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Bithumb Korea Reports Operational Losses Due to Declining Crypto Trading Volume

According to decenter, Bithumb Korea, the company behind the virtual asset exchange Bithumb, has reported a significant operational loss in the second quarter of 2023. According to the electronic disclosure system operated by the Financial Supervisory Service on August 16, Bithumb Korea recorded an operational loss of KRW 3.442 billion in the second quarter. This is in stark contrast to the profit of KRW 38.42 billion that was witnessed during the same time period the previous year.

Earnings for the corporation as a whole also went down, decreasing by 60% yearly to a total of KRW 31.993 billion. The net loss for the time was KRW 8.583 billion, which is much less than the loss of KRW 43.3 billion that occurred during the previous year.

Analysts attribute Bithumb’s deteriorating performance to the decrease in virtual asset trading volume, leading to a decline in fee-based income. The first quarter saw a bullish trend in virtual asset prices, but by the second quarter, prices stagnated below the $30,000 mark, causing a dampening of investor sentiment. While there were brief rebounds due to positive news such as major US asset managers applying for Bitcoin (BTC) ETF listings and Ripple (XRP) securing legal victories, these did not translate into sustained growth.

In response to the declining trading volumes, Bithumb has initiated a no-fee event for select virtual assets in a bid to boost activity. Currently, the exchange is not charging fees for transactions involving assets like Solana (SOL), Ethereum Classic (ETC), and Sandbox (SAND) among 30 other virtual assets. Bithumb stated, “The goal is to lower the barrier of entry for investors and increase new inflows to ensure liquidity. This no-fee zone event is the beginning, and we plan to introduce more proactive and diverse services.”

Bithumb Korea, established in 2014, has become a prominent virtual asset exchange on the global stage. With its deep expertise in virtual asset trading and blockchain technology, Bithumb is poised to shape the future of digital financing platforms worldwide. As per Coinmarketcap, Bithumb currently ranks 13th in terms of spot trading volume.

Binance Adds DOGE, XRP, SOL to FDUSD with Zero Maker Fees

Key Takeaways:

Binance adds five new trading pairs, including DOGE/FDUSD and SOL/FDUSD.

Zero maker fees on FDUSD trading pairs until further notice.

TRY is specified as a fiat currency, not to be confused with digital currencies.

Leading cryptocurrency exchange Binance announced today the addition of five new trading pairs, effective September 7, 2023, at 08:00 UTC. The new pairs include DOGE/FDUSD, SOL/FDUSD, TOMO/TRY, UNFI/TRY, and XRP/FDUSD.

New Trading Pairs

The introduction of these new trading pairs is a significant move for Binance, as it broadens the range of assets that can be traded on the platform. DOGE/FDUSD and SOL/FDUSD are particularly noteworthy, given the increasing popularity of Dogecoin (DOGE) and Solana (SOL) in the crypto market.

Zero Maker Fees on FDUSD Pairs

In a move likely aimed at encouraging trading activity, Binance has also announced that users will enjoy zero maker fees on FDUSD trading pairs “until further notice.” This could potentially increase liquidity and trading volumes for the newly introduced FDUSD pairs.

TRY as Fiat Currency

The announcement also clarified that TRY, which is part of the TOMO/TRY and UNFI/TRY pairs, is a fiat currency and “does not represent any other digital currencies.” This clarification is crucial for traders who might otherwise confuse TRY with a digital asset.

Implications for Traders

The addition of these new trading pairs and the zero maker fee policy could attract more traders to the Binance platform, especially those interested in diversifying their portfolios with DOGE, SOL, TOMO, UNFI, and XRP. However, traders should be aware that the zero maker fee is a temporary measure and should keep an eye out for any updates from Binance regarding this policy.

Zero Fees and Crypto Price

Zero fees are a common business strategy to boost liquidity. Both Binance and other cryptocurrency exchanges have employed this ‘zero fee’ approach. As reported by Blockchain.news on May 18, 2023, Coinbase announced significant updates to its premium membership service, Coinbase One. Notably, the platform will now offer zero trading fees and enhanced staking rewards to its members.

