cryptocurrency market

Telos Launches Most Powerful EVM And Combats Insider Trading in Crypto Market

Many people were over-excited when the news about Ethereum 2.0 broke out. However, the upgraded system to the already existing Ethereum blockchain has not fixed issues associated with transactions, scalability, and sustainability.

Ethereum 2.0 has left a major common problem, “front-running,” which crypto investors are still facing. This problem continues causing the loss of thousands of dollars and other more losses.

Investors are now joyous with the news that Telos, a popular third-generation blockchain, announced its EMV, which is described as having the capability to solve the front-running problem and many more. Therefore, it is important to examine how Telos solves this problem and outperform other systems.

Telos EVM

Telos EVM (Ethereum Virtual Machine) is a compatible layer-one blockchain that offers a scalable solution to run existing solidity applications and vyper contracts without modifications.

Telos EVM was built to revolutionize the DeFi landscape and to fix problems faced by other EVMs. Each part of Telos appears to solve different problems commonly witnessed in other networks. Telos EVM just functions like Ethereum but is different from the original EVM. The platform was developed to host a number of large programs from other networks without modifying anything.

Tackling Front-running Problem

Ethereum miners mainly use front-running to improve their spread while entering options and futures contracts.

However, front-running is a common problem in the crypto industry. This problem causes millions of dollars to drain in trading, and many users lose millions of dollars even without knowing.

The front-running problem occurs when bots or miners with insider knowledge about pending trades make a profit from it. Bots could offer a high gas fee to jump lines over high-value transactions, and even miners take bribes or insert their own transactions to get transactions directly.

The involved person can skip lines, complete transactions, and even differentiate between his purchase and sell price as profit. While the attacker is the only one making a profit from this, other general users do not benefit.

Telos solves this problem by having a strict anti-front running rule and a fixed transaction fee. This prevents any possibility for attackers to exploit users. At every second, Telos creates two blocks with a fixed gas fee on EVM transactions. Since EVM is fast, bots have no chance to scan pools for high trades. Moreover, Telos offers rules in that nobody can break these rules. Telos offers transaction processing on a FIFO basis (first-in, first-out); hence block producers cannot reorder any transactions to gain high profits.

Fixing Transaction Issues

Another important area where Telos is seen solving a significant problem – the transaction fee concern.

Telos has advanced features such as cost-efficient transactions, fast block times, and fair distribution that significantly benefit developers.

While only a few platforms can boast of offering low transaction fees, native Telos has no fee at all. Telos EVM, which uses the similar gas model used by the original Ethereum, costs $0.01. Telos EVM helps people save thousands of dollars since Ethereum’s gas fees are relatively high. With that in mind, Telos outperforms its competitors such as Cardano, Polkadot, and others and beats the original Ethereum down.

The time it takes to mine one block varies typically based on the chain and particular variables. There are various blockchains in the market with a high market cap, such as Ethereum, Cardano, Polkadot, and Tezos. And all these cryptocurrencies have a prominent position on the market.

Ethereum is popular and considered the king of decentralized apps. It has scalability problems and typically takes 10 – 15 seconds to mine one block. Polkadot has not yet launched the Parachains upgrade, allowing individual sidechains to hook on the main blockchain. On the other hand, Cardano recently launched smart contracts. Tezos most projects are still in development, but it can lend well to DeFi and NFTs.

Though such blockchains still boast of offering faster transactions, they still cannot rival Telos EVM. The time which Telos EVM takes to mine one block is less than 500ms. Such a fantastic time block means that Telos can handle 10,000 transactions per second. Telos, therefore, fixes the gap seen in the problem associated with transaction speed.

Harnessing Interoperability

Telos is considered the greenest blockchain due to its low energy consumption levels. It also provides a home to several dApps on its network.

Telos EVM makes it easy for developers to bring existing applications to the Telos blockchain. It is compatible with Vyper, EOSIO C++, and Solidity, providing a new experience for migrating users. The compatibility rate of Telos EVM with other apps is 95% and therefore makes migration much more accessible. With EOSIO, developers can migrate applications from the EOS blockchain to Telos, and for maximum performance, coders will be able to deploy Ethereum DApps on Eosio.

