Cryptocurrency

MakerDAO is a lending platform that supports a decentralized stablecoin called DAI. The latter is pegged to the U.S. dollar, providing a stable value when users exchange more volatile cryptocurrencies.The protocol allows anyone to take out loans in DAI by using other cryptocurrencies as collateral. These loans are overcollateralized, meaning you need to deposit more assets than you borrow. The lender-borrower structure seems to be great for MakerDAO, but Exponential analysts say a thorough review of its evolving collateral strategy justifies the downgrade to an Average risk rating. Initially, DAI was backed entirely by on-chain assets like ETH, WBTC, and a few centralized stablecoins, providing DAI holders with a straightforward, overcollateralized model. “Maker’s move towards incorporating real-world assets (RWAs) into its collateral mix represents a significant departure from its original single-asset model. This diversification, while appealing in a high-interest rate environment, introduces new layers of risk that must be addressed,” Exponential co-founder Mehdi Lebbar told Investing.com.Lebbar pointed out the recent defaults in smaller RWA vaults as a reminder of the risks associated with integrating traditional financial instruments into decentralized systems. “It’s essential for the DeFi community to understand how these assets generate yield and the potential implications if key RWA-backed vaults were to underperform or default,” he said.Discussing the potential for future upgrades, Lebbar said, “the potential for an upgrade exists if Maker can remove the lower-quality collateral and strengthen governance mechanisms around the protocol’s decision making.” He also warned of the risks associated with further expansion into lower-quality collateral without robust risk controls, saying “our focus remains on ensuring that the protocol’s financial health and governance practices align with the interests of DAI holders.”Over time, MakerDAO has diversified its collateral, particularly focusing on real-world assets (RWAs), which now account for nearly 30% of DAI’s total backing. This shift has added new complexities and risks, leading Exponential to reassess the situation.According to Exponential, the reliance on RWAs has allowed MakerDAO to raise the DAI Savings Rate (DSR) yield to 8%, capitalizing on the current high-interest rate environment in the US. While this generates decent revenue for MKR holders, it also brings about greater counterparty risks for DAI holders related to legal arrangements and transparency. “Questions arise such as: How does each RWA generate yield? Who are the counterparties involved in these transactions? Would MakerDAO be responsible for ensuring the execution of justice in the real world in case of default?”Although minor relative to DAI’s overall backing, there have already been four defaults on smaller RWA vaults. If larger RWA vaults were to see similar defaults, Maker could face a bank run that would destabilize DAI’s 1:1 USD peg, the report warns.Exponential analysts argue that the introduction of lower-quality collateral deviates from DAI’s original decentralized model and adds greater risks to the stability of DAI as a USD stablecoin.“Improvement in the quality of collateral could reduce protocol risk. Additionally, enhanced governance mechanisms that effectively manage the risks associated with new collateral types could also lead to an upgrade.”Exponential warned that further expansion of lower-quality collateral without adequate risk controls could lead to another downgrade.  More

Venom Foundation is thrilled to announce that $VENOM is now listed on Coins.ph, the leading crypto platform in the Philippines with over 18 million users. This strategic move represents the next significant step in Venom’s global expansion efforts, particularly into the dynamic Southeast Asian market.Key HighlightsExpanding Reach in Southeast Asia: Coins.ph provides a robust platform for $VENOM, offering increased accessibility to a vast and engaged user base. With over 18 million users, Coins.ph is instrumental in the adoption and exposure of crypto in the region, making it an ideal partner for Venom’s continued expansion.Enhanced Liquidity and Market Presence: Listing $VENOM on Coins.ph will enhance the liquidity and market presence of the token. Filipino users will now have the opportunity to trade $VENOM easily, benefiting from the seamless and user-friendly experience that Coins.ph is known for. This listing not only broadens $VENOM’s availability but also reinforces Venom’s commitment to making blockchain technology accessible to everyone.Increasing Accessibility in the Philippine Market: As the largest crypto exchange licensed by the central bank in the Philippines, Coins.ph plays a crucial role in the local blockchain ecosystem. Listing $VENOM on Coins.ph enhances the accessibility of our token, allowing more users to easily trade and interact with the project. Strategic Alignment with Global Expansion: This listing aligns with Venom’s strategic goal of global expansion, particularly into Southeast Asia. By partnering with established and reputable exchanges like Coins.ph, Venom is poised to extend its reach and influence across key markets worldwide. The Philippines, with its dynamic and rapidly growing crypto community, represents a critical market for Venom’s international growth strategy.Leadership PerspectiveCoins.ph is fully regulated by the Bangko Sentral ng Pilipinas (BSP) and is the first ever crypto-based company in Asia to hold both Virtual Currency and Electronic Money Issuer licenses from a central bank.To learn more, uses can visit https://coins.phAbout Venom FoundationVenom is a cutting-edge layer-0 and layer-1 network, seamlessly integrating with other independent networks through innovative Mesh technology. Anchored by a masterchain for overall state and consensus management, Venom supports unlimited autonomous workchains for user accounts, smart contracts, and dApps. Mesh technology optimizes inter-chain communication, ensuring speed and scalability. With rapid finality, comprehensive security, stability, and user-friendly interfaces, Venom is ideal for hosting CBDCs and large-scale platforms.For more information, users can visit https://venom.foundationContactVenom Foundationmedia@venom.networkThis article was originally published on Chainwire More

