Bitcoin faces a major challenge, Binance makes a comeback 💡
Welcome to the Daily of Thursday, December 7, 2023 ☕️
Hello Cointribe! 🚀
Today is Thursday, December 7, 2023 and like every day from Tuesday to Saturday, we summarize the news of the past 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Sunny ☀️
24-hour crypto summary ! ⏱️
🚨 Bitcoin in crisis: The end of BRC20 tokens?
The Bitcoin network is experiencing an unprecedented period of congestion, exacerbated by a massive influx of transactions related to BRC20 tokens. This situation has led to a saturation of miners' memory, with nearly 300,000 pending transactions and a significant increase in transaction fees. Developers have identified a flaw in the Bitcoin Core code, allowing ordinals and BRC20 tokens to surpass the additional data size limits. Luke Dashjr, a prominent developer, has applied a patch to Bitcoin Knots, an alternative version of Bitcoin Core, to counter this exploit. This patch, planned to be integrated into version 27 of Bitcoin Core next year, could mean the end of ordinals and BRC20 tokens.
However, this solution is not unanimous. Shenyu, co-founder of f2pool, points out that developers cannot unilaterally impose changes in a decentralized network like Bitcoin. Many users and investors have shown enthusiasm for the possibilities offered by BRC20 tokens. Despite this, Luke Dashjr maintains his criticisms, arguing that the damage caused to Bitcoin users is considerable.
The proposed patch could limit innovation in tokens and ordinals, but it may be necessary to preserve the basic functionality of Bitcoin.
💰 Binance makes a strong move: $500,000 airdrop and compensations
Binance, the world leader in cryptocurrency exchanges, announces a spectacular $500,000 airdrop in cryptocurrencies, intended for about one million users. This initiative comes after Binance incurred significant losses, including a $4.3 billion fine imposed by the U.S. Department of the Treasury and the Ministry of Justice. As part of this airdrop, users will be able to receive cryptocurrencies ranging from 1$SHIB to 1BTC by making a swap via Binance Web3 Wallet. This offer, valid until December 31, requires the use of Binance Web3 Wallet, a recently announced wallet by the company, which promises increased security and the ability to trade thousands of assets on over 30 networks.
At the same time, Binance has also announced a compensation plan for AEUR traders, a stablecoin recently introduced on its platform and which experienced a depeg from the euro. Following an unexpected rise in its price when it was introduced on the spot market, Binance is offering a compensation plan for AEUR holders, under certain conditions. This initiative aims to correct the AEUR depeg issue and restore user confidence. Richard Teng's team, the new CEO of Binance, is actively working to restore the company's image after these events.
Binance's initiative to organize a massive airdrop and compensate AEUR users is a strategic move to strengthen customer loyalty and improve its brand image in a context of increased competition and regulatory challenges.
📈 Bitcoin approaches $44,000: Speculative fever returns
Bitcoin is experiencing a spectacular rise, almost reaching $44,000, a level close to its historical record set a year ago. This increase is mainly fueled by growing interest from professional investors, notably evidenced by the explosion of futures contract volumes on the Chicago Mercantile Exchange (CME). In one month, open interest in Bitcoin has jumped from $3.63 billion to $5.20 billion, a 43% increase. This trend is reminiscent of the bull run in 2021, where open interest tripled in three weeks, accompanying a surge in Bitcoin's price from $45,000 to $68,000.
However, the current situation presents contradictory signals. Although speculative appetite for Bitcoin seems to be returning, it is difficult to determine the exact positioning of investors in derivative markets. In late November, "large players" at CME were mostly positioned for a decline. The evolution of their positioning remains uncertain. According to Tony Sycamore, specialist at IG Australia, an extremely long market could indicate a sharp reversal in prices. In addition, the current rally in Bitcoin seems to be linked to macroeconomic developments, notably the prospect of monetary easing by the Fed in 2023. The CME has even surpassed Binance in terms of open interest, a sign of the increasing adoption of Bitcoin by traditional financial institutions. Despite uncertainties, Bitcoin continues its ascent, suggesting a continuation of the bullish trend.
