Daily Crypto, Finance and Tech News Summary – May 08, 2023

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Welcome, and thank you for being part of the MyZucoins community! Dive into our daily crypto, finance, and tech news summary to stay informed and engaged.

Long queue waiting to get into exchange

Binance Resumes withdrawals, paused twice in less than 12 hours

Binance, the largest digital asset exchange, has resumed Bitcoin withdrawals after two halts in less than 12 hours due to blockchain congestion. The company has applied higher fees to pending transactions to ensure Bitcoin miners pick them up. On May 7, Binance experienced its highest-ever net daily outflow of Bitcoin, with 175,646 tokens leaving the platform. Bitcoin’s value dropped by 3.1% following the suspensions, trading at around $28,230. This is not the first time Binance has halted trading of popular cryptocurrencies, happening here, here and here in the past year.

Following rival FTX’s collapse last year, Binance emerged as the dominant exchange in the sector, with trading volumes exceeding $6 billion in the past 24 hours. This figure is five times higher than that of the next nearest platform, OKX. (Founded in 2017, OKX is a Seychelles-registered cryptocurrency exchange)

The introduction of Ordinals, a protocol by Bitcoin developer Casey Rodarmor, enabled the minting of non-fungible tokens (NFTs) on the Bitcoin network for the first time. This resulted in a significant increase in network fees and congestion. NFTs are typically based on Ethereum, so their emergence on the Bitcoin network marks a new application of Bitcoin’s blockchain technology.

Despite lingering scepticism in the crypto exchange industry following last year’s crypto crash and bankruptcies like FTX exchange, Binance has reassured users that their funds are safe. The exchange and its rivals are working to dispel concerns about the adequacy of their reserves. Read more here.

Issues of congestion and scaling are significant challenges faced by blockchain-based networks, resulting in increased fees and reduced efficiency for transactions. As platforms like Binance experience unprecedented trading volumes and new applications such as NFTs add to network demand, these problems are becoming increasingly evident. The consequences are not only felt by the platforms themselves but also by the end-users who bear the brunt of higher fees and transaction delays.

In contrast, the Zucoins token on the Splitchain network offers a promising alternative, with no transaction fees and the ability to scale more easily. By eliminating the need for third-party miners or proof-of-stake mechanisms, Splitchain provides a more efficient, cost-effective solution for digital asset transactions. As the cryptocurrency market continues to evolve and the demand for efficient, scalable solutions grows, the adoption of technologies like Splitchain and the Zucoins token could be the key to overcoming the limitations of traditional blockchain networks, paving the way for a more seamless and user-friendly digital asset experience.

Chinese Crypto Traders Defy Beijing’s Ban

Despite China’s ban on cryptocurrency trading in September 2021, evidence suggests that some citizens continue to buy and sell digital assets, seeking alternatives to traditional investments. Sources, such as FTX’s creditor profile and insider accounts of workarounds, reveal that Chinese demand for tokens persists, complicating the outlook for digital asset markets.

The US bankruptcy filings for FTX, which collapsed in November last year, show that Chinese users constituted 8% of the exchange’s customers. However, the ban is difficult to enforce due to cryptocurrencies’ decentralised nature and virtual private networks used to bypass location restrictions. The monthly value of crypto flowing to China dropped in 2022 to approximately $17 billion, yet it remains significant.

Although there is speculation about a potential easing of the mainland ban, there are no current indications of such a change. Hong Kong’s pro-crypto stance, supported by Beijing, has attracted investment, but Chinese regulators have not announced any sanctions on offshore exchanges for enrolling mainland users.

Caroline Malcolm, global head of public policy at Chainalysis, believes that if the crypto sector were to become legal in China, it would lead to a surge in demand for cryptocurrencies. Read more here.

The ongoing defiance of Beijing’s ban on cryptocurrency trading demonstrates the power of decentralisation in granting people choices and fostering individual freedom. It’s difficult for governments to control the flow of information and access to technology if there is enough demand. Suppressing the inherent human desire for freedom and autonomy is a battle that is hard to win. As more people around the world embrace decentralisation, we can expect a continued push for greater individual freedom and the empowerment of human ability.

Stripe Launches Fiat-to-Crypto On-Ramp for Seamless Web3 Integration

Stripe has introduced a fiat-to-crypto on-ramp to address the “cold start problem” encountered by Web3 companies due to customers lacking cryptocurrency in their wallets for transactions. The Stripe-hosted fiat-to-crypto on-ramp allows US-based customers to purchase crypto as needed without any need for website or app code embedding. Customers will simply follow a link to convert their local fiat currency (USD, AUD, EUR, GBP), into crypto.

Stripe will handle compliance-related tasks such as conversion and authorisation optimisation, identity verification, and fraud prevention. The service is designed to help customers quickly and safely begin using Web3 services, with built-in fraud detection and identity verification tools. Web3 companies, including Brave, 1inch, and Lens Protocol, have already adopted Stripe’s fiat-to-crypto on-ramp.

James Mudgett, VP of Web3 products at Brave (a web browser company), believes the service will enable the platform to reach new Web3 users. Additionally, 1inch crypto network co-founder Sergei Kunz emphasised the importance of building bridges between Web2 and Web3, stating that Stripe’s experience makes it well-positioned to assist.

This development follow’s PayPal’s Venmo product announcement of its own fiat-to-crypto payment service on 28 April 2023, along with Robinhood, the stock trading app’s introduction of Robinhood Connect, which allows users to buy and sell crypto with a credit or debit card in their wallet. Read more here.

About Web3: Unlocking a Decentralised, User-Centric Internet

Web3, also known as Web 3.0, refers to the next generation of the internet, designed to create a decentralised ecosystem built on blockchain or Splitchain technology. Unlike the current web, Web3 prioritises user control over data, privacy, and digital assets. It enables seamless interactions between users, devices and services without the need for centralised intermediaries, such as large tech companies or data-harvesting ad-network platforms.

One of the primary benefits of Web 3 is enhanced user privacy and security. By eliminating the reliance on centralised servers and data storage, users can maintain control over their personal information and protect themselves from data breaches or misuse. Decentralised applications (dApps) built on blockchain or Splitchain technology can enable secure, transparent and permissionless interactions, empowering users to retain their digital rights.

Another advantage of Web3 is the potential for a more equitable distribution of value within online ecosystems. Users can earn rewards or revenue directly for their content, ideas, or participation in various online communities. By cutting out intermediaries, creators and users can connect directly, fostering innovation and collaboration.

Furthermore, Web3 enables the integration of digital assets, such as cryptocurrencies and non-fungible tokens (NFTs), into everyday online experiences. This allows for seamless transactions and value transfers across the internet, including micropayments, digital asset trading, and real-time revenue sharing. As Web3 technology matures, it promises to revolutionise the way we interact, collaborate, and transact online, paving the way for a more secure, equitable, and user-centric internet.

As the demand for a more decentralised, user-centric internet continues to grow, I believe Splitchain technology is set to become a big part of Web3. Its unparalleled transaction safety, transparency and decentralisation capabilities make it a strong alternative to traditional blockchain technology, ensuring a trustless environment that empowers users and promotes innovation across various industries. The adoption of Splitchain technology in Web3 will pave the way for a digital revolution, transforming the way we interact with the internet and each other.

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All the best,