dash - Pwim.Net

Dash NEXT: Fostering Crypto Adoption in Asian Tourism

Felix Mago is the CEO of Dash Thailand, and has been working in the blockchain space since 2014 and one of the driving forces of cryptocurrency adoption in Thailand. He is the author of the “Bitcoin Handbook” and the co-founder of the Dash Embassy Thailand as well as the co-founder of Futerio, a southeast Asia based gateway to blockchain, ICOs, and OTC brokerage.

We first met Felix Mago in Block Live Asia in April. After an interesting conversation. we realized that Dash’s adoption was far beyond from what we’ve seen in Venezuela. Mago also revealed the 4 key strategies of Dash Thailand in government collaboration, millennials engagement, remittance market and upcoming scalability milestone.

We were delighted to meet Mago again at Next Block Asia in Bangkok, where he shared with us the recipe for Dash’s global expansion: the Dash NEXT and more updates from Dash Thailand.

On and off-ramp for Dash/Thai Baht

One of the topics we discussed with Mago in our previous interview was the rapid changes in financial regulations being established in the Thai market which has now led to more options, such as the ability to trade Dash versus Thai Baht. Mago said, “Prior to these new regulations, one of the limitations we had been consistently coming up against was that many of our onboard merchants didn’t really want to hold cryptocurrency because of the risks in volatility, indicating to us that Thai merchants needed easier on-ramping and off-ramping to leverage Dash.” He explained, “With the changes in regulation, we are able to bring a new group of customers to local services whether they be laundry, hospitality or financial, really anything. The money paid by customers could be in crypto but it will be converted and appear in the merchant’s bank accounts as Thai Baht, which has eased most merchants’ concerns.”

Mago and his team have been primarily working on implementing Dash cryptocurrency in Thailand from two angles—the user activation side and the merchant adoption side. Mago illustrated, “We have had a mixed strategy from the beginning. The first step was actually establishing the ecosystem from the ground up as no crypto-payment system existed in Thailand. We ultimately want people to be able to come to Bangkok and be able to rely solely on crypto for purchases and secondly, we would like every merchant to have the capacity to exchange in cryptocurrency as well.” Converting every merchant to cryptocurrency was never a really scalable solution and Mago expressed that they would need to partner with the big industry players. Being in Thailand, it was obvious to Mago which industry should be tapped into first, he said, “Our first focus was to partner with a major player from the tourism industry and POS (Point-of-Sale) systems. Once a crypto been adopted by a POS systems you have access to over 10,000 merchants at once which will foster further adoption.” Dash NEXT: Fostering crypto adoption in Asia and beyond

After successfully establishing a Dash merchant network in Thailand the team created Dash NEXT with multiple global integrations and exchange listings.While Mago is very proud of his work with Dash Thailand, he and his team quickly became aware of the limitations that the name inspired when speaking with potential business partners. He explained, “The reality is that many of these partners are not just local to Thailand and do business throughout Asia and indeed globally. When creating partnerships, you must offer a value proposition and the value we were bringing often got lost in our name.”

To combat the perception, Dash NEXT is being established as the brand name for the company’s global business partnerships arm. Mago commented, “The fact is that our team is the only company for Dash cryptocurrency business development in Asia, we are the people on the ground, attending the events and establishing the network. We are doing business in Asia for Asia and in the global ecosystem.” He added, “For example, if we onboard a travel platform who is based or registered as a company in Singapore, we are more than happy to partner with them. And through the partnership, we can provide the whole world with a service for booking hotels in USA, in Australia, in Japan or in Singapore. It really won’t matter where, all that matters is that the hotels have a business connection with us.” Dash NEXT has onboarded two hotel platforms XcelTrip and Hotelier Mart in September 2019, gaining access to over 1.5 million hotels and 400+ airlines worldwide.

The sky appears to be the limit for the expansion of Dash throughout Asia, however, each country presents its own unique standards of fiscal compliance. Once again, Mago believes the solutions is having the right partners. Mago said, “You need to make partnerships, such as the example of POS systems which gives us access to 10,000 merchants across the region. We have just signed a partnership with a company called WisePass which is a multi-merchant service that offers you rewards in the form of points when you spend using the Wise Pass Card. These points can be used for discounts or special offers with Wise Pass merchants. They are based in Singapore but they also provide services to Vietnam and Thailand. We have also partnered with Blucon.io to launch 2 million Dash branded debit cards and public transport cards in Korea, which are linkable with Digifinex and other crypto exchanges in the future. So to summarize, our strategy is to find partners who are localized but who also have an international network in their business model.”

