However, the underlying financials seem to tell a different story. Celsius announced $757.7 million in revenue during the first half of 2024, up 29% from the previous year.

Kobe Bryant's $6M investment in a sports drink startup netted $400M in just 8 years — here's how it happened

A NEW research study published this week has dire conclusions for the world's fight to keep global warming in check: it will be virtually impossible to meet the ideal goal set forth by the 2015 Paris Agreement to limit warming to 1.5 degrees Celsius over ...

Time to rethink climate goals and messaging

Global Forecast as of 12:00 GMT Wednesday, November 1, 2023

Global Forecast-Celsius

FIFA president Gianni Infantino confirmed on Tuesday that World Cup 2034 would be held in Saudi Arabia for the first time ever, hours after Australia announced they would not be following up their initial interest in hosting the tournament, leaving the ...

Saudi Arabia “open” to World Cup 2034 in summer: what is the temperature in June and July?

A new study indicates that the Everest-sized asteroid that slammed into a shallow sea near current-day Yucatan 66 million years ago propelled many tons of fine dust into the atmosphere that was small enough to stay aloft for years,

New explanation for demise of dinosaurs after asteroid impact, study says

More beneficial would be developing a liquid that could be stored at refrigerator temperatures of 4-6 degrees Celsius (about 39-43 degrees Fahrenheit). “We’re concerned about the stability of the mRNA that’s inside frozen or liquid formulations ...

Purdue engineer works to improve formulation of RNA-based pharmaceuticals

Scientists have long believed that sulfur from the impact, or perhaps soot generated from global wildfires triggered by the hit, lingered in the air for years.

Asteroid dust triggered a 15-year winter that killed the dinosaurs, researchers find

Working to improve formulation of RNA-based pharmaceuticals

Earth is already on the brink of surpassing an internationally agreed-upon threshold for climate warming, relative to pre-industrial levels, which could bring disastrous consequences to regions around the world,

What will happen when Earth surpasses 1.5 degrees Celsius of warming

The Newsweek recognition is the most recent accolade the company received. MSA Safety has also been recognized by Newsweek as one of America's Most Responsible Companies, and was recently named one of America's Climate Leaders (2023) by USA Today.

MSA Safety Recognized by Newsweek as One of America's Greenest Companies

Celsius

celsius-network

Episode 19: An interview with Alex Mashinsky, the CEO and founder of CryptoDisrupted Celsius Network In this episode I interview Alex Mashinsky, founder of Celsius Network, Venture investors, and serial entreperuner. In the interview we discuss Alex’s extensive entrepreneurial background, the 2008 market crash, how the banking system works, and why he’s working on the Celsius Network. Also . available on iTunes For more episodes of , or . Crypto Disrupted subscribe on YouTube subscribe and listen on iTunes

Earn Crypto Interest with Celsius Network

When Celsius Network fell into bankruptcy in 2022, the headlines focused on a multibillion-dollar implosion of a once-thriving crypto lending empire. But underneath the chaos, one case—buried in the docket—has emerged as the most consequential legal battle to arise from the crypto bankruptcy era. It isn’t a class action or a federal indictment. It’s a single pro se litigant: Jason Voelker, from California, standing alone against a system that may be forced to change because of him. Voelker’s case is not about technicalities. It’s about first principles. It raises constitutional questions about judicial integrity, takings without compensation, and the due process owed to creditors in a post-confirmation world. More than that, it exposes the deep incompatibility between traditional bankruptcy doctrine and the rapidly evolving legal architecture of digital asset custody. This is not just a story about 17.61163 bitcoin. It is the front line of a legal transformation. If Voelker succeeds, the implications will be seismic. If he fails, a precedent may be set that allows bankruptcy estates to defeat enforcement by misrepresenting compliance—and forfeiting the truth before anyone can correct the record. The Spark: A Misrepresentation at the Heart of a Denial In 2024, Voelker filed a motion for leave to bring an adversary proceeding against Celsius. In that complaint, he alleged that 17 bitcoin were held in bailment under Wyoming’s blockchain custody statutes—assets that were never property of the estate and thus not subject to reorganization. Celsius’s Plan Administrator didn’t contest the allegation. They didn’t argue the 17 bitcoin were part of the estate. Instead, they claimed Voelker was already receiving 105% of his claim under the confirmed Plan and that further relief was barred. The bankruptcy court relied on that assertion. The May 8, 2024 order denied Voelker’s motion on the premise that his 17 bitcoin were already being paid, and he was receiving even more than he asked for. But that wasn’t true. He never received a single coin. And the Plan Administrator knew that when they said otherwise. A Doctrinal Time Bomb: Judicial Estoppel Meets the Blockchain This moment is bigger than estoppel. It’s about whether a bankruptcy court, having relied on a factual assertion to deny a litigant access to justice, can allow that same assertion to be quietly abandoned—leaving the creditor without recourse, without remedy, and without rights. It’s about whether a reorganized estate can promise payment to shut the courthouse door—and then walk away, free of obligation, when the dust settles. This is the watershed. Never before has a bankruptcy case so clearly implicated the doctrine of judicial estoppel in the digital asset context. Never before has a plan administrator argued that a creditor is overpaid in order to defeat a lawsuit, then refused to issue the payment and stood silent while a forfeiture order loomed. Why This Case Will Change the Law If Voelker’s motion is granted, the law will shift. If it’s denied, the case will become a constitutional time bomb on appeal. Either way, the impact will be felt across bankruptcy courts and digital custodians nationwide. • State Custody Laws Will Be Elevated: Courts will have to reckon with bailment laws like Wyoming’s that deliberately place digital assets outside bankruptcy estates. Voelker’s claim will force that confrontation. • Judicial Estoppel Will Gain Constitutional Dimensions: The consequences of false or strategic representations to bankruptcy courts will no longer be procedural. They will become constitutional violations. • Forfeiture Orders Will Face National Scrutiny: If a court allows forfeiture of assets it previously acknowledged as owed, it will create a takings problem under the Fifth Amendment. The line between abandoned property and confiscated property will be tested like never before. • Post-Confirmation Rights Will Be Redefined: Once a Plan is confirmed, courts typically wash their hands of contested matters. Voelker’s case shows why that assumption is not only outdated—it’s dangerous. The Clock and the Curtain The forfeiture deadline is March 31, 2025. On that day, any unclaimed property is slated to be returned to the reorganized entity, Ionic Digital, or used to pay administrative professionals. Voelker’s bitcoin will be gone. His appeal will be mooted. The May 8 order, never enforced, will become a judicial relic—honored in text but dishonored in practice. Voelker has filed an emergency motion asking the court to enforce its own ruling—or at least stay the forfeiture long enough to litigate. The court has ordered responses. The hearing will decide whether bankruptcy courts remain courts of equity, or whether plan finality can override fundamental fairness. The First Great Test of Crypto Bankruptcy Integrity This case will be studied for years. It is the first moment where the convergence of blockchain custody, federal bankruptcy law, and constitutional protections have all collided in the same courtroom. Jason Voelker didn’t plan to make history. But by standing firm and forcing the court to reconcile its words with its actions, he has become the plaintiff of record in a legal inflection point. Whether this ends with a victory in bankruptcy court or a groundbreaking decision on appeal, one thing is clear: the old rules are no longer enough. A new era of digital asset insolvency law has begun. And it begins here. - Art Stephan

The Bitcoin Faultline: How Jason Voelker’s Case Against Celsius May Redraw the Map of Bankruptcy Law

