Welcome to Barmy’s Daily Crypto News – November 10th, 2022
1. Binance Drops the FTX Acquisition
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, they have decided that they will not pursue the potential acquisition of FTX.
Then Binance said that while it intended to assist FTX’s clients, “the problems are beyond their control or ability to assist.” The exchange added that regular investors suffer if a significant crypto company fails. They have observed that the cryptocurrency ecosystem is getting more robust over the past few years, and we think that in due course, outliers that abuse user funds will be eliminated by the free market.
The exchange finished by stating that “stronger regulatory frameworks” and “more decentralization” will help the ecosystem. As a result of the news, the value of crypto assets fell, and the market as a whole is on the verge of falling below $800 billion after falling 10.56% in the previous 24 hours.
2. Subway is testing out the Lightning Network layer-2 Bitcoin payments solution
Once more, Subway is accepting bitcoin, but this time it is doing it over the quick, almost-free Bitcoin Lightning Network. Three Subways in Berlin, the capital of Germany, are testing Bitcoin payments as part of the largest franchise in the world by number of locations. In Moscow, Russia, Subway conducted its first Bitcoin test over 13 years ago.
Owner of the Berlin Subway franchise Daniel Hinze has kept track of more than 120 Bitcoin transactions over the previous six months. Despite the efforts of traders, retailers, and even conferences with Lightning-enabled exchanges, Bitcoin is not a widely used medium of exchange in Europe. By providing a 10% discount on all footlongs, meatball marinaras, and suckers purchased with BTC, Hinze has promoted the use of the cryptocurrency.
When Bitcoin payments were originally accepted by Subway franchises in 2014, the experience was very different. This is not the case when paying with an LN. Customers would have to wait for a few minutes before to the LN’s arrival.
The following blockchain block would be created by miners, and Bitcoin nodes all across the world would confirm the transaction. Due to the wait durations and occasionally large costs, the procedure was difficult for retail payments. Due to a peer-to-peer payment network, the LN offers clients quicker settlement times than Visa or Mastercard and reduced fees.
3. MetaMask users can now bridge across multiple blockchain networks using MetaMask Bridges
ConsenSys, a provider of blockchain software technology, has added a new functionality to its MetaMask cryptocurrency wallet as part of its ongoing efforts to increase blockchain interoperability.
As of Nov. 9, MetaMask users can now connect to several blockchain networks with MetaMask Bridges, which collects many blockchain bridges in one location. Major Ethereum Virtual Machine (EVM)-compatible blockchains like Ethereum, Avalanche, BNB Smart Chain, and Polygon are supported by MetaMask Bridges. According to the company, the new tool enables the bridging of key stablecoins, native gas tokens, and both Ether and Wrapped Ether (WETH).
Users of MetaMask can now transfer tokens between blockchain networks without the need to look for and select a trustworthy bridge thanks to the new bridge feature. There are a ton of unique bridges available, each of which supports a different set of networks and tokens. In order to provide the user with the best recommendation for their particular path, MetaMask Bridges has selected the bridges that we believe to be the most secure and decentralized.
All MetaMask users can access the new bridge solution in beta through the Portfolio Dapp, a brand-new decentralized application (DApp) that enables users to view numerous MetaMask accounts and their assets in a single location. According to MetaMask, the Portfolio Dapp, which went live in beta in September 2022, now enables users to bridge between networks in a few simple clicks. MetaMask is not charging any additional fees during the beta period, and bridging is limited to $10,000 per transfer
4. Solana TVL drops 32.4% as news stemming from the collapse of FTX
With news of FTX’s demise reverberating throughout the cryptocurrency ecosystem, the total value locked (TVL) on the Solana chain has dropped 32.4% in the past day.
A far cry from its all-time high (ATH) of $10.17 billion on November 9, 2021, Solana’s TVL, as of the time of writing, had dropped to $423.68 million, down 32.4% in the previous 24 hours, according to DefiLlama. The reduction in TVL during the course of 24 hours reached as high as a 51.7% drop, however it has since marginally recovered as of the time of writing this piece.
With a decrease of 35.1% to $115.79 million over the past 24 hours, Marinade Finance, a Solana-based liquid staking mechanism, has experienced the largest TVL loss on the chain. Similar declines have been observed over the past 24 hours on several significant Solana protocols, including the liquid staking protocol Lido down 43.13%, the lending protocol Solend down 63.07%, and the automated market maker Raydium down 34.25%. In comparison to its rivals, the price of Solana’s token has decreased significantly as well, dropping 40.53% to $13.38 in the past day.
The token momentarily increased following reports that Binance could buy FTX, but it quickly fell as Binance withdrew from the agreement, citing claims of improper handling of customer funds and regulatory inquiries.
5. The BAYC founders want an NFT creator royalties model
The Bored Ape Yacht Club (BAYC) founder offered their opinion on the continuing nonfungible token (NFT) creator royalties discussion and suggested a potential course of action. The article was written in response to OpenSea’s Nov. 6. announcement that it would follow other NFT marketplaces on royalty enforcement.
According to Aronow, this indicates the company’s intention to “move with the rest of the herd and remove creator royalties for legacy collections from their platform,” and she believes this decision is “not great, bad, or indifferent.” In response, the creators of BAYC put up a proposal for NFT royalties that makes use of “allow lists” that are encoded in an NFT collections smart contract. This model permits NFT trading between conventional wallets, but only for “marketplaces that respect royalties.”
A simplified explanation of how this might operate stated that the first stage would be to determine whether the wallet making the transfer request is a conventional wallet or a smart contract.Requests for transfers are permitted in conventional wallets, but requests for transfers initiated by smart contracts are first compared to “an oracle of contracts that are known to respect royalties,” with the requests being authorized if a match is discovered.
The BAYC founders underline that this model must permit free wallet-to-wallet transfers in order to guarantee that one of the main advantages of NFTs – asset ownership — is recognized. Owners would then be able to transfer assets across wallets without paying any costs.
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