(From left to right) Sascha Jochum of Dash NEXT, Matthew Lam of Blockchain.News and Felix Mago of Dash NEXT

Dash Investment Foundation

The Dash Investment Foundation is a very new initiative at Dash and at the time of this interview, they had only recently voted to establish their board of governors.

Speaking to the initiative, Mago said, “Basically 10% of all our generated revenue is invested back into the Dash core and this is done by all teams around the world. Besides this, there has always been a discussion about investing in companies to enhance the speed of crypto adoption, or to fund companies that are doing new and interesting things that we would like to be a part of.” He continued, “We wanted to avoid just giving money which they would use to eventually do their own thing away from Dash. We wanted to build in a type of equity, where the companies would promote Dash through some type of leveraging of our technology and perhaps bring us in as shareholders. In return we would essentially loan them capital for investment or for scaling and to launch their business.”

Credits to Sascha Jochum for his support of this interview.

Amun AG: What are the Top Valuation Approaches for Altcoins?

We continue to explore the top Bitcoin valuation approaches stated in Part 1, which include NVT, NVRV, NVHR, Cost of Mining and Active Address method. In addition, we also looked at the field of altcoin valuation, including Ethereum, top privacy and payment coins.

Bitcoin Valuation

NVT/NVRV Ratio Method

The Network-Value-to-Transaction Ratio (NVT) measures the dollar value of on-chain transaction activity of a given crypto asset network relative to its Network Value. Its formula is as follows:

In the NVT approach, network value refers to all circulating units of a given crypto asset, which is similar to market capitalization of the stock. Value of on-chain transaction activity refers to the dollar value of transactions settled on the crypto asset’s blockchain. However, NVT is a lagging indicator and it cannot properly account for Bitcoin’s usefulness as a store of value.

The Network-value-to-Realized value (NVRV) measures the crypto asset’s realized value relative to its network value. Its formula is as follows:

Q1: What is the limitation of NVT ratio which can be addressed by the NVRV ratio?

A1: One limitation of the NVT ratio is that it tends to be a lagging indicator for Bitcoin’s price — Bitcoin’s NVT tends to reach a local maximum of six to nine months. After Bitcoin reaches its price peak. As such, it can be useful in ascertaining for a fact whether a bull or bear market had occurred but has little predictive power. Interestingly, the NVRV ratio seems to have a good amount of ability to predict the local minimum within a bear market — the point at which the market has bottomed out, for example in January 2019 — as these are typically periods where NVRV hits to below 1.

Q2: For NVRV ratio, it sounds very complicating to gather the information for Realized value, as it relates to the UTXO for the given Bitcoin was last spent. What measures can be taken to facilitate the gathering of such information?

A2: CoinMetrics is a great source for daily data on the NVRV metric for various UTXO-based coins. It would also be possible to write a simple script in SQL in one has a set-up that allows them to query blockchain data through a relational database — something like Google Bigquery. Data gathering for blockchains has never been easier!

Q3: For NVRV ratio, when are the high time preferences and low time preferences in 2019?

A3: According to woobull.com, Bitcoin’s NVRV peaked at 2.22 in late June 2019 and was at its low of 0.812 in January 2019. The higher the NVRV the more reason there is to suggest that the current’s market dynamic is being driven by those with high-time preferences — this is during price run-ups as we experienced in Q2 2019 — comparably, the periods where Bitcoin’s NVRV dropped below 1 signal that investors with high-time preferences no longer held significant positions of Bitcoin.

Cost of Mining

The Cost of Mining method assumes that the price of Bitcoin should be valued off the total cost of mining. The method also states that with the assumption of a competitive market, miners will produce until their marginal costs equal to their marginal product. The formula of Cost of Mining is as follows:

Source: Amun AG

Q4: Why does the result of the cost of mining method have a large deviation against other valuation approaches? Is it related to some of the key assumptions made?

A4: As mentioned earlier, the cost of mining is inherently problematic due to the endogeneity of difficulty variable — this explains why there is a large deviation against the other valuation approaches.

