, the bankruptcy court approved BlockFi’s Chapter 11 repayment plan to settle debts with about 10,000 creditors. BlockFi’s total liabilities range from $10 billion, including $1 billion owed to its three largest creditors and $220 million to the now-bankrupt crypto hedge fund Three Arrows Capital. This approval marked a significant step towards resolving BlockFi’s financial obligations and moving forward.

    During Sam Bankman-Fried’s criminal trial, BlockFi’s CEO, Zac Prince, testified as a government witness, blaming the FTX founder’s actions for BlockFi’s bankruptcy. Prince’s testimony highlighted the impact of FTX’s collapse on BlockFi and underscored the broader consequences of the events leading to their bankruptcy.

    In March 2024, BlockFi reached an $875 million agreement with the estates of FTX and Alameda Research. This settlement resolved BlockFi’s claims against FTX, which totaled around $1 billion and resulted in FTX dropping “millions of dollars in avoidance claims and counterclaims” against BlockFi.

  • Crypto Exchange OKX Halts Operations in Nigeria

    Crypto Exchange OKX Halts Operations in Nigeria

    OKX users are expected to close P2P, margin, futures, and options positions, redeem all assets from Grow products, and transfer all assets to a preferred wallet.

    Popular crypto exchange OKX has announced its decision to exit the Nigerian market due to recent changes in local laws and a crackdown on digital asset services. This development is part of the broader regulatory challenges faced by crypto companies in Nigeria. The exchange has provided users with instructions as it winds down its local operations.

    In an email dated July 17, OKX informed customers about the discontinuation of its services in Nigeria, citing an assessment of local policies. “We are discontinuing OKX services in Nigeria after recent changes in local laws and regulations. This is based on our ongoing assessment of policies in each market we serve,” the email stated.

    OKX Exits Nigeria

    Starting August 16, OKX customers in Nigeria will no longer be able to open new trading positions or access other services. However, they will still be able to withdraw funds and close existing positions. The exchange advised Nigerian users to review their accounts and take necessary actions before August 16.

    Users are instructed to close P2P, margin, futures, and options positions, redeem all assets from Grow products, and transfer all assets to a preferred wallet. After August 16, users will be allowed to make withdrawals but will be restricted from making deposits and related transactions.

    “While your funds remain secure and accessible in your account, we highly encourage you to withdraw them to your private wallet or your accounts on other third-party platforms by 12:00 am (PST) on August 30, 2024. After August 30, users will have to contact customer service teams for account related actions,” the exchange said. 

    In May, OKX stopped its centralized crypto trading services in Hong Kong to meet regulatory requirements. The exchange told users not to deposit funds after May 31 and gave other guidelines.

    The situation in Hong Kong is different from that in Nigeria, where strict local rules have led to bans on platforms like Binance and Coinbase. This year, the Nigerian government increased its crackdown on crypto trading services, linking them to the decline of the local currency.

  • Trump Teases 4th NFT Collection, Warns of Chinese Crypto Industry Dominance

    Trump Teases 4th NFT Collection, Warns of Chinese Crypto Industry Dominance

    Trump stressed the need for the United States to lead in the crypto industry to prevent other countries, like China, from taking control.

    During a comprehensive interview with Bloomberg on Tuesday, former U.S. President Donald Trump emphasized U.S. leadership in the cryptocurrency sector. He also mentioned plans to potentially launch a fourth non-fungible token (NFT) collection.

    “I’m going to do another one because the people want me to,” Trump stated, noting the success of his previous collections, which sold out in a day, totaling 45,000 cards across three releases. He emphasized the overwhelming support for his NFTs, describing it as an “unbelievable spirit.”

    Emphasizing U.S. Leadership in Crypto

    Trump pointed out that 80% of the sales were made in cryptocurrency, which he found interesting. He stressed the need for the United States to lead in the cryptocurrency industry to prevent other countries, like China, from taking control. Trump acknowledged that the U.S. crypto industry is still developing but expressed confidence in its strong foundation.

    He also mentioned the change in attitude among traditional banking leaders, such as Jamie Dimon, CEO of JP Morgan, toward cryptocurrency over the years. Trump stated, “Jamie Dimon was, you know, very negative and now all of a sudden he’s changed his tune a little bit.”

