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What is MiCA and what does the European regulation mean for crypto?

micar regulation explained

What is MiCAR, and what is the Eurozone market’s crypto regulation? Read the complete guide.

What is the MiCAR regulation, and what does it provide for? A more than legitimate question after the European Parliament approved in June 2023 the document that will regulate the cryptocurrency market in the Eurozone, published in the Official Journal of the European Union, and which will gradually come into effect during 2024.

This document is known by the acronym MiCAR or MiCA, which stands for Markets in Crypto-Assets and is the first EU regulation governing the cryptocurrency sector.

This regulation package aims to ensure investor protection through transparency obligations, requirements to operate, and prevention of abuse and to bring systemic order to the crypto asset sector. 

Let’s see what it establishes and how it changes the crypto landscape. 

From ICOs to MiCAR

The regulation of MiCAR was inspired by the phenomenon of crypto public offerings activities in 2017, better known as Initial Coin Offerings (ICOs). These have particularly attracted the attention of national and European lawmakers and regulators. 

The announcement in 2019 of the development of Libra, Facebook’s stablecoin, prompted states to approve regulation on this type of cryptocurrency quickly. Libra would have allowed the transfer of a private currency to billions of users within the closed circuit of the blockchain. 

The opportunities provided by MiCAR

The basic idea is that crypto assets have the potential to become efficient means of raising capital for small and medium-sized enterprises and, due to their inherently transnational nature, to offer themselves as instruments for new payment services while maintaining the European Union as a pole of 

Ensuring a unified regulatory framework would lead Europe to strengthen its industrial and innovation capacity within safe and ethical limits. Indeed, this Euro-unified regulation is unique worldwide and can turn Europe into the first ‘continental’ single market for new assets, securing it a leading position vis-à-vis other jurisdictions, including the United States. 

The current regulatory environment of cryptocurrencies

The European regulatory situation on crypto is highly fragmented and evolving. Each country has adopted its laws, making regulatory harmonisation difficult. France, for instance, has regulations for ICOs (Initial Coin Offerings), whereas Germany classified crypto as a digital currency and subjected it to specific taxation some time ago. Italy has also introduced the taxation of cryptocurrencies within the Budget Law for 2023.

The starting point: what is a cryptocurrency?

The EU’s first attempt was to search for a term and definition encompassing most types of cryptocurrencies and related activities. 

Hence, the term ‘crypto-asset’, defined as ”’a digital representation of a value or right that can be transferred and stored electronically, using a distributed ledger or similar technology”, was introduced.  

MiCAR: what it provides for crypto projects

The MiCAR addresses both crypto-asset issuers and crypto-asset service providers (CASPs). 

From now on, crypto-asset issuers can operate with prior authorisation. They must comply with various requirements, including transparency requirements and publishing a “white paper” detailing the rights and risks associated with the issued asset. Specific categories of crypto-assets must also comply with specific reserve, governance and price stabilisation requirements.

The whitepaper will thus provide transparency on aspects such as system architecture, security mechanisms, governance strategies and the intended use of the technology, thus facilitating investors’ understanding of the project. 

Additionally, CASPs (Crypto-Asset Service Providers) will need to register with national authorities and adhere to strict standards to protect their users.

MiCAR: what it provides for exchanges

The MiCAR stipulates that all companies providing crypto-asset-related services, such as custody, exchange, advisory, and others, must register with national regulators and adhere to strict organisational, operational, and business conduct standards. These standards include protecting clients’ assets, preventing conflicts of interest, and ensuring market transparency. The new framework also holds CASPs directly liable in case of bugs, exploits or insolvency. This will ensure that users are compensated if part of the platforms’ capital is lost. Furthermore, CASPs must keep a history of all transactions processed on their platform for at least five years.

MiCA: Combating Money Laundering Regarding anti-money laundering, the monitoring and enforcement of current regulations will be entrusted to the EBA (European Banking Authority). The entity will also maintain a register of companies that will be prohibited from engaging in CASP activities in the EU, which it will use to restrict the entry of organisations considered to be at “high risk” of money laundering into the market. Additionally, all companies dealing with Proof-of-Work crypto-assets must regularly submit documents attesting to their environmental impact. MiCA does not ban PoW cryptocurrencies but limits their spread by cutting public incentives directed towards this type of technology.

Crypto-assets as Financial Instruments While issuers must comply with MiCA directives concerning all crypto-assets that are not considered financial instruments, service providers must apply them regardless of the nature, value, or right that the crypto-asset incorporates.

The distinction between crypto-assets that can be considered financial instruments and those that cannot is a fundamental component of the entire regulatory framework. MiCA seeks to address all use cases of crypto-assets that were not previously covered by historical regulations, such as MiFID, which regulates crypto-assets akin to financial instruments, and PSD for those akin to electronic money and deposits.

Drawing on the principles of existing regulations, MiCA represents a new and complementary regulatory body which seeks to adapt to the peculiarities of the crypto sector.

New Legal Categorisation of Crypto-assets The first step was defining three categories of crypto-assets that, as mentioned, are not akin to financial instruments:

  • Electronic Money Tokens (EMT)
  • Asset-Referenced Tokens (ART)
  • “Residual” Tokens

The classification of tokens is still evolving and will, therefore, require further clarification from the relevant Authorities.

Let’s see the definitions of the three categories of tokens.

E-money tokens

Electronic money tokens (indicated by the acronym EMT) include all those tokens that refer to the value of a single legal tender fiat currency, such as the euro or the dollar. The difference with ‘asset-linked tokens’ is right here: they link to the value of a single fiat currency.  

This category would include many stablecoins, such as Tether, cryptocurrencies designed to maintain a stable value through a ‘pegging’ system to a trusted currency in a 1:1 ratio. The anchoring, whereby, for example, one unit of stablecoin always corresponds to 1 dollar, is ensured through currency reserves or algorithms. 

With the MiCAR, issuers and EMT providers will mainly have to comply with these obligations:

  • The European Banking Authority (EBA) will supervise and regulate all EMTs.
  • EMT issuers will need an ‘e-money licence’, similar to a standard bank licence, but with strict limits that do not imply the possibility to operate as a credit institution.   

Asset-referenced tokens

The second category, asset-referenced tokens (denoted by the abbreviation ART), include those tokens that are not EMTs and “aim to stabilise their value by reference to another value or right, or a combination thereof, including one or more official currencies.”

An example is Pax Gold, whose acronym is PAXG, an attempt to combine the advantages of gold and blockchain. This stablecoin reproduces 1:1 the value of gold, the precious metal of which its reserves are also composed. Pax Gold is issued by Paxos Trust Company. Thanks to this stablecoin on the blockchain, even small and fractional amounts of gold can be purchased.