NVHR

The Network value to hash rate (NVHR) method measures the dollar value of crypto asset’s mining power or hash rate measured in terahashes per second (TH/s), relative to its Network Value. Its formula is as follows:

As defined in the Amun AG’s report, the network hash rate refers to the amount of computational power being used by Bitcoin miners to mine on the Bitcoin blockchain to help maintain Bitcoin’s economic security.

Q5: Is NVHR a valid valuation approach for cases such as hash war during the Bitcoin Cash hard fork?

A5: To some extent, yes. It can be argued that a decider of which crypto asset can be considered to be the ‘legitimate’ is the one that garners the most hash power following a fork— a variable which would show in the calculation of Bitcoin and Bitcoin Cash’s NVHR metric. However, it’s important to note that hash power isn’t the only way consensus is reached on which crypto asset post-fork can be considered the ‘legitimate one’; factors like community sentiment and infrastructural support are also major determinants.

Active Address Method

The active addresses method measures the number of individual Bitcoin addresses to transact or receive Bitcoin during a given time period. There are two ratios of this approach: Network value to Metcalfe’s Law (NVML) and Network value to Odlyzko’s Law (NVOL) and their formulas are as follows:

Source: Amun AG

Q6: What are the key differences between NVML and NVOL?

A6: The key difference between NVML and NVOL is the relationship that each ratio describes between the number of users within a network and the network’s value. NVML uses Metcalfe’s law which argues that a network’s value is proportional to the square of the network’s users; whilst NVOL uses Odlyzko’s law which states that a network’s value is proportional to the natural logarithm of a network’s users multiplied by the network’s users. As such, Odlyzko’s law models a network effect of adding new users as having diminishing returns as the network becomes larger and larger.

Valuation on Ethereum and other cryptocurrencies

Apart from Bitcoin, Lanre also shares with us some of the possible methodologies in valuing Ethereum, top privacy coins and payment coins like XRP.

Q7: Is relative valuation applicable to measure public blockchain protocols such as Ethereum, EOS and Cardano? What are the parameters?

A7: Many of the relative valuation metrics used in this report such as NVT, NVHR, and NVRV can be used for inter-crypto comparisons for assets such as Ether, EOS, and Cardano.

Q8: Do you have any appropriate valuation approaches in mind for privacy coins like Monero, Dash?

A8: One interesting metric that could be used to better understand the valuation for privacy coins would be the proportion of transactions on the network which are entirely private (in Zcash’s case, for example, the proportion of transactions that go from z-address to z-address). However, privacy coins share many similarities with an asset like Bitcoin from a valuation perspective and therefore can be valued in a similar way.

Q9: For valuation in Ripple and Stellar Lumens, do you think the remittance market will be the best comparable?

A9: Potentially, given that one of the ostensible use cases of XRP and Stellar is as a means to facilitate cross country payments like remittances. However, the question is over how exactly the crypto asset is involved in this process, that fact would determine whether the crypto assets can be used in the remittance market as a comparable.

Nigerians Set to Enjoy Remittances at 1% Cost Through the Strategic Partnership Between Dash And Bitfxt

There has been a strategic partnership between Dash and Bitfxt, a cryptocurrency exchange based in Nigeria, to allow Nigerians to enjoy remittances at a lower cost.

According to the report, this partnership is meant to ensure that Nigeria’s crypto-enthusiasts enjoy remittances at a very affordable rate. While Dash is deemed as a leading digital asset for remittances and international payments with secure, fast and affordable transactions, Bitfxt aims to bring more liquidity to the Nigerian crypto market. The recent development indicates that the team has decided to bridge the gap in remittances for Nigerians through the use of Dash at a 1% cost.

Since it has been identified that sending remittances to Nigeria through the use of gift cards on Paxful is very expensive, as high as 30%, Dash and Bitfxt have come together to minimize such excessive cost. Through this establishment, for volumes of $200 and above remittances, the recipient will receive Dash and can then convert to Naira at the cost of 1% while the conversion rate for volumes of remittances below $200 will be at 2%.

According to the report, in 2018 diaspora remittances to Nigeria were more than oil earnings. It went further to note that a PwC report estimated that diaspora remittances to Nigeria were in the region of $25 billion which represented 6.1% of GDP. This, in turn, represented a 14% increase from the 2017 estimate of $22 billion.

