AltTokens

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A Beginner’s Guide to Solana Lending Platform

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Solana is a fast-growing blockchain platform that offers users a range of decentralized applications and financial services, including lending and borrowing. The Solana lending platform allows users to earn interest on their cryptocurrency holdings by lending them to borrowers in exchange for a return. In this article, we will explore the Solana lending platform, including how it works, the benefits and risks involved, and how to participate in Solana lending.

What is Solana Lending Platform?

The Solana lending platform is a decentralized lending and borrowing platform that operates on the Solana blockchain. It allows users to lend their cryptocurrency holdings to borrowers in exchange for a return, similar to other lending platforms like BlockFi and Celsius.

The Solana lending platform offers several benefits over traditional lending platforms, including faster processing times, lower fees, and more flexible loan terms. It also provides users with access to a range of decentralized financial services, such as staking and liquidity provision.

How Does Solana Lending Platform Work?

The Solana lending platform operates on the Solana blockchain, using smart contracts to facilitate lending and borrowing. The platform allows users to lend their cryptocurrency holdings to borrowers in exchange for a return, with the borrower pledging their cryptocurrency holdings as collateral.

The borrower must first register with the lending platform and provide some basic personal and financial information, such as their credit score, income, and employment status. The lending platform uses this information to assess the borrower’s creditworthiness and determine the loan amount and interest rate they are eligible for.

Once the loan terms are agreed upon, the borrower must deposit their cryptocurrency holdings as collateral with the lending platform. The amount of collateral required may vary, depending on the platform and the loan amount.

The lending platform then transfers the loan amount to the borrower’s account, and the borrower must repay the loan plus interest within the specified period. If the borrower fails to repay the loan, the lending platform may liquidate the cryptocurrency collateral to recover the funds.

Benefits of Solana Lending Platform

The Solana lending platform offers several benefits, including:

  1. Fast Processing Times

Solana lending offers faster processing times than traditional lending platforms, with loan amounts transferred within minutes or hours rather than days.

  1. Lower Fees

Solana lending offers lower fees compared to traditional lending platforms, allowing users to maximize their returns.

  1. Flexible Loan Terms

Solana lending offers flexible loan terms, with borrowers able to choose from different repayment periods and interest rates.

  1. Decentralized Financial Services

Solana lending allows users to access a range of decentralized financial services, such as staking and liquidity provision, offering greater financial freedom and flexibility.

Risks of Solana Lending Platform

While Solana lending offers several benefits, it also comes with risks, including:

  1. Loss of Cryptocurrency Collateral

If the borrower fails to repay the loan, the lending platform may liquidate the cryptocurrency collateral to recover the funds. This can result in the borrower losing their cryptocurrency holdings if the price of cryptocurrency has increased significantly since the collateral was deposited.

  1. Market Volatility

Cryptocurrency is a highly volatile investment, and market fluctuations can affect the value of the cryptocurrency collateral. If the value of cryptocurrency drops significantly, the borrower may be required to deposit additional collateral to maintain the loan-to-value ratio.

  1. Platform Risks

Decentralized lending platforms can be subject to cyber attacks, fraud, or other risks that could result in the loss of funds. Users should do their due diligence and research the lending platform before depositing their cryptocurrency collateral to ensure that it is trustworthy and legitimate.

How to Participate in Solana Lending Platform

Participating in Solana lending is a relatively simple process, requiring borrowers and lenders to follow a few key steps:

  1. Choose a Lending Platform

Users must first choose a reputable Solana lending platform that specializes in cryptocurrency loans. There are several platforms to choose from, including Raydium, Solend, and Mango Markets, each offering different features and benefits.

  1. Register and Verify

Users must then register and verify their account on the chosen platform. This typically involves providing some basic personal and financial information and completing a Know Your Customer (KYC) process.

  1. Deposit Cryptocurrency Collateral

Borrowers must then deposit their cryptocurrency holdings as collateral with the lending platform. The amount of collateral required may vary, depending on the platform and the loan amount.

  1. Choose a Loan Option

Borrowers must then choose a loan option that meets their financial needs and risk tolerance. Loan options may vary in terms of duration, interest rates, and collateral requirements.

  1. Repay the Loan

Borrowers must repay the loan plus interest within the specified period. If the borrower fails to repay the loan, the lending platform may liquidate the cryptocurrency collateral to recover the funds.