With the MiCA, issuers and providers of ART will be subject to additional obligations, such as:

  • Unless deemed ‘significant’, all ARTs will be supervised by the European Securities and Markets Authority (ESMA). They are significant when they exceed certain thresholds, such as a market capitalisation of more than 5 billion. In this case, the EBA will take over. 
  • Only token issuers with a registered office in the EU can issue ARTs.  
  • ARTs not pegged to a European currency will be controlled to preserve the EU’s monetary integrity.   

The interpretive debate on EMT and ART

The debate on the definition of ART is particularly heated. It seems to extend to all stablecoins, thus constituting a broad set that includes the more specific one of EMT. However, for some, the interests and rights associated with ART are not easily compatible with those of EMT. 

Regardless of first impressions, it is clear that these definitions remain too limited to cover the various facets of stablecoins fully. A regulation that truly reflects the sector’s technological and legal characteristics will require true collaboration between the cryptocurrency world and the regulatory authorities, not a cramped ‘copy cut’ of the old regulations for the crypto market.

Residual tokens

The third category, the ‘neither meat nor fish’ category, includes all ‘residual’ tokens. This general category also includes utility tokens and all crypto-assets that do not qualify as ART or EMT—that is, those that do not peg their value to a fiat currency or basket of assets. 

Utility tokens provide digital access to a specific product or service. The MiCAR rules require transparency here but are less restrictive than those for EMTs and ARTs.

Companies issuing this type of token must create a White Paper, which must be published on the website of the organisation issuing the cryptocurrency.

This document should contain all fundamental information about the token, such as a detailed project description, how crypto is issued and sold, and the technologies on which it is based.

The case of Bitcoin

Although bitcoin (BTC) falls under ‘residual tokens’ in terms of categorisation, the exclusion from the Regulation is clarified in the Considerando. Here, it is said that the rule does not apply when a crypto asset is automatically created as a reward for blockchain maintenance or transaction validation. 

This regulatory approach demonstrates the choice to exclude blockchain technology’s most innovative and dynamic aspects. The division into three categories, while including a residual open category, excludes many crypto assets, effectively ignoring Bitcoin.

It is almost as if placing it in limbo, neither currency nor financial instrument, is the best way to make it as harmless as possible. This is if it is true that every good or bad law ends up being perceived positively because its mere existence can incentivise investment and a certain trust in the entire ecosystem. 

The fact remains that we continue to ignore the elephant in the room. Bitcoin is the most popular crypto asset by far, the number one by market capitalisation, with a dominance (Bitcoin’s valuation relative to the overall cryptocurrency market valuation) of over 50%. In addition, almost all of the market players for which MiCAR is intended offer related services. Bitcoin is unique in its decentralised governance characteristics, against which the regulator’s ambitions of control continue to clash without finding a solution. 

DeFi, the great absentee 

DeFi is also outside the MiCAR framework.

DeFi is an issue, changing every criterion for imputing liability in decentralisation. Therefore, it is putting regulators worldwide in a quandary, uncertain how and whether creating an ad hoc rule makes sense.

It is also surprising that credit markets in crypto assets have been excluded from regulation, considering their reputation as one of the most risky areas for consumers, especially regarding the relationship between service providers and consumers. 

MiCAR focuses on the risks associated with centralised platforms, whereas lending and staking crypto assets are more common on decentralised platforms. Although these activities often imply a certain centralisation of processes, raising doubts about whether decentralisation is truly decentralised and whether responsible parties can be identified, this does not seem to lead to a balanced supervisory framework.

NFTs are also missing

The exclusion of NFTs (Non-Fungible Tokens) from regulation is based on their distinctive characteristics. Unlike other crypto-assets, NFTs are unique and not easily interchangeable, which makes it difficult to determine their value through direct comparisons with other markets or equivalent assets. 

Their uniqueness significantly reduces their use in the financial sector and the associated risks for the financial and monetary system (fiat). Consequently, the legislator decided to exclude them from the scope of certain regulations. 

This does not imply that NFTs cannot be classified as financial instruments in the future. The discussion on NFTs is ongoing, and further guidelines on their classification and regulation may emerge.

Exchange wallets and private wallets: what changes with MiCAR?

Also, European laws aim to protect users when regulating crypto wallets. P2P payments between private individuals via cryptocurrencies have not been affected.

Finally, MiCAR also deals with the impact of crypto influencers, those who express personal opinions on certain cryptocurrencies by recommending them to their followers on social networks. The bill penalises those who do not behave transparently, expressing opinions on a particular asset without disclosing their exposure.

Industry opinion: pro-MiCAR

Crypto enthusiasts have known about the MiCAR and its provisions for several months. In fact, the first draft of the document was drafted in 2020, so they have had plenty of time to understand this regulation. 

According to some experts, MiCAR is positively impacting the industry. The new framework’s consumer protection makes the crypto world more accessible. In addition, the new rules prevent suspicious or questionable companies from entering the European market, reducing the risk of scams or rug pulls. According to Dante Disparte, Circle’s Head of Global Policy, the laws will transform the European Union into a competitive and innovative crypto terrain.

Looking at the confusing and penalising regulatory situation in the US, MiCAR has become an example of how clear rules can attract developers and new projects. In Europe, investments in crypto projects are becoming the most numerous in the world.

Industry opinion: against MiCAR

On the other hand, critics think these new European laws could negatively affect the market. This is mainly because some transactions that, as of today, are carried out immediately, such as transactions between exchange wallets and withdrawals of large amounts of crypto, could become complicated. Critics, therefore, believe this will slow the adoption of cryptocurrencies.

In general, however, the opinions of members of the crypto community who have long known what MiCAR regulation is and what it provides are positive. After all, most of the pioneers in the field (such as Charles Hoskinson and Andre Cronje) have always favoured cryptocurrency regulation.  

You are on the blog of Young Platform, the Italian platform for buying cryptocurrencies. Here you can find the latest news on blockchain, Bitcoin and Web3. We look closer at this emerging economy with an eye on traditional finance so you have everything you need to enter the new age of money.

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Metaverse Fashion Week 2023: all the brands and things to know

Metaverse Fashion Week 2023: all you need to know

Metaverse Fashion Week 2023 is coming. Which haute couture brands will parade in Decentraland? 

Decentraland’s Metaverse Fashion Week 2023 is just around the corner! According to a study by Gartner dated 7 February 2022, in 2026 25% of the global population will spend at least one hour a day in the Metaverse “for work, shopping, education, social interactions and entertainment”. Considering that 2026 is only three years away, it is safe to say that this virtual world will soon be part of our everyday life. The fashion industry seems to be the most advanced as far as this new technology is concerned and the second Metaverse Fashion Week in history will take place from 28 to 31 March 2023. 