The report held that Nathaniel Luz, the Lead of Dash Nigeria, said, “This move is clearly in tune with the motive of Dash as a digital currency that is meant to always be at the disposal of people with respect to international payments and remittances.”

In the same vein, Franklin Odoemenam, Bitfxt CEO, shared this partnership is indeed the vision of Bitfxt as the leading crypto infrastructure company in Africa which is aimed to connect Africa to the world. For Odoemenam, this partnership is meant to grant access to cryptocurrency for thousands of new people which will give them a better alternative of remitting money and experience. He added, “There’s no other way to grow adoption than the daily use of crypto and that is what this partnership does, opening up thousands of new people to crypto for better money remitting experience.”

Luz believed that the necessity of Dash for developing economies like Nigeria cannot be overemphasized, as there is the issue of high fees from the existing financial infrastructures.

Image via Shutterstock

Chainalysis Adds Compliance Support to Track Privacy Coins Dash and Zcash

Chainalysis has just launched support for two of the most popular privacy coins, Dash and Zcash. Privacy coins are cryptocurrencies with privacy-enhancing features that allow users to gain total anonymity when making blockchain transactions.

Privacy coins protect the identity of the users and the origins of the transactions, taking the anonymous and private nature of Bitcoin to the next level. Comparatively, Bitcoin protects some information, hence remaining pseudo-anonymous. The rest of the information, including transactions, addresses, and balances, is recorded in a public and permanently available ledger.

With around 63 different privacy coins in the cryptocurrency market, each project tries to offer the best approach to privacy, however, five projects overshadow the rest. These include Monero, Dash, Zcash, Verge, and Bitcoin Private.

Although privacy coins are known to be used for illicit purposes, research by the RAND corporation mentioned that 0.2 percent of all the cryptocurrency addresses mentioned on the dark web was either for Dash or Zcash.

Dash

Dash is a fork of the original Bitcoin code, similar to many other altcoins. Launched in 2014, Dash is a combination of the words digital and cash and is considered the first-ever privacy coin in the crypto history.

Dash uses an anonymization strategy revolving around PrivateSend, which hides transactions by mixing them together as a single transaction, which is then added to the blockchain.

Although Dash is known for its privacy features, only 9 percent of all Dash transactions make use of mixing transactions related to PrivateSend. This portion of Dash transactions take up a relatively small and declining percentage of Dash transactions, according to Chainalysis.

Zcash

Zcash uses an anonymity tool called Zero-Knowledge Proof, which allows users to transact with each other without revealing addresses to anyone. These transactions on the Zcash network are verified, using zk-SNARKS, also known as Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.

Launched in 2016, Zcash (ZEC) also allows the encryption of blockchain activity, known as shielding, and Zcash provides this using shielded pools. Of the transactions that interact with a shielded pool, only 6 percent is completely shielded, and around 14 percent of all Zcash transactions involve shielded pools.

Chainalysis claims that it can provide the transaction value and at least one address for over 99 percent of ZEC activity.

Europol Cybercrime Report Identifies Monero, Zcash, Dash and Privacy Wallets as Emerging ‘Top Threats’

Europol assessed the new developments in cybercrime in relation to the COVID-19 pandemic and identified certain cryptocurrency wallets and dark web marketplaces as top threats.

Privacy coins increasingly used in crime

According to the report, privacy-enhancing wallets have emerged as a top threat, due to the rise in popularity of privacy coins. Privacy enhancing coins such as Monero, Zcash, and Dash were named in the assessment for increasingly being leveraged as payment methods on the dark web. Per Europol’s Internet Organised Crime Threat Assessment (IOCTA) report of 2020:

“Monero is gradually becoming the most established privacy coin for dark web transactions, followed by Zcash and Dash.”

Other altcoins that have gained more traction on dark web marketplaces include Ethereum and Litecoin, but the preferred payment method was still allocated to Bitcoin. This is mainly due to the mainstream cryptocurrency’s reputation and mass adoption, among other things.

Privacy-focused wallets and dark web networks

In addition to favouring hardware wallets for private key and crypto storage, cybercriminals have also increasingly relied on “privacy-enhanced wallet services using coinjoin concepts” and centralized mixers to launder and store their crypto funds. Coinjoin protocols typically operate by merging different transactions originating from non-related users into one transaction. In the Europol report, popular cryptocurrency wallets using this concept included the Wasabi and Samurai wallets. Although these wallets do not completely erase the trail of the transaction, it makes cryptocurrency tracing a lot harder.