Conclusion

The Solana lending platform offers users a fast, flexible, and decentralized way to earn interest on their cryptocurrency holdings. While Solana lending offers several benefits, it also comes with risks, such as the potential loss of cryptocurrency collateral and market volatility. Users should do their due diligence and research the lending platform before depositing their cryptocurrency collateral to ensure that it is trustworthy and legitimate. Overall, Solana lending offers exciting opportunities for those looking to participate in decentralized finance and gain greater financial freedom and flexibility.

Maximizing Passive Income: Exploring the Top USDC Lending Rates and Platforms

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Exploring USDC Lending Rates

If you’re interested in earning passive income through cryptocurrency, lending your digital assets is a great option. One of the most popular cryptocurrencies for lending is USDC. USDC, or USD Coin, is a stablecoin pegged to the value of the US dollar, making it a popular choice for those looking to earn interest without the volatility of other cryptocurrencies.

In this post, we’ll explore USDC lending rates, how they work, and what to consider when choosing a lending platform.

What are USDC Lending Rates?

USDC lending rates are the interest rates paid by borrowers to lenders in exchange for borrowing USDC. These rates can vary widely depending on the lending platform and the current market conditions.

Typically, USDC lending rates are determined by supply and demand. When there is a high demand for USDC loans, the interest rates will be higher. When there is less demand, the interest rates will be lower.

What to Consider When Choosing a Lending Platform

When choosing a lending platform for your USDC, there are several factors to consider:

  1. Interest rates: As mentioned, interest rates can vary widely between lending platforms. Be sure to compare rates and choose a platform with competitive rates.
  2. Reputation: Choose a lending platform with a good reputation and a strong security track record. Look for reviews from other users and do your research.
  3. Flexibility: Some lending platforms may require you to lock up your USDC for a specific period of time, while others offer more flexibility. Consider how important flexibility is to you before choosing a platform.
  4. Collateral requirements: Some lending platforms may require collateral in order to lend USDC. Make sure you understand the collateral requirements before choosing a platform.

Top USDC Lending Platforms

Here are some of the top lending platforms for USDC:

  1. Celsius Network: Celsius offers USDC lending rates ranging from 8.88% to 10.51% APR, depending on the amount of USDC you lend.
  2. CoinLoan: CoinLoan offers USDC lending rates ranging from 6.2% to 8.2% APY, depending on the time period of USDC’s lending.
  3. Nexo: Nexo offers USDC lending rates ranging from 6% to 8% APR, depending on the amount of USDC you lend.
  4. Binance: Binance offers USDC lending rates ranging from 1.75% to 3% APR, depending on the amount of USDC you lend.

It’s important to note that these rates can change over time and may be affected by market conditions.

Conclusion

Lending your USDC can be a great way to earn passive income, but it’s important to do your due diligence before choosing a lending platform. Compare rates, consider flexibility and collateral requirements, and choose a platform with a good reputation and strong security measures in place. By choosing the right lending platform, you can earn a steady stream of income from your USDC holdings.

How can I borrow money instantly?

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Borrowing money instantly is a convenient solution for those who need access to funds quickly. There are various ways to borrow money instantly, from short-term payday loans to peer-to-peer lending platforms. Each option comes with its own set of advantages and disadvantages, so it’s important to carefully consider the implications before choosing the best route for you.

One way to borrow money instantly is through a payday loan. These loans provide quick access to cash but often come with high interest rates and fees. To obtain a payday loan, borrowers must provide proof of regular income, employment and banking information. The lender like Coinloan then issues a check or direct deposit into the borrower’s bank account. Payday loans should be avoided if possible as they can create a debt trap where borrowers take out new loans to pay off old ones, creating an almost never ending cycle of borrowing and repayment.

Another option for those looking for instant cash is peer-to-peer (P2P) lending platforms such as LendingClub or Prosper Marketplace. P2P lending sites allow borrowers to apply for unsecured personal loans without going through traditional banks or credit unions. Borrowers typically need good credit scores in order to qualify and the loan process takes several days while the platform reviews the application and assesses risk factors like education and employment history. Although P2P loans tend to have lower interest rates than payday loans, they may still be more expensive than other forms of borrowing due to origination fees charged by the platform.