The Metaverse chosen for the occasion is once again Decentraland (MANA), which has already hosted the 2022 edition. This year’s theme mixes tradition and innovation through collaborations between new generation designers and historically established fashion brands. Find out all about the event and the brands that will be guests at Metaverse Fashion Week 2023!

Metaverse Fashion Week 2023: how to access

Metaverse Fashion Week was created to let the public experience fashion from different perspectives and to make it accessible to everyone, not just insiders. To enter Decentraland’s metaverse and thus participate in the events of this fashion week, you simply have to connect your crypto wallet or visit the virtual world in guest mode. Decentraland has already provided the coordinates of all the areas where the events will take place and with a simple click (‘jump in’) you can reach afterparties, digital shops, fashion shows and conferences organised by many brands. 

The Metaverse Fashion Week 2023 calendar

Below you can find a selection of events from the eagerly awaited Decentraland virtual fashion week 

28 March 

  • 00:00 UTC, Fashion District: Metaverse Fashion Week 2023 opening event – DJ Set by ‘KDS’ and discussion on the future of fashion in the metaverse;
  • 14:14 UTC, Genesis Plaza: “CRISTÓBAL BALENCIAGA: NEW CODE” – Haute couture evening dresses inspired by the designs of Cristòbal Balenciaga;
  • 14:14 UTC, Decentraland South, Neo Plaza: ” META FASHION HOUSE IN THE NEO PLAZA FEATURING 3DMETADRESS” – The augmented reality presentation of the digital clothing that will be physically produced for NFT Week New York 2023;
  • 18:18 UTC, Genesis Plaza: “HAUS OF FUEGO FASHION SHOW!” – The Nikki Fuego avatar fashion show, inspired by cyberpunk and high tech culture.

29 March

  • 00:00 UTC, Adjacent District: “THE TRAVELER PARKA” CO-CREATION @SAKOASKO AND @KAFTANCREADOR” – The second day of Metaverse Fashion Week 2023 will open with an event dedicated to Latin American artists from the metaverse;
  • 21:21 UTC, Binary Code Building: ‘FASHION SPACES: MERCURY DASHA X RENOVI STUDIOS’ – The fashion show of the ‘urban-luxe’ collection resulting from the collaboration between the two brands (Mercury Dasha and Renovi Studio);
  • 22:22 UTC, Valhalla: ‘METAVERSE FASHION WEEK BY DECENTRALAND (MVFW) AFTER PARTY’ – A concert featuring various musicians from the Decentraland community.

30 March

  • UTC, Uniquely.io Land: ‘METAVERSE FASHION WEEK MEETING BY UNIQLY.IO & PUNKSCLUB’ – Debate on the relationship between fashion and NFT followed by a DJ Set;
  • 16:16 UTC, The Crypto Valley “NTR1-META” – A party in the metaverse organised by the digital sneakers brand of the same name;

31 March

  • 21:21 UTC, Dlan Holding 004: “DKNY.3 X MVFW23 CLOSING NIGHT PARTY” – The closing party of Metaverse Fashion Week 2023

This calendar is generic and does not present the events organised by the most famous brands, these have their own customised LANDs where their respective programmes will be staged. But which of these big brands have decided to participate?

Dolce and Gabbana

Among the brands that have already shown in Decentraland during Metaverse Fashion Week 2022 is Dolce and Gabbana. D&G’s journey into the Metaverse began in 2021 and after several NFT collections that expanded the brand’s artistic and craftsmanship potential, it organised its own fashion show in Decentraland. During the 2023 edition, the historic Italian brand will present a selection of the winning entries of the Future Reward competition. The designs were chosen by Domenico Dolce and Stefano Gabbana themselves and are all digital wearables.

Tommy Hilfiger

Tommy Hilfiger opened its digital shop in the Boson Portal District during 2022 and is making its second appearance at Metaverse Fashion Week. Last year, users were able to buy some limited edition products from the Spring 2022 collection in NFT format and have them worn by their avatars. For the 2023 event, new digital garments designed by artificial intelligence will be released every day and a challenge will be held among the community of aspiring designers attending the event. The winner will be selected by Tommy Hilfiger himself!

Adidas

At Metaverse Fashion Week 2023 Adidas will present the ‘adidas virtual gear‘ collection, a collection of cyberpunk and high-tech inspired garments that will be produced in both physical and digital versions. These include a personal flotation device, a life jacket built for space.

Clarks

The British footwear brand will be present at Metaverse Fashion Week 2023 with its own dedicated area called ‘Clarks Arcade’ – part amusement park and part disco. Within this space, people will be able to try out Clarks-themed video games and compete with others at dance competitions. This is not the first experience in the Metaverse for the shoe brand, which had already landed on Roblox in May 2022 to present its trainer for kids, ‘Cica’.

Decentraland Fashion Week 2022

Metaverse Fashion Week 2023, which will be held from 28 to 31 March, is the second edition ever; the first was last year and was very well received by the community and brands. Among the main events of the past year, besides those already mentioned by Dolce and Gabbana and Tommy Hilfiger, was Philipp Plein. The German brand presented its space on Decentraland, the Plein Plaza, in which it exhibited works from the NFT Museum of the Arts (M.O.N.A).

Etro‘s event was also a success. The ‘liquid paisley’ motif reinterpreted by the brand in a contemporary way and presented at Metaverse Fashion Week 2022 was also back in fashion in the real world. Hogan‘s event, on the other hand, featured guest Bob Sinclar who played at the after party.

Why a Fashion Week in the Metaverse?

The brands that participated last year and will participate in Metaverse Fashion Week 2023, presenting their collections online, have made a significant choice that falls primarily on the fashion house’s own perception of innovation. The potential of events in the virtual world lies in the contact with younger consumers, Gen Z or the even more budding Gen Alpha, who are increasingly interested in buying digital goods. 

Secondly, participating in events in the Metaverse is a way for brands to experiment, test trends and give value to their products, which are protected by blockchain. 

However, as Sam Hamilton, creative director of the Decentraland Foundation and co-organiser of Metaverse Fashion Week 2023 reiterated: ‘fashion and high fashion are not new to the Metaverse. Decentraland has been at the forefront of digital fashion, in demand since the launch of wearables (tokens) in 2020. Since then, creators have been working on the technical and stylistic limits of these digital wearables and have created a booming economy’.

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The 10 most expensive NFTs ever

The most expensive NFT ever sold: all the digital artworks

What are the most expensive NFT ever sold? Here is the list of million-dollar crypto artworks! 

Have you ever wondered: “what are the 10 most expensive NFT ever sold?” Digital works of art sold at sky-high prices. Along with Picasso‘s cubism, Botticelli’s renaissance style and Rembrandt‘s baroque style; collectors and galleries of the future (and present) will also exhibit CryptoPunks and Beeple’s digital art. 