Apart from that, Telos recently announced partnerships with Anyswap, SushiSwap, and a popular NFT project, Cryptopunks. So, users on such platforms can take advantage of Telos EVM’s security, speed, and scalability with trading their crypto coins.

Telos Gains Popularity

Telos’s functionality to migrate applications from EOS blockchain has gained attention from big brands such Siemens, Zalando, Cisco, and Microsoft. These are just part of the big brand’s names using Telos blockchain to unlock real-world activities and build applications. A powerful hackathon platform known as Taikai uses Telos for open innovation events in the next generation. Telos uses a combination of the best of various ecosystems and successfully other benefits on top.

Telos, with its powerful enhancements, solves the weaknesses that other blockchains cannot solve. It will evolve governance solutions, provide network scalability, flexible and low fee models, and no front-running. Telos has become the web 3.0 stack and provides entrepreneurs and developers tools to succeed in the next-generation decentralized internet economy.

BRC-20 Tokens Surge in Popularity as Traders Flock to Bitcoin's Latest Token Standard

BRC-20 tokens, the newest token standard on the Bitcoin blockchain, have gained significant traction in the cryptocurrency market. With the total market capitalization of BRC-20 Bitcoin tokens surpassing $1 billion and a trading volume of $207.7 million in the past 24 hours, BRC-20 tokens like ORDI, NALS, VMPX, PEPE, and MEME have emerged as some of the most notable tokens deployed on the Bitcoin blockchain.

Unlike traditional fungible tokens, BRC-20 tokens employ Ordinals and Inscriptions to manage token contracts, token minting, and token transfers on the Bitcoin base chain. This novel approach allows users to create unique digital assets on the Bitcoin blockchain, adding a layer of data to each satoshi, the smallest unit of Bitcoin.

Despite the criticism from the creator of BRC-20 tokens, who openly stated that the standard is “worthless,” traders and investors have been flocking to the token standard due to its potential for innovation and growth. The popularity of BRC-20 tokens has led to a surge in trading volume, with notable tokens like ORDI, NALS, VMPX, PEPE, and MEME experiencing price variance of between +11% and -55% within the past day.

As the adoption of BRC-20 tokens continues to grow, it remains to be seen how this new standard will fare in the highly competitive and rapidly evolving cryptocurrency market. Nonetheless, the development of the BRC-20 token standard highlights the potential of the Bitcoin blockchain to support new and innovative financial instruments beyond its traditional role as a store of value. With the surge in popularity of BRC-20 tokens, it is clear that traders and investors are eager to embrace Bitcoin’s latest token standard and reap the benefits it has to offer.

SEC Delays Decision on Spot Bitcoin ETFs Due to U.S. Government Shutdown Concerns

The Securities and Exchange Commission (SEC) of the United States has recently announced the postponement of its decision regarding several proposals for spot Bitcoin exchange-traded funds (ETFs). This decision impacts applications from well-known entities such as BlackRock, Invesco, Bitwise, and Valkyrie, as stated in separate filings made on September 28.

The surprise delay, which came two weeks earlier than the anticipated deadline between October 16–19, has left many applicants puzzled. Analysts, including James Seyffart from Bloomberg ETFs, suggest that the applications submitted by Fidelity, VanEck, and WisdomTree might face similar delays.

The timing of these delays is directly linked to the looming shutdown of the United States government, expected to commence on October 1 or possibly even earlier, according to James Seyffart. This situation is poised to disrupt various federal agencies, including financial regulators.

This means we are expecting all #Bitcoin ETF’s squared in Magenta to get their Delay orders today or tomorrow. (these are early due to the govt shutdown)

The SEC’s decision to postpone a significant number of spot Bitcoin ETF applicants was initially made at the end of August, just as the first deadline was approaching. Market participants now await the SEC’s decision, which is expected no later than the middle of March.

The Securities and Exchange Commission’s decision to postpone the evaluation of spot Bitcoin ETF applications has sent ripples through the cryptocurrency and financial markets. These ETFs are highly anticipated by both institutional and retail investors, as they would provide a regulated and accessible way to invest in Bitcoin.

The delay, however, is not merely a bureaucratic decision. It is rooted in the practical concerns of the potential U.S. government shutdown. This shutdown, if it occurs, could disrupt the normal functioning of various federal agencies, including the SEC. As a result, the SEC has opted to defer its decisions on these crucial ETF applications to ensure that they are made under stable and secure conditions.