Those with excellent credit may also be able to get an instant loan through their bank or credit union. Banks and credit unions are typically willing to offer speedy approval on secured lines of credit such as home equity lines of credit (HELOC), which allows borrowers to use their home equity as collateral when securing a loan. This means that lenders will require an appraisal of the property before approving a loan but this type of borrowing usually has low interest rates compared with other options like payday loans.

Finally, some businesses have begun offering alternative forms of financing specifically designed for small business owners who need access to funds quickly. With merchant cash advances, borrowers receive cash upfront in exchange for signing over a percentage of future sales until the balance is paid off in full plus any associated fees or interest charges from the lender. Merchant cash advances are expensive but they don’t require collateral like HELOCs do so they can be an attractive option for those with poor credit scores or limited assets who need fast access to capital without having to wait days or weeks for approval from banks or other traditional lenders.

No matter what type of borrowing you choose, it’s important that you understand all terms associated with your loan before signing any agreement so that you are aware of potential risks and rewards associated with your decision before proceeding further down this path towards financial freedom – or financial burden!

Buy cryptocurrency for the long term

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Without unnecessary introductions, let’s go straight to the question can I get a loan for bitcoin? Let’s start by looking at the first way of making money from cryptocurrency. The fact is that top coins are steadily rising in value. Yes, sometimes there are drawdowns, but in general, if you predict the trend, you can significantly increase your capital with promising investments.

The best example is Bitcoin. In 2009, 1,000 BTC was worth 0.003 USD. Those are ridiculous figures. Except in November 2021, the price of 1 BTC rose to a peak of 68,000 USD. Moreover, in the middle of 2020, for one coin on the exchange, they gave 12 thousand USD. Altogether, it was possible to earn in a year a little bit of 56 thousand USD of profit on one Bitcoin.

There are other examples. Say, 1 ETH in 2019 could be bought at times for 100 USD. And at the end of 2021, it was already trading at more than 4,500 USD per 1 ETH. At the moment (July 2022), the Ether has strongly depreciated, it is trading at around 1,600 USD per ETH. But at the same time, the asset has already gained more than 600 USD since June, and the trend is upward. There are many such examples. They all clearly show that cryptocurrencies are growing in value.

Long-term earnings on cryptocurrency include investments lasting more than 1 month. That is, having bought Ether in June, you could now earn 600 USD per coin.

  • Advantages: potentially high profits, it is possible to reduce the risk by investing in a portfolio of cryptocurrencies, no deep knowledge of technical analysis is needed.
  • Disadvantages: with strong quotes drawdown, there is a risk of losing a lot of money, and knowledge of fundamental analysis is required.

Binance Loans

Cryptocurrency exchange Binance once again expanded its functionality – launched the service Binance Loans, which, of course, is relevant on the wave of the growing popularity of loans secured by cryptocurrency.

Features of the site:

  • The loan is issued in stablecoins USDT and BUSD.
  • The daily interest rate is 0.0305% to 0.031% for USDT and 0.028% to 0.0285% for BUSD. Also, all users receive a 20% discount from March 31 to April 14, 2020.
  • BTC or ETH can be deposited as a deposit.
  • Minimum pledge amount is 100 USDT, maximum 10 million USDT.
  • Loan term is user selectable from 7 to 90 days. The 90-day loan has an interest rate slightly higher than the others. If you repay the loan earlier, the interest will be calculated based on the actual duration of the loan.
  • At any time, you can add or remove some collateral, adjusting the LTV.
  • Any registered user can take a loan.
  • The borrowed funds are allowed to be used for trading on Binance.

If payment is overdue, then three additional days are given, during which an additional interest is charged (three times the normal rate). If, even after three days, the payment is not repaid, the exchange takes away the remaining deposit at that time.

The problems of the crypto market

The company has been using business-grade hardware for the past four years. It can support more than 8,000 nodes for 70+ blockchain networks, including Solana, Cosmos, Tezos, Polygon, and Cardano.

Everstake employs more than 125 experts from around the world and has participated in the development of complex blockchain products such as Metaplex. The development team has created a potentially multi-billion dollar project for the global decentralized financial market.

The idea is simple: give users of the cryptocurrency industry the ability to make deposits from any token. For the first time, cryptophones will be able to reuse tokens that are already in their wallets.