The U.S. Federal Reserve maintained interest rates between 5.25% and 5.5% yesterday, aligning with the widespread market predictions. During his , Fed Chair, Jerome Powell, also managed to reduce market expectations of any rate cuts to happen in March. Markets now estimate the probability of rate cuts to be communicated at the Fed’s meeting in March at just 35.5%, down from 48% just a week ago. speech All Eyes on Inflation In the Q&A session that followed the press release, Jerome Powell substantiated the need to gain 'greater confidence' that inflation continues to trend downwards toward the desired 2% before any rate cuts can be entertained. It’s obvious that the Fed is in a really difficult spot here. Apart from battling inflation, the evidence that the economic system is in distress is clear—especially in the banking sector. The prospects of that changing under the current rate environment are low. Noteworthy, the New York Community Bank, the bank that acquired the now-defunct Signature Bank, just saw its stock more than 40%. tumble Bitcoin Spot ETFs Net Inflows Turning Positive Although Grayscale continues to experience outflows, the rate of outflow is diminishing as the days pass, and the net inflow into the other vehicles has been picking up. Over the last three days, the total net inflows have consistently ranged between $200 million and $250 million. I anticipate this influx of capital into to be persistent, which has the potential to push the price of BTC higher despite the policy uncertainty. BTC Whales are Accumulating - Are you? It is also worth observing that while BTC's price seems to have entered a consolidation range, whales have been aggressively accumulating. Data from IntoTheBlock that Bitcoin whales increased their holdings by over $3 billion in January alone. reveals This happens at a time when the general sentiment has fallen into neutral territory and at a time when miners have been actively reducing their . BTC inventory With those factors in mind, it is difficult to stay entirely bearish on the outlook for BTC even though the uncertainty around economic policy remains a threat to a continued rally. Bitcoin Ordinals - Not a Passing Fad In the past year, Bitcoin ordinals have emerged as one of the leading NFT trends. Despite initial skepticism from some enthusiasts claiming their lack of utility, the count of ordinals on the Bitcoin blockchain has to over 56 million, a remarkable increase from less than 1 million a year ago. surged Even more intriguing is the remarkable value some ordinal collections have achieved. In December, the BitcoinShrooms collection, among the earliest ordinal projects, fetched an astonishing USD$450,850, setting a record at Sotheby's Auction. At this pace, Bitcoin's blockchain has the potential to evolve into a foundational element for various crypto facets. While this could increase on-chain fees, it might also signify the emergence of a new ecosystem thriving on the Bitcoin blockchain, beyond BTC itself. Noteworthy Mentions BTC Price prediction model I toyed around with a price prediction model for BTC simulating what an inflow of $100B would mean to price using the depth of the order book. Here is the if you wanna explore the model. link Industry Shakers FTX Expects to Repay Customers in Full FTX has committed to reimbursing investors following the cryptocurrency exchange's collapse, resulting in substantial financial losses. In a court hearing, FTX's attorney, Andrew Dietderich, expressed confidence that the company will possess adequate funds to satisfy all valid customer and creditor claims entirely. The reimbursement to customers will be determined by the cryptocurrency's price as of November 2022, the period when the exchange filed for bankruptcy. Harvest Global Files for the First Bitcoin Spot ETF in Hong Kong Harvest Global has applied to a Bitcoin exchange-traded fund (ETF) spot with the Hong Kong Securities and Futures Commission (SFC). If granted approval, this ETF would enable investors to engage in share trading on a conventional stock exchange, directly correlated with Bitcoin's price. Hong Kong is actively establishing itself as a crypto-friendly jurisdiction, and this initiative may draw in new participants to the market. Celsius Emerges from Chapter 11, Initiates $3B Crypto Distribution Celsius Network LLC has successfully emerged from bankruptcy, concluding an eighteen-month process with the completion of transactions under its approved plan of reorganization. The plan, supported by approximately 98% of account holders and confirmed by the Bankruptcy Court for the Southern District of New York on November 9, 2023, involves the distribution of over $3 billion in cryptocurrency and fiat to Celsius' creditors. Enjoyed these insights? There's more where that came from. Follow me on for daily tidbits and updates. Twitter/X Also published . here