(Reuters) – When former U.S. president Donald Trump promised a bitcoin conference on Saturday that if reelected he would fire Securities and Exchange Commission Chair Gary Gensler, a crypto skeptic, the crowd roared with delight. “Wow, I didn’t know he was that unpopular,” the Republican presidential nominee shouted over the cheers.Trump, who once derided cryptocurrencies as a “scam,” is courting the industry and winning big checks from donors hoping he will swiftly end Gensler’s crypto crackdown.Under Gensler, a Democrat appointed by President Biden, the SEC has brought dozens of crypto enforcement actions, including against major exchanges Coinbase (NASDAQ:COIN), Binance and Kraken, and levied hundreds of millions of dollars in fines. A Trump victory could change that virtually overnight. He could appoint a crypto-friendly chair to advance the industry’s wishlist, which includes spiking guidance that it says has limited Americans’ crypto custody options; a safe harbor for new tokens; and pulling enforcement actions.”The most important thing we want out of a new administration is the nomination of individuals to key positions … that have an appreciation and an understanding of crypto,” said Kristin Smith, CEO of the Blockchain Association, an industry group.Gensler’s spokesperson declined to comment.Citing a Supreme Court ruling, Gensler says most crypto tokens behave like securities and should be strictly regulated in the same way, a position lower courts have mostly backed. Crypto firms argue tokens are commodities and want new laws clarifying their status, although that could take years if Congress remains divided.While Gensler’s term ends in 2026, Trump could replace him with another commissioner as acting chair. The likely candidate is Hester Peirce, a crypto advocate and the longer-serving of the SEC’s two Republican commissioners.The industry is pushing crypto enthusiasts Brian Brooks and Chris Giancarlo, who served in Trump’s first administration, for the permanent job, executives said.An acting chair could immediately rescind 2022 SEC guidance requiring public companies to account for crypto assets held on behalf of others as liabilities due to their riskiness. Banks struggle with this policy because strict capital rules require them to hold cash against liabilities.Cryptocurrencies, with a market capitalization of around $2.5 trillion according to CoinGecko, would become more popular if consumers could store them with trusted lenders, executives say.”I believe that’ll be rescinded Day One of the Trump administration,” said Cody Carbone, chief policy officer at the Chamber of Digital Commerce, a digital asset group. The industry is also pushing for a safe harbor from SEC registration rules for issuing and trading crypto tokens, an idea Peirce floated in 2020.”We need to look for a workable way to ensure both that token offerings can occur outside of the legal shadows and that token purchasers have access to the information they need,” Peirce told Reuters by email. Smith said such a framework would be “incredibly positive.” Giancarlo, who earned the nickname “Crypto Dad” when he was Commodity Futures Trading Commission chair, declined to comment on whether he would be interested in becoming SEC chair under a second Trump administration.Until Congress acts, regulators have discretion to craft an interim regulatory regime that better serves the public and investors, he said. He also backed a crypto safe harbor.”It would be an excellent place to start a new era of engaging with this innovation,” Giancarlo said. Brooks did not respond to a request for comment. Brian Hughes, senior advisor to Trump’s campaign, said in a statement the former president is prepared to remove “obstacles and unnecessary burdens” for crypto. POLITICAL DEADLOCK?A new chair’s power would depend, though, on the political weighting of the five-member commission which votes on rules, enforcement and other major issues. It is dominated 3-2 by Gensler and two other Democrats also critical of crypto.While the president can replace an SEC chair with another commissioner, Gensler could still see out his term as commissioner. Even if he left, the four remaining members would be evenly divided initially, constraining a new chair.Peirce said, for example, that she expected any safe harbor plan and major proposed changes to enforcement litigation, to go to a commission vote, suggesting approval might have to wait until Republicans take the majority.Giancarlo said he would like a pause in enforcement actions where there is no investor harm, manipulation or fraud.”I think the right approach would be to pause it … while the agency immediately turns to rule-writing in coordination with Congress and then give innovators time to comply,” Giancarlo added. More