However, it’s important to note that an increase in liquidity does not necessarily translate to a rise in price.

Solana Gum Protocol Shuts Down

The Gum protocol on Solana ecosystem announced its shutdown today. The team behind Gum and its associated product, Wordcel, cited challenging market conditions and difficulties in generating revenue as the primary reasons for the decision.

Gum initially gained traction after winning the Web3 track of the 2022 Solana Riptide Hackathon. Launched in February 2022, Wordcel, the team’s first project, had garnered a healthy user base during its beta phase. The protocol aimed to serve as the foundational layer for consumer decentralized applications (dApps) on Solana (SOL) and web3 platforms.

Despite the initial success and community support, Gum faced challenges.

Like many other projects, we too have been affected by the challenging market conditions and negative industry events in recent times,

the team stated in their official announcement. These market conditions led the team to reevaluate their future direction, particularly concerning the adoption of their Session Keys toolset.

Data points to consider include the project’s start date in February 2022, the announcement of its shutdown on September 6, 2023, and its key products, Wordcel and Session Keys. The project also won the Solana Riptide Hackathon in 2022.

The team has made efforts to simplify the migration process for existing users. All software, from frontend to indexers and on-chain programs, will be open-sourced. The Magicblock team will maintain the open-sourced Session Keys protocol going forward. The Wordcel app hosted on wordcelclub.com will be taken down on or before October 1, 2023. Users can migrate to a self-hosted version of the Wordcel frontend.

The shutdown of Gum raises questions about the sustainability of protocol-layer projects in the Solana ecosystem, particularly those that struggle with revenue generation. However, the team remains “bullish on the future of consumer dApps on Solana,” indicating that while this chapter may be closing, the story of consumer dApps on Solana is far from over.

The shutdown of Gum serves as a cautionary tale for emerging projects in the volatile crypto market. While the team’s work will continue to exist in an open-source format, the challenges they faced highlight the difficulties of transitioning from a community-supported project to a sustainable business.

Solana Announces Hyperdrive Hackathon

Solana, a leading blockchain platform, unveiled its latest initiative, Hyperdrive, in a series of tweets on September 6, 2023. The event is described as an engineering and business competition where teams can transform an idea into a fully operational project within a span of five weeks.

Key Highlights

Grand Prize & Speciality Prizes: Solana has partnered with various entities for specialty prizes in categories such as Mobile Apps by MagicEden, Finance/Payments by Helio Pay, AI by UXD Protocol, DePIN by ionet official, Crypto Infrastructure by Ironforge Cloud, Gaming by Phantom, and DAOs/Network States by Balajis & The Network State.

Resources & Support: For participants seeking guidance, Solana has provided a range of resources available on its official website, along with FAQs and a dedicated Discord channel.

Past Success: According to Solana, their previous hackathons have garnered over 48,000 participants, led to the creation of more than 3,000 eco products, and attracted over $600 million in venture funding for winners.

Physical Locations: In addition to the online format, Solana is also facilitating in-person collaborations through Solana Hacker Houses in Bengaluru and Mumbai.

Eligibility: The competition is open to participants who are of the age of majority in their state or country of residence. No purchase is necessary to enter or win.

Third-Party Perspective

While Solana’s Hyperdrive aims to foster innovation in the crypto space, it’s worth noting that the competition is one among many in a crowded field of blockchain initiatives. The event does, however, offer a structured platform for developers and entrepreneurs to bring their ideas to fruition, backed by a blockchain that has previously demonstrated its ability to attract significant venture capital.

SEO Metrics

As of the latest data, the keyword “Solana Hyperdrive” is yet to gain significant search volume. However, related terms like “Solana Hackathon” and “Solana Competition” have shown consistent interest over the past year, indicating a potential uptick in searches as the event progresses.

Conclusion

Hyperdrive presents an opportunity for both novice and experienced developers to engage with Solana’s ecosystem. With a history of successful hackathons and a variety of specialty prizes, the competition could serve as a launchpad for the next wave of crypto innovations.