    As the crypto industry continues to support Trump’s reelection campaign, the former president appears increasingly comfortable embracing NFTs and crypto. In May, Trump’s campaign began accepting cryptocurrency donations. According to a Tuesday report from the Wall Street Journal, citing new data from the Federal Election Commission (FEC), Trump’s election campaign raised approximately $331 million last quarter, with about $3 million coming from crypto donations.

    Recently, Trump announced Senator J.D. Vance as his running mate, known for supporting Bitcoin. Notably, major players in the crypto industry, such as Jesse Powell from Kraken and Tyler and Cameron Winklevoss from Gemini, have also donated to Trump’s campaign and related pro-crypto groups. Trump praised the resilience of the crypto industry, saying he has met and respects many leaders in the field whom he considers highly accomplished.

  • Hackers Steal $8M in Li.Fi Protocol Breach

    Hackers Steal $8M in Li.Fi Protocol Breach

    In the second quarter (Q2), phishing attacks caused about $490 million in losses, much more than the nearly $70 million lost to smart contract hacks.

    Li.Fi Protocol, an API facilitating Ethereum Virtual Machine (EVM) and Solana (SOL) transactions, recently faced a significant attack that resulted in cybercriminals stealing over $8 million in cryptocurrencies. Cyvers Alerts, a cybersecurity firm, detected suspicious transactions associated with the address ‘0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae’ and promptly advised users to revoke permissions for this address to prevent further losses.

    Following the breach, Li.Fi Protocol issued a warning urging users to refrain from using Li.Fi-powered applications until the investigation is complete. They assured users who did not grant unlimited access that their funds were safe.

    In another alarming incident, Dough Finance, a decentralized finance (DeFi) platform, fell victim to a flash loan attack, resulting in the loss of $1.8 million worth of Ether (ETH). The attacker utilized Railgun, a zero-knowledge protocol, to exploit vulnerabilities and abscond with USD Coin (USDC).

    Crypto Thefts Exceed $1.4B in 2024

    Cyvers’ mid-year Web3 security report for 2024 revealed a staggering $1.4 billion in crypto thefts, primarily targeting centralized exchanges. In the second quarter alone, losses exceeded $600 million, marking a significant 100% increase from the previous year. Centralized exchanges experienced a dramatic 900% surge in losses.

    Among the notable breaches highlighted in the report was the DMM Bitcoin attack, where a Japanese exchange suffered a devastating $304 million loss of Bitcoin. The report underscored a shift in attack strategies, with DeFi platforms demonstrating improved defenses while centralized exchanges remained vulnerable due to high asset concentrations and varying security measures.

    Cyvers emphasized that phishing attacks were the most lucrative for hackers in Q2, amounting to approximately $490 million in losses. This amount starkly contrasted with losses from smart contract hacks, which totaled nearly $70 million during the same period.

    Despite swift action by DeFi platforms to freeze compromised contracts and mitigate losses, Cyvers cautioned about ongoing risks. Hackers continue to exploit weaknesses in complex smart contracts and cross-chain connections, as evidenced by incidents like the $1.44 million loss resulting from the XBridge attack in April.

    In summary, the cryptocurrency landscape in 2024 has been marred by significant security breaches, highlighting the urgent need for enhanced cybersecurity measures across decentralized and centralized platforms alike.

  • US Crypto Firms Spent Nearly $79M on Political Lobbying in 2 Years

    US Crypto Firms Spent Nearly $79M on Political Lobbying in 2 Years

    With the upcoming election, crypto companies will likely continue to use lobbying to protect their interests and push for favorable policies.

    A new study by blockchain analysis firm Social Capital Markets shows that cryptocurrency companies have dramatically increased their lobbying expenses over the past seven years. Their spending rose by 1,386%, from $2.72 million in 2017 to $40.42 million in 2023.

    The research highlights that nearly 60% of the total $131.91 million spent on crypto lobbying happened in the last two years. In 2022 and 2023, the industry spent $78.94 million to influence policy and regulation.

    Crypto Giants Ramp Up Lobbying

    Apollo Global Management spent the most on lobbying in 2023, investing $7.56 million. The Managed Funds Association followed with $4.11 million, and Coinbase spent $2.86 million. These numbers show how much major financial players want to shape the rules for digital assets.