• M2 ADGM now accepts deposits and withdrawals from UAE bank accounts to purchase Bitcoin (BTC) and Ethereum (ETH) with United Arab Emirates’ Dirhams (AED)• The new integration from M2 ADGM, regulated by the Financial Services Regulatory Authority (FSRA) located in the ADGM, marks a significant milestone for the region’s adoption of virtual assets M2 ADGM, a virtual asset custodian and a Multilateral Trading Facility regulated by the Financial Services Regulatory Authority (FSRA) located in the ADGM, today announces a new and simplified pathway for UAE residents to buy and sell Bitcoin (BTC) and Ethereum (ETH) through a direct integration with their bank account.The integration serves as a significant milestone both for the wider accessibility of virtual assets in the region, as well as M2 ADGM, as they work to expand upon a best-in-class product offering within a rapidly evolving landscape. This enables UAE residents to seamlessly and confidently convert United Arab Emirates’ Dirhams (AED) into BTC and ETH – and vice versa – via trading pairs listed on M2’s spot market. This allows users to seize upon and swiftly adapt to market changes, in a pivotal moment of growth in the virtual assets space, both in the UAE and globally. M2 ADGM is regulated by the FSRA – located in the ADGM – considered one of the world’s most robust virtual asset regulators. The new pathway, which leverages the strength and security of robust banking infrastructure, is the most recent milestone in M2 ADGM’s continued work to build trust and industry leading compliance in providing both the safe custody of virtual assets, and the ability to trade Bitcoin (BTC) and Ethereum (ETH) with UAE Dirham (AED).About M2Headquartered in Abu Dhabi, M2’s mission is to drive virtual asset adoption within the UAE by delivering a secure and transparent trading environment for investors. The platform provides investors with a growing suite of virtual asset products while ensuring strict regulatory compliance. Regulated by the Financial Services Regulatory Authority (FSRA) located in the Abu Dhabi Global Market (ADGM), M2 Limited and M2 Custody Limited are committed to ensuring a safe trading experience, upholding the highest standards of regulatory compliance.ContactJunior ConsultantJacob McGoldrickCW8 Communicationsjacob@cw8-communications.comThis article was originally published on Chainwire More

Two new addresses received about 29,800 BTC, or roughly $2 billion, from a U.S. government-labeled address linked to the Silk Road seizure. Investors are worried about this significant fund movement, which has sparked rumors of a possible sell-off. The mere possibility of these funds being sold has caused fear and uncertainty in the market, even though it is unlikely that they will be. The mood of the market was beginning to improve prior to this abrupt turnabout. At $68,000, Bitcoin had been consolidating, indicating a possible breakout to higher levels. Positive signs were seen across a range of cryptocurrencies as the market as a whole began to steadily recover. Still, this recovery is now somewhat uncertain given the recent price action. In its current state, Bitcoin is unstable, trading at roughly $66,770. Bearish sentiment has emerged as a result of the inability to break through $70,000. The 50 EMA and 100 EMA, which are presently at $64,000 and $63,000, respectively, are important support levels to keep an eye on. Upward pressure might be redirected if these levels are held. Bitcoin’s near future is still unknown. Despite the concerns raised by the Silk Road money transfer, it is important to take the larger market environment into account. If Bitcoin is able to hold its support levels and the positive sentiment returns, a market recovery may still be imminent. To determine the next course of action, investors should monitor trading volumes and general market trends.Although the breakout from the descending channel first suggested a potential reversal, the subsequent price decline highlights a crucial problem: insufficient trading volume. Any upward momentum must be sustained by trading volume, and Shiba Inu is currently severely undersupplied. It is also challenging to sustain the breakout due to unfavorable general market conditions. Significant withdrawal by whales is another important factor impacting SHIB’s performance. The departure of these big players has led to a substantial drop in volatility. Usually, whales bring trading activity and liquidity to the market; however their departure has created a hole that is difficult to fill. A major setback to SHIB’s chances of building on its breakthrough has been this abandonment. Technically speaking, the price movements of Shiba Inu are still unstable.While breaking out of the downtrend was a good thing, the fact that the breakout was not sustained because of low volume and unfavorable market conditions suggests that problems persist. Specifically, the recent lows within the descending channel are important support levels to keep an eye on. Everyone is thinking the same thing: can DOGE get enough support from buyers to go against the trend and overcome the resistance? Based on the given chart, DOGE is currently trading at approximately $0.13. It has been difficult for the price to rise above the descending triangle’s upper boundary.If the current trend persists, DOGE may experience a substantial price decline, as this pattern typically signifies that selling pressure outweighs buying interest. That being said, there is still hope. If buyers reenter the market and generate enough volume, Dogecoin could break through the triangle’s upper resistance. A spike in volatility due to this discovery would probably raise the price. Depending on the state of the market, a successful breakout from this pattern might lead to DOGE testing higher resistance levels – possibly as high as $0.15.This article was originally published on U.Today More