As for the preferred dark web protocol, the Tor network remained the most popular choice among criminals. However, an increased interest directed towards decentralized privacy-focused platforms has been observed this year. The report stated:

“The emergence of decentralised privacy-oriented platforms is not a new phenomenon in the Darkweb ecosystem, but they have started to increase interest over the last year.”

Criminals have increasingly resorted to such platforms to sell illicit goods, with OpenBazaar leading the pact as a “high priority threat.” The network was said to have marketed its services through its mobile platform Haven, which has already been downloaded thousands of times on Android.

The Europol report echoes an assessment the agency released in June that indicated that $50 million in Bitcoin had been deposited in Wasabi wallets, with 30% originating from dark web markets.

Most crypto transactions are not related to cybercrime

However, according to data from Europol, although the level of cybercrime has significantly grown, “the legitimate use of cryptocurrencies grew at a much faster rate.”

According to the report, though cryptocurrencies have facilitated payments for all sorts of cybercrime, ranging from sextortion, ransomware, data theft, and even COVID-19 related scams this year, data assessing the year 2019 indicates that the percentage of cryptocurrency transactions linked to cybercrime still translates to only 1.1% of total transactions.

Privacy Coins Monero, Dash, and Zcash to be Delisted on Bittrex, Dash Unhappy with Decision

Bittrex will be removing privacy coins Monero, Dash, and Zcash from its trading platform soon.

The announcement explained that effective on January 15, 2021, Dash, Grin, Monero, and Zcash trading pairs will be removed from the platform. Although no further explanations have been given by the cryptocurrency exchange to justify the delisting, many have hypothesized that this may be a move to ensure that the trading platform is compliant with cryptocurrency regulations, such as know-your-customer (KYC) and anti-money laundering (AML) policies.

Bittrex may have opted to play on the safe side, with regulators increasingly seeking to investigate privacy coins and their involvement in cybercrime. Privacy coins have long been attractive to criminals for their ability to obfuscate transactions, the amount sent digitally, the wallet address, and the identity of both the sender and the receiver.

Dash bites back

Upon the announcement that Bittrex will delist it, Dash has however commented and claimed that its privacy coin was no more private than the biggest cryptocurrency by market cap, Bitcoin. Through its official account, Dash tweeted:

“From a technical standpoint, Dash’s privacy functionality is no greater than Bitcoin’s, making the label of ‘privacy coin’ a misnomer for Dash. We have reached out to @BittrexExchange to request a meeting with their compliance team. Hopefully this will be rectified soon.”

Crypto regulations in the US tightens

Bittrex’s decision to delist privacy coins comes at a time when the cryptocurrency industry has increasingly been scrutinized by lawmakers struggling to regulate such a budding and dynamic sector. The US Treasury Department has recently issued an announcement proposing new KYC guidelines for cryptocurrency transactions.

The Financial Crimes Enforcement Network (FinCEN) has suggested that unhosted wallets should be monitored and cryptocurrency transactions should be compliant with traditional AML laws for fiat.

Exchanges in the US may be looking to avoid sanctions, especially now, as a critical eye has increasingly been directed towards the crypto sector. Recently, the Securities and Exchange Commission made a bold move and slapped Ripple with a lawsuit for selling unregistered securities through XRP. The lawsuit was enough to make XRP’s price drastically plummet, sending the cryptocurrency’s market value down by more than 50%.

Victims of BitConnect Ponzi Scheme to Benefit from the Liquidation of $57M Crypto Assets

Tagged as the largest cryptocurrency scam on American soil, the BitConnect fraud scheme siphoned more than $2 billion from investors before going underground in January 2018.

Victims might feel relieved as the U.S. Attorney’s Office for the Southern District of California, and the U.S. Postal Investigative Service has been granted a court order to liquidate Bitconnect’s crypto proceeds.

The cryptocurrencies, including Bitcoin, Litecoin, Ethereum, and Dash, worth approximately $57 million, will be sold at current rates after being seized from Glenn Arcaro, a top American-based BitConnect promoter.

Arcaro pleaded guilty for his participation in the crypto fraud scheme, making BitConnect emerge as the biggest cryptocurrency scam to be ever charged criminally.