    Individual companies also increased their lobbying expenses significantly. Coinbase’s spending jumped by 3,475%, from $80,000 in 2017 to $2.86 million in 2023. Notably, 74% of Coinbase’s total lobbying spending over the past seven years happened in the last two years.

    Binance.US increased its lobbying spending by 656.25%, from $160,000 in 2021 to $1,215,000 in 2023. Ripple’s spending rose by 1,780%, from $50,000 in 2017 to $940,000 in 2023. Tether Operations grew its spending by 158%, from $480,000 in 2022 to $1.24 million in 2023.

    From 2017 to 2023, the top five spenders on lobbying were Apollo Global Management ($28.71 million), Managed Funds Association ($21.96 million), CME Group ($10.19 million), Coinbase ($8.45 million), and Block Inc. (formerly Square Inc.) ($6.37 million).

    This surge in lobbying spending comes as regulatory scrutiny and legislative efforts around digital assets increase worldwide. Major US players are heavily investing to influence policies in their favor.

    The study by Social Capital Markets suggests that the crypto industry is growing more mature and financially powerful. It also shows that the industry understands the critical role of regulation in its future growth and mainstream acceptance. With the upcoming election, crypto companies will likely continue to use lobbying to protect their interests and push fo favorable policies.

  • Bitcoin and Ethereum Drive $1.4B Inflows Into Crypto

    Bitcoin and Ethereum Drive $1.4B Inflows Into Crypto

    Bitcoin experienced its fifth-largest week of inflows on record, while Ethereum saw the second-highest inflows in anticipation of the upcoming US Ether ETFs.

    Digital asset investment firm CoinShares reported that investors put $1.44 billion into crypto last week. Out of this, $1.35 billion went into Bitcoin (BTC) ETFs in the US and other regions. This was Bitcoin’s fifth-largest weekly inflow, bringing total crypto product inflows for 2024 to $17.8 billion.

    Most of these inflows came from US-based buyers, with Switzerland also buying record amounts of digital assets. CoinShares said, “The US led with $1.3 billion for the week, and positive sentiment was seen across other countries, most notably Switzerland (a record this year for inflows), Hong Kong, and Canada with $58 million, $55 million, and $24 million, respectively.”

    Meanwhile, short-term Bitcoin investment products saw their largest weekly outflows since April 2024, totaling over $8.6 million. CoinShares linked last week’s Bitcoin dip-buying to a price drop, partly because of the German government selling BTC.

    Ethereum (ETH) also drew significant investor interest, attracting $72 million last week, its highest since March. Ethereum had the second-largest inflows after Bitcoin, with this year’s inflows surpassing 2021’s $10.6 billion and setting new records for digital asset investments.

    The rise in inflows likely came in anticipation of the first spot Ethereum exchange-traded fund (ETF) in the US, which could start trading within the next few weeks. Several issuers, including VanEck and 21Shares, filed amended registrations this week, hoping to get the SEC’s final approval to list spot Ether ETFs. Eight spot issuers are currently awaiting regulatory approval in the US.

    Crypto Market Rises Again

    Crypto prices last week encouraged investors to buy digital asset products, leading to a market revival noted on Monday. The total crypto market rose 3.9%, recovering to $2.4 trillion. Bitcoin’s 5.2% surge in 24 hours allowed it to reclaim $62,500, narrowing the gap from its March peak to 15%.

    QCP Capital researchers attributed the market uptick to the failed assassination attempt on Donald Trump and growing confidence in his chances over Joe Biden. They also noted that the German government had depleted their BTC supply, and large hedge funds were buying calls last week. QCP stated, “Trump’s situation was the perfect trigger for a market ready to go long.”

  • MAGA Whale Gains $8M After Attempt on Donald Trump’s Life

    MAGA Whale Gains $8M After Attempt on Donald Trump’s Life

    This wallet, which spent 540,700 USDT to buy 1.08 million TRUMP tokens at $0.50 each, realized about $8.3 million in profits from the deposit.

    A MAGA whale recently made $8.3 million in profits after the price of TRUMP tokens surged last weekend. This surge followed a failed attack on former US President Donald Trump, which caused memecoins, including TRUMP, to rise sharply.

    On-chain data provider Lookonchain reported that a wallet, likely belonging to GCR (@GiganticRebirth), deposited 1.08 million MAGA tokens worth $8.85 million on the BTSE exchange. The realized profits from this deposit were about $8.3 million. This wallet had originally spent 540,700 USDT to buy 1.08 million TRUMP tokens at an average price of $0.50 between November 22 and December 4, 2023.