10. CryptoPunk #7804 – 7.56 million 

In tenth place among the most expensive NFT ever sold is a CryptoPunk, number 7804, purchased in March 2021 for $7.5 million (4,200 ETH). This Punk is an ‘Alien’, a decidedly rare category – only 9 out of 10,000 exist! Hallmarks? Sunglasses and a pipe! 

9. CryptoPunk #3100 – 7.67 million

There are 406 CryptoPunks who have the tennis-style band, but only one of them is an alien. That’s the 3100. Imagine how much it could be worth? 

8. CryptoPunk #5577 – 7.7 million

As you may have noticed, CryptoPunks are leading the ranking of the most expensive NFT ever sold. The #5577 was purchased in February 2022 by Robert Leshner, the CEO of Compound, one of DeFi’s most popular lending (decentralised lending) platforms. The CEO of the protocol shelled out a whopping 2,500 ETH to get it.

7. CryptoPunk #4156 – 10.2 million

All CryptoPunks are unique, but the number 4156 stands out because of the interesting story of its former owner. The user, whose Twitter handle echoes this numerical succession, is a very famous crypto influencer on the social network who is also part of the nouns DAO development team. When @punk4156 sold the NFT because he disagreed with Larva Labs‘ copyright policies, the entire community was stunned.

6. Tpunk #3442 – 10.5 million

Another Punk, also in sixth position in the ranking of the most expensive NFT ever sold. This time, however, not one from the collection created by Larva Labs, but a TPunk, a specimen from the collection inspired by CryptoPunks but built on the Tron blockchain. Purchasing this rare piece of the ‘derivative’ collection was Justin Sun, the founder and former CEO of TRON, who pulled 120 million TRX out of his crypto wallet.

5. CryptoPunk #7523 – 11.7 million

Crypto Punk #7523 was sold in 2021 for 4,700 ETH at a Sotheby’s digital art auction. Another ‘Alien’ equipped with earrings, cap and surgical mask. Perhaps the NFT was so coveted because of the presence of this very ‘avant-garde’ accessory at the time it was purchased.

4. CryptoPunk #5822 – 23.2 million 

Wooden medal for the ‘alien’ CryptoPunk sporting the blue bandana. This NFT was purchased by Chain’s CEO Deepak Thapliyal for the astronomical sum of 8,000 ETH.

3. Human One by Beeple – 28.9 million

In third place in the ranking of the most expensive NFT ever sold is Human One, a 3D digital sculpture by the famous artist Beeple, which depicts an astronaut walking in a glass case. The backgrounds are digital and the scenery changes on a rotating basis.

2. Clock by Pak and Julian Assange – 52.7 million

The silver medal goes to Pak for his work Clock. This NFT is a timer that counts down the days since Julian Assange, the co-founder of Wikileaks, has been detained in Belmarsh prison (UK). The digital artwork was purchased by the AssangeDAO, an autonomous and decentralised organisation established with the aim of fighting for the freedom of the Wikileaks founder. 

1. Everydays: the first 5000 Days by Beeple – 69.3 million

This work by Beeple is a collage of 5,000 photographs from the Everyday project: one photograph per day since May 2017. Not only does it hold the record for the most expensive NFT ever sold, but it is also a “historic” event that brought non-fungible tokens to mainstream media for the first time. It was talked about everywhere, even on Saturday Night Live.Do the most expensive NFT ever sold list include your favourite? The digital art scene is vast and you don’t have to spend astronomical sums to become an NFT owner. There are ones for all budgets, or you can hope that the ones on this list will become cheaper. After all, the prices you see here are not definitive, it is the market that determines their value.

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ApeCoin in the spotlight: what is it and how does the Bored Ape token work?

What is Apecoin, the Bored Ape Yacht Club crypto and how it works

What is ApeCoin, the token of the Bored Ape Yacht Club community, the world’s most valuable NFT collection  

What is ApeCoin (APE), the token of the Bored Ape Yacht Club community? The ‘monkey’ NFT collection is one of the most famous in the panorama of non-fungible tokens, but for about a year now it has also been on the market for ‘fungible’ ones. Thanks to ApeCoin (APE), the token managed by the Bored Apes community and the Ape Foundation. In these lines, you will discover not only what ApeCoin is, but in general everything you need to know about the crypto of the Bored Ape community.  

What is ApeCoin and how to use it

APE is an ERC-20 token developed on the Ethereum blockchain. At its launch on 17 March 2022, it was distributed to all users who owned an NFT from the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) collections through an airdrop. This free token distribution was one of the most valuable ever, with each holder of BAYC NFTs receiving more than $100,000 in APE.

Owning ApeCoins (APE) grants the right to participate in the autonomous and decentralised ApeDAO organisation. The DAO of the Bored Ape Yacht Club community, whose decisions are overseen by the Ape Foundation, serves to discuss and vote on ideas and new projects proposed by users. 

The Ape Foundation is the decentralised institution that administers the ApeCoin DAO, specifically it is responsible for the management of proposals on the platform and for accounting. At the head of the Ape Foundation is a special council, whose members are elected by the decentralised organisation itself. Ape Foundation is not linked to Yuga Labs, it acts independently by proposing initiatives for the community. 

In addition to participating in governance, the token is used as an incentive for the developers of the BAYC project. Finally, according to the ApeCoin DAO announcement, APE will also be the currency in the Bored Ape Metaverse, Otherside and will grant access to exclusive video games and events!

ApeCoin tokenomics

The total supply of APE is 1 billion, and the tokens, released as of 17 March 2022, will be distributed to the market progressively until 2026. 15% of ApeCoin availability was distributed to BAYC and MAYC holders at launch, while 47% is stored in DAO-owned crypto wallets. This percentage of APE tokens serves to finance BAYC community proposals that have been approved. The remaining part of the ApeCoin (APE) is owned by investors. These include the Web3 company that created the NFT collection of the Bored Ape Yacht Club, Yuga Labs, which owns 15% of the supply.

What is ApeCoin DAO?

The ApeCoin DAO is the decentralised community organisation of the BAYC. It is necessary to point out that it is completely separate from Yuga Labs, which can express its opinion on future decisions as if it were a wealthy user with a large amount of APE. 

The way it works is simple: anyone who owns at least one APE is entitled to be a member of the DAO, and each token held is equivalent to one vote. Members can propose so-called AIPs (Ape Improvement Proposals), i.e. improvements to the ecosystem on three broad themes: Core, Process and Informational.

Core

Core proposals concern the heart of the ApeCoin project. This category includes all AIPs requiring a financial commitment from the DAO and all those involving the ApeCoin brand and possible collaborations with other Web3 players.