The Justice Department acknowledged that Arcaro is scheduled to be sentenced in January 2022 and faces imprisonment of up to 20 years.

The crypto scam never end

Crypto scams continue wreaking havoc as victims lose vast amounts of money. For instance, in 2020, a Romanian programmer confessed to helping create Bitclub Network, a Bitcoin mining Ponzi scheme that siphoned off funds valued at $722 million.

Moreover, Plus Token Ponzi scheme, a global pyramid network, was entrenched on Chinese soil and abroad. It caused a wide-ranging panic in June 2019, after some Korean and Chinese investors could not withdraw Bitcoin funds from their wallets, which was dismissed as a mere hacker attack.

Scammers have also devised ways to impersonate high-profile figures like Bill Gates and Elon Musk, as witnessed in the 2020 Twitter hack involving Bitcoin.

Nevertheless, the relevant authorities are cracking the whip in addressing the crypto scam issue, as evidenced by the liquidation of BitConnect’s crypto proceeds and the looming Arcaro’s incarceration.

Furthermore, the Australian Securities and Investments Commission (ASIC) raised the alarm and banned John Louis Anthony Biggatton, a former Australian BitConnect representative, from offering financial services for seven years.

Blockchain Intelligence Group Launches Data Evaluation Support for Dogecoin and Dash

Blockchain Intelligence Group “BIG” adds the Dash and Dogecoin cryptocurrencies to its ecosystem of data tools that can be tracked and risk assessed by exchanges, banks, and law enforcement.

Blockchain Intelligence Group currently supports 11 blockchains and over 372,000 ERC-20 tokens.

For the latest tokens which the company accept, Dash is a digital currency that enables anyone, anywhere in the world, to make quick, easy and cheap payments at any time without going through a central authority; Dogecoin is an altcoin cryptocurrency founded in 2013 based on the popular Doge meme and is one of the more colourful coins on the cryptocurrency spectrum.

Lance Morginn, President of Blockchain Intelligence Group, said that:

“Convenience is driving the adoption of crypto. Integrating Dash and Dogecoin adds to our world-class investigation and compliance analytics for blockchains.”

The Vancouver-based cryptocurrency compliance and real-time intelligence subsidiary of BIGG Digital Assets Inc. has developed a Blockchain search engine with data processing and big data analytics. BIG plans to provide its Blockchain search products to large enterprises with significant data requirements globally in the financial and eCommerce sectors.

Its blockchain data analytics product, QLUE™, visualizes digital transactions, allowing investigators and law enforcement to identify and track illegal activity quickly.

Another data toolkit called BitRank Verified® enables banks and corporations to quickly weed out low-risk transactions and investigate high-risk transactions through real-time transaction monitoring and risk scoring, supporting compliance and intelligence in the future of crypto.

SEC Lawsuits Target Multiple Tokens: DCG Founder Points Out Absence of PoW Cryptos

In an unfolding legal battle against two major cryptocurrency exchanges, Coinbase and Binance, the United States Securities and Exchange Commission (SEC) has declared various tokens as securities. These tokens include SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO in the case against Coinbase. For Binance, the list features SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.

This declaration by the SEC highlights its ongoing effort to regulate the cryptocurrency market and could have substantial implications for these tokens and their holders. If the SEC succeeds in classifying these tokens as securities, it would subject them to more stringent regulatory rules and obligations.

Barry Silbert, the founder of Digital Currency Group (DCG), commented on the situation via Twitter, noting, “No Proof of Work tokens in any of the lawsuits, I believe (BTC, LTC, XMR, ETC, ZEC, etc.).” Silbert’s tweet refers to the SEC’s decision to not include tokens that use Proof of Work (PoW) consensus mechanism in their lawsuits. This includes Bitcoin (BTC), Litecoin (LTC), Monero (XMR), Ethereum Classic (ETC), and Zcash (ZEC), among others.

The implication of Silbert’s statement suggests that the SEC might be differentiating between PoW tokens and other tokens. This differentiation could lead to different regulatory standards and implications for tokens depending on their underlying consensus mechanism.

This ongoing case and the SEC’s decisions could set a precedent for future regulations and classifications in the crypto market. As such, all eyes within the crypto community are keenly focused on the developments. It is yet to be seen how these decisions will shape the regulatory landscape of digital assets.