FTX's Top 10 Crypto Holdings Revealed: SOL, Bitcoin, Ethereum, XRP, APT Lead the Pack

Sunil, recognized as the FTX Creditor Champion and a leading FTX Creditor Activist, has meticulously unveiled the digital asset holdings and customer claims associated with FTX. This includes its prominent entities FTX.com, FTX.US, and Alameda.

As of August 24, Sunil’s detailed report indicates that FTX has registered a staggering 36,075 customer claims. These claims cumulatively amount to a total of $16 billion. This data not only provides a transparent insight into the vast financial implications but also underscores the expansive scale of operations overseen by the platform. For stakeholders and the crypto community at large, such revelations are crucial in understanding the financial health and operational robustness of platforms like FTX.

Diving deeper into the digital asset landscape of FTX, Sunil’s findings highlight that the top 10 digital assets held by the platform account for a dominant 72% of its total crypto holdings. Leading this list is Solana (SOL), with a valuation hovering around $1.2 billion. Following closely are Bitcoin (BTC) and Ethereum (ETH), valued at $560 million and $192 million, respectively. The list further includes significant assets such as APT, USDT, XRP, BIT, STG, WBTC, and WETH. Their respective values oscillate between $1.37 billion and a modest $37 million.

In a broader perspective, FTX’s disclosed crypto assets aggregate to a value of approximately $3.4 billion. The top 10 cryptocurrencies, as detailed by Sunil, constitute 72% of FTX’s total crypto holdings. Interestingly, the remaining 28% is distributed among a vast array of over 400 other tokens. This distribution showcases FTX’s diversified approach to digital asset investment, ensuring a balance between mainstream cryptocurrencies and potential high-growth tokens.

Sunil’s report also sheds light on FTX’s venture portfolio, another significant aspect of the platform’s financial endeavors. The portfolio comprises a whopping 438 investments, totaling an impressive $4.5 billion. Out of these, investments worth $673 million have been monetized, yielding a return of $588 million. This monetization includes notable entities such as Modulo, Mysten Labs, and the renowned Sequoia. The residual portfolio, valued at $3.8 billion, is categorized with equity investments forming 73%, limited partnerships (LP) at 4%, and tokens at a significant 13%.

Such disclosures by Sunil are not just numbers on a page. They represent FTX’s strategic financial decisions, its risk appetite, and its vision for the future in the ever-evolving cryptocurrency domain. For investors, traders, and the global crypto community, these insights offer a clear window into FTX’s operational strategies and its position in the global cryptocurrency market.

In conclusion, Sunil’s meticulous unveiling of FTX’s digital asset holdings and customer claims underscores the platform’s significant footprint in the global cryptocurrency arena. It also emphasizes the importance of transparency and detailed reporting in fostering trust and confidence among stakeholders in the digital asset ecosystem.

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Bitcoin and Ethereum Bounce 3% After Liquidating Over $160 Million

Coinglass Data Reveals Major Liquidations

In the past 24 hours, Coinglass data shows that the crypto network liquidated a staggering $167 million. Out of this, long positions accounted for $150 million. Bitcoin faced liquidations surpassing $77 million, while Ethereum saw over $33 million in liquidations. XRP and SOL followed with liquidations of $4.58 million and $3.44 million, respectively.

FTX’s Asset Sale Sends Shockwaves

Market jitters intensified with the revelation that FTX plans to offload its crypto holdings. As reported by Blockchain.News, FTX’s disclosed crypto assets are valued at roughly $3.4 billion. The top 10 digital assets on the platform make up a dominant 72% of its total crypto holdings. Solana (SOL) leads the pack with a valuation of around $1.2 billion. Bitcoin (BTC) and Ethereum (ETH) trail with values of $560 million and $192 million, respectively. Other notable assets include APT, USDT, XRP, BIT, STG, WBTC, and WETH.