Hybrid cryptocurrency exchange GRVT, ZKsync’s first official Validium ZK Chain, will launch its Open Beta testnet on August 5. The public test aims to assess key account management and trading features, as well as users’ native biometric-enable self-custodial GRVT Wallet. During the test, participants will have the opportunity to earn $ZK tokens, points for future GRVT airdrops, and other rewards by completing a series of quests. The first challenge is to be among the first 30,000 people to successfully verify their account on GRVT to earn exclusive ZKsync rewards. Additional incentives are provided for sharing feedback on the testnet and participating in a future Bug Bounty program.The GRVT team will enhance existing features and introduce new ones along with the Open Beta, including cross-chain bridging and Paymaster integration to reduce gas fees. Users can stay tuned for more future updates. For more information and to sign up for GRVT’s waitlist, users can visit https://grvt.io/. About GRVTGRVT (pronounced “gravity”) is a hybrid derivatives exchange enabling off-chain order matching and on-chain settlements at 600,000 TPS. Founded in 2022 and backed by Matter Labs, GRVT is ZKsync’s first official Validium ZK Chain. Our mission is to democratize the financial market with secure, self-custodial solutions, providing a safe, efficient and simple trading environment for everyone.GRVT official website: https://grvt.io/ Social and Community: X | LinkedIn | Telegram | DiscordContactReed LiGRVTreed@grvt.ioThis article was originally published on Chainwire More

While Bitcoin (BTC) has dipped by over 5% in the last 24 hours, XRP has surged by nearly 5%, highlighting its independence from the broader cryptocurrency market trend.At the time of writing, XRP was up 3.78% in the last 24 hours to $0.6327, as nearly the entire crypto market traded in red. The token was likewise up 6.21% in the last 24 hours.The crypto market extended Monday’s sell-off as traders looked ahead to central bank meetings this week. XRP, on the other hand, reversed Monday’s losses to trade in green.XRP subsequently rose from a low of $0.597 to reach an intraday high of $0.635 before settling at its current price.XRP is likewise gaining strength against Bitcoin, with the XRP/BTC pair rising by as much as 5% on the Binance exchange. Notably, XRP has been gaining ground against Bitcoin and is set to mark the third consecutive day of gains.On July 30, the SEC responded to the court’s minute order dated July 9, 2024. In the filing, the SEC stated that it wishes to amend its complaint addressing “Third Party Crypto Asset Securities,” as specified in its opposition to Binance’s petition to dismiss.According to the SEC, this eliminates the need to “issue a ruling as to the sufficiency of the allegations concerning those tokens at this time.”As reported, the ruling judge in the Binance lawsuit cited Judge Analisa Torres’ 2023 ruling in the Ripple lawsuit in granting the motion to dismiss the secondary BNB sales claim.As a result, the latest update in the Binance case could be significant for XRP in the Ripple lawsuit, which is now awaiting a final verdict, contributing to the current optimism surrounding XRP.This article was originally published on U.Today More

According to the expert, with global investable assets of around $900 trillion, BTC currently represents just 0.15% of that amount at a price of $67,000. If Bitcoin made up 1% of the global investment market, its value could soar to $428,000 per coin. Thus, Lavish’s forecast implies a staggering 548% increase from the current price. Well, in the meantime, the Bitcoin price recently encountered resistance around the $70,000 mark before falling to around $66,000. This recent drop resulted in a 5.6% decline in less than 48 hours. The ambitious target proposed by the expert may seem far-fetched, but it is gaining some credibility thanks to the growing participation of large financial institutions, such as BlackRock (NYSE:BLK) and Franklin Templeton, in Bitcoin ETFs.The increased participation of the largest of the financial institutions is indicative of growing interest from both retail and whale investors, potentially pushing the value of BTC higher.Such significant growth, however, will definitely not happen in a flash and will require no small amount of time and patience. In any case, this is exactly what the historical trends on the crypto market testify to.This article was originally published on U.Today More