Fed Holds Rates, Powell Signals Caution, Bitcoin ETFs Gain Traction

After hitting historical highs, the total cryptocurrency market shrank by in 2022, leading to widespread pessimism. $1.4 trillion In a show of resilience, the market started recovering in 2023. Bitcoin went from $16k to $44k, rising 175% in value. Meanwhile, Ether almost doubled in value from $1.2k to $2.2k. For context, , the S&P 500’s 18%, and gold’s only 12%. NASDAQ’s gains were 44% Optimism and belief now dominate the crypto industry, and . In this article, I’ll go over 13 reasons why crypto enthusiasts expect a new bull market this year. many are tipping 2024 as the year crypto reaches new all-time highs ⚠️ The information presented in this blog post is for educational and informational purposes only. It does not constitute financial advice, and you should not make investment decisions based solely on the content provided. Always conduct your own research and consider consulting with a qualified financial advisor before making any investment choices. Financial Advice Disclaimer: Past performance is not indicative of future results, and there is a risk of financial loss. The author and website do not assume any responsibility for actions taken by readers based on the information herein. ⚠️ Please, read the full financial advice disclaimer at the end of this article. 1. The Crypto Crooks Are All in Jail 2023 saw a flurry of high-profile arrests for crypto scams and fraud. Most notably, (SBF), the co-founder of FTX, was convicted on seven counts of fraud and conspiracy. Sam Bankman-Fried SBF and his executives defrauded investors of billions of dollars by diverting FTX customers’ funds to their crypto trading firm, Alameda Research. He faces up to 110 years in jail. Here are some other high-profile cases that took place in 2023: was accused of commodities manipulation and wire fraud for deploying a fraudulent trading strategy against Mango Markets, a Solana-based decentralized exchange (DEX). Avi Eisenberg , founder of Terra, was charged with orchestrating a multi-billion dollar securities fraud for misleading investors about the stability of TerraUSD. Do Kwon and three of his crypto entities — Hex, PulseChain, and PulseX — were charged with conducting unregistered offerings of crypto asset securities. He was also charged with fraud for spending invertors’ funds. Richard Heart , founder of Tron, was charged by the SEC for engaging in market manipulation and the unregistered offer and sale of securities. Justin Sun , founder and former CEO of the cryptocurrency lender Celsius Network, was charged with seven criminal counts, including securities fraud, commodities fraud, and wire fraud. Alex Mashinsky The industry is much cleaner now, paving the way to slowly earn back the trust of mainstream users. 2. Blockchain Infrastructure Is Becoming More Scalable In 2023, Ethereum completed the Merge, upgrading from proof-of-work (PoW) to proof-of-stake (PoS). This has made the network much more scalable — but it’s not enough. To further increase scalability, developers have built several , including: on-chain and off-chain scalability solutions Sidechains (e.g., Gnosis Chain) State channels (e.g., Raiden Network) Optimistic rollups (e.g., Optimism) Zero-knowledge (ZK) rollups (e.g., zkSync) Validium chains and shards (e.g.,  the zkPorter root) All these are basically secondary chains built on top of Ethereum and connected to it by interoperability protocols and bridges (which are getting better and safer, too). Many of these projects have been live and growing in usage for a long time. This has allowed the technology to mature and improve. In addition, projects like Optimism have released tools to make it easier to develop new scaling solutions. Two projects I’m particularly excited about are Zircuit — a game-changing launched this year — and LayerZero — an that just rolled out v2. EVM-compatible ZK-rollup omnichain messaging protocol If a developer isn’t satisfied with a chain’s scalability, they can easily build on a more scalable one or even launch an app-specific chain at a low cost, while still benefiting from Ethereum’s security guarantees. For users, , which are all crucial for mainstream adoption. more scalability means faster transaction processing, lower fees, and improved user experience (UX) 3. Blockchain Innovation Is Accelerating Blockchain (like any other technology) started off slow and dealt with initial resistance. Now, it has gained momentum and is starting to pick up speed. The technology has matured, and several solutions that make it easier to create and innovate were launched. For example, ZK rollups add privacy to the blockchain and are very secure and scalable, but they’re notoriously complex to implement. Thanks to the unprecedented work of various projects, ZK-proofs are now widely adopted, taking the crown as the biggest trend in the blockchain industry in 2023. And, according to , in 2024, they’re “poised to redefine security and privacy paradigms, offering unparalleled solutions to emerging challenges.” Cryptomeria Capital’s Zero Knowledge Report This is just example. Several other innovations keep popping up, paving the way for widespread adoption. one 4. The Web3 Developer Community Is Alive and Kicking Despite the bear market, the Web3 developer community is still alive and kicking. This is one of the most important factors contributing to a possible bull market in 2024 — the developer community is Web3’s greatest asset, after all. Everything blockchain and crypto is built by developers. Having a vibrant community is crucial to keep the ball rolling. I’ve been listening to Leonardo Sousa’s podcast “Messing with Web3”, and the developer conference he attended was full of energy. Besides, if you follow sources like CoinDesk and Cointelegraph, you’ll see new projects or updates to established projects popping up . daily In the words of Eat the Blocks founder, Julien, “Builders are more optimistic than ever and this is a very important sign.” 5. We’ve Seen Major Improvements in Developer Tooling As mentioned, we’ve seen major improvements in developer tooling in 2023. Notable examples include: Modern smart contract frameworks like Foundry Blockchain APIs like QuickNode Leading rollup development frameworks like Optimism’s Bedrock It’s becoming increasingly easy and quick to build blockchain applications. This . promotes innovation, attracts more developers, boosts interoperability, and contributes to cost efficiency 6. Smart Contract Security Is Growing Fast The crypto world has been dealing with hacks since the beginning, especially with smart contracts. Hackers have taken billions from DeFi projects, but the community is fighting back, and the field of smart contract security is growing . fast Nowadays, there's a lively community of smart contract auditors making good money to check for security issues. It used to be only big firms doing this, but now we're seeing more solo auditors, thanks to crypto bug bounty platforms like Immunefi and HackenProof. With so many eyes looking for problems, . This is a key step to earn the trust of Web2 businesses and users. the future of crypto is expected to be way safer 7. User Experience Keeps Improving Security is very important, but it’s not enough. User experience (UX) is another critical driver for adoption and engagement. Users don’t want to put in the effort to understand concepts like cross-chain compatibility and cryptographic keys — effective design simplifies usage. Conversely, poor UX leads to costly mistakes like losing tokens, and increases the need for user support, leading to user loss and low engagement. Well-designed platforms are key to building trust, especially considering the anonymous nature of blockchain transactions. As the blockchain space gets populated, good UX can be a crucial differentiator, attracting and retaining more users. Similarly, blockchain solutions can only compete with existing services, such as finance, social media, and supply management apps, with seamless UX and a familiar interface. The UX of dapps used to be terrible, but it has (thankfully) come a long way. For example, now offer a much smoother experience, making it easier for non-techies to participate in Web3. crypto wallets Another example is Immutable’s “Passport.” It allows users to log in to games via a single sign-on process rather than by connecting their wallets. This abstracts blockchain interaction, making logging in more familiar. This increased simplicity could allow a blockchain-based game to be a mainstream hit for the first time. 8. The Blockchain User Base Is Growing (Modestly) Adoption is a crucial metric; after all, the purpose of building crypto infrastructure is to support the development of dapps and a substantial number of users. Better security, improved user experience, and lower fees should attract a larger user base. However, despite some progress, adoption is still somewhat low. While this is my weakest argument for a potential crypto bull market in 2024, there’s been some progress. Notably, this year, we've seen traction in decentralized social media platforms like Lens. Besides, the landscape of Web3 games is super dynamic, with numerous new games being released and a few major ones in progress. According to , “blockchain gaming will see at least one title surpass 1 million+ daily active users” this year, with the most likely candidates being the games IMX and Immutable are launching in 2024. VanEck’s 2024 crypto predictions 9. TradFi and Fintech Are Onboarding the Crypto Train (Tchoo, Tchoo!) The most notable example of a fintech company embracing crypto is PayPal. It holds a 42% share of the online payment market and has allowed merchants to accept crypto payments since October 2020. In August 2023, PayPal made its second move into the crypto space by . It also introduced a crypto wire feature, enabling users to buy and sell cryptocurrencies. launching its own stablecoin Considering PayPal is the preferred payment method for most online merchants and a pivotal player in the eCommerce landscape, this development is monumental. PayPal embracing crypto opens up new possibilities and opportunities for the broader adoption of digital currencies in online transactions by . increasing accessibility, credibility, liquidity, and mainstream awareness Besides, the involvement of a major player may encourage regulators to develop clearer and more favorable regulations for the crypto industry. 10. Interest Rate Cuts Are on the Horizon This is the most important reason of all. You see, cryptocurrency is correlated to the stock market, which is heavily influenced by interest rates. Central banks have been to tame inflation. According to , since inflation has cooled down throughout 2023. raising interest rates since late 2021 Reuters most major developed economies have now decided to put a stop to aggressive rate hikes To ensure a soft landing rather than a recession, some Fed officials believe slashing interest rates will be in the cards next year. In fact, they expect 75 basis points of rate reductions throughout 2024. The European Central Bank is also likely to begin cutting rates as early as June 2024. has also backed these forecasts putting forward that “economists at Bank of America forecast 152 interest rate cuts from global central banks in 2024.” Business Insider Meanwhile, that “it’s not just the Fed that's pausing and maybe easing. I think a lot of the G4 central banks are in this mood to just make things a little bit easier.” JPMorgan's Phil Camporeale told CNBC When interest rates decrease, more capital becomes available, leading to a flourishing stock market. This positive correlation , potentially triggering a new bull market. extends to the crypto market 11. We’re Already Witnessing a Bullish Trend in the Crypto Market In 2023, Bitcoin, Ethereum, and several altcoins rose in value. The NFT market is also starting to recover. According to , “November saw a notable surge in NFT trading volume, nearing the $1 billion mark.” In addition to an increase in volume, the average transaction value of NFTs grew by 114%. Coin Market Cap These are very positive signs, but can this bullish trend be temporary? Well, it can. However, we haven’t seen these gains in a long time, and several other factors (listed in this article) strengthen the case for a 2024 bull market. WAGMI. 12. Crypto ETFs Are Coming Experts have been talking about crypto ETFs for years, but they might actually become a reality this time. BlackRock has officially filed for an . Of course, the SEC is trying to get in the way, but, as the world's largest asset manager, BlackRock actually stands a chance of winning against the SEC. Ethereum ETF and a Bitcoin ETF This is significant because it has the potential to open the floodgates. You see, a substantial amount of boomer money is tied up in pension funds, which are restricted to investing in stocks. A cryptocurrency ETF is technically a stock, even if the money ends up in crypto assets. Once crypto ETFs get the green light, pension funds will be able to diversify into the cryptocurrency market. To put it in perspective, at the time of writing, the entire crypto market is valued at , while an estimated was invested in pension funds as of 2021. $1.64 trillion $60.6 trillion The approval of crypto ETFs could trigger a massive inflow of capital into the cryptocurrency market. 13. The Fourth Bitcoin Halving Is Expected to Happen in April Halving is a programmed Bitcoin feature that happens , or roughly every four years. The next halving is expected to happen in April 2024 when the block height reaches 840,000. every 210,000 blocks Bitcoin halving . This has historically triggered a new bull market. reduces mining rewards by half, limits new Bitcoin creation, and curbs inflation, increasing the value of existing coins Is a Crypto Bull Market Really Coming in 2024? While institutional adoption of crypto may not be what early blockchain enthusiasts envisioned, it has the potential to propel the technology into the mainstream and drive new record highs in the crypto market. Personally, I’m bullish on crypto. I’ll invest in Bitcoin (and maybe Solana) for the first time, and continue exploring crypto and blockchain. In 2024, I’m looking forward to getting more involved in the world of , both personally and professionally. Web3 Still, remember that no one can predict the future, and past performance isn’t indicative of future results — please, read the full financial advice disclaimer below. ⚠️ Financial Advice Disclaimer The information provided in this blog post is for educational and informational purposes only. It is not intended as financial advice, and you should not consider it as such. The content is based on the author's opinion and research, and market conditions may change. Before making any investment decisions, you should conduct thorough research and, if necessary, consult with a qualified financial advisor. Past performance is not indicative of future results, and there is no guarantee that the predictions in this blog post will materialize or be suitable for your individual circumstances. Investing in cryptocurrencies and financial markets involves risk, and you should be aware of the potential for both gains and losses. Always do your due diligence and carefully consider your risk tolerance before making any investment decisions. The author and the website are not responsible for any actions you take based on the information provided in this blog post. You are solely responsible for your own financial decisions, and the author and website disclaim any liability for any financial loss or damage incurred as a result of the use of information from this blog post.