The integration of conventional financial tools into the crypto space could lead to increased speculation and volatility, and potentially deviate Bitcoin from its original ideal of a decentralized and stable currency.
🌐 Coinbase revolutionizes crypto payments on social networks
Coinbase, a global leader in cryptocurrency exchanges, has just launched a groundbreaking feature for its decentralized wallet, allowing cryptocurrency transfers via links on social networks. This innovation aims to simplify crypto transactions, allowing users to create direct links from their crypto wallet and share them on various platforms such as WhatsApp, iMessage, Telegram, Facebook, Snapchat, TikTok, and Instagram. Users can even share these links via email, making it easy to transfer assets, including USDC, without needing to download multiple applications.
This new feature of Coinbase Wallet, available in over 170 countries and supporting 20 languages, eliminates traditional fees associated with international transfers. Beneficiaries can easily claim their crypto assets by clicking on the shared link, avoiding delays and costs often associated with cross-border transactions. This innovation removes the need to manage complex banking information, offering users a seamless, fast, and cost-saving crypto payment experience. With this upgrade, Coinbase positions itself as an unrivaled international transfer solution, promising a revolutionary user experience in the field of crypto payments.
Coinbase's launch of crypto payments via social networks marks an important step in the mainstream adoption of cryptocurrencies. By simplifying the transfer of digital assets, Coinbase extends the accessibility of cryptocurrencies beyond traditional circles of investors and tech-savvy users, thus fostering a broader integration of cryptocurrencies into everyday life.
Crypto of the day: ORDI (ORDI)
The ORDI crypto is part of the Bitcoin ecosystem, bringing significant innovation through the Ordinals protocol. This protocol allows for information to be written on each Satoshi (the smallest unit of Bitcoin), including text, images, audio, and video. This inscription capacity, although limited by the size of Bitcoin blocks, opens up new possibilities for the use of Bitcoin, particularly by allowing for the creation of NFTs and tokens without the need for a separate token, a side chain, or modification of Bitcoin itself.
The added value of ORDI lies in its ability to enhance the Bitcoin ecosystem with features that go beyond financial transactions, thus offering a new dimension of blockchain Bitcoin usage.
Recent Performances
Current price: €51.38
Percentage increase/decrease: 8.33% (1-day increase)
Market cap: €1,078,967,325
Rank on CoinMarketCap: #55
Please note that this information is provided for informational purposes only and does not constitute investment advice. Always do your own research before making a financial decision.
Real World Asset Tokens (RWAT): A new era for tangible assets
Real World Asset Tokens (RWAT) are revolutionizing the world of cryptocurrencies by bridging the gap between real-world physical assets and blockchain technology. These digital tokens transform tangible or intangible assets into digital assets on a blockchain, opening up new avenues for investment and asset management.
What is the tokenization of real-world assets?
Tokenization is the process of converting the rights to a real-world asset into a digital token on a blockchain. This can include real estate, artwork, precious metals, company stocks, or even financial contracts. The benefits of this approach are numerous: greater liquidity, increased transparency, reduced transaction costs, and accessibility to assets that would otherwise be inaccessible to many investors.
Concrete examples of RWAT
Real estate: Companies like RealT and Brickmark tokenize real estate assets, allowing investors to buy stakes in properties in the form of tokens. This makes real estate investment more accessible and divisible.
Artwork: Platforms like Maecenas enable artwork tokenization, offering investors the opportunity to buy shares in famous artworks, making art investment more affordable and diversified.
Precious metals: Tokens like PAX Gold (PAXG) represent a specific quantity of physical gold, providing a digital alternative to traditional gold investment, with the flexibility and liquidity of cryptocurrencies.
Performances and potential
RWAT tokens offer considerable potential to democratize access to investments in expensive assets and diversify investment portfolios. They also allow for asset fractionalization, making investment in expensive assets more affordable for small-scale investors. However, they also present challenges, including regulation, asset valuation, and managing the relationship between the physical asset and its digital representation.
Real World Asset Tokens are at the forefront of innovation in the cryptocurrency space, offering exciting opportunities for the future of investment and asset management. As the market continues to mature, these tokens could play a key role in merging the traditional financial world with the digital realm.