The news of the SEC’s decision has had a mixed impact on the cryptocurrency market. On one hand, it reflects the SEC’s cautious approach to approving Bitcoin-related financial products, which has been a consistent theme in recent years. On the other hand, market participants were hopeful that these ETFs would bring more institutional money into the cryptocurrency space, potentially driving up prices.

Investors in cryptocurrency-related assets, including Bitcoin, have been closely watching the ETF approval process. The delay has introduced uncertainty into the market, which often responds negatively to such uncertainties. Bitcoin’s price experienced a slight dip in response to the news, but the full extent of the market’s reaction remains to be seen.

The SEC’s decision to postpone the evaluation of spot Bitcoin ETFs due to concerns about a potential U.S. government shutdown has added another layer of complexity to the cryptocurrency regulatory landscape. While it is a temporary setback, it underscores the regulatory challenges that cryptocurrencies face as they continue to gain mainstream attention.

Market participants will closely monitor developments surrounding these ETF applications and the U.S. government’s funding situation. The decision expected by mid-March will provide clarity on whether these ETFs will finally become a reality. In the meantime, the cryptocurrency market will continue to evolve, with or without the ETFs, as it matures and adapts to changing regulatory dynamics.

How Bitcoin will react to US Government Shutdown

Amidst an imminent government shutdown due to Congress’s stalled federal appropriations bill for the fiscal year beginning October 1, 2023, the financial sector holds its breath. The potential shutdown’s ripple effects are poised to stretch beyond traditional markets, reaching into the cryptocurrency sphere, particularly Bitcoin, according to Greg Cipolaro, Global Head of Research at NYDIG.

Federal Shutdowns: An Emerging Norm

The occurrence of federal shutdowns is becoming less sporadic. Over the years, 10 instances have been recorded, with the most recent one in 2018 – 2019 lasting a record 35 days, costing the government an estimated $5 billion. It’s difficult to predict a shutdown’s duration, as it largely hinges on lawmakers’ negotiations. However, the increasing political polarization hints at a longer standoff this time around.

Credit Rating Agencies on High Alert

Moody’s, holding a AAA credit rating on the US, sounded the alarm on September 27, 2023, cautioning against adverse impacts of a shutdown. This echoes past sentiments, like the 2011 S&P downgrade amidst debt ceiling debates, spotlighting weakened US fiscal policymaking. The persisting discord among political factions continues to unsettle credit rating agencies, potentially foreshadowing broader financial market disruptions.

Bitcoin ETF Awaits SEC Green Light

A direct casualty of the possible shutdown is the delay in the Securities and Exchange Commission (SEC) approval for a spot Bitcoin ETF. The furlough would significantly trim down SEC’s staff from 4,604 to a mere 437, stalling critical financial product approvals. Notably, the SEC has already postponed decisions on most ETFs, anticipating a prolonged shutdown. The spotlight is on the iShares Bitcoin Trust from BlackRock, among others, awaiting SEC’s nod, which now hinges on the resumption of federal operations post-shutdown.

Law Enforcement and Financial Regulation: The Dual Impact

Two pivotal areas within the crypto realm stand to bear the brunt: law enforcement, chiefly the Department of Justice (DOJ), and financial regulation, predominantly the SEC. While the DOJ is slightly insulated with 84% of its 114,521 staff exempted from furloughs, SEC faces a more stark reality. The severely reduced staff could mean a longer wait for the crypto industry on crucial financial product approvals, particularly the Bitcoin ETF.

Market Reactions Amidst Uncertainty

Bitcoin nudged up by 1.9% over the week despite the ETF decision delay, possibly finding a silver lining in the US’s fiscal woes. Conversely, traditional hedges and markets felt the heat. Gold dipped by 2.9%, the S&P 500 by 1.3%, and the Nasdaq Composite by 0.2%. The bond market too saw a slump, while oil bucked the trend with a 2.3% rise, reflecting a mixed bag of market reactions as the shutdown looms.