Crypto participants are well aware of this problem. Its essence is as follows:

  • many tokens people have bought in the hope that they will go up in value;
  • most of those tokens have fallen in price for a variety of reasons;
  • millions of crypto fans are waiting for the price of their assets to return to pre-crisis values.

As a result, billions of tokens are sitting in their wallets for no good reason. Rewater can solve this problem.

Crypto platform: Coinloan

CoinLoan is a fully automated platform and one of the most technically advanced in the cryptocurrency market. With a wide range of digital assets, CoinLoan customers have maximum flexibility in choosing the currency that best suits their needs.

CoinLoan benefits:

  • Improved overall application performance through software upgrades.
  • Improved security by upgrading component versions.

CoinLoan has implemented a cryptocurrency storage strategy, creating a wallet that meets their business needs for security and reliability, as well as the flexibility to move digital assets.

Crypto platform: Nebeus

Nebeu is a platform that combines cryptocurrency and banking capabilities. It allows you to work with cryptocurrency funds – buy, sell, store, borrow bitcoin or lend. Operates since 2014, providing convenient customer-oriented service and following the trends of the developing crypto market.

Site Features:

  • Interest rate of 6.12% or 16.25% per annum, depending on the selected loan program.
  • Bitcoin, ether, or Nebeus tokens are used as collateral.
  • Minimum pledge is 0.006 BTC, 0.3 ETH.
  • Maximum deposit 30 BT, 1500 ETH.
  • Funds are credited to the account in EUR within 30 seconds. If the money is not received within a day due to the fault of Nebeus or the payment system, the period of credit will be extended for that time.
  • User deposits are stored in cold wallets.
  • No proof of identity is required, and it doesn’t matter what country you are from or what your credit history is.
  • Available credit is 72% of collateral at an interest rate of 6.12%, and 85% at an interest rate of 16.25%.

Nebeus’ terms are considered one of the most comfortable in the industry and give you a lot of control over your cryptocurrency assets. One of the main advantages is the instant delivery of euros to your account.

What is Rewater

It allows you to reuse your assets and be rewarded for doing so. Thus, during a long crypto winter, Rewater gives a boost to the entire crypto industry.

The financial component is not the only one in the project. Another important aspect of Re:water is gamification and social mechanics. We are talking about competition for revenues, conflicts, groupings, and alliances. All of the aforementioned allows us to say that the first social network for finance has already been created… You can read more about the mechanics and reuse your crypto-assets on the website.

Conclusion

CoinLoan is an international fintech project. The project team has been working remotely since day one and is spread across different countries. Despite this, they managed to develop the industry of loans secured by digital assets.

USDC interest rates

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The USDC (USD Coin) is a stablecoin that seeks to maintain a 1:1 parity with the U.S. dollar, backed by reserves of the greenback held in accounts at multiple banks. It is designed to provide users with a safe and secure store of value on the Ethereum blockchain as well as a means of transferring assets between individuals and organizations. Given its stability, USDC interest rates are relatively low compared to other cryptocurrency investments, but it can still be an attractive option for those who seek reliable returns without taking on excessive risk.

When considering USDC interest rates, one should consider both their current rate as well as historical trends. Currently, the annual percentage yield (APY) for USDC deposits is 0.00% – 0.25%. This rate may be subject to change depending on market conditions and other factors. However, when compared to traditional savings accounts offered by major banks in the United States, this rate is significantly lower than what those institutions offer – typically ranging from 0.01% – 0.05%.

Historically speaking, USDC interest rates have been fairly consistent over time since its launch in 2018. Throughout last year (2020), average yields ranged from 0% – 0.20%, fluctuating only slightly from month to month without any major spikes or declines in rates during that period of time.

When investing in USDC or any other cryptocurrency asset, it’s important to understand the risks associated with such an investment prior to allocating funds into it – including price volatility and liquidity risks among others – but due to its stability relative to most digital assets and low cost for entry compared to more traditional investments like stocks and bonds, it can still be an attractive option for those seeking passive income with minimal capital commitment and maximum potential returns over time thanks to compounding results from reinvestment of earnings generated from deposits over longer periods of time .