Week Sees Massive Token Unlocks

This week is marked by significant token unlocks. On September 11 at 08:00 (UTC), Moonbeam released 9.7 million GLMR tokens, worth about $1.74 million, or 1.34% of its circulating supply. Aptos will follow on September 12 at 08:00, unlocking 4.54 million APT tokens valued at roughly $23.85 million, representing nearly 2% of its supply. Lido will release 1.5 million LDO tokens on September 13 at 11:33, valued at about $2.22 million or 0.17% of its supply. Euler plans to release 150,000 EUL tokens on September 14 at 07:17, worth around $400,000 or 0.83% of its supply. Flow will unlock 7.29 million FLOW tokens on September 16 at 08:00, valued at approximately $3.09 million, or 0.70% of its supply. Lastly, ApeCoin is set to release a massive 40.6 million APE tokens on September 17 at 08:00, with an estimated value of $51.6 million, making up a significant 11.02% of its circulating supply.

Hot Cryptocurrency Lows

Several hot cryptocurrencies hit record lows. ARB touched an all-time low, while PEPE saw its lowest since being listed on Binance. Shiba Inu’s (SHIB) price has dropped even lower than its lowest point during the summer of Shibarium.

Bitcoin and Ethereum Rebound by Over 3% Following Recent Dip

In the wake of prevailing news and a bearish sentiment, Bitcoin’s price dropped to $24,900. This marked a value even lower than its August 17, 2023, level when Bitcoin suffered a 7% decline. This downturn resulted in over $160 million being liquidated. However, following the dip, a bullish RSI divergence was observed, prompting Bitcoin to swiftly rebound by more than 3%.

ChatGPT Predicts Solana SOL Price Could Reach $30 Again by the End of 2023

We leveraged our partner’s ChatGPT and AI machine learning technologies to predict Solana’s future, identifying potential trends for its native SOL token. At present, SOL is trading at less than a tenth of its all-time high of $260, suggesting it may be both oversold and undervalued. This stands in contrast to other major cryptocurrencies like Bitcoin, Ethereum, Ripple (XRP), BNB, and LINK, which are trading at levels exceeding 1/10 of their respective record highs. To arrive at this prediction, we employed a multi-faceted approach that includes on-chain analysis, an examination of regulatory challenges, and an assessment of Solana’s core advantages.

Regulatory Hurdles and Market Dynamics

In June 2023, the U.S. Securities and Exchange Commission (SEC) charged both Coinbase and Binance, along with Binance CEO Zhao Changpeng. The SEC identified 13 crypto tokens as securities, including Solana (SOL), Binance’s BNB token, the exchange’s stablecoin BUSD, Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos Hub (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI). This development has added another layer of complexity to the regulatory landscape surrounding cryptocurrencies, including Solana.

Although Ripple’s XRP, another token classified as a security by the SEC, won a partial victory in July 2023, the implications for other tokens like Solana remain uncertain. The Ripple victory led to a 100% surge in XRP’s price, but the long-term impact of this legal outcome is still unclear.

At the time of writing, Solana (SOL) was trading at $19.4. The cryptocurrency experienced a 30% price surge on July 13, following Ripple (XRP) securing a partial legal victory against the SEC. However, the rally was short-lived, raising questions about the asset’s long-term stability.

For Solana, its founders have expressed concerns about the SEC’s classification of SOL as a security but have not taken any legal action against the claims. The SEC’s judgment implies that all tokens defined as securities can hardly be traded or used within the jurisdiction of the United States.

Solana’s Position in the Market

Solana is a blockchain platform designed to facilitate decentralized finance (DeFi) and decentralized app (DApp) creation. Founded in 2020 by Anatoly Yakovenko, the platform is headquartered in Geneva, Switzerland. Solana employs a unique hybrid consensus model, combining proof-of-history (PoH) with proof-of-stake (PoS), aiming to offer both scalability and security. With a total supply of 489 million SOL tokens, approximately 260 million are currently in circulation. The platform has garnered attention for its focus on scalability and its potential to make DeFi accessible on a larger scale.

Solana has been touted as an “Ethereum killer,” a term that has both intrigued and concerned investors. The platform’s high throughput and low transaction costs make it a formidable competitor to Ethereum. Even Ethereum’s founder, Vitalik Buterin, has shown admiration for the Solana protocol.