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Bitcoin Miner Integrated Ventures Sees Decline in Annual Revenue Despite Higher BTC Production

Integrated Ventures Inc. (OTCQB: INTV) disclosed its yearly mining revenues amounting to $3,862,849 with a production of 162.71 bitcoins for the financial period ending on July 30, 2023, according to a press release on September 29, 2023. Despite the increased bitcoin production compared to 108.29 bitcoins in 2022, the company witnessed a revenue dip from $4,871,473. The decreased revenue against a higher bitcoin yield is primarily attributed to the faltering cryptocurrency market conditions during 2023, where the average dollar value of mined bitcoin plummeted to $23,740.44 from $44,986.17 in the preceding year.

Integrated Ventures’ financial highlight unveiled a net income loss of $25,459,967 for 2023, significantly up from the $688,003 net loss in 2022. The stark increase in net income loss was largely driven by expenses including a depreciation expense of $3,597,346, loss on disposition of mining equipment amounting to $1,197,522, impairment of mining equipment valued at $5,574,363, and a noteworthy annual stock compensation to management, valued at $15,247,500. Excluding these expenses, the annual income loss would stand at $458,736.

The gross loss for the year was reported at $6,297,476, primarily due to an uptick in depreciation expense which totaled $3,597,346. On excluding this expense, the annual gross profit would have been positioned at $1,162,733.

CEO Steve Rubakh acknowledged the challenging cryptocurrency milieu, marked by events like the FTX debacle, which impacted mining revenues. Despite these hurdles, the company managed to enhance bitcoin production without additional capital infusion.

Furthermore, the management is eyeing fintech sectors emphasizing liquidity, alongside AI/VR smart glasses/headsets. Due diligence is underway on two promising projects for potential strategic mergers or asset acquisitions to bolster shareholder value and revenue growth.

Integrated Ventures, a Technology Holdings Company, continues to focus on cryptocurrency mining among other tech-oriented domains. The company’s revenue streams presently encompass digital currency mining and hosting.

Long-term Dormant Ethereum ICO Participant Activates $3.2 Million Worth of ETH

A participant of the initial coin offering (ICO) for Ethereum has emerged from an 8.2-year hiatus, transferring their entire stash of 2,000 ETH, valued at $3.2 million, to four distinct addresses. This event occurred on October 21, 2023, as reported by Lookonchain via Twitter. The transaction showcases not only the price appreciation of Ethereum but also the potential market dynamics induced by long-term dormant cryptocurrency holdings transitioning to active status.

The participant acquired these 2,000 ETH during Ethereum’s genesis phase at an approximate total cost of $620, given the ICO price of approximately $0.31 per ETH. The tweet included a link to the Etherscan page showing the transactions from the address 0x6403d062549690c8e8b63eae41d6c109476e2588. The remarkable price appreciation highlights the enormous potential for early adopters in the cryptocurrency space, with the value of the assets skyrocketing from about $620 to $3.2 million over a span of 8.2 years.

Market Implications

The reactivation and transfer of assets from long-dormant cryptocurrency wallets to exchanges can evoke various reactions within the market and the cryptocurrency community. These transactions are often closely monitored and speculated upon, generating discussions and narratives that may impact market sentiment and price dynamics in the short term. Cryptocurrency exchanges may see an influx of ETH, which could potentially affect the asset’s price depending on the subsequent actions taken by the ICO participant

Large transfers from dormant addresses are sometimes perceived by the market as a prelude to selling, which could potentially put downward pressure on the price of the cryptocurrency involved. This concern may escalate especially in cases where a substantial amount of cryptocurrency is moved, potentially affecting market liquidity, more so if the cryptocurrency has a relatively smaller market cap.

Beyond the immediate market reactions, the reactivation of long-dormant wallets carries sentimental or symbolic significance. It highlights the patience and long-term vision of early adopters, reflecting the historical narrative of the cryptocurrency in question. Such events showcase real-world examples of significant asset appreciation over time, underscoring the potential rewards for long-term holders in the cryptocurrency ecosystem.

CFTC's Stern Warning to Crypto Exchanges Following Binance Case

As of late, the Commodity Futures Trading Commission (CFTC) has adopted a resolute position against Binance, which is the biggest cryptocurrency exchange in the world. As the former Chief Executive Officer of Binance, Changpeng Zhao (CZ) has resigned from his position after entering a guilty plea to charges that include violating anti-money laundering laws in the United States. Binance has agreed to pay penalties totaling more than $4.3 billion as part of a deal with the authorities in the United States. Among them is the personal contribution of fifty million dollars made by Zhao. This case exemplifies the dedication of the Commodity Futures Trading Commission (CFTC) to enforce trading restrictions in the United States, especially against firms that let consumers in the United States to trade unregistered bitcoin derivatives.

