2023-11-14 16:22
The OKB token will be used for gas fees on the new chain, which comes as rival crypto exchanges including Coinbase and reportedly Kraken are pursuing their own layer-2 projects. OKX, the sixth largest cryptocurrency exchange, announced that it is coming out with a layer 2 network called “X1” using Polygon’s Chain Development Kit (CDK). X1, expected to go live in the first quarter of 2024, will make use of Polygon's zero-knowledge technology, a type of cryptography that's become one of 2023's hottest trends in blockchain. The announcement comes just as other major cryptocurrency exchanges have released or are pursuing their own layer 2 networks. Earlier this year, Coinbase rolled out its “Base” blockchain using Optimism’s OP Stack. Kraken is also reportedly looking into creating a layer 2 blockchain. Polygon’s CDK is currently in the mix for consideration for Kraken’s layer 2, according to people familiar with the matter, but Polygon Labs Chief Executive Officer Mark Boiron said he doesn’t think the announcement about X1 – the result of a major deal with a big exchange competitor – would scuttle its prospects. “If anything, frankly, it should be more attractive, including to exchanges,” Boiron told CoinDesk in an interview. “You can look at all these chains as being competitive, or you can look at them as kind of being one," Boiron said. "I fundamentally believe that if we can have the biggest ecosystem of chains that are all interoperable, then everyone that is part of that ecosystem is going to win.” With the X1 rollout, OKX engineers will become a core contributor to Polygon’s CDK, meaning that they will work on the project's codebase as it evolves. According to the announcement, OKX’s native token, OKB, will be used for gas fees on the blockchain. "X1 will be a key pillar of our efforts to educate and bring our users on-chain and into the world of Web3,” OKX Chief Innovation Officer Jason Lau said in a press release. “This scalable and accessible network is perfect for developers, who can build on X1 to deliver user-friendly, world-class consumer Web3 applications, all while maintaining interoperability with other networks and ecosystems.” https://www.coindesk.com/tech/2023/11/14/cryptocurrency-exchange-okx-coming-out-with-layer-2-x1-built-on-polygon-technology/
2023-11-14 15:22
The firm said it mined fewer coins due to a higher network difficulty, operational issues and the suspension of some operations. Bitcoin mining firm Hut 8 said its third-quarter net loss more than doubled and revenue fell 46% from a year earlier as it mined fewer coins due to a higher network difficulty, operational issues and the suspension of some operations. The Toronto-based company's loss widened to C$53.6 million ($39 million) from C$23.8 million, while sales slumped to C$17 million from $31.7 million in the year-earlier period, according to a statement on its website. The number of bitcoin mined in the quarter tumbled to 330 from 982. While some miners have posted better returns in 2023 as the BTC price has rallied this year, Hut 8 attributed the decline in part to issues encountered at its site in Drumheller, Alberta, where "high energy input levels ... have been causing miners to fail." Operations at the site are currently at only 27% the installed hash rate, Hut 8 said in its earnings statement. Hut 8 added that the Bitcoin network's mining difficulty, the suspension of operations at its North Bay, Ontario facility after a dispute with its energy provider and the Ethereum network's migration away from a proof-of-work to a proof-of-stake mechanism were also factors in the decrease in output. HUT Nasdaq-traded shares slid 8.4% to $1.86 at the time of writing. Read More: Bitcoin Miner Marathon to Custody Some of Its BTC With Fidelity Digital https://www.coindesk.com/business/2023/11/14/bitcoin-miner-hut-8-q3-net-loss-more-than-doubles-as-production-slumps/
2023-11-14 13:39
In addition to the headline inflation beat, core CPI declined last month. U.S. inflation data for October was better-than-hoped, with the headline Consumer Price Index (CPI) flat for the month versus economist forecasts for a rise of 0.1%. The core rate rose just 0.2%, beating expectations for 0.3%. Checking all the numbers, the CPI for October was unchanged versus economist forecasts for a rise of 0.1% and September's 0.4% gain. On a year-over-year basis, CPI was higher by 3.2% versus expectations for 3.3% and 3.7% in September. The core CPI – which strips out food and energy costs – rose 0.2% in October against forecasts for 0.3% and September's 0.3%. On a year-over-year basis, core CPI was higher by 4.0% versus 4.1% expected and 4.1% in September. The price of bitcoin (BTC) knee-jerked higher by nearly 1% in the minutes following the news to just shy of $36,700. While headline CPI inflation has been receding for months, it has stayed above the U.S. Federal Reserve's 2% target. In addition, the core rate had stubbornly remained above 4% for several months running. Fed members have hinted that they're interested in perhaps one more rate hike before finally ending what's now a roughly 20-month monetary tightening cycle. "This is good news folks," wrote Joseph Brusuelas, chief economist at RSM. He noted that core goods prices actually declined 0.2% in October. "Expect more disinflation moving forward especially as shelter costs ease into mid-2024," he added. Prior to this morning's report, traders were pricing in about an 86% chance the Fed would hold rates steady at its next meeting in mid-December, and there's roughly a 75% chance of a continued pause at the January meeting, according to the CME FedWatch Tool. Shortly after the data, the odds of a December pause rose to 99.5% and for a January pause to 95.6%. Traditional markets are flying following the good inflation news, with Nasdaq 100 futures gaining 1.9% and S&P 500 futures higher by 1.4%. The 10-year Treasury yield is lower by 16 basis points to 4.476%. https://www.coindesk.com/markets/2023/11/14/us-cpi-unexpectedly-flat-in-october-bitcoin-adds-nearly-1/
2023-11-14 11:20
BlockFi filed for bankruptcy in late November last year, in part because of the ripple effects of the sudden collapse of FTX, which triggered an automatic stay that halted proceedings between the two. A U.S. judge ordered the end of an automatic stay on proceedings between bankrupt crypto firms FTX and BlockFi, meaning the two can start negotiating a claims settlement. BlockFi, a lender, filed for bankruptcy in late November last year, in part because of the ripple effects of the sudden collapse of FTX earlier that month. That triggered the automatic stay, halting proceedings between the two. BlockFi had an estimated $355 million frozen on the crypto exchange's platform and was owed a further $671 million by FTX's sister company, Alameda Research. The stay has been modified to allow FTX debtors to make "arguments, defenses, counterclaims, setoffs, or otherwise ... with respect to the BlockFi claims in the FTX bankruptcy proceeding," according to a Nov. 13 court order by U.S. bankruptcy judge Michael Kaplan. Sam Bankman-Fried, the founder of the now bankrupt FTX, was found guilty on all seven counts of defrauding his customers and lenders at the start of this month following a five-week trial. BlockFi CEO Zac Prince testified against Bankman-Fried as part of the trial, detailing how the firm was forced to declare bankruptcy when it did because of its involvement with FTX and Alameda, having lost "a little over a billion dollars." In late September, BlockFi's creditors approved a bankruptcy restructuring plan that would, in theory, allow it to recover the assets lost to FTX as well as those it lost when crypto hedge fund Three Arrows Capital collapsed in the summer of 2022. Read More: FTX Relaunch Effort Includes Celsius Winner Proof Group, Sources Say https://www.coindesk.com/business/2023/11/14/ftx-can-start-mediation-file-counterclaims-in-blockfi-bankruptcy-case-judge-rules/
2023-11-14 10:48
MOON supply will be topped at 83 million tokens and moderators say they will continue to develop tools to help value accrual. Prices of MOON token, which is tied to the shuttered Community Points program of Reddit, more than doubled over the past 24 hours, as some moderators banded to revive the project and continue it independently. “We received a solid response and we are very excited to get started building the future of Moons together as a community,” u/CryptoMods, a shared moderator account, wrote early on Tuesday. MOON is the community token of the "r/cryptocurrency" subreddit. “The Reddit admins will be renouncing the Moons contract, and it is expected to be complete by the end of this month. This action is permanent and once complete it will be impossible for any further changes to be made to the contract,” they added. The moderators added that no new moon tokens will be created after the contract is migrated and renounced. Furthermore, Reddit admins will be burning all MOON held in a shared account called the “Community Tank,” which will lower the total supply from around 125 million to 83 million. MOON price rose 140% in the past 24 hours, data shows, with trading volumes crossing $2.4 million. The tokens are actively traded on the crypto exchange Kraken and the decentralized exchange SushiSwap. Meanwhile, u/CryptoMods said in the Tuesday post that they were planning a series of developments that could accrue value to MOON tokens in the coming months. The team also said it will continue to develop bots and use the available API, a tool for data transfers, to improve the utility of Moons. What Are Community Points? Community Points was a blockchain-based internet points program designed to reward creators and developers. The program allowed users to earn and spend community points through native tokens like MOON. Reddit shut down its roughly three-year-old blockchain-based Community Points program in early October, citing resources to maintain the effort were “too high to justify” and that an uncertain regulatory environment added to headwinds. In the 24 hours following that move, prices of Moons (MOON), the native token of Reddit’s r/CryptoCurrency community, fell some 85% on the news, Bricks’ (BRICK), distributed as a reward for contributions in the r/Fortnite subreddit, dropped 67%, and Donut (DONUT), the token that represents the community points of the r/ethtrader subreddit, slumped 65%. These communities are now making efforts to revive the tokens and operate them outside of Reddit’s overview - meaning the company will no longer be directly affiliated with any of these tokens nor contribute to their development. https://www.coindesk.com/markets/2023/11/14/reddit-token-moon-rockets-150-amid-hopes-of-revival/
2023-11-14 09:02
Spot ETFs are likely to lay the foundation for a more regulated market, with greater inclusion and a significant growth in demand, the report said. Spot bitcoin (BTC) exchange-traded-funds (ETFs), if approved in the U.S., will open cryptocurrency markets to new classes of investors, Coinbase (COIN) said in a report on Monday. These include registered investment advisers (RIAs), retirement funds and institutions that have historically not been able to access the asset class, Coinbase said. There's more to the story than just new money accessing the sector, however. "The opportunity is potentially much greater than just enabling new capital to access the crypto market," as ETFs "will ease the restrictions for large money managers and institutions to buy and hold bitcoin, which will improve liquidity and price discovery for all market participants," wrote David Duong, head of institutional research at Coinbase. Additionally, having an investment vehicle that meets "key regulatory and compliance requirements may also open the door to new products," which could multiply the existing crypto offerings for accredited investors and expand adoption, the note said. Over the longer term this could add billions to the total crypto market cap, the report said, adding that ETFs are expected to lay the foundation for a "more regulated environment, greater inclusion and a material growth in demand." Coinbase says the ETF story is bringing more focus to bitcoin at an opportune time, "as the world has fewer safe haven alternatives amid a backdrop of rising geopolitical tensions and increasing economic dysfunction." "The U.S. Treasury bond market has been shaken up and the U.S. banking sector remains highly vulnerable," which makes bitcoin all the more attractive heading into 2024 as an "alternative to the traditional financial system," the report added. https://www.coindesk.com/markets/2023/11/14/bitcoin-spot-etfs-will-introduce-crypto-to-broader-investor-base-coinbase/