Solana excels in the NFT market, attracting numerous projects that issue their NFTs on its platform due to its superior performance and cost-effectiveness. Capable of processing 65,000 transactions per second, Solana offers significantly lower fees compared to Ethereum. This positions Solana as a strong contender to potentially replace Ethereum in the NFT space.

Oversold and Undervalued Compared to Market Peers

Solana’s SOL token is currently trading at less than 1/10 of its record high of $260, signaling that it may be oversold and undervalued, especially when compared to other popular cryptocurrencies like Bitcoin, Ethereum, Ripple (XRP), BNB, and LINK, which are trading at prices higher than 1/10 of their respective record highs. This significant price discrepancy could indicate a potential upside for Solana, especially given its strong performance metrics and growing prominence in the NFT market. Investors may view this as an opportunity for entry, considering Solana’s technological advantages and its potential to challenge Ethereum in the NFT space.

ChatGPT’s Take on Solana

ChatGPT, a conversational AI developed by OpenAI, was queried about Solana’s future prospects. While the chatbot is not a financial advisor, it provided some insights based on the given on-chain metrics and market data. According to ChatGPT, Solana could potentially reach a price of $30 in 2023. The chatbot cited the platform’s fast transaction speeds and low fees as contributing factors to its optimistic outlook.

Conclusion

While ChatGPT’s prediction offers a somewhat optimistic outlook for Solana, it is essential for investors to conduct their own research. AI-generated insights can be valuable but should not replace professional financial advice. The crypto market is highly volatile, and external factors like regulatory actions can significantly influence an asset’s price.

Solana Co-founder Labels Ethereum 'Bourgeois Digital Tyranny

In a fiery discourse on Twitter between 1st and 2nd October 2023, Anatoly Yakovenko, co-founder of Solana Labs, robustly defended the accessibility and inclusivity of the Solana network, engaging in a series of tweets that delved into the philosophies underpinning various blockchain platforms.

Network Accessibility Debate

The debate ignited with a tweet from user @jebus911 on 1st October, drawing parallels between Solana (native token SOL) and the Democratic Party, criticizing both for purportedly lacking an understanding of value creation and harboring a desire for cheap solutions. In a retort, Yakovenko elucidated his stance later that day, juxtaposing Ethereum against Solana and critiquing Ethereum for representing what he termed as “bourgeois digital tyranny.” He advocated for a “stateless digital dominion” where the cost of state creation is negligible, heralding a truly decentralized network.

Criticism of Solana’s Node Operation Costs

The discussion intensified on 2nd October when user @RuzhyoX spotlighted the high costs associated with running nodes or validators on the Solana network, suggesting it inadvertently favors corporate entities over individual participants. Yakovenko rebutted, positing that anyone capable of building from source possesses the requisite skill set for a tech job, which would render running a node affordable. This exchange catalyzed further deliberations among the crypto community on Twitter.

Community Reactions

The debate wasn’t devoid of humor, with @AceofSolana querying if Yakovenko’s eloquent defense was generated by ChatGPT, prompting a whimsical response from Yakovenko, “If you have to ask, ngmi” (an acronym for “not gonna make it”).

Comparing Ethereum and Solana

Ethereum and Solana, both notable in the blockchain arena, exhibit diverging technical and philosophical ideologies. Ethereum, a foundational platform, is pivotal to the Decentralized Finance (DeFi) and Non-Fungible Token (NFT) spheres, albeit grappling with scalability and transaction fee hurdles. In contrast, Solana, renowned for its high throughput and economical transaction fees, harnesses a distinctive Proof of History (PoH) and Proof of Stake (PoS) consensus mechanism, targeting scalable solutions for a myriad of applications without forsaking decentralization.

Their smart contract frameworks, albeit similar, diverge in consensus models for transaction validation, reflecting their distinct approaches toward harmonizing security, decentralization, and scalability, thereby offering a spectrum of choices for developers and enterprises in the blockchain ecosystem.