Overall, while USDC interest rates may not be particularly impressive at first glance given their low APY range relative to traditional savings accounts or money markets accounts offered by financial institutions today, they are nevertheless an interesting alternative for investors looking for consistent returns that come with minimal risk alongside the benefits provided by blockchain-based digital assets – especially when combined with other crypto assets like Bitcoin and Ethereum using a strategy known as diversification that seeks maximize rewards while limiting downside losses through diversifying exposure into various asset classes instead of solely focusing on one type of investment vehicle like stocks or bonds alone.

It should also be noted that USDC interest rates may vary from institution to institution, so those looking to get the most out of their investments should consider shopping around for the best rate before committing funds into any one particular platform. Additionally, while USDC is a stablecoin and thus more predictable than other digital assets, it still carries certain risks that should be recognized prior to investing in it such as liquidity and counterparty risk as well as price volatility over time – all of which should be taken into account when evaluating potential returns. With this in mind, investors can ensure they make the most out of their investments while minimizing downside losses with careful research and proper risk management strategies.

Ultimately, USDC interest rates are an attractive alternative to traditional savings accounts or money markets at the moment, especially given the promise of stability and low risk that come with it. Therefore, those looking to get into investing in digital assets should consider allocating a portion of their portfolio into USDC and other digital currencies to diversify their investments and potentially maximize returns over time. By educating themselves on the risks and rewards of investing in such asset classes as well as being aware of current market conditions, investors can rest assured they’re taking the right steps towards achieving success in their financial endeavors.

Decentralized Market

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A decentralized market is one in which technology allows investors to connect with each other directly, without going through a centralized exchange. Cryptocurrency markets are examples of decentralized markets.

Decentralized markets use digital devices to communicate and instantly show bid/ask prices. With this method, buyers, sellers, and dealers don’t need to be in the same spot to trade securities.

 Examples of Decentralized Markets

Forex Market

Unlike stocks and bonds, which have one central location ( Wall Street in the U.S.), forex currencies are traded all over the world on many different exchanges. Because of this, there is no one physical place where you can buy or sell them. Instead, traders use the internet to check currency quotes from around the globe.

Real Estate

Most real estate is sold in a decentralized market, where buyers and sellers connect with each other directly to make deals, without going through an intermediary.

Types of Securities

Some bonds and securitized products can also be bought through decentralized markets.

 

Blockchain technology and cryptocurrency have given rise to decentralized markets, which are not subject to government regulation. Some people believe this is a good thing because it makes transactions more secure and trustworthy.

Some people in positions of power have discussed ways to potentially regulate the use of decentralized currencies, which has caused alarm among fans of virtual markets. The reason for this consternation is that such regulation would likely result in a loss of anonymity and direct control over transactions–two features that are currently seen as advantages.

Decentralized currency refers to bank-free methods of transferring wealth or ownership without needing a third party, most often used in virtual markets. An example of decentralized currency is bitcoin–the “coinage” used on the Bitcoin platform.

DeFi products need cutting edge technologies to provide a safe and secure investment experience.

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The expansion in the industry is mostly thanks to a few profitable high-interest opportunities on various DeFi platforms.

DeFi is a rapidly growing sector in the crypto industry, with over $50 billion worth of assets locked in various DeFi protocols. The growth of this sector can largely be attributed to several lucrative opportunities for high interest earnings across DeFi platforms. DeFi is an emerging financial landscape that uses blockchain technology to offer innovative financial services such as staking, yield farming, lending and borrowing.

DeFi is growing so rapidly because these platforms use smart contracts to run automatically, without intermediaries like banks or insurance brokers. In an ideal scenario, these smart contracts would power valuable services like lending protocols and decentralised exchanges (DEXs).

Although blockchain technology is newer, there have been more occurrences of people finding ways to exploit bugs or security vulnerabilities. As the innovation and development of this technology grows, so do the risks. There are now more opportunities for scammers to find novice users and platforms to attack in order to empty crypto wallets.

Decentralisation is at the core of DeFi, where users connect with the protocol directly to conduct financial transactions using cutting-edge services for higher returns than traditional finance. However, without an intermediary, there could be a lack of accountability where it may be tough to set up investors’ rights and safeguard their funds as in the more established financial world.

Some common goals for financial regulation are to protect investors and other people who could be affected, make sure the market is functioning properly, help people get access to financial services, enable businesses to raise money, stop criminal activity and ensure the overall stability of the system.

To maintain the growth of DeFi, we need certain security improvements and supporting infrastructure. By establishing standards that identify common dangers in DeFi, we can provide protection to investors without sacrificing the decentralization that is so key to this sector.