The Next Crypto Bull Market May Come in 2024: 13 Reasons Why

The and UST. collapse of Terra Luna The bankruptcy of Three Arrows Capital and Celsius Network. The . FTX scam The arrival of the regulator. The cryptocurrency market continues to feel shaky, putting pressure on the entire industry. Quite recently, people’s focus has shifted to Artificial Intelligence. However, blockchain remains one of the most promising and important technologies that will literally change everything around us. Web3, Blockchain, and Tokenization , one of the world’s leading IT research companies, identifies three distinct trends for the near future: , and , each of which is a critical factor for emerging technologies. A new study by Gartner Web3 Blockchain, Tokenization Moreover, the report anticipates the emergence of that not only benefits people and society but can also increase transparency and privacy. It is no secret that for AI to be effective and useful, it must be developed in an open-source way. It is also self-explanatory that AI needs data and data needs AI, but current interaction models are not harmonized and do not encourage this symbiosis. Human-centered AI One of the leading companies in the AI market – – despite having openness in its name, is already facing lawsuits for alleged copyright infringement. Training AI for specific use cases requires a data set that is often not available externally, and solving this problem requires a fundamentally new incentive model. There is no doubt that we can build this model by applying Web3 thinking. For example, AI can get traceable access to the data through tokenization, and the owner, in turn, should be entitled to royalties for the authorship of the data. OpenAI If you take a look at the orange area of the diagram, then you will see that Gartner places there, meaning that this technology is already knocking on the door. This cutting-edge technology implies moving computational activity from a central server to the periphery, meaning that model training takes place alongside the data rather than the other way around, but it will require a blockchain infrastructure for security and privacy. Edge AI Edge AI can be used in a variety of industries, including healthcare, transportation and energy. In medicine, for example, Edge AI can be leveraged to analyze patients’ medical data to determine the most effective treatment methods; in transport, Edge AI can help optimize vehicle routes, reduce waiting times at stops and improve road safety; in the energy sector, Edge AI can be exploited to optimize power plants and reduce energy costs. One of the key advantages of Edge AI is that it can operate in real-time, allowing it to react quickly to changes in the environment and make instant decisions based on the data it receives. Another vital aspect is . By tokenizing data access, AI model training companies will be able to create local computing environments where the data is stored. Model owners will then be able to train models on sensitive data for non-trivial use cases, and data owners will receive a premium for authorship without worrying about data security and privacy, as access to the algorithm can be formalized as a smart contract that only trains, but does not upload the data externally. The openness of the smart contract allows it to be audited, removing the issue of trust in the blockchain infrastructure. Tokenization Now, I would kindly ask you to look at the top left of the diagram, where what we call ‘ ’ is located. At the moment, this is a pressing issue for public acceptance of AI, as the models are often created and used by large technology companies. In order to develop the technology, we need to focus on how the data is accessed and who ultimately benefits from the development of the models. Overall, addressing transparency and privacy in AI requires an integrated approach that includes the use of open standards, data protection methodologies, and mechanisms to control the use of models. Revolutionary approaches such as data tokenization and blockchain-based AI, writing business logic into a smart contract, will all contribute to transparency in the technology, as well as saving money by transferring learning algorithms to data. Transparency and Privacy Balancing the Risks for Further AI Development , another influential global research firm, notes that in order to benefit from generative AI, companies need to manage risk, increase reliability, and address potential intellectual property complexities. Forrester One solution is , which is implemented on blockchain and with Decentralized Digital Identity zero-knowledge proof. Zero-knowledge proof is a technique that allows one party (the prover) to prove to another party (the verifier) that a statement is true, without revealing any additional information. As a rule, this technique is used when confidential information needs to be verified without giving access to it. As well as protecting intellectual property, this solution will eventually help replace identity documents with more advanced tokenized alternatives. For example, it is possible to provide proof of age without providing an exact age. At the same time, a more distant prospect is the emergence of – a concept based on blockchain technology to create a decentralized network where information is not controlled by centralized organizations. Instead, data is stored on users’ computers and transferred between them through the network. In Web3, there is no single control center and all transactions are carried out through smart contracts stored on the blockchain. Some of the crucial advantages of Web3 are: Web3 – the lack of a single control center means that data and transactions cannot be modified or deleted without the consent of all participants in the network. Decentralization – the use of blockchain provides a high level of data security by storing information in encrypted form and allowing transactions to be verified. Security – smart contracts automate tasks and processes, making data easier to work with and faster to process. Automation – web3 opens up new opportunities to create game-changing products and services that can be used in various fields such as finance, healthcare, education, etc. Innovation However, at the moment, there are key technical challenges hindering Web3 from being finally released, including scaling and security, identity and key management, as well as privacy. Additionally, there is , articulated by , proposing a set of three main issues that developers encounter when building blockchains: the blockchain trilemma Vitalik Buterin – the network should operate without verification by specific participants so that you can join it as a node using an ordinary computer. Decentralization – the network must be able to withstand a potential 51% attack, where one or a group of nodes take over most of the network, allowing them to alter transaction chains. Security – the ability to increase the number of transactions processed per unit of time. Scalability There is an inevitable trade-off in this trilemma, but to avoid it, the solutions based on large blockchains are applied, most notably on and . Transactions on the underlying network can be expensive and slow, but the usage of Layer2 technologies enables developers to collect transactions off-net and pass them to the main blockchain, increasing the number of transactions passing through a single blockchain and reducing fees by spreading them across all the collected transactions for that block. Layer2 Bitcoin Ethereum Achieving all three aspects is considered by some in the business to be an impossible task that will never be accomplished, at least not soon. However, some ambitious developers still hold on to the notion that blockchain networks are capable of including all three of these features and more. is one instance of a cryptocurrency project that claims to be resolving the blockchain trilemma. Algorand Emergence of New Economic Sectors One of the world’s leading accountancy firms, , explores the value that blockchain will add to the global economy by 2030: it estimates that more than 40 million jobs will be improved, and the overall impact of blockchain on the global economy is estimated at US$1.76 trillion. PwC The PwC report also features the top five applications of blockchain: (potential boost to global GDP by 2030: US$962bn) – improving consumer safety in the supply chain, as well as confidence in the authenticity and origin of goods, e.g. pharmaceuticals. Provenance (US$433bn) – reducing costs and speeding up transactions, improving financial accessibility, and optimizing cross-border payments. Payments and Financial Instruments (US$224bn) – freedom from labor-intensive and inefficient paper-based record-keeping systems that are easily breached. Identity (US$73bn) – improving the flow of commercial agreements and flagging any disputes. Contracts and Dispute Resolution (US$54bn) – Prevent customers from leaving loyalty programs by consolidating programs and transferring scores between different systems, and increasing the liquidity of subscription products through tokenization. Customer Engagement Conclusion In conclusion, the duumvirate of blockchain and Artificial Intelligence is an incredibly powerful tool for creating more secure, efficient, and transparent systems. Their combination can improve data quality, speed up information processing and increase automation. However, in order to maximize their impact, it is necessary to consider all aspects of the interaction of these technologies and develop effective strategies for their application in different areas of activity. Blockchain technology is definitely not easy to use, but it has been modernized in recent years, and with the advent of Artificial Intelligence, it is becoming more customizable and useful at both government and grassroots levels than ever before.

