Ripple launches a challenge to stablecoin titans! ⚔️
Ripple launches a challenge to stablecoin titans! ⚔️
Welcome to the Daily Tribune Friday, April 5, 2024 ☕️
Hello Cointribe! 🚀
Today is Friday, April 5, 2024, and like every day from Tuesday to Saturday, we summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Partially sunny 🌤️
24-hour crypto summary ! ⏱️
🚀 Bitcoin at $1.5 million: Cathie Wood believes!
In the financial arena, Cathie Wood, CEO of Ark Invest, stands out for her exceptional reputation forged through her boldness and ability to surpass conventions. Her conviction that Bitcoin will reach $1.5 million remains unshakeable, despite market turbulence.
However, Cathie Wood does not exclusively bet on Bitcoin. She favors diversifying her portfolio, including giants like Coinbase, Robinhood, and Block, in addition to launching three actively managed futures funds. This multidimensional strategy reflects her long-term vision for Bitcoin, seen as a marathon rather than a sprint. Although Wood's goals may seem ambitious, even unrealistic to some, they embody her forward-thinking perspective on the future of Bitcoin.
📈 Explosion of crypto billionaires: A 50% increase in one year
2024 marks a historic turning point with the significant expansion of the crypto billionaire club, which has grown from 9 to 17 members in just one year, an impressive increase fueled by the skyrocketing prices of digital assets. Among them, Changpeng Zhao, the former CEO of Binance, despite money laundering accusations, has seen his fortune rise to nearly $33 billion, more than triple compared to the previous year, firmly placing him at the top of this exclusive group. Other well-known entrepreneurs in the industry, such as Michael Saylor of MicroStrategy and Brian Armstrong of Coinbase, have also seen their fortunes soar, reaching $4.4 billion and $11.2 billion respectively.
In addition to established figures such as the Winklevoss twins and Jed McCaleb, Ripple co-founder, who continue to thrive, 2024 has also seen the arrival of new faces in the billionaire club, thanks to the rise of stablecoins and other crypto initiatives. Key Tether players, for example, have made a noticeable entry, joining seasoned investors like Tim Draper, whose fortune now approaches $2 billion. This rapid growth of the crypto elite testifies to the vitality and disruptive potential of the digital economy, despite criticism concerning its speculative nature.
💪 Ripple challenges stablecoin giants: A new competitor in the ring
Ripple, the company behind the famous XRP, is venturing into the stablecoin market, directly challenging the current leaders in the sector, Circle and Tether. Ripple's announcement to introduce a stablecoin backed by the US dollar shows its ambition to carve out a place in this ecosystem. Ripple's strategy includes introducing its stablecoin on both the XRP Ledger and the Ethereum blockchain. Although the name of this future stablecoin has not yet been revealed, the company emphasizes compliance and transparency to avoid the pitfalls encountered by its competitors, such as the transparency and trust issues that have recently tarnished USDC and USDT.
Inspired by Circle's model and USDC, Ripple plans to collateralize its stablecoin with US dollar deposits, short-term Treasury bills, and other liquid assets. Additionally, it is committed to providing monthly attestations by external auditors to reassure investors about its reserves. David Schwartz, Ripple's Chief Technical Officer, aware of the skepticism that this project may raise, remains confident in the company's ability to differentiate itself through its credibility, track record, and financial stability. Ripple aims to become a major player in the stablecoin market, even if it means positioning itself in third place in a rapidly expanding market.
🔄 Ethereum considers a new monetary policy:
The Ethereum Foundation is preparing to once again modify the monetary policy of its blockchain in response to the growing number of validators. The debate on monetary policy is intensifying with the upcoming Electra fork, where divergent voices are being raised within the Ethereum community. On one side, Vitalik Buterin proposes limiting the number of validators, while Mike Neuder, a researcher at the Ethereum Foundation, suggests reducing the issuance of new Ether allocated to validators. This proposition aims to adjust the rewards emission curve but is already facing resistance, with some community members fearing that it will erode trust in the Ethereum network and contradict the concept of \"Ultra Sound Money.\"
Ethereum's transition to Proof of Stake in 2022 changed the issuance model for ETH, with rewards now based on the total amount of ETH staked. This change led to an increase in the creation of new ETH based on the amount of ETH staked, raising concerns about inflation and network centralization. Criticisms also arise concerning the efficiency of the staking model, with reduced rewards for validators as the number of staked ETH increases, potentially leading to increased inflation and pressure on users. These discussions reflect the challenges Ethereum must face in maintaining a balance between network security, decentralization, and monetary stability.
The crypto of the day: Pendle (PENDLE)
Pendle presents itself as a major innovation in the cryptocurrency ecosystem, offering a unique platform for decentralized finance (DeFi). Its value proposition lies in the ability to tokenize and trade the future revenues of DeFi assets, allowing users to maximize the time value of their investments.
The native cryptocurrency, PENDLE, plays a central role in this ecosystem, facilitating transactions, governance, and serving as a cornerstone of its economic model. Primarily distributed through public sales and reward programs, PENDLE offers several advantages to its holders, such as voting rights on governance proposals and a share of the fees generated by the platform. Users can also stake their PENDLE tokens to secure the network and earn rewards, reinforcing community engagement and platform security.
Recent performance
Current price: €6.24
Percentage increase/decrease: +25.26% (1-day increase)
Market capitalization: €1,493,099,718
Rank on CoinMarketCap: #68
Crypto burn or the art of deflation
In the ever-evolving universe of cryptocurrency, the concept of token burn stands out as an intriguing strategy to manipulate the supply of a digital asset. But what exactly is a token burn, and why has this practice become a key element for blockchain project developers and investors? This text explores the mechanism behind token burn, its impact on the value of a cryptocurrency, and the different ways it is implemented throughout the industry.
The mechanism and utility of token burns
A token burn is a process by which cryptocurrency tokens are intentionally and irreversibly removed from circulation, thereby reducing the total available supply. This destruction is often accomplished by sending the tokens to a wallet address for which no one holds the private key, making these tokens forever inaccessible. Unlike literal destruction, burning is a figurative method of making tokens unusable, and acts as a deflationary strategy opposed to the issuance of new tokens. The motivations behind token burns may vary, but the main objective often remains to increase the scarcity of the asset and potentially its value, relying on the law of supply and demand.
Impact and notable examples
Token burns have been implemented by many projects, with diverse impacts on the market. For example, Ethereum's EIP-1559 update introduced a burn mechanism for a portion of transaction fees, reducing the supply of circulating ETH and aiming to stabilize transaction fees. Other projects, such as Binance with its BNB token, have adopted quarterly burn policies, using a portion of their profits to buy and burn BNB tokens in order to reduce the supply and increase the value of the token.
Token burns have become a commonly used tactic in the crypto space to manage the supply of a token and influence its perceived value among investors. Although the effectiveness of this strategy may vary from case to case, it continues to be an exciting topic of discussion for market participants.