Some common ways that crypto wallets can be hacked or emptied are through rug pulls, honeypots, phishing attacks, fake google ads, and scam airdrops. There are also several ways to identify such scams; for example, it’s very suspicious when most of the circulating supply of a token is controlled by just a few wallets. You can check the token distribution on blockchain explorers like Etherscan for Ethereum tokens by clicking on the “Holders” tab of the smart contract.

There are free, automated tools available that can audit token contracts and check for malicious code. These tools cannot be relied on completely, but they provide a good starting point to conduct due diligence on DeFi protocols.

The AI cloud could support the infrastructure by replacing off-chain third-party providers with AI inference directly on-chain for information exchange. Self-learned AI-based smart contracts could be used for building fully autonomous chains.

Unfortunately, flash loan vulnerabilities are all too common among criminals who exploit signature verification or manipulate trading pairs. Before using any platform, it’s essential that investors do their due diligence by researching which platforms have conducted regular audit checks. These audits should be accessible to the public on the company website so that anyone considering investing can make an informed decision.

As it stands, the DeFi industry is being hindered by a lack of standardization. Multiple protocols and networks exist but none are universally compatible, making even basic functions complicated. Further development is made difficult as any upgrades or implementations risk breaking other parts of the system. To resolve this issue, blockchain companies should collaborate with standard-setting bodies such as ISO and UN/CEFACT to establish some standards that can be used across the board. This would provide a solid foundation for future development in the industry.

The issue of a lackadaisical approach to Cross-Jurisdictional disputes, KYC compliances, digital identity checks among others are currently the primary issues/hurdles preventingthe DeFi industry from achieving its full potential. Policymakers should handles these compliance issues with discretion and care in order to protect users as well as maintain harmony within the ecosystem at large.

Platforms can use static analysis tools to help them find bugs earlier. These tools are designed to automatically run through contracts for finding potential vulnerabilities. The platforms should also have a bailout plan for their investors in case of a hack, such as getting insurance, installing an emergency pause feature, or having an upgrade plan. Insurance protocols have become a popular way to recover from a disaster because they could add a level of financial security without compromising decentralization

To ensure the safety of your investment, it is always a smart idea to check out the team running the project. If they are public, that’s even better, as you can do your own research on them. However, if they keep their identity anonymous but have good reputations with past projects They’ve launched successfully, that’s also a reliable indication.

In other words, DeFi platform creators need to take many steps to protect investors from attack. This includes real-time traffic analysis and proactive responses to potential exploits, plus security measures like investor education and protocols for handling hacks.

Sam Bankman spotted in the Bahamas

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As the FTX-Alameda Research situation continues to drag on many are wondering how the founder and ringleader of both companies Sam Bankman-Freed or SPF still isn’t behind bars.

Even more people are wondering how it’s possible that Sam will still be speaking at a public event this coming Wednesday after all.

Sam reportedly used up to 10 billion dollars of user funds from FTX to prop up Alameda Research, this is in addition to buying properties using company money and all the other horrors that were revealed in FTX and Alameda researches bankruptcy filings.

Now despite all this alleged corruption Sam has really received next to no scrutiny from the mainstream media or the establishment.

This has effectively forced the crypto community to take matters into their own hands by going to the Bahamas to track down Sam themselves.

There has been no shortage of photos and videos circulating on Twitter which claimed to show Sam out and about and in some cases even running away from being filmed.

The most famous of these is probably the photo of Sam and his parents just hanging out on the balcony of his Bahamas apartment.

It seems that these photos and videos inspired other citizen journalists to join in on the investigation because over the last few days there have been dozens of photos taken around Sam’s property, this includes Sam’s Toyota Corolla car which he claimed to drive as part of his supposedly frugal lifestyle.

Some crypto crusaders have even gone as far as live streaming from outside Sam’s Bahamas apartment and good on them in the absence of any actual justice, it’s easy to understand how things have gotten to this point.

FTX had millions of users and some of them lost their life savings when the crypto exchange collapsed, if something is not done soon any remaining hopes that those in the crypto industry may have in the justice system will be lost.

Meanwhile Alameda Research CEO Caroline Ellison has allegedly fled from Hong Kong to Dubai.

This is peculiar given that Sam was reportedly under supervision earlier this month after he tried to flee to Dubai as well.