The Digital Duumvirate: Exploring a Potential Synergy Between Blockchain Technology and AI

In our world today, which seems to be defined by technological advancements, cryptocurrency is one phenomenon that has captured the imagination of tech enthusiasts, financial experts, and laymen alike. Proponents of digital currency have either claimed that it will revolutionize finance. : a world where financial transactions are conducted seamlessly and often anonymously, beyond the limitations of traditional banking systems and fiat currency. That’s the grand vision of cryptocurrency. Picture this Needless to say, the technology behind cryptocurrencies has great potential, but will the concept of a digital currency that enacts a decentralized, borderless financial system truly ever be? While it has certainly gained popularity and disrupted traditional financial systems to some extent, there are still concerns, especially about their long-term stability and security. A deeper dive into the guarantee of a borderless financial system The fundamental tenet of cryptocurrencies is to replace trust with technological mechanisms. This promotes the idea that the principle of "code is law" can create a self-regulating framework that is free of human bias and error. Therefore, the first assurance is the elimination of trusted intermediaries. At least, that was the central idea presented in the original Bitcoin white paper -  a cryptographic solution that enables transactions to be conducted directly between parties without the need for any financial institution or third-party intermediary to be involved. However, is the cryptocurrency industry really eliminating traditional intermediaries or replacing them with new ones? Certain experts already contend that a crypto-based financial system will exacerbate many of the issues with conventional banking, and according to Kadan, the CTO of Komodo, this is already happening. “Currently, the average crypto user’s experience is closer to traditional finance. For example, many rely upon trust-based centralized crypto exchanges for holding and trading crypto. Centralized crypto exchanges operate similarly to banks but with significantly more risks for their users.” - Kadan Stadelmann, CTO at Komodo Initially, the concept of cryptocurrency was aimed at establishing a decentralized payment infrastructure built on blockchain technology. While some argue that this objective is attainable, the intricate challenges associated with implementing such a system make it appear nearly impossible to accomplish. According to the CEO of O'Reilly Media, Tim O'Reilly, the much-acclaimed Web3 which is touted as the next evolution of the internet, represents just one of several endeavors to establish a decentralized system within the technology domain. Comparable to its predecessors, Bitcoin underwent a rapid centralization process, presently dependent on a restricted group of software developers and mining pools to sustain its operations. In his words, “Blockchain turned out to be the most rapid recentralization of a decentralized technology that I've seen in my lifetime. It took a decade to recentralize in the case of the PC. It took a decade in the case of the web. But it took only a couple years with bitcoin before the majority of the value was held by a very small group of people.” - Tim O’Reilly, CEO of O’Reilly Media, Inc. According to a from the International Monetary Fund (IMF), written by Hilary Allen, it is observed that voting rights in decentralized autonomous organizations (DAOs) and wealth accumulation in the crypto space tend to be even more concentrated than in traditional financial systems. Furthermore, the decentralized blockchain technology faces challenges in efficiently handling large transaction volumes and lacks mechanisms for transaction reversals, leading to the emergence of intermediaries seeking to streamline the cumbersome decentralized services for users, often with the motivation of generating profits. report The economists at the Bank for International Settlements (BIS) have asserted that there exists a "decentralization illusion" in the crypto space, primarily due to the unavoidable need for centralized governance and the tendency of blockchain consensus mechanisms to concentrate power. This statement raises questions about the extent of true decentralization achieved in the cryptocurrency ecosystem. It is worth noting that while some crypto businesses claim to embody decentralization, many have not upheld this principle in practice. Centralized exchanges, wallet providers, stablecoin issuers, and various other intermediaries play pivotal roles within the crypto ecosystem. Some of these intermediaries operate without regulatory oversight, presenting concerns about consumer protection and financial stability, mirroring similar challenges faced in traditional finance. Cryptocurrency Failures CoinKickoff's graphics provide a breakdown of the failed crypto coins based on the years they ceased to exist and the years they were initially launched. The data spans a decade of crypto coin busts, covering the period from 2013 to 2022. Sadly, many of these project failures revealed a disheartening truth—the presence of intermediaries who held considerable influence and control over these supposedly decentralized ventures.  This revelation shattered the notion of true decentralization and raised questions about the genuineness of their claims. According to Visual Capitalist's report, 2018 witnessed the highest number of crypto coin casualties, with a total of 751 coins becoming defunct. Among these, 390 coins failed primarily due to insufficient trade volume, while 237 coins faced demise as a result of fraudulent issues. In subsequent years, we saw a rise in cases of regulatory evasion, inadequate risk management, and lack of transparency exposing the fragility of the crypto ecosystem. Inarguably, this sort of centralization which mimics the one found in traditional finance is also followed by market failures, negative externalities, and vulnerabilities similar to those found in traditional financial systems. In 2022 alone, some of the biggest names in cryptocurrency which most people thought would never fail have either crumbled or filed for bankruptcy as per Reuters . Some of the companies in the list include: reports Celsius Network Genesis Global Capital Voyager Digital Three Arrows Capital Core Scientific Ftx Blockfi What’s The True Cost of a Digital Currency? One major concern is the significant negative impacts of crypto, including and excessive energy consumption. The crypto industry lacks adequate regulation and consumer protection, leaving users vulnerable to hacks and scams, and the proof-of-work validation mechanism used by Bitcoin and others consumes enormous amounts of energy, raising environmental concerns. ransomware attacks Earthjustice that in the year leading up to July 2022, the energy consumption of Bitcoin reached an alarming 36 billion kilowatt-hours (kWh) of electricity. To put this staggering figure into perspective, it equals the combined electricity consumption of four states—Maine, New Hampshire, Vermont, and Rhode Island—during the same period. reports Such explosive growth in the cryptocurrency sector is placing tremendous strain on energy grids, resulting in increased retail electricity rates, and contributing to a rise in both total carbon emissions and local air pollution. These consequences raise important environmental and social concerns, warranting a closer examination of the industry's practices and their impact on the broader energy landscape. As stakeholders grapple with finding a balance between technological innovation and sustainable energy use, addressing these issues has become paramount for a more sustainable future. Additionally, the complexity of the crypto ecosystem and the potential for manipulations makes it prone to destabilizing booms and busts. One of the most notable examples is the Bitcoin price surge in , where the value of Bitcoin reached an all-time high of nearly $20,000, followed by a significant crash in , leading to a steep decline in value. Similar boom and bust cycles have been observed in other cryptocurrencies as well. These price fluctuations can create instability in the market and lead to potential losses for investors who bought at the peak of the market. 2017 2018 The speculative nature of cryptocurrencies also makes things worse. Many investors and traders buy cryptocurrencies with the hope of making quick profits as prices rise. This can lead to overvaluation and bubbles in the market. When the hype subsides or negative news impacts the market sentiment, prices can collapse, causing losses to investors who entered the market during the hype phase. In many cases, profits in the crypto market may depend on finding new investors to buy at higher prices than the initial investors paid. This is often referred to as the " " theory, where investors believe they can always sell their assets to someone else at a higher price. However, when the flow of new investors slows down, prices can stagnate or decline, leading to potential losses for those who bought at higher prices. greater fool So, Will Cryptocurrency Deliver On Its Grand Vision? While crypto proponents often present the narrative that digital currencies have the potential to foster financial inclusion, the World Economic Forum has a different perspective on the relationship between financial inclusion and cryptocurrency. While acknowledging that financial inclusion is an important issue, the forum contends that cryptocurrency might not be the ultimate solution to address the fundamental political and technological challenges associated with it. The organization points out that digital currencies as they are currently implemented may not offer significant new advantages for financial inclusion beyond what traditional financial options already provide. expressed According to Hilary Allen, professor at American University’s Washington College of Law,  whose research centers on the effects of new financial technologies on financial stability, "Cryptocurrency fails to fulfill its promises of decentralization, and its volatile cycles of growth and decline could result in significant economic ramifications if it becomes integrated into the conventional financial system, potentially disrupting the flow of capital to the real economy." - Hilary Allen, professor at American University’s Washington College of Law I believe the realization for us should be that cryptocurrency is not a magical solution to all our economic challenges. While it does offer potential benefits, it is crucial to understand that cryptocurrencies alone cannot swiftly resolve the complexities of the financial market. As we explore the future of digital currencies, it is essential to approach them with a balanced perspective. Only with a pragmatic approach can we hope to cultivate the true potential of cryptocurrencies while navigating the dynamic landscape of the financial world.

Will Cryptocurrency Ever Deliver on Its Grand Vision?

¿Alguna vez la criptomoneda cumplirá con su gran visión?

La crypto-monnaie réalisera-t-elle jamais sa grande vision ?

क्या क्रिप्टोकरेंसी कभी अपने भव्य लक्ष्य को पूरा कर पाएगी?

仮想通貨はその壮大なビジョンを実現することができるでしょうか?

A criptomoeda cumprirá sua grande visão?

Tiền điện tử sẽ bao giờ thực hiện được tầm nhìn vĩ đại của nó?