    Another address, labeled “GCR: Address 1,” still holds 936,279 TRUMP tokens worth $7.23 million, sitting on an unrealized profit of more than $6.5 million.

    Foiled Trump Attack Boosts Re-Election and Crypto Rally

    The attack on Trump last Saturday, which failed, significantly boosted his re-election chances. As Trump promoted himself as a pro-crypto candidate, Bitcoin and the broader crypto market rallied strongly. Over the weekend, the price of MAGA (TRUMP) surged by 60%, reaching over $10. After the whale took profits, the meme coin’s price fell nearly 25% from its peak. Despite this drop, MAGA still trades 42% higher on the weekly chart, with a market cap of $334 million.

    Tech influencer Elon Musk and blockchain entrepreneur Justin Sun publicly supported Trump’s 2024 presidential campaign soon after the assassination attempt at a Pennsylvania rally. Musk, CEO of SpaceX and Tesla, endorsed Trump by sharing a photo of him on X, praising his resilience. “The last time America had a candidate this tough was Theodore Roosevelt,” Musk tweeted. Justin Sun, founder of the Tron blockchain, also endorsed Trump, citing his favorable stance on the crypto industry and his commitment to fairer treatment for the sector.

    Trump’s pro-crypto stance includes his promise to stop “Joe Biden’s crusade to crush crypto” and his acceptance of crypto donations for his campaign. He promotes himself as a champion of the US crypto sector, advocating for America to lead the global industry. By positioning himself as a defender of crypto, Trump aims to garner support from the growing community of crypto enthusiasts and investors.

  • LINK Sees Bullish Trend: $100M Shift to Long-Term Holdings

    LINK Sees Bullish Trend: $100M Shift to Long-Term Holdings

    Chainlink supports reliable applications and high-integrity markets in numerous sectors, such as banking, DeFi, global trade, and gaming.

    Over the past two weeks, Chainlink (LINK) has experienced negative exchange net flows, with approximately $110 million worth being withdrawn from exchanges. This trend indicates that investors are moving their holdings into long-term storage, suggesting an accumulation phase. Investors likely have growing confidence in the token’s future potential. Moving LINK off exchanges can reduce short-term selling pressure, which might lead to price increases if demand remains strong.

    Chainlink is a leading decentralized platform in the Oracle sector. It securely transfers data between public and private blockchains and off-chain systems, facilitating interoperability among them. In the blockchain field, oracles are essential software that brings external data into a blockchain ecosystem, as these systems do not natively have the tools to do so.

    Chainlink Integration Boosts Decentralized Platforms

    Chainlink powers verifiable applications and high-integrity markets across various sectors, including banking, DeFi, global trade, gaming, and more. It has dominated the Oracle sector for years, enabling transactions worth over $12 trillion. Chainlink provides financial institutions, startups, and developers with on-chain access to real-world data, off-chain processing, and cross-chain interoperability on virtually any blockchain. This allows developers to create complex smart contracts that can use information from outside their platform.

    Interport Finance, a cross-chain trading platform, announced its participation in the Chainlink BUILD program to enhance its ecosystem with Oracle services and technical support. This partnership aims to drive innovation and adoption across decentralized finance. Co-founder DSB expressed enthusiasm, stating, “We’re excited to join Chainlink BUILD, which will give us advanced access to Chainlink’s industry-leading platform and help accelerate the growth of Interport Finance.”

    In other news, Starknet, a permissionless Validity-Rollup on Ethereum leveraging ZK-STARK technology, has announced the integration of Chainlink Data Feeds on its mainnet. This strategic partnership aims to enhance Starknet’s development landscape by providing a rich, low-cost data environment for creating decentralized applications (dApps) and increasingly complex and secure smart contracts.

    As a layer-2 solution for Ethereum, Starknet focuses on overcoming the scalability limits of Ethereum’s layer-1 while ensuring computational integrity. The integration of Chainlink Data Feeds offers developers additional support in building scalable and secure DeFi applications on Starknet, accelerating the growth of its ecosystem. With the addition of Chainlink Data Feeds, developers on Starknet will have access to reliable and decentralized data, further bolstering the platform’s capabilities.