I’m not sure why they think this place is a safe haven, there are after all many FX creditors here.

If it’s true that Caroline has fled then it further undermines the credibility of the establishment which claims to protect retail investors from these kinds of characters.

I suspect it has something to do with FTX-Alameda, Sam and others donating millions to politicians on both sides of the aisle in the United States.

This is why many are wondering just how hard Sam will be grilled by US politicians when he testifies before them next month.

If you ask me, Sam shouldn’t be flying out to Washington, the only place he should be flown out to is a high security prison and left there for a very long time.

FTX / Alameda fallout

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Last week the crypto market experienced its biggest shock since the death spiral of Terra’s UST stablecoin back in May, now there’s obviously a lot to unpack.

Here and I’ll start by advising you to avoid the FTX website and uninstall any FDX apps you have on your phone asap.

This is because the FTX exchange was hacked over the weekend, the administrator for the official FTX telegram group has warned that the FTX website and apps likely contain malware.

This means interacting with the website or mobile apps could result in you losing the crypto on your device.

So with that said let’s take it from the top.

You know that it seems to have begun with an article by coindesk published on the 2nd of November, this article contained information about Alameda’s balance sheet and led to questions about FTX.

Many of these questions related to whether funds on FTX were finding their way to Alameda, given that both companies were founded and operated by the same people Sam Bankman-Freed or SPF and his friend Gary Wang.

We now know that FTX used upwards of 10 billion dollars to prop up Alameda.

Now for those unfamiliar Alameda research is a crypto trading firm which rose to prominence in 2018 for making massive profits buying cheap BTC in the USA and selling it in Japan where BTC prices were much higher.

As a not so fun fact Alameda actively traded almost every crypto on every exchange and subsequently became a market maker.

Meaning that it provided cryptocurrency to exchanges for their users to trade with Alameda quickly became one of the largest market makers in crypto and is also the largest recipient of all the USDT ever printed by Tether and this is basically why USDT has been wobbly.

As most of you will know the catalyst that led to FTX’s collapse was Binance CEO Changpeng Zhao’s tweet that his exchange would be dumping its FTT stake following all the revelations about the relationship between FTX and Alameda.

This crashed FTT’s price and led to a bank run at FTX.

Given that FTX had given most of its user assets to Alameda to plug a multi-billion dollar hole in its balance sheet, a hole caused by Terra’s collapse.

FTX didn’t have the crypto on hand to honor user withdrawals, finance subsequently offered to buy FTX but bailed on the deal because of balance sheet concerns FTX Alameda research and even FTX US which Sam said would be unaffected.

All filed for bankruptcy late last week along with the 100 plus subsidiaries of these entities.

SBF and some of his inner circle are now reportedly quote under supervision in the Bahamas where FTX is based.

Meanwhile up to a billion dollars of user funds from FTX seem to be on the move because of the aforementioned hack.

The identity of the hacker was apparently discovered by the Kraken cryptocurrency exchange.

Now how a hacker experienced enough to do next level malware managed to get caught by Kraken is beyond me, the only thing that makes less sense than that is why SBF and Alameda CEO Caroline Ellison haven’t been arrested yet.

Apparently SBF is playing video games while under supervision, something tells me this amnesty has to do with all the political connections the pair have in the United States.

But let’s not go there, now besides when the billions of dollars of customer crypto will be recovered what everyone is wondering is just how much damage the FTX Alameda situation will do to the crypto market.

If the charts didn’t make it clear enough the effects of this fallout are still being felt logically.

The cryptocurrencies that have been hit hardest are those with direct exposure to FTX and Alameda, both entities are estimated to have invested in over 250 crypto projects.

For now I’ll just focus on the ones that have been hardest hit and the ones that are likely to be hardest hit.

Going forward an easy way to check this is to go on coin market cap and sort the top 100 cryptos by those which have suffered the largest losses over the last seven days.

At the time of shooting Solana is at the top of this list followed by Aptos, our weave eight coin, near protocol and algorand.

You may know that it was FTX’s de facto exchange chain as such both FTX and Alameda leverage.

Solana for just about everything you could imagine including defy, nfts and even the issuance of wrapped cryptocurrencies all of which are now basically worthless.

There’s no denying that the future of Solana is in question because of the FTX Alameda situation.