加密货币能否实现其宏伟愿景？

Blockchain oracles have occupied a prominent position in critical web3 dialogues recently. The role of oracles in providing up-to-date, secure and timely information to smart contracts must be emphasized. Without oracles, smart contracts would be grossly limited, and the blockchain ecosystem would be unable to unlock more considerable prospects or utilize its exceptional capabilities. There exists a consensus on the uniqueness of blockchain oracles, which begs the question, isn’t it crucial that there be a platform that addresses the capabilities of oracles while highlighting their current limitations and restrictions? No doubt, such a platform should be encouraged, and this is what makes summits like the Blockchain Oracle Summit (BOS) a critical tool for the demystification of oracles and the overall growth of the blockchain ecosystem. With that said, and in view of the upcoming , let’s dive into the exciting world of oracles and explore the significant technological innovations permeating the space. BOS ’23 scheduled for July 21-22 Oracles in CEX and ReFi The incredible thing about oracles is the innumerable use cases one can expound on. Oracles, by providing off-chain data, are of great relevance in data supply chains, insurance, prediction markets, gaming, and decentralized finance (DeFi), among others. Let’s take a cursory look into the role of oracles in preserving trustworthiness and security in centralized exchanges (CEXs) through the . Proof of Reserve audit It is undeniable that the past year witnessed a massive dent in the public perception and acceptance of cryptocurrency as a globally accepted means of transaction and as a store of value owing to the bust of several notable Cryptocurrency exchanges and lending platforms such as , , and among others. A laudable solution to addressing such issues and mitigating users’ losses would be through the Proof of Reserve audit. As a concept, Proof of Reserve audit allows centralized institutions – like many crypto exchanges – to prove their trustworthiness to their customers via the . Cryptographic proof of reserves audits uncover ecosystem dependencies, unrestrained protocol hazards, and other issues. An example of an oracle working on this is ; notable exchanges with the Proof of Reserves audit system include Binance; Kraken; BitMEX; OKX. FTX Three Arrows Capital BlockFi Celsius Network aggregated Merkle tree Chainlink Another great topic to touch on is Regenerative Finance (ReFi). On the blockchain, ReFi evaluates a natural asset’s value based on its capacity for regeneration and preservation. Unlike traditional finance, asset valuations aren’t solely determined by the cash flows generated using the assets. The fundamental principles of ReFi place a premium on long-term viability, openness, justice, and community engagement. Additionally, ReFi works to advance accessible, fair, and egalitarian financial systems that support the resilience and health of people, ecosystems, and the planet. This Blockchain-based regenerative economic paradigm comprises the following: Determining the worth of natural resources Putting this value into a blockchain-based tradeable asset Generating cash flow for the assets. Several protocols are working in the ReFi industry, namely, , and among others. It is worthy of note that Etherisc presented on their use of oracles at the inaugural oracle summit in Berlin last year. Coorest Etherisc Toucan Protocol Oracles, Gamefi, and Random Number Generators (RNG) Numerous facets of life depend on randomness, from security, cryptography, or computer simulation to games of chance like lotteries. Constructing a reliable Random Number Generator (RNG) has taken a lot of work since obtaining a good randomness source is always challenging. The two categories into which RNGs are often classified are pseudo-Random Number Generators (PRNGs) and True Random Number Generators (TRNGs). Mathematical algorithms, which are considered deterministic, are used by PRNGs. These RNGs are built around finite-state machine algorithms that generate pseudo-random determinism sequences from beginning values known as seeds in mathematical operations. Contrarily, TRNGs get their randomness from various physical events, including thermal noise, radio noise, and so on. Outside of those mentioned above, the decentralized blockchain-based applications (dApps) using smart contracts offer a provably fair consensus-based system to determine outcomes that can be openly reviewed and improved upon by all participants. Case in point, smart contracts may access random values using , and , among others. Patrick McClurg, Software Engineer at will speak on how to achieving truly random outcomes with RNG at the upcoming edition of BOS in Paris! Chainlink VRF DIA API3 Protocol Labs – Drand BOS ’23 and Zero Knowledge Proofs Back at BOS ’22, , CEO of blockchain consultancy, , delivered a presentation on how could be applied to oracles, focusing on the challenges in data verification and privacy standards. Since that presentation, there have been numerous opinions and discussions on social media platforms on the opportunities that ZK proofs can enable. Laurence Kirk Extropy Zero-Knowledge Proofs ZK experts and enthusiasts will be gathering at BOS23 for a more elaborate discussion on the subject especially in terms of how to utilise this complex cryptography in critical sectors. One such sector includes healthcare, in which is leveraging oracles, ZK proofs, dynamic NFTs and decentralized identifiers for the organization and preservation of medical data. Catch Crotalus Labs’ co-founder in Paris this July as he zooms into how the healthcare industry can benefit from such applications of blockchain technology. Crotalus Labs Alberto Melon Fernandez Other discussions at BOS23, will center on enabling a secure and safe collaboration between oracles and ZK while highlighting potential pitfalls and vulnerabilities in the technology. During this year’s summit, Laurence Kirk will return to speak on the correct implementation of ZK while overseeing a hands-on workshop on ZK oracles using the ZK blockchain, . MINA protocol The ZK workshop slots at BOS23 are limited and will be on a strictly first come, first serve basis. Note: In this article, considerable effort has been made  to highlight major innovations involving Blockchain Oracles with the objective of revealing to readers the possibilities of this amazing technology while showcasing the companies at the forefront of these creative technological advancements. These innovations from the relatively esoteric element – blockchain oracles –  are mind-blowing, yet not fully understood; hence, there is a need for platforms such as the Blockchain Oracle Summit to provide objective and comprehensive insight into the true capabilities of this technology. “Oracles are one of the most critical components in the web3 infra stack, as they are the hardest to decentralize and often become the weakest point in a web3 applications architecture. Designing the right solutions for our industry will be paramount in order to fulfil our vision of a truly censorship-resistant and unstoppable value transfer protocol. BOS23 is the place where leading players of web3 infrastructure and oracles meet to discuss how we can move the industry forward together. Joined efforts will be needed in order to realize the vision of web3!” – Hilmar Orth, Founder, Gelato Network  (a speaker at the Oracle Summit 2 years in a row) The second part of this two-part series will be an in-depth account of the latest developments in cross-chain bridges and the exceptional speakers addressing subjects related to these at the BOS ’23. Stay tuned for more! The Blockchain Oracle Summit provides an avenue for anyone interested in learning more about the prospects and possibilities of Oracles in a pleasant and refreshing environment that provides a terrific backdrop for Blockchain technology enthusiasts to connect, network, and have remarkable discourse with leading figures in the space. There’s no other place you’d rather be! Also published . here

Blockchain Oracle Innovations & the 2023 Blockchain Oracle Summit

Blockchain Oracle Innovations y la cumbre Blockchain Oracle de 2023

Blockchain Oracle Innovations et le Blockchain Oracle Summit 2023

ब्लॉकचेन ओरेकल इनोवेशन और 2023 ब्लॉकचेन ओरेकल शिखर सम्मेलन

ブロックチェーン オラクルのイノベーションと 2023 年ブロックチェーン オラクル サミット

Blockchain Oracle Innovations e o 2023 Blockchain Oracle Summit

Những đổi mới của Blockchain Oracle & Hội nghị thượng đỉnh Oracle về Blockchain năm 2023