The Statement Released by Commissioner Caroline D. Pham

A statement was issued by CFTC Commissioner Caroline D. Pham that made it very apparent that the CFTC is unyielding in its pursuit of non-American corporations that violate trade laws in the United States. The comments that she made highlight the worldwide authority of the Commodity Futures Trading Commission (CFTC) as well as its desire to uphold market integrity, regardless of the geographical location of the businesses that are engaged. It is a major hint that the Commodity Futures Trading Commission (CFTC) intends to expand its regulatory reach abroad, guaranteeing compliance with laws that are in place in the United States.

The Influence on the Market for Cryptocurrencies

The steps that were taken against Binance serve as a lesson for other cryptocurrency exchanges that are active on a worldwide scale. The CFTC is ready to take serious legal action against any firm that fails to comply with the regulations governing trading in the United States, as this indicates. The regulatory environment for cryptocurrencies in the United States has undergone a substantial alteration as a result of this event, which is seen as a fundamental shift in the regulatory stance towards cryptocurrency exchanges. This position serves as a message to other platforms that operate in the United States marketplaces, indicating that compliance with rules imposed by the United States is vital and cannot be negotiated.

As a conclusion, the actions and remarks made by the Commodity Futures Trading Commission (CFTC), in particular those made by Commissioner Caroline D. Pham, highlight a heightened regulatory attention on cryptocurrency exchanges, particularly those that are operating outside of the United States. This new development demonstrates a significant change in the approach that is being taken toward regulation in the cryptocurrency market in the United States. It highlights the significance of complying with trade regulations in the United States for all organizations that are involved in the sector. Cryptocurrency exchanges throughout the world are being pushed to reevaluate and tighten their compliance practices in order to align themselves with legislation in the United States as the regulatory environment continues to grow.

German Crypto Firm USI Tech Founder Charged in $150 Million Fraud Scheme

Horst Jicha, the German founder of USI Tech, a crypto mining and digital-asset trading platform, faces severe legal consequences in the United States. Federal prosecutors in New York charged Jicha with orchestrating a fraudulent scheme that allegedly defrauded investors of approximately $150 million, according to DOJ official website. This case highlights the ongoing risks and regulatory scrutiny in the cryptocurrency sector.

Jicha, 64, has been accused of multiple crimes, including securities fraud, money laundering, and wire fraud. He was arrested on December 23, 2023, while attempting to vacation in Miami. This arrest marks a significant development in a saga that has been unfolding for several years.

In 2017, Jicha claimed USI Tech was the world’s first automated Bitcoin trading platform, aiming to make crypto investments more accessible to retail investors. He aggressively marketed the platform in the United States, particularly in New York and Las Vegas. However, by March 2018, as authorities began their investigation, Jicha abruptly shut down the USI online platform. This action blocked withdrawals of about $150 million worth of investor-owned crypto assets, which remain unaccounted for.

The FBI’s involvement underscores the seriousness of the allegations. James Smith, head of the FBI’s New York office, stated that the platform was merely a facade and accused Jicha of fleeing the country with millions of investors’ money.

Jicha’s case, filed as US v Jicha, 23-CR-342 in the US District Court for the Eastern District of New York (Brooklyn), represents a stark reminder of the potential risks associated with unregulated investment platforms, particularly in the volatile cryptocurrency market. The case also underlines the increasing efforts by U.S. authorities to clamp down on fraudulent activities in the crypto space.

Jicha has pleaded not guilty to the charges and was released on a $5 million bond. His defense lawyers, Marissel Descalzo and David Tarras, have expressed their intention to defend Jicha vigorously, seeking to bring to light the facts of his involvement with USI Tech. They aim to distinguish Jicha’s actions from those of the actual “bad actors.”

This development in the crypto world is a critical reminder for investors to exercise caution and conduct thorough research before investing in digital assets. It also highlights the need for improved regulatory frameworks to protect investors and maintain the integrity of the crypto market.