Which is it’s worth Solana Labs the company behind Solana has confirmed that it has enough funds to continue building for 30 to 40 months.

As for Aptos, as you possibly know, FTX was one of its biggest investors and was also actively advising the project.

The same goes for Near Protocol and for Apecoin.

FTX and Alameda were two of the biggest investors in the board Abe Yacht Club.

Our Weave and Algorand are where things get interesting because FTX and Alameda didn’t seem to have direct exposure to AR or Algo, however crypto VC multi-coin Capital did and it confirmed that 10 of its assets are stuck on FTX.

I suspect that multi-coin may be selling AR Algo and other alts to plug this hole.

If you’re wondering which other alts, multi-coin might be dumping check the weave or algorand prices on coin market cap and click on the multi-coin capital portfolio tab under the name.

Note that you might have to click “view all” to see the other VCS.

Also note that multi-coin isn’t the only one in this position as an aside I also did find it quite weird that multi-coin deleted all of their tweets yesterday.

Now when it comes to which cryptos are going to be hit the hardest, going forward almost all of them are a part of Solana’s ecosystem.

If my calculations are correct, FTX and Alameda collectively hold over 2 billion dollars of soul.

This is roughly the same as their collective holdings of Serum’s SRM token.

Next up appears to be maps.

Me with at least 600 million dollars of exposure.

Aptos with at least 300 million dollars of exposure and Oxygen with at least 50 million dollars of exposure.

FTX and Alameda will likely liquidate all of these cryptos in the coming months to compensate FTX investors and we hope users.

What Is Wrapped Bitcoin?

Posted on by altokens

The concept of Wrapped Bitcoin is new but could be pivotal in terms of DeFi liquidity.

WBTC or Wrapped Bitcoin is a new technology that allows BTC to be used on the Ethereum blockchain. WBTC has many uses, but one of the main ones lies in decentralized finance.

Now picture you’re already knowledgeable about Bitcoin and very interested in utilizing DeFi applications. The only issue is that there’s not a dependable cryptocurrency bridge connecting Bitcoin and Ethereum!

Wrapped BTC provides the DeFi industry with much-needed liquidity to various protocols.

WBTC is an ERC-20 token that has a 1:1 value with Bitcoin. Even though Bitcoin’s value doesn’t always stay the same,WBTC tries to copy its stability .

To ensure the cryptocurrency is fully protected, Bitcoin is wrapped and held in a reserve by the BitGo Trust. In an effort to maintain transparency ( something other coins have struggled with,) the WBTC team has made public both how much of the coin is circulating as well as provided physical proof that the Bitcoin ,the underlying asset,is securely being kept in their custody.

WBTC can be wrapped or unwrapped in wallets from providers such as CoinList.

In other words, they allow the owners of digital assets to move their assets to different blockchains.

A majority of the DeFi ecosystem and DApps rely on the Ethereum network instead of the Bitcoin blockchain, which can be very irritating for BTC owners because it makes participating nearly impossible without selling their cryptocurrency or purchasing others.

The WBTC.network launched in January 2019, and since then, many DeFi protocols have begun to allow borrowers to use WBTC as collateral. This can be locked into a smart contract using the DAI stablecoin on Ethereum, with crypto loans being paid out using this method.

The Wrapped Bitcoin project is managed by the WBTC DAO, which stands for Decentralized Autonomous Organization.

ETH can certainly be used as collateral on DeFi platforms, but it’s worth noting that Bitcoin’s market cap is far greater when measured in USD. This makes BTC a more popular choice among investors. However, expanding the range of acceptable collateral types is crucial for DeFi applications—especially as they reach new all-time highs in terms of value locked. With trading volumes increasing, liquidity becomes an increasingly important concern to avoid significant price fluctuations during transactions.

The number of BTC being converted into wrapped tokens is on the rise as well. According to DeFi Pulse, the total value locked in WBTC surged by 943% from mid-May to mid-August 2020.

There are a number ofofficial merchants who support Wrapped Bitcoin, including CoinList. In some cases, you may need to go through KYC checks in order to verify your identity. Alternatively, you could use a DEX (decentralized exchange).

The process of minting WBTC is not complicated.

WBTC tokens are one solution to the long-standing problem in the cryptocurrency world of how to better connect major blockchains such as Bitcoin and Ethereum.