区块链甲骨文创新和 2023 年区块链甲骨文峰会

For most of the history of the cryptocurrency industry, anything that brought the market too close to so-called incumbent institutions was anathema to true believers. That's part of the reason that so many crypto evangelists chafed at central governments' plans to launch nationalized crypto projects. It's also part of the reason why you'd see such vehement pushback whenever experts would call for the regulation of the industry. However, it'd be absurd for any crypto fan to look back at 2022 and say that it was a banner year. It was a year full of controversy and collapses—one that shook the industry to its very core. And in its wake, the entire idea of cryptocurrency is beginning to lose favor among the masses. All of which begs the question—should the crypto industry think about knocking on regulators' doors to ask for some assistance? To arrive at an answer, it's necessary to review the year that was in crypto and to take a look at the effects it had writ large upon the industry. Only then can we come to a sensible conclusion of whether 2023 should be the year that crypto goes legit—for lack of a better term—and accepts the oversight of established regulators. Let's get started. A Review of Crypto's Rocky 2022 When I mentioned that 2022 wasn't the best year for the crypto industry, I may have undersold how bad it was. In fact, it would take much less time to list the things that went right in crypto rather than what went wrong last year. Or, I could sum up the year in one word: disastrous. Bitcoin shed more than half of its value in 2022 while dragging down almost all other crypto coins in its wake. Ethereum, its main rival, took an especially hard hit, with the current hovering at about 25% of its late 2021 high-water mark. Then came the collapse of Luna and TerraUSD, which triggered the subsequent failure of the massive crypto hedge fund Three Arrows Capital (3AC) and the lending project Celsius Network. Ethereum price And if that weren't enough, 2022 also witnessed the most stunning scandal in its short history—the collapse of leading crypto exchange FTX. It's a scandal that simultaneously led to the evaporation of almost $9 billion in assets, the extradition and arrest of its founder, criminal charges against multiple other executives, and the renaming of a Miami sports arena. The Near-term Fallout Obviously, the crypto community and the general public didn't exactly take the torrent of bad news very well. The result was a massive selloff that accelerated losses and sucked vital capital out of the industry. All told, the industry as a whole lost $1.486 trillion in value last year. The drop left the total market valuation sitting at about one-third of its peak in late 2021. If you can believe it, though, loss of capital isn't the biggest problem that the crypto industry faces. That title goes to the severe damage to its reputation wrought in 2022. That damage is already translating into some troubling public opinion data. First, a late 2022 poll found that 60% of Americans now consider crypto investing highly risky. And if that's not bad enough, a deeper dive into the data revealed something arguably worse. It's that the biggest drop-off in crypto confidence seems to have happened among millennials. That's a major problem for two reasons. First, it's that millennials were and are crypto's main demographic target, at least until more Gen-Z'ers start having money to invest. And second, the is on track to inherit some $68 trillion in assets from their parents and grandparents by 2030. In other words—they're the ones who will control all of the money the crypto industry needs to survive and grow. millennial generation So, How Can Crypto Recover? All of the foregoing leads me—and hopefully you—to question whether or not the crypto industry can recover from its recent string of catastrophes. And my answer to that question is yes. However, I believe that it's going to require the industry to do something it's historically resisted: accept the oversight of regulatory authorities. Now, some onlookers are already openly stating that the crypto industry will see increased regulation in 2023, whether it wants it or not. However, they hypothesize that the will play a key role in helping the industry regain investors' trust. I disagree. increase in regulation For an explanation as to why, you need look no further than the financial crisis of 2008. After banks played fast and loose with depositors' money and saw their houses of cards collapse along with the housing market, regulators stepped up their oversight. They also hit the banks with a raft of new regulatory requirements meant to keep them from repeating their mistakes. The trouble? None of that did anything to restore trust in the banks. By 2015, the public's trust in the banks remained at an all-time low. And here in 2023, I've seen no data to suggest that those feelings changed very much. The point is, people aren't going to start trusting the crypto industry, even if regulators rush in to build guardrails for the embattled crypto businesses. However, those guardrails will do something else. They'll help keep the crypto industry from destroying itself, which it's shown a disturbing tendency toward of late. Over time, greater stability will help erase the stain of 2022 from people's minds. And even if they don't trust the crypto industry, they'll at least feel more comfortable with its perceived risks. The Takeaway The bottom line here is that nobody expects crypto companies to become fans of regulation overnight. However, they should be beating a path to regulators' doors to find ways to work with them nonetheless. Accepting regulation would signal the industry's willingness to be accountable to investors, and that it recognizes its internal controls and safeguards aren't enough. And let's face it—anyone within the crypto industry that doesn't recognize the need for regulation after the past year's calamities is either blinded by crypto idealism or is lying. And if it's the latter, we can only hope that it's not in service of another FTX-level shell game. If it is, then we're all in for a tough 2023, and even regulators couldn't possibly step in fast enough to stop it.

Should the Crypto Industry Start Asking For Regulation at This Point?

2022 was an eventful year for the Web3 space. From FTX to Celsius, some of the biggest names in crypto experienced security breaches, scams, and market crashes. Participants lost money and were left wondering– can crypto really become part of our financial future? In this article, we'll take a look at some of the most notable CeFi missteps and explore what lessons we can learn as we move toward a decentralized future. 2022's Biggest CeFi Debacles 1. FTX Let's start with the elephant in the room: FTX. When it crashed in November 2022, it was one of the world's largest crypto exchanges. Turns out that the founder, Sam Bankman-Fried, and his team were transferring customer funds to Alameda research (a trading firm also operated by Bankman-Fried) to finance high-risk trades and provide liquidity when needed. Binance, one of FTX's competitors, disposed of the FTX tokens acquired from Bankman-Fried in 2021, giving rise to worries about the firm's stability. This resulted in a decrease in the value of FTX tokens and numerous customers withdrawing from the exchange. The rest unfolded fairly quickly: FTX filed for bankruptcy, Bankman-Fried resigned, and many people lost a lot of money. The company , to be exact. lost over $8 billion of its customers' money 2. Celsius Network Celsius was another centralized crypto lending platform. Following its release in 2017, the platform grew rapidly due to its generous interest offers. By spring 2022, they claimed to have over on crypto deposits. A few months later, after the markets tumbled (including Ethereum and Bitcoin values), Celsius faced a liquidity crisis; its assets under management fell by 50%. They informed users that they were pausing withdrawals, swaps, and transfers between accounts. Shortly after, Celsius's token CEL decreased in value by a third. Unsurprisingly, locking users out of their own money sent a massive red flag through the community and beyond. 1.7 million users, $8 billion in loans, and to be offering users up to 17% APY By July, the company had filed for chapter 11 bankruptcy. Filings showed that the company owed $4.7 billion in liabilities to users. As of January 2023, a U.S. bankruptcy judge ruled that because of the terms of use Celsius investors accepted, their deposits belonged to Celsius. In other words, users aren’t getting their money back. 3. Terra (LUNA) Do Kwon and Daniel Shin founded Terraform Labs in 2018 and created the blockchain network, Terra. It issued LUNA tokens, similar to Ethereum or Bitcoin. They also introduced the UST coin, an algorithmic stablecoin backed by Luna. By April 2022, LUNA's value had increased 135% in just two months due to users staking UST on Anchor protocol for a 20% yield. Some saw this as a red flag and identified it as a possible Ponzi scheme. A month later, UST was unstaked from Anchor Protocol causing millions of it to be liquidated and driving its price down to $0.91. The cause was debated but this sparked panic selling of UST, which led to more LUNAminting and soon a surplus. Exchanges delisted UST-LUNA pairings, and Luna became worthless, leading to losses of over $300 billion across the crypto market; firms filing for bankruptcy and numerous individual savings lost online. By September, Kwon had an arrest warrant issued against him for alleged market manipulation. Today, Luna is considered the largest crypto crash ever. Lessons Learned for 2023 & Beyond For some people, the takeaway from these debacles might seem simple: The world of Web3 is too risky, and not worth it. However, given that the biggest issues were on centralized exchanges, much of this fallout reinforces the benefits of DeFi. In , of a protocol called Sturdy Finance elaborates on this point, asserting that shady centralized actors have continued to impede crypto’s growth and distract from its core ethos. this op-ed Sam Forman Adherence to this ethos could’ve prevented most of the aforementioned debacles. The blockchain technology that underlies decentralized exchanges is the ultimate security mechanism. It is an immutable, distributed ledger whose data can never be changed or erased — providing users with complete transparency in their transactions. It also serves as an automated referee between parties participating in a transaction, making sure that all rules are followed and that no one can get away with fraud. So, on DeFi exchanges, users make trades in liquidity pools managed by smart contracts. In contrast to FTX and Celsius, DEXs can’t lend out customer money – this is spelled out in the code. Plus, when taking out a loan on decentralized platforms, the user must deposit enough to cover the loan value. When this is no longer possible – either due to a decrease in collateral value or an increase in the asset borrowed - the loan is automatically liquidated. This addressed the doomed cycle where bad loans are used as collateral on other loans and eventually collapse. Lastly, decentralized exchanges don’t rely on a single point of failure – no single team can take control or manipulate the platform. The underlying code is open-source and easily auditable, minimizing the risks. Users have ultimate control over their funds and can make as few or as many trades as they want, whenever they want. 2022's crypto mishaps caused financial losses, project collapses, and lingering mistrust. But when we examine the details of the year's biggest debacles, it's clear that they highlight the importance of transitioning to decentralized exchanges and projects. What could be more secure than a lending system with transparent mechanics, solidified in code and auditable? With the right protocols and policies, DeFi can offer users a safe and reliable space to grow their wealth.

The Biggest CeFi Debacles of 2022 and the Lessons They Teach Us

As 2022 wrapped up, people felt the coldest wave of “crypto winter,” sending chills down their spine. With what James Bromley, an attorney involved in the FTX bankruptcy proceedings, described as ,” the once crypto giant succumbed under a series of its own financial misdeeds. “the most abrupt and difficult collapses of Corporate America Sam Bankman Fried’s cryptocurrency empire, FTX, collapsed in a lightning-fast series of events. Followed by of Alameda’s balance sheet and the company’s desperate and unsuccessful attempts to secure emergency funding covering the shortcomings of around $8bn dollars, the now infamous SBF on Nov 11. He was arrested on Nov 22 for the charges of wire fraud, securities fraud, and money laundering. Coindesk’s analysis report filed for bankruptcy Though the collapse has brought up so many questions, the developments in the case leave two major ones looming: How far will the damage spread? And Is there a way to save cryptocurrency? “The recent collapse of FTX is a loud warning bell that cryptocurrencies can fail, and just like we saw with over-the-counter derivatives that led to a financial crisis, these failures can have a ripple effect on consumers and other parts of our financial system. The cryptocurrency market’s continued turmoil is why we must think carefully about how to regulate cryptocurrencies and their role in our economy,” (D-Ohio), the Chair of the Senate Banking, Housing, and Urban Affairs Committee. said Sen. Sherrod Brown Assessing the Damage The immediate aftermath of the crash saw the value of many cryptocurrencies drops sharply. Bitcoin, the world’s largest cryptocurrency by market capitalization, saw its value in the days following the incident. Other major cryptocurrencies, such as Ethereum and Litecoin, also experienced significant declines. fall over by 10% The collapse also caused a domino effect, with many investors liquidating their assets and several crypto exchanges filing for bankruptcy. The companies, due to “significant exposure” to FTX, took a page from their “biggest creditor’s” handbook and filed for Chapter 11. The latest one to the list is after BlockFi, Celsius Network, and Voyager Digital. join Genesis In addition to the direct financial losses suffered by the investors, the fall led to a negative impact on the overall perception of cryptocurrency. The traditional financial institutions and mainstream investors saw the collapse as a failure of security and stability in holding digital assets. In a on the crypto-asset risks, Federal Reserve System and Federal Deposit Insurance Corporation said, “It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system. The agencies are supervising banking organizations that may be exposed to risks stemming from the crypto-asset sector and carefully reviewing any proposals from banking organizations to engage in activities that involve crypto-assets.” joint statement The skepticism is not baseless; this cryptic world operates in a peer-to-peer network of blockchain, where the transactions are just a click away. Many mainstream economists like Christine Lagarde, Paul Krugman, Nouriel Roubini, and Kenneth Rogoff have come out in the past. against crypto European Central Bank President Christine Lagarde said she is concerned about people “who have no understanding of the risks, who will lose it all and who will be terribly disappointed, which is why I believe that that should be regulated.” A conducted back in 2021 showed that 1 in 3 people investing in cryptocurrency knows little to nothing about it. Data collected from about 750 investors showed that only 16.9% of them understood where their money was going. survey With the traditional finance system, even if the people do not fully understand the system, stringent laws and regulations back it up, protecting customers’ interests. In the case of DeFi, the regulations are there, but the exercising authority and the political lines blur around the edges. In a back in Aug 2021, the SEC chair Gary Gensler said, “There are some gaps in this(crypto) space, though: We need additional Congressional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector.” speech More than 13 years since the release of Bitcoin and more than a year since this speech, there are still no centralized regulations backing the space up. The crypto industry has been in a cold war with regulators for quite some years now. The drill doesn’t amount to anything but reviewing potential bills to pass aimed at revolutionizing this uncertain digital market. “ If you wanted to build a new system for trading crypto, you could kind of just code it up and see what happened. Then you could go to the regulators and say, “Here’s how the rules for crypto should work,” and they might listen to you. (Or they might not. They might argue, as many regulators did, that crypto is largely covered by existing rules and that you were breaking them. But you might go ahead anyway or move to a different country with friendlier regulators.).” Matt Levine wrote in an article titled “ .” How to not play the game End number of new digital currencies and companies have been launched, and the policing authorities have struggled to keep up. There are with cryptocurrencies to trade, according to CoinMarketCap. 240+ crypto exchanges 8870 In the months following the crash, a majority of these exchanges have been to reinstate the faith of investors and protect themselves from the same fate as FTX, including exercising regulations and providing publicly accessible reserve proofs. actively taking steps Regulation and Decentralization’s Impact on the Future of Cryptocurrency “2023 for us could be a real inflection point in policy, and a regulatory framework could be one of those things that help to accelerate the accelerator side of the crypto downturn,” , VP of international policy at Coinbase. said Tom Duff Gordon The FTX breach had a detrimental effect, yet despite this, the cryptocurrency industry has proven to be quite resilient. have recovered, and trading volume has reached pre-contagion levels. The episode, however, serves as a warning of the dangers involved with investing in digital assets and the demand for more security and transparency in the sector. Prices “It’s frustrating to see what a lot of people in crypto see as a built-in bias against the industry, which many of us understand because this space does have a side to it that deserves and requires scrutiny,” says the chief marketing officer for crypto investor Haun Ventures. Rachael Horwitz, Cryptocurrency exchanges are constantly evolving, and a lack of regulations in this volatile space makes it easier for these institutions to engage in fraudulent and illegal activities. The lawmakers now have an impetus to get the proposed legislative laws finalized and set up a widespread regulatory framework. The demise of this crypto giant did not help those who were building their trust in cryptocurrencies. However, they are missing the argument that FTX was not “Crypto” itself; it was a centralized medium that let you borrow, buy, and sell crypto.  The convolutional framework of “real” cryptocurrencies is based upon a decentralized financial system(DeFi). “The major benefits (of DeFi) are we're looking at transparency. We're looking at the automation of risk management. We're looking at trustless reporting. You don't need to trust a third party, person, auditor, SBF, or anybody to understand the NAV and the valuation of a certain protocol. You can use things like subgraph technology. You can use things like Chainlink Oracle, and you don't have to trust a human being. You have to trust decentralized code, which is much easier to buy into.”  Mona El Isa, the CEO and founder of Avantgarde Finance and founder of Enzyme, said while talking about how DeFi can save cryptocurrency. in an interview In their , the members of the Monetary and Economic Department of the Bank for International Settlements: Igor Makarov and Antoinette Schoar, explained how decentralized exchanges (DEXs) have gained a lot of attention and are now the DeFi industry segment with the quickest rate of growth. Users' ownership over their private keys is one of the fundamental benefits of decentralized exchanges versus centralized exchanges. Market participants cede ownership of their crypto tokens to the exchange when they deposit them with a centralized exchange. This exposes them to exchange risk; investors may suffer large losses if the platform is compromised and their funds are misused. BIS working papers However, they also pointed out how we still have a long way to go since “the new financial architecture proposed by cryptocurrencies and decentralized finance presents formidable challenges for regulators.” The biggest challenge in regulating the crypto architecture comes from the jurisdiction-free nature of the currency originating from the use of permissionless blockchain protocols and smart contracts. A common framework of regulations is needed to protect the interests of global investors and to ensure that exchanges do not exercise free will when it comes to operating across different countries. “There also really needs to be coordination on enforcement to ensure that countries are not a safe haven and that there’s that level of global cooperation,” , a longtime advocate of stronger oversight. said Wharton’s Kevin Werbach

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