Process

Proposals that intend to change the AIP approval process. For example, those that include changing the voting procedures, or the technical tools of ApeCoin. In particular, the community may decide to vote against the current system whereby 1 token = 1 vote, or it may decide that a more than absolute majority of votes in favour (e.g. more than 70% in favour) is required to approve a proposal. 

Informational

Under this category are proposals on general community guidelines.

The Process for Proposing an Idea on the ApeCoin DAO

To understand not only what ApeCoin is but also how it works within the BAYC governance, let’s look in detail at the process leading to the approval of a new ApeCoin DAO proposal.

  • AIP idea: a member of the community publishes a proposal, which must first be analysed by a moderator of the AIP Foundation;
  • Draft AIP: the draft AIP enriched with comments from other DAO members and approved by a moderator is labelled, ‘AIP-#: (Name) – (Category)’;
  • Board review: the APE Foundation’s Board of Directors reviews the draft AIP and issues a report to ensure that costs and legal implications have been considered;
  • AIP approval: the draft and report are reviewed and approved by a team of moderators according to DAO guidelines;
  • AIP voting: approved proposals are published on the DAO’s platform during the ‘Weekly AIP Release’ Thursday and users can cast their votes for one week
  • Activation of AIPs: accepted AIPs move on to the ‘activation’ phase, which will be managed by the AIP owner and the ApeCoin Foundation team, while rejected AIPs can be resubmitted using the template provided.

The ApeCoin DAO website states ‘the ways in which blockchain can impact culture are infinite, and impossible to predict them all. APE is a token created to shape the future of the Internet, controlled and developed by the community’. So what is ApeCoin? Now you know, and we even went over the mechanisms governing its DAO, so you can make up your own mind. Is the BAYC community well on its way to shaping the web of the future?

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What happens when all 21 million Bitcoins are mined?

What happens when all 21 million Bitcoins are mined?

In 2140, miners will finish issuing Bitcoin. Will their work no longer be needed? What will happen after that? 

Bitcoin, like all precious things, is limited and scarce and therefore will not be issued forever. The distribution of coins will cease at 21 million, more or less around the year 2140. This event, although very far away, will affect future miners who will no longer receive new BTCs as a reward. What happens when all 21 million Bitcoins are mined? Will the miners stop securing its blockchain?

Why aren’t Bitcoins infinite?

The maximum amount of Bitcoins that can be issued is limited to 21 million. This number is also called ‘max supply‘. This limit was introduced by Satoshi Nakamoto since the creation of the cryptocurrency to curb inflation and make crypto scarce and therefore more valuable. If Bitcoin’s availability were unlimited and BTCs were mined indefinitely at some point each of these cryptos would no longer be worth anything. Currently 19 million Bitcoins have been issued and therefore there are only 2 million left to reach total supply. 

Miners’ rewards reduced by halving

Another Bitcoin mechanism, related to mining, is halving. This regulates the gradual decrease in rewards given to miners who validate blocks, which are halved about every four years. This also serves to reduce the crypto in circulation, to maintain scarcity. After the successful halving in April 2024, miners get 3.125 BTC for each validation block. The process of validating a block takes, on average, 10 minutes.

What happens to the miners when all Bitcoins are issued?

The security of Bitcoin’s blockchain is guaranteed by the miners, so it is legitimate to wonder whether the moment no more BTCs are issued, the network will stop working, because no one will have any incentive to check the validity of transactions. 

Fortunately, Satoshi Nakamoto has also thought of this. In fact, the miners not only receive a portion of the newly mined BTC as a reward, but also the transaction fees. When all 21 million Bitcoins have been issued the fees will become the only source of income for the miners.

The end of Bitcoin minting will have an unpredictable impact. Certainly miners may be affected, and for some of them, mining Bitcoin may cease to be a profitable activity. But this depends very much on the evolution of Bitcoin as a cryptocurrency. For example, if in about 120 years BTC becomes a fully-fledged store of value, the transaction fees (which will be much more expensive than now), will probably be sufficient to reward the miners. Alternatively, they could migrate to other blockchains, as happened to Ethereum when its network switched from Proof-of-Work to Proof-of-Stake consensus mechanism.

Over the past year, thanks to a new technology called inscription, Bitcoin’s blockchain is evolving. The BTC network is no longer a ‘pure’ network that only handles cryptocurrency transfers but can also host NFTs, decentralised applications (Dapp), DeFi protocols, and even Layer 2 blockchains. In short, the activity on Bitcoin’s network is increasing, which also contributes to raising the fees that users have to pay, on average, to make a transaction. As the volume of commissions increases, the miners will earn more money.

Lately, thanks to a new technology called inscription, Bitcoin’s blockchain is evolving. The BTC network is no longer a ‘pure’ network that only handles cryptocurrency transfers, but can also host NFTs and possibly soon decentralised applications (Dapp) and DeFi protocols. Due to inscription, activity on the Bitcoin network is increasing, which also helps to raise the fees that users have to pay on average to make a transaction. As the volume of fees increases, the miners will earn more money.

Unfortunately, there is no certain answer to the question: what happens when all 21 million Bitcoins are mined. In any case, since it is about 120 years away, the miners still have some time to prepare.

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Arbitrum news: guide to the ARB token airdrop

Arbitrum airdrop news: guide to the ARB crypto eligibility and drop

All eyes on the Arbitrum airdrop news: ARB token coming soon

It’s all over the news: the Arbitrum airdrop (ARB) is coming on 23 March! Arbitrum is one of Ethereum’s most popular and widely used Layer 2s, i.e. networks built on existing blockchains that allow transactions to be executed outside the main networks in a more efficient and cost-effective manner. In recent months, its popularity has increased significantly, and consequently, so has its use.

This is evident from the high number of transactions processed by the network. This Layer 2 was created in 2018 by Off Chain Labs, a New York-based startup founded with the aim of developing scalability solutions for Web3. ARB will be distributed to users who have interacted with the Layer 2 in the past months on 23 March. Here you will find everything you need to know about the Arbitrum airdrop news or, more specifically, the ARB token release.

How to get the arbitrum airdrop: eligibility requirements

23 March was the day chosen for the Arbitrum airdrop, i.e. the token launch: users who have interacted with the Layer 2 over the past months are eligible to claim the ARBs to which they are entitled. You can already check your arbitrum eligibility and how many ARB tokens you will receive by linking your crypto wallet to the Foundation’s website. The quantity is calculated based on the number of transactions executed on the network and the frequency with which they were made. 

The number of Arbitrum tokens a user receives will increase if they have executed transactions on the Layer 2 regularly during the past months. The ARB airdrop had been announced in January via Twitter by the project’s co-founder, Steven Goldfeder: “the appetiser always precedes the main course,” referring to the main competitor’s airdrop, Optimism, that had just taken place. 

In these hours, most Crypto Twitter users are wondering about the Arbitrum airdrop price, and wondering whether its countervalue in dollars will be comparable to that obtained with Optimism’s airdrop. OP’s free distribution in April 2022 was worth between $3,000 and $30,000 to users who had interacted with the network, depending on the quantity and complexity of interactions. No one can, as of today, know whether the airdrop of the Arbitrum token (ARB) will be as generous.

Arbitrum airdrop: price and distribution

The initial supply of the Arbitrum token will initially be 1 billion ARB, distributed in this way:

  • 12.75% to the community through airdrop; 
  • 42% will be owned by the Arbitrum DAO, to finance governance decisions and the most widely used dapp;
  • 29.94% to Offchain Labs, the startup developing Arbitrum;
  • 17.54% to the investors who financed the project.

The circulating supply of the Arbitrum token has not yet been disclosed, and it is therefore impossible to predict the Arbitrum airdrop price. However, should the market capitalisation be similar to that of its main competitor Optimism, i.e. around 0.7 billion, the price of ARB could be close to the dollar.

What can I use the Arbitrum token (ARB) for?

The Arbitrum token distributed through the airdrop on Thursday, 23 March, will be used primarily with governance functions. The Arbitrum Foundation intends to entrust the most important decisions for the future of the blockchain to the people who use it, and this is where ARB comes in. At the launch in fact, the Arbitrum DAO will be set up, which will be composed of the holders of the Arbitrum token, who will be able to vote on all future decisions of the project. Users will also be able to create their own sub-networks, called ‘Layer 3’, should they receive approval from the Arbitrum DAO.

Arbitrum: excellent performance in recent months

Ethereum’s Layer 2s, in particular Arbitrum and Optimism, which together have surpassed the number of transactions processed on the ‘mother’ blockchain, have been the protagonists of the last period. On Arbitrum, the number of transactions executed daily, as of November 2022, hovers between 200,000 and 500,000. Despite the raging bear market, which has caused losses for all major crypto networks, the total locked-in value (TVL) on the network has continued to orbit around $1 billion. This allowed it to climb the ranking of the most widely used blockchains, compiled taking into account their TVL, to fourth position. We await the Arbitrum airdrop (of its token) to find out whether its blockchain’s TVL will rise further.

The last few months have been positive not only because of increasing adoption, but also because a number of important updates have been implemented. These include Nitro, which has enabled the network to process faster and cheaper transactions, and the integration of Arbitrum Nova, a sub-network dedicated to gaming and decentralised social networks. In addition, the arrival of the Arbitrum token and the birth of the Arbitrum DAO opens up a number of interesting opportunities for Layer 2 on the technological side as well. For instance, the possibility for users to create their own sub-networks.

The best dapps on Arbitrum

A portion of Arbitrum tokens will also be distributed to the most successful decentralised applications (dapp) in the ecosystem. The best known of these are those originating in Ethereum that have landed on Arbitrum in recent months. From Uniswap to Aave, from Sushi to Opensea, practically all the most famous Web3 companies have decided to integrate the blockchain of the moment, facilitated by the great similarity between Ethereum’s blockchain architecture and that of its Layer 2. 

Among Arbitrum’s most successful projects is the decentralised exchange (DEX) GMX, which originated here and on Avalanche. GMX allows its users to engage in leveraged trading through financial instruments called perpetual futures. 

Arbitrum’s blockchain is not only populated by decentralised finance projects (DeFi) but also by dapps dedicated to gaming and NFTs. One of the most famous of these is Treasure, a gaming metaverse that claims to be ‘the Nintendo of the Web3’ on which various play-to-earn video games can be played. Its entire ecosystem functions thanks to the MAGIC token, which allows for the non-fungible tokens needed to play and is distributed to players as a reward. 

In short, this Layer 2 is proving to be one of the most promising scalability solutions for Ethereum. The arrival of the Arbitrum airdrop news and the ARB token, could help make the definitive leap forward for a blockchain that will most likely continue to make waves in the cryptocurrency world.

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Bitcoin price: trends and history from 2008 to today

Bitcoin price: history, value and trends over the years

The price of Bitcoin has grown exponentially over the years, what have been the main milestones in its history?

The history of Bitcoin’s price has been quite eventful, marked by both bullish and bearish periods. From its inception in 2008 to the present day, several significant events have influenced its value and performance. Do you know the history of Bitcoin’s price from 2008 to the present? What events have most influenced its value and the cryptocurrency’s performance?

What was the launch price of Bitcoin?

At the beginning of its history, when Bitcoin was created, cryptocurrency exchanges did not yet exist, so users, in order to sell or buy BTC, had to agree among themselves to establish its value by engaging in a real negotiation. The value of a crypto is determined by its conversion into fiat currency. Since transactions at the time were only done through peer-to-peer exchanges, it is impossible to trace the exact price of Bitcoin at the time of its launch.

However, we know how much BTC was worth when it was first converted into dollars on 12 October 2009. On that day, a user known on the ‘Bitcointalk’ forum under the pseudonym ‘New Liberty Standard’ bought 1,309 BTC for one dollar. Dividing one dollar by the number of BTC the user bought, we can say that the price of Bitcoin started at around $0.0009. Today, the value of the cryptocurrency is about 70 million times its initial value. 

So, let’s examine the main stages in Bitcoin’s price history to understand how it established itself and what difficulties it has faced.

From Bitcoin Pizza Day to the birth of the first exchanges (2009-2012)

In 2009, Bitcoin was a niche technology, a phenomenon linked to a subculture of computer engineering and had no real market. The first time it was used to purchase a ‘real world’ asset was on 22 May 2010; on that day, a user on the Bitcointalk forum bought two pizzas from the American fast food restaurant Papa John’s for 10,000 BTC. This event, dubbed ‘Pizza Day’, has become a real holiday that crypto enthusiasts remember yearly. 

2010 also saw the birth of BitcoinMarket.com, a rudimentary website that allowed its users to exchange BTC, which shut down the following year. In 2011, however, the crypto world’s first exchange was launched: Mt.Gox. The birth of Mt.Gox drew attention to cryptocurrency by making it easier to buy. In February 2011, the price of Bitcoin reached $1, while in July of the same year, one BTC was already worth $15.

From 2012 to 2015: the first bull market and the Mt.Gox hack

2012 was a bad year for the Bitcoin price story. From the high of $15 touched in July 2011, the value of BTC fell dramatically to $3, a zone on the chart in which it was caged until the beginning of 2013. With the new year, however, the cryptocurrency changed gears completely, thanks to a great wave of interest in the sector. The first crypto bull market in history had begun!

In 2013, the price of Bitcoin rose from $12 to $1,000, driven by some Chinese institutional investors and companies that started accepting it as a payment method.

