2024-11-02 16:44

Researchers Justin Drake and Drankrad Feist set off a controversy in May when they revealed that they'd accepted big token payouts from EigenLayer, raising conflict of interest concerns. Ethereum Foundation researchers Dankrad Feist and Justin Drake have resigned from their advisory roles at EigenLayer, months after a controversy erupted over potential conflicts of interest within the Ethereum community. EigenLayer is one of the most prominent up-and-coming cryptocurrency projects, serving as a platform for crypto applications to “borrow” Ethereum’s security through a novel concept called “restaking.” Drake and Feist are among the best-known researchers at the non-profit Ethereum Foundation, which is responsible for stewarding the development of Ethereum, the largest smart-contract blockchain and the second-largest overall behind Bitcoin. In the spring, Drake and Feist publicly confirmed that they had each accepted advisory roles with EigenLayer. Each researcher was allotted a significant sum of EIGEN tokens in exchange for helping guide the upcoming project and its roadmap. The controversy surrounding these payouts revealed deep divisions within the Ethereum community — and among some of its most prominent figures — regarding the industry’s still-developing norms concerning conflicts of interest. On Saturday, both of the researchers disclosed that they had relinquished their advisory roles with EigenLayer. “While I believe that the role was negotiated in good faith and with the aim of making sure that EigenLayer is well aligned with Ethereum,” Feist said in an X post, “I understand that the perception of this relationship has been different and that for many the conflict of interest this creates is difficult to reconcile with my role as an Ethereum researcher.” "I want to apologize to the Ethereum community and EF colleagues for the drama I caused," Drake said in his own X post announcing that he had stepped down from his EigenLayer advisorship in September. "In hindsight it was a bad move for me to make." In a message to CoinDesk, Drake clarified that his advisorship was terminated before any of his EIGEN tokens had been vested. The Ethereum Foundation regularly awards grants to projects building atop the Ethereum ecosystem and has a major stake in the network’s overall development. Some community members feared that EigenLayer’s payouts to foundation researchers amounted to an attempt by the project to influence the broader Ethereum network’s development roadmap. In addition to stepping down from his EigenLayer advisory role, Drake took the added step of committing not to make investments or take advisory roles in the future. “Going forward I will turn down all advisorships, angel investments, and security councils,” Drake said on X. “This personal policy goes above and beyond the recent EF-wide conflict of interest policy, not because that was asked of me but because I want to signal commitment to neutrality.” https://www.coindesk.com/tech/2024/11/02/ethereum-researchers-relinquish-eigenlayer-roles-over-conflict-of-interest-concerns/

2024-11-01 20:09

The U.S. Treasury Department issued a rule promising extra scrutiny for businesses near military sites, having already targeted a Chinese-backed crypto operation by a Wyoming missile base. After the U.S. president weighed in to put a stop to a China-tied crypto operation near a nuclear missile base, the Treasury Department has finalized a rule to tighten scrutiny on foreign property near military installations. The rule will give the U.S. government more authority to review real estate acquisitions like MineOne's bitcoin-mining effort in Wyoming. Foreign real estate deals near sensitive U.S. military bases will get more government scrutiny under a new rule from the U.S. Department of the Treasury that has emerged after President Joe Biden shut a China-tied crypto mining operation beside a Wyoming nuclear missile base earlier this year. That business, MineOne, was in the midst of being acquired by the U.S. firm CleanSpark (CLSK) when it ran afoul of the national-security concerns from the Committee on Foreign Investment in the United States (CFIUS). Read More: Biden Order to Halt China-Tied Bitcoin Mine Beside Nuke Base Came as U.S. Firm Just Bought it In May, Biden ordered the bitcoin mining facility near Warren Air Force Base to stop operations, citing a threat to national security as it uses foreign-sourced technology. MineOne, which the government noted acquired the property as a business majority-owned by Chinese nationals, set up shop within a mile of the military facility in Cheyenne, which houses Minuteman III intercontinental ballistic missiles (ICBMs). The new rule issued on Friday expands the government's authority to question foreign real-estate deals near a much longer list of military facilities than before. "This final rule will significantly increase the ability of CFIUS to thoroughly review real estate transactions near bases and will allow us to deter and stop foreign adversaries from threatening our Armed Forces, including through intelligence gathering," Secretary of the Treasury Janet Yellen said in a statement. https://www.coindesk.com/policy/2024/11/01/plan-a-crypto-mine-near-a-us-military-base-expect-a-bigger-hassle-now/

2024-11-01 19:14

The intensive energy usage of the Bitcoin network could tempt governments to ban mining due to environmental concerns. A new research paper indicates that could be a mistake, depending on the jurisdiction. Bitcoin mining is often criticized by environmentalists for its intensive energy usage. A new research paper shows that bitcoin mining bans can actually backfire because they push miners to seek new jurisdictions that rely on fossil fuels to power their grid. Bans in America and Europe would typically make things worse, while a ban in Kazakhstan would be positive in terms of emissions. Governments looking to ban bitcoin (BTC) mining for environmental reasons should think twice — it could backfire. That’s the conclusion from a new academic paper by crypto research firm Exponential Science, published on Thursday and titled ‘The Unintended Carbon Consequences of Bitcoin Mining Bans: A Paradox in Environmental Policy.’ The paper’s findings? In some jurisdictions, a blanket bitcoin mining ban can actually trigger an increase in the industry’s overall carbon emissions, as the affected miners may relocate to new regions with electric grids that rely on fossil fuels. "Bitcoin mining has seen a rough couple of years from a PR perspective, with respect to its environmental credentials,” Juan Ignacio Ibañez, one of the paper’s contributors, told CoinDesk. "Although it is true that proof of work mining is an energy-intensive activity, this does not directly translate into carbon emissions or environmental harm.” Indeed, it all depends on what the source of energy is. A coal-powered electric grid will obviously produce more carbon emissions than a hydro-powered one. And mining bans “can have the unfortunate effect of driving the industry away from green sources of energy, hence increasing the global emissions from the network," Ibañez said. It really depends on the region. According to the team’s model, a mining ban in Kazakhstan, for example, would reduce the Bitcoin network’s global annual carbon emissions by 7.63%. The same ban in Paraguay, however, would increase emissions by 4.32%. Overall, mining bans would be more effective, from an environmental perspective, in countries such as China, Russia, and Malaysia, with Kazakhstan taking the lead in that category. They will backfire, however, in most of the Americas and in Europe, with a special emphasis on Nordic countries and Canada. But even within the same nation, the situation may vary from region to region. In the U.S., for example, a mining ban in Kentucky or Georgia would likely have a positive impact in terms of emissions, while bans in New York, Texas, the state of Washington, and California would be detrimental. Interestingly, a similar dynamic is playing out in China. The Chinese government famously banned crypto mining in 2021, but mining models now agree that some Chinese miners, instead of relocating, simply went underground and continued to operate illegally. The result? The cessation of all mining activity in the province of Xinjiang could still result in a 6.9% reduction in global annual emissions, while a similar move in Sichuan would cause almost a 3.8% increase. “What this underscores is the importance of science-informed regulation,” Nikhil Vadgama, co-founder of Exponential Science, told CoinDesk. “Emerging technologies such as blockchain are complex systems, and thus regulatory interventions can produce a butterfly effect” — meaning policy decisions can have unintended, far-reaching consequences. For Ibañez, one of the takeaways of the research is that, as an increasing number of bitcoin mining operations come online, new jurisdictions will grow to have an outsized impact on the network’s total carbon emissions. “Currently, our model does not place a large effect on Sweden, but it's a safe bet to think that more and more miners may move there if conditions continue to be so favorable. Other countries such as Iceland and potentially Argentina could enter the radar soon," Ibañez said. https://www.coindesk.com/policy/2024/11/01/bitcoin-mining-bans-can-backfire-on-climate-conscious-governments-a-new-research-finds/

2024-11-01 12:35

The October employment numbers are among the last pieces of economic data that could factor into the elections and Fed policy meeting next week. Just days ahead of the U.S. presidential election and Federal Reserve policy meeting, the government reported a marked weakening in the labor market last month, though it is unclear to what extent storms in the Southeast affected the data. The U.S. added just 12,000 jobs in October, according to the Nonfarm Payrolls report, well shy of economist forecasts for 113,000. September's job gain of 254,000 was revised down to 223,000. October's unemployment rate was 4.1% versus 4.1% expected and 4.1% in September. In addition to September's downward revision, August's originally reported 159,000 job gain was revised lower to 78,000. Under pressure for the last day or so – perhaps thanks to the reduced chances of a victory next Tuesday for crypto-friendly Donald Trump – the price of bitcoin (BTC) was volatile, but still remaining in the $70,000 area in the minutes following the report. Bitcoin earlier in the week had rallied strongly, but was turned back from a challenge at a new record high above $73,700 on both Tuesday and Wednesday. The Bureau of Labor Statistics added a note to the report saying it was not possible to quantify the effect of the recent storms on the payroll data. Prior to Friday morning's data, market participants were overwhelmingly expecting the Fed to trim its benchmark fed funds rate another 25 basis points at its policy meeting next week. Checking other report details shows a bit more strength than the headline print. Average hourly earnings grew 0.4% in October, ahead of estimates for 0.3% and 0.3% in September. Average weekly hours of 34.3 were stronger than 34.2 expected and flat from the previous month. In traditional markets, U.S. stock index futures continue to hold modest gains following the data. The 10-year Treasury yield has dipped four basis points to 4.25% and the U.S. dollar has edged down 0.1%. The price of gold continues near a record high at $2,767 per ounce. https://www.coindesk.com/markets/2024/11/01/us-added-just-12k-jobs-in-october-far-short-of-113k-expected/

2024-11-01 12:14

The latest price moves in crypto markets in context for Nov. 1, 2024. Latest Prices CoinDesk 20 Index: 2,062.17 -3.66% Bitcoin (BTC): $70,079.42 -3.1% Ether (ETH): $2,519.63 -4.34% S&P 500: 5,705.45 -1.86% Gold: $2,752.82 +0.38% Nikkei 225: 38,053.67 -2.63% Top Stories Bitcoin pared some of its losses, returning to $70,000 during the European morning after falling as low as $68,800. Still, BTC remained about 3% lower in the last 24 hours. Altcoins suffered greater losses, with the CoinDesk 20 Index's measurement of the broader crypto market down over 3.5%. Explanations for the slide range from profit-taking following the rally earlier in the week to a dip in Donald Trump's election victory odds on Polymarket. Traders have also been looking at tech earnings, tensions between Iran and Israel and a sharp rise in U.K. gilt yields following the roll-out of the government budget earlier this week, Quinn Thompson, founder of crypto hedge fund Lekker Capital, told CoinDesk. Short-term holders of bitcoin sent more than $2.3 billion, some 32,000 BTC, to exchanges at a loss on Thursday as the price dropped below $70,000 after approaching an all-time high earlier this week. The panic selling was the most since Aug. 5's yen carry trade unwind. Short-term holders — investors who have held bitcoin for less than 155 days — tend to panic and sell when the price drops, and buy when there is euphoria or greed in the market. In total, they sent over 54,000 BTC to exchanges on Thursday, the highest amount since Mar. 27. The odds on Kamala Harris winning next week's U.S. presidential election are rising on betting platform Polymarket, with some observers suggesting the increase reflects hedging positions among traders who've also bet on a victory for Donald Trump. Harris’ odds have risen to almost 39% from 33% on Oct. 30. Trump's odds dropped in tandem, suggestive of lower expectations of him winning, though at 61%, he's still the preferred candidate. The increase in the price for Harris’ shares could reflect traders buying them as a hedge on their Trump bets, market observers say, as some allege reports of voting irregularities pitted against Trump that could influence market bets. Chart of the Day Ethereum futures funding rates are showing a slight upward trend, which may reflect renewed bullish sentiment. The funding rates metric measures the aggression of buyers versus sellers in the futures market. Despite the recent uptick, the levels remain way below those seen in March. "Higher funding rates would not only confirm participants’ willingness to go long on Ethereum but would also add upward pressure on the price, potentially leading to a stronger and more sustained rally," CryptoQuant wrote. Source: CryptoQuant - Jamie Crawley Trending Posts MicroStrategy Remains One of the Best Ways to Gain Exposure to Bitcoin Given Its Intelligent Leverage Strategy: Canaccord DeFi to Have ‘Walled Garden’ Moment as Internet of Money Matures: dYdX’s D’Haussy SEC Goes After Another Crypto Firm, Slaps Immutable With Wells Notice https://www.coindesk.com/markets/2024/11/01/first-mover-americas-bitcoin-pares-losses-following-thursdays-slump/

2024-11-01 12:00

Bridge acquired Triangle for an undisclosed amount. Triangle is being bought by stablecoin company Bridge, which itself is the target of a takeover by payments giant Stripe. Financial details of the transaction were not disclosed. Triangle founder, Tasti Zakarie, previously worked for Stripe. Triangle, a web3 wallet infrastructure platform founded by Stripe alumni Tasti Zakarie, has been acquired by stablecoin payments platform Bridge, the company said in a press release on Friday. As part of the deal, the Triangle team will join Bridge to help build scalable stablecoin systems, the company said. Financial details of the transaction were not disclosed. Bridge itself is a recent acquisition target. The stablecoin company is being bought by Stripe for $1.1 billion, in the largest crypto acquisition by a major payments company to date. "Triangle was inspired by Stripe in how easy they made it to accept payments in any application," Triangle founder and CEO Tasti Zakarie said in emailed comments. "Similarly, we made it easy to utilize digital assets in any application." The California-based company has built a developer API that allows companies to offer wallets to less tech savvy users and bring more users onchain. Triangle is backed by investors including Chamath Palihapitiya of Social Capital, Alchemy Ventures, DCG and WndrCo. https://www.coindesk.com/business/2024/11/01/stripes-11b-acquisition-target-bridge-buys-web3-wallet-platform-triangle/