Optimism, a leading Ethereum layer 2 scaling solution, has unveiled its new governance structure and is preparing to release a token called OP to help power the change:
Possibly the biggest attempt at non-token-holder-centric DAO governance so far. Excited to see where this goes.
Optimismâs newly announced governance structure is to be split into two halves: the Citizens house and the Token house. The Citizens house will be governing the distribution of funding for retroactive public goods, whereas the Token house will focus on driving growth, protocol upgrades, and project incentives.
The new governance token, OP, will be the power behind the Token house. It will create incentives for users to contribute to governance, as much of the projectâs decisions will be voter-based. This house will be established through a token airdrop to users.
Over 250k addresses are eligible via a carefully thought out set of criteria, proportionally rewarding addresses for healthy use of the ecosystem.
There is an overlap bonus for hitting 4 or more criteria.
— Optimism (â¨đ´_đ´â¨) (@optimismPBC) April 26, 2022
This airdrop will not just be a one-time event, as users can expect a second drop in Q2. While awaiting an official date for the first airdrop, users can find eligibility information and an allocations link within the initial announcement.
Layer 2 and DAOs
Aside from Optimism, there is a wide range of projects working to continue the expansion of the DeFi ecosystem and resolve network performance issues. Crypto News Australia has compiled an informative list of projects worth watching.
Decentralised autonomous organisations (DAOs) are the blockchain-based version of companies that are native to the internet. Thereâs a lot to know about DAOs, not to mention a list of risks and benefits, but it doesnât have to be complicated. Crypto News Australia has also published a handy guide to DAOs.
According to analysis from CoinShares, investors have favoured smaller layer-one altcoins of late with institutional capital outflows from Ethereum hitting US$17 million:
According to a weekly report by asset management firm CoinShares, institutional investor funds flow to digital assets such as crypto assets (cryptocurrency) investment trusts have exceeded outflows for the second straight week. pic.twitter.com/kgT8iCuN9M
Institutional investors have been shifting their attention away from Ethereum to competing layer-one blockchain projects, with capital inflows for altcoins increasing while ETH products posted outflows for the third consecutive week. Data from CoinSharesâ Digital Asset Fund report shows that investors bought up US$3.5 million worth of Avalanche, Solana, Terra, and Algorand.
The data shows total outflows of ETH now amount to US$59.3 million, around 35 percent of the year-to-date outflows of US$169 million.
Weekly Flows from ETH. Source: CoinShares
Decentralised application usage on Solana in the past week has increased, according to data from DappRadar. While the metrics from Avalancheâs DApp usage have not increased over the week, the projectâs investment in incentive programs and millions spent bringing developers to the platform signal a bullish future.
Significant Shift in Past Three Weeks
Inflows into Avalanche, Solana, Terra and Algorand were US$1.8 million, US$800,000, US$700,000, and US$200,000 respectively, with Bitcoin recording inflows worth US$2.6 million for the first time in two weeks. Over the past three weeks, total outflows were US$219 million, a significant shift from the US$134 million that left the market in the first week of April.
In March, another report released by CoinShares showed that institutional crypto funds had seen their biggest capital inflows since December 2021, with over US$193 million coming in during the week ending March 25.
The Binance Refugee Crypto Card allows current and new Binance customers from Ukraine to send or receive crypto payments and make purchases at retailers in the European Economic Area (EEA) who accept card transactions.
Binance has already donated US$10 million to aid the humanitarian crisis in the region. The contribution was split among organisations including UNICEF, the UN Refugee Agency, UNHCR and more.
The Binance refugee card has been launched in partnership with Contis, a UK-based banking platform, and is available in both virtual and physical formats.
More Than 4 Million Potential Beneficiaries
According to Kirill Khomyakov, general manager of Binance in Ukraine, more than 4 million people have already fled the country:
It is our responsibility to help those who were forced to leave their homes because of the war.
Kirill Khomyakov, general manager of Binance, Ukraine
Khomyakov added that Binance Charity was collaborating with non-profit organisations such as Rotary and Palianytsia to offer crypto-based cash assistance through the Binance refugee card.
Refugees will each receive 75 Binance USD (BUSD), worth around $US75, per month for up to three months. BUSD crypto will automatically convert to local currency according to which country refugees find themselves in, and relatives or acquaintances of displaced Ukrainians are also able to send crypto to the refugee crypto card.
The card itself is free but requires full KYC (know your customer) verification.
The National Bank of Ukraine said the measures were âtemporaryâ and that it planned to allow citizens fleeing the country to make cross-border peer-to-peer (P2P) transfers within the above limit from accounts in its national currency.
Australia’s first crypto exchange traded funds (ETFs) have been delayed at the last minute with an undisclosed third-party broker said to be responsible for preventing trade that was otherwise scheduled to commence yesterday.
The launch of three crypto ETFs in Australia has been blocked less than 24-hours before it was due to be listed on CBOE Australia.
Following last week’s approval by Australian regulators of a Bitcoin and Ethereum ETF, executives at fund managers Cosmos Asset Management and ETF Securities were no doubt eagerly awaiting the launch of their historic investment products.
Despite the setback, Kanish Chugh, head of distribution of ETF Securities, remained upbeat, describing it as a “temporary delay” through “no fault whatsoever of ETF Securities, our ETFs, or the exchange”. He added:
We believe the issue affects all fund managers equally and has caught everyone by surprise. We are working to resolve this as quickly as possible and remain on track to launch Australiaâs first bitcoin and ethereum ETFs.
Kanish Chugh, head of distribution, ETF Securities
‘Prime Broker’ Responsible
According to Cosmos and ETF Securities, the delay was due to a “service provider downstream” who needed more time to support trade. While details remain murky, it’s understood that the responsible party is a “prime broker”, a market participant whose approval is required for smooth market making operations.
Eager to clear its name, an Australian Securities Exchange (ASX) spokesman said its position had not changed and that “matters are now in the hands of the trading venues [in this case, Cboe] and their issuers and brokersâ.
Other fund managers such as VanEck Australia and Monochrome Asset Management have also applied to list crypto ETFs, although on the main ASX exchange. To date, they haven’t lodged product disclosure statements with the Australian Securities and Investments Commission (ASIC), implying a “wait-and-see” approach rather than striving to be first.
Time will tell which approach works better. Capital inflows, rather than marketing and “being first”, are surely the ultimate judge of success.
Blockchain security watchdog PeckShield has posted a warning on its Twitter account cautioning all users of fitness app STEPN that it has “detected a bath of @Stepnofficial phishing sites”. These sites contain a fake MetaMask browser extension and are stealing people’s crypto:
The fitness-based app is the latest prime target for scammers across the web. The STEPN community is growing rapidly, as more and more users sign up everyday and download the app. This has created the perfect sea for hackers to cast their nets wide and lure their prey through fugazi phishing sites. Fake STEPN websites are popping up everywhere and setting off alarm bells atPeckShield Alert.
Scammers have been stealing crypto after tricking users into entering their seed phrases into dodgy MetaMask wallets. Another scenario is where users are fooled into connecting their real wallet to a bad actor’s site under the guise of claiming a “giveaway”.
PeckShield provides a popular resource for the crypto community to keep up-to-date with the most recent hacks and phishing scams. Due to its recent surge in popularity, the STEPN platform has become a focus for scammers.
STEPN Overtakes Axie in Google Searches
STEPN, whose move-to-earn token has soared 217x in 2022, is a decentralised application (dApp) powered by the Solana blockchain. Following the success of the hugely popular play-to-earn game Axie Infinity, âSTEPNâ has been searched for more times around the world than the term âAxieâ, according to Google statistics.
STEPN’s appeal is easy to understand – who wouldn’t want to get paid in Solana for going for walks and runs? As the game’s community continues to grow, and more users download the STEPN app, unfortunately so does activity from seasoned hackers.
Warning: Do Not Connect Wallets to Fake STEPN Websites
STEPN has only one official website. Do not visit or connect your wallet to any other fake site, even if it resembles the official STEPN branding. These fake phishing websites can look very similar and, in many cases, almost identical to the real thing. Always double-check you are on the official website and minimise making any costly mistakes by accessing the STEPN platform only through links via the official STEPN website, or associated social accounts.
Letâs take a closer look at todayâs altcoins showing breakout signals. Weâll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Polygon (MATIC)
Polygon MATIC is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications. The MATIC token will continue to exist and will play an increasingly important role in securing the system and enabling governance.
MATIC Price Analysis
At the time of writing, MATIC is ranked the 17th cryptocurrency globally and the current price is US$1.26. Letâs take a look at the chart below for price analysis:
Since its Q1 highs, MATIC has been in a steady bearish trend â retracing nearly 25% by mid-April. The price found support near $1.20, at the 50.6% retracement level.
Last weekâs sharp impulse up might have marked the start of a new bullish swing. If so, higher timeframes suggest that $1.39 near the 61.8% retracement, and the 9, 18 and 40 EMAs, may see interest from bulls. The price could reach lower, near $1.20, and still find support.
Currently, the price is contesting a region between $1.19 and $1.35. Closes over this level could confirm it as new support, leading to a move higher.
However, bulls are contending with probable resistance near $1.44, while $1.53 is also likely to be sensitive with the nearest support and resistance this close together.
2. Hedera (HBAR)
Hedera Hashgraph HBAR is a public network that allows individuals and businesses to create powerful decentralised applications (DApps). It is designed to be a fairer, more efficient system that eliminates some of the limitations older blockchain-based platforms face, such as slow performance and instability. The HBAR token has a dual role within the Hedera public network.
HBAR Price Analysis
At the time of writing, HBAR is ranked the 36th cryptocurrency globally and the current price is US$0.1691. Letâs take a look at the chart below for price analysis:
HBAR‘s 50% Q1 run retraced almost to its origin, narrowly missing probable support near $0.1695 before bears swatted down the bounce near resistance around $0.1989.
With the daily gap between $0.1812 and $0.1750 almost filled in a single wick, the price may not need to revisit areas below this level. However, the safer entry is still in probable support between $0.1545 and $0.1500, which would also sweep the lows of last weekâs bounce.
The relatively equal highs near $0.2256 provide a likely first target on lower timeframes. However, the resistance beginning at $0.2435 may initially suppress a further move up.
A clean break through this resistance will need to contend with the next resistance near $0.2692, under the last swing high. This swing high at $0.2770 gives a reasonable take-profit area before a possible move to the 1.0 extension near $0.2956.
3. Gala (GALA)
GALA aims to take the gaming industry in a different direction by giving players back control over their games. Gala Gamesâ mission is to make âblockchain games youâll actually want to playâ. The project wants to change the fact that players can spend hundreds of dollars on in-game assets and countless hours playing the game, all of which could be taken away from them with the click of a button. It plans to reintroduce creative thinking into games by giving players control of the games and in-game assets with the help of blockchain technology.
GALA Price Analysis
At the time of writing, GALA is ranked the 74th cryptocurrency globally and the current price is US$0.1688. Letâs take a look at the chart below for price analysis:
After setting a low last week, GALA turned into a recovery trend to make the new monthly highs.
The following 60% plummet found support near $0.1679, sweeping under the 40 EMA into the 58.8% retracement level before bouncing to resistance beginning at $0.1930.
This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $0.2112, where aggressive bulls might begin bidding. The level near $0.2350, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $0.2685.
However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $0.1580 could provide at least a short-term bounce. If this level fails, the old highs near $0.1435 might also give support and see the start of a new bullish cycle after retesting these support levels.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if youâre looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
The potential Web3 version of Netflix, Mad Realities, has launched the worldâs first crypto dating show and subsequently raised US$6 million. The seed round was aided by 11:11 Media, socialite heiress Paris Hiltonâs media company:
Persistence Pays Off in Crypto Dating Show Success
Mad Realities has moved a step closer to becoming an established Web3 streaming service. The round was led by venture capital firm Paradigm and attracted some other surprisingly big names:
According to Devin Lewtan, co-founder and CEO of Mad Realities, the company was determined that Hilton join the fundraising round and evidently its persistence paid off. âWe were really, really bullish on getting Paris Hilton,â Lewtan said.
The company began on YouTube, fundraising US$500,000 for its first project â a Bachelorette-style series called Proof of Love â through NFT sales. However, with its newly raised funds, Mad Realities is set on producing more content as it works towards creating a decentralised media company that can compete with mainstream services like Netflix.
If you would like a glimpse of what Mad Realities is offering, Proof of Love is available to watch on the companyâs YouTube channel.
Other Celebs Acting Up in Crypto Projects
In July last year, pandemic-based movie Zero Contact, starring Anthony Hopkins, was offered for sale as an NFT and later released to Vuele, a direct-to-consumer NFT viewing platform.
In the same month of 2021, the NFT series Stoner Cats launched. Created and produced by actor Mila Kunis, the animated series featured an A-list cast including Ashton Kutcher, Seth MacFarlane, Chris Rock and Jane Fonda voice acting as a group of sentient cartoon cats, with Ethereum co-founder Vitalik Buterin in a cameo role. The series required viewers to mint their access to the first five-minute episode.
Moonbird #2642, one of the rarest NFTs in the collection of avian avatars, sold for a record 350 ETH (US$1.05 million) on NFT marketplace OpenSea on April 23.
Moonbird #2642. Source: OpenSea
The buyer was listed as The Sandbox, a blockchain-based gaming firm and subsidiary of Hong Kong-based Animoca Brands. The seller, who goes by “oscuranft” on OpenSea, pocketed a profit of about US$600,000 after buying the NFT a week ago for 100 ETH.
New ‘Nesting’ Feature for Moonbirds
Moonbirds was launched on April 16 by PROOF, a media startup founded by venture capitalist Kevin Rose. In a recent video, Rose explained how Moonbirds is building on its rapid success by launching a new feature called “nesting”, where holders can stake their NFTs in a non-custodial way and earn additional benefits:
In a separate Twitter Spaces post this week, Rose addressed the controversial exit of Ryan Carson, the projectâs chief operating officer, who has left to start his own NFT venture fund.
Allegations of Insider Trading
News of Carson’s departure drew immediate fire from the broader NFT community, with many questioning how Carson was able to purchase hundreds of thousands of dollars’ worth of Moonbirds before his exit, possibly using insider knowledge to poach undervalued editions:
I had an internal policy not to purchase any moonbirds until after rarity counts were out to the public. I can't control someone clicking a button to purchase, but I can put stronger controls in place for all future drops. e.g., no employee purchases for 7-days.
Carsonâs cache of Moonbirds is worth US$1.2 million based on floor prices alone, as most were bought before prices ballooned following the initial mint.
Meta, the parent company of Facebook, will open a physical metaverse-themed store in the San Francisco Bay area. A feature of the store will be wall-to-wall curved LED screens that display what users see using virtual reality (VR) headsets.
In an April 25 announcement, Meta said it would be opening its doors in the Burlingame, California location on May 9. The store, situated on the Meta campus, is aimed at providing interactive demos for the companyâs hardware products, including VR headsets, video communications displays, and smart glasses.
Virtual reality now in the hands of Meta Store customers. Source: wsj.com
According to store head Martin Gilliard, âThe Meta Store is going to help people make that connection to how our products can be the gateway to the metaverse in the future.” He added:
Weâre not selling the metaverse in our store, but hopefully people will come in and walk out knowing a little bit more about how our products will help connect them to it.
Martin Gilliard, store head, Meta Store
Backlash Greets Meta’s Metaverse Vision
Facebook rebranded as Meta in October 2021 saying it was time it focused its efforts on expanding beyond social media, later announcing its metaverse vision for connecting online social experiences and the physical world.
Although its plans may be well-intentioned, Meta has since received a lot of backlash in the Twittersphere:
Sure Markie. And the "best way" to understand REALITY is to simply experience life.
A social misfit telling us how great virtual reality is..
It’s official, Elon Musk has bought Twitter for US$44 billion and will be taking the social media giant private. Despite various blue check Twitter accounts decrying the move as “dangerous for democracy”, Musk himself has signalled that freedom of speech will reign supreme in the online town square:
I hope that even my worst critics remain on Twitter, because that is what free speech means
Under the agreement, shareholders will receive US$54.20 per share, a 38 percent premium on the company’s closing share price as of April 1, which was the last trading day before Musk disclosed his approximately 9 percent stake in Twitter.
The transaction, expected to close later this year, was financed with both debt (US$25.5 billion) and equity (US$21 billion). After initially electing to invoke a “poison pill”, thereby diluting his holdings, Musk responded with a new filing with the Securities and Exchange Commission (SEC).
At the time, Musk said:
I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy. However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.
Elon Musk
Recognising their responsibility to shareholders, the board of directors was ultimately left with little choice but to accept the offer. Bret Taylor, Twitter’s independent board chair, said:
The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.
Bret Taylor, independent board chair, Twitter
Musk’s Priorities
While some users will be pleased to hear that Musk intends to introduce a much-needed edit button, much of the focus was on freedom of speech: “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said.
He added: “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential â I look forward to working with the company and the community of users to unlock it.”
Musk provided some additional context at TED 2022, highlighting it was a priority to eliminate the spam bots, which are particularly rife in the crypto industry:
One potential avenue for doing so could be to implement Michael Saylor’s suggestion of integrating the Lightning Network to make the cost of spam and scams economically unfeasible.
In order to engage, users would require an “orange tick”, which they could obtain by posting satoshis as collateral. Any breach of the rules would then result in a ban and loss of the collateral. Saylor outlined this in a recent interview, saying it could put an end to cyber attacks:
I recently had the chance to discuss crypto market volatility and how #bitcoin can clean up cyberspace and dramatically upgrade our cybersecurity with @KenzieSigalos.pic.twitter.com/aAZ8ZzPwfv
The Twitter user experience has undoubtedly been negatively impacted through censorship and the proliferation of spam bots. Hopefully, Musk will be a better custodian of the digital town square than his Silicon Valley predecessors. Initial signs are good.