But then came the first crypto bear market in history, coinciding with the hacker attack suffered by Mt.Gox on 24 February 2014. Then, during the summer of 2015, when some institutional investors, such as Goldman Sachs and Nasdaq, approached these new technologies, the market rebounded. 

Buy Bitcoin

On 30 July 2015, Ethereum was launched through an ICO, and a new bullish phase began for Bitcoin’s price, around $400.

2016 to 2021: the second halving and COVID-19

The second halving on 9 July 2016 breathed new life into the price of Bitcoin, which had already started its upward movement in the summer of 2015. The bull market of 2017 was explosive. From the $1,000 zone, it was in January BTC reached $20,000 by the end of the year. In that period, media interest in cryptocurrencies grew considerably: the first ETF on Bitcoin was approved in the United States, the Chinese government regulated crypto trading, and several companies, including Microsoft and Dell, chose to accept BTC as a payment method.

In 2018, Bitcoin’s value plummeted from a high of $20,000 to $3,000, stabilising at around $3,700 at the end of the year. 2019, the year in which the cryptocurrency’s 10th anniversary was celebrated, was also not good due to the failure of the exchange Quadriga CX and a hacker attack on Binance. Bitcoin’s price in 2019 fluctuated between $3,000 and $14,000, changing direction several times. 

In 2020, the crypto market shone again, thanks mainly to the decentralised finance applications (DeFi) born on Ethereum. The collapse of Bitcoin’s price that occurred at the same time as the start of the COVID-19 pandemic was absorbed quickly. A few days later, the bull market began, taking the crypto’s value to a time high of $68,800. This period also saw the emergence of NFTs, which further boosted the whole sector.

The bear market of 2022: industry failures, inflation and the Russian-Ukrainian conflict?

Then, in 2021, after Bitcoin hit $68,000, the crypto market was hit by a series of internal negative events, such as the collapse of the Earth-Moon ecosystem and the bankruptcy of FTX. But also external: the macroeconomic crisis caused by the Russian-Ukrainian conflict and inflation. 

These episodes also affected the value of the cryptocurrency, which reached its peak at $15,000.

From 2023 to the present: the resurrection of the crypto market

With the beginning of 2023, and thus during the last phase of Bitcoin’s price history, crypto has taken off again! In the first part of the year, BTC’s upward movement was slow, only to become more explosive at the beginning of autumn. 

At the beginning of 2023, the price of Bitcoin hovered around the $20,000 level, and 10 months later, in October, in the $25,000 area. Since then, however, everything has changed. What attracted interest in the sector were the spot ETFs on Bitcoin proposed by American investment funds, which were approved in January of this year and the approaching halving. 

Follow the Bitcoin price

In short, the bull market began at the start of 2024, causing strong upward movements affecting several cryptos. Bitcoin reached a new all-time high at $73,000 in March, the hottest month so far.

We may only be at the beginning of this bullish market cycle, to the extent that it should prove similar to those of the past. What impact will the halving that just took place have on Bitcoin’s blockchain? There is no crystal ball, and therefore, no one can know with certainty the targets for the current phase of Bitcoin’s price history. Will the crypto manage to reach the historic $100,000 level?

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Bitcoin mining: what does it take? Does it still make sense in 2023?

How to mine Bitcoin? It's getting harder but it’s a good thing!

How to mine Bitcoin? Years ago an ordinary computer was enough, and today? 

How to mine Bitcoin? If you have known the crypto world for a while, you surely have asked yourself this question at least once. Mining is the process by which transactions are validated on Proof-of-Work blockchains, and thus also on Bitcoin‘s. Miners, through very complex calculations, create the network blocks and allow the network to function. And they receive rewards for their work.

Mining is also a competitive activity, as rewards are only given to the first miner to solve the mathematical problem. The amount of miners participating in the network influences the mining difficulty: a parameter that measures how difficult it is, on average, to validate a block. The difficulty also increases in relation to the power of the hardware. 

Now that you are clear on the big picture, find out how to mine Bitcoin and why it is getting harder!

Bitcoin mining: what does it take?

The answer to the question ‘how to mine Bitcoin’ has varied a lot over time. If we had asked a miner in 2010 he would have answered “with a normal computer and mining software”. 

The same question, in 2015, would have had a different answer. Back then, miners had already started using specially designed machines called ASICs (Application-Specific Integrated Circuits). And today? How do you mine Bitcoin in 2023?

  • Hardware: in order to mine Bitcoin, it is necessary to start with hardware. From simple computers that were used years ago to sophisticated ASICs. There is a wide range of devices with which it has been possible to mine Bitcoin over time. Miners in the past used GPUs (video cards) because they had much more computing power than CPUs (processors) and were cheaper than ASICs. 

GPUs used to be connected in series, i.e. one in a row, and by doing so, their computing power added up. Today, however, even this method has become obsolete and it is not possible to mine Bitcoin unless you have an ASIC.

  • Software: an aspiring miner must obtain or develop ad hoc software. This point is even more complex than the previous one because it requires, in most cases, a high degree of computer knowledge. Some mining devices already have software installed inside them to be configured, but in most cases, the ‘command prompt’ or ‘terminal’ must be used to activate them. That is, the black screen in which to write code that anyone who is not a computer scientist ‘accidentally’ opens on their computer from time to time.
  • Crypto wallet: The last thing a miner must have is the crypto wallet on which to receive rewards for validated blocks. A user who is in the process of building their own mining business should definitely not neglect this point if they do not want to work for free! This is definitely the easiest part of the whole process. Usually miners, like crypto enthusiasts, prefer to use hardware wallets, which are more difficult to hack since they are not constantly connected to the network.

Mining is also a team game

To be able to compete with the large mining companies that have many ASICs synchronised with each other, the ‘smaller’ miners have learnt to play as a team. Thus, mining pools were born, organisations that enable them to coordinate and work together to find the correct hash in the shortest possible time. Thus, you can try to mine Bitcoin even if you only have one device; by participating in pools and sharing the prize with other participants. Unfortunately, however, it is not possible to know for sure whether or not you will be able to mine any blocks, and you need to buy at least one ASIC to be admitted to a mining pool.

Mining is increasingly difficult

The hardware that can solve the very difficult calculations and the large amount of electricity required to run them makes mining a very expensive business. Moreover, the difficulty grows over time as it tends to adapt to changes in the hashrate, i.e. the total computing power of the network. The latter takes into account the hardware and software characteristics of all the miners that are connected to the BTC network and is updated every fortnight. It is however positive that mining Bitcoin is becoming increasingly difficult, the more miners participate in block validation the more secure the blockchain is. 

Now that you know how to mine Bitcoin it is up to you to decide whether to start. However, if you have read this article carefully you may have realised that the game is probably not worth it (anymore). Unless you have access to a large amount of cheap electricity. There are, however, other less expensive ways to secure blockchains and obtain rewards, such as opening a node on a Proof-of-Stake network. You can take a cue from former Ethereum miners who have reinvented themselves since their blockchain changed consensus mechanism.

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Ethereum Shanghai, the latest update explained

Ethereum Shanghai: everything you need to know about the upgrade

Ethereum: what will happen after the Shanghai update?

We are very close to the activation of Ethereum‘s new update, Shanghai. This will allow users to withdraw ETHs they had locked in staking from 2020. That year marked the beginning of Ethereum becoming a Proof-of-Stake, thanks to the emergence of Beacon Chains, a parallel network managed by the new consensus mechanism. It was the developers who chose to block withdrawals for this long period of time. The reason? To ensure maximum security of the blockchain that could have been in trouble due to mass withdrawals. 

After the Beacon Chain came The Merge update, which was activated on 15 September 2022. On that occasion, the merger of the parent blockchain to the Beacon Chain took place, the union into a single blockchain managed by a Proof-of-Stake consensus mechanism. Now all eyes in the crypto world are once again on Ethereum because of the Shanghai update. Everything you need to know is in this article! What impact could this have on the price of ETH?

Ethereum Shanghai: what is the update for? What happens next?

The purpose of the Shanghai update is very simple and clear: to enable withdrawals for those who have staked their ETH so far. 

After activation, those who participated in Ethereum’s consensus mechanism by staking can decide whether to leave their ETHs where they are. Or whether to redeem them with the ‘unstake‘ function. In this case, it is not possible to choose an amount of crypto to unstake, the entire amount originally staked will be returned. 

With the activation of the Shanghai update, all users, both those who decide to redeem their crypto and those who continue with staking, will receive the rewards they have accumulated through the validation of transactions on the blockchain. The rewards will be sent automatically to users’ wallets if they have provided their withdrawal address. 

For those who have staked through providers, and not directly on Ethereum, precise instructions on how the unstake will be handled have not yet been communicated.  

Shanghai Activation Date

The date on which Ethereum’s Shanghai update will be activated has not yet been announced. What is known, however, is the day on which the last testbed will take place: 14 March on the Goerli testnet; during the previous tests, which took place in February on Zhejiang and Sepolia, everything went smoothly. The mechanism regulating the activation of Shanghai is described in the ‘Ethereum Improvement Proposal (EIP -4895)’, in which all the functions that will be inserted or changed within the smart contract that regulates staking are set out. 

How will Shanghai affect the price of Ethereum?

The Shanghai update is a key turning point in Ethereum’s roadmap and therefore could have an impact on its price. Although it is impossible to predict with certainty what will happen, one can speculate. Here are the factors that could cause ETH’s price to fall and those that could lead to a pump.

Why could the price of Ethereum collapse?

The update could cause increased selling pressure and consequently a drop in price. Users could withdraw Ethereum en masse and sell it on the market together with the Ethereum distributed as a reward. If this were to occur, we could see a domino effect that would cause the price of ETH to collapse.

Will the price of Ethereum rally after Shanghai?

Looking at the on-chain data, there are those who argue that the price of Ethereum will rise. In particular, the value to watch is the amount of ETH currently blocked in the staking smart contract.

To date, there are about 17 million Ethereum staked, which corresponds to less than 20% of the circulating supply of about 120 million. This figure is much lower than on other Proof-of-Stake blockchains, where the percentage of staked cryptos is around 40% (on Solana and Cardano it is even higher than 70%).

At the moment, not many users have locked their ETH in staking, the main reason being that their crypto is tied up for long periods of time. After Shanghai the situation might change, we will be able to withdraw and deposit freely. In this case, we could see the number of staked ETH increase and consequently see a reduction in selling pressure on Ether and thus an increase in price. 

It is important to note that a large percentage of the ETHs staked were deposited by users more than a year ago, and the average purchase price of these cryptos is over $2,000. To date, users staking Ethereum who are in profit are only 16% while the remaining 84% are in loss. Therefore, to cause a decrease in the price of Ethereum, users would have to sell their Ether at a loss, a hypothesis that seems remote. Indeed, it is assumed that those who have chosen to staking their cryptos without knowing when they will be able to unlock them, strongly believe in Vitalik Buterin‘s project.

The future of dapps for staking

Those who will definitely be affected by the Shanghai update are the dapps that offer staking and yield farming services on Ethereum. These include liquid staking platforms that are used by those who only want to stake small amounts of Ether. The possible consequences for these types of services are mainly twofold.

With the possibility of depositing and withdrawing ETH at any time given by the Shanghai update, these dapps could develop new functionalities. New DeFi projects will probably also emerge to explore all opportunities to maximise rewards. 

Moreover, there are those who see Shanghai as the next standard of basic staking returns for the entire crypto world. These dapps will thus have to compete directly with Ethereum, as well as with their own competitors, and offer rewards more profitable than those guaranteed by the blockchain created by Vitalik Buterin.

In short, Shanghai will start a new cycle of innovation for the Ethereum network that could affect a huge number of projects and hundreds of thousands of users in the crypto world. 
But Ethereum’s renewal does not end with the Shanghai update. The developers are always working to improve the blockchain. On the horizon are Sharding and then The Surge, The Verge, The Purge and The Splurge updates!

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The top 5 cryptocurrencies in the Metaverse

The top metaverse crypto project

The Metaverse cryptos regulate the internal economy of decentralised virtual worlds. Which ones are the most popular on the market?

What are the top Metaverse crypto projects? The latter combines the immersive environments of virtual (VR) and augmented reality (AR), the engagement of video games and the social interaction of social networks; but a crypto Metaverse also includes an economic component that is managed and regulated through cryptocurrencies. 

The crypto metaverse and its economy

Before discussing Metaverse cryptos, it is necessary to make a few clarifications. The term Metaverse refers to an immersive virtual world shared between users who, through avatars, can interact, participate in experiences and build digital objects. Among the many things you can do within it, there is certainly participation in the most varied events: parties, weddings, art exhibitions, fashion shows, university lectures, business meetings. This is not a new concept, many video games such as massive-multiplayer online games have always proposed this kind of scenario. What is changing in the Metaverse emerging in recent months is the use of blockchain as a core technology. 

The blockchain determines the functioning of the Metaverse in at least two senses. Firstly, it allows these virtual worlds to possess a real internal economy, managed with cryptocurrencies. The digital objects that the crypto Metaverse offers are in NFT format, i.e. non-fungible tokens, and cryptocurrencies are used to buy them. This means that the objects you buy are your property, indelibly and immutably guaranteed by the blockchain. Without this technology, should a video game be withdrawn from the market, you would lose all the digital objects you own in it. The first aspect that distinguishes any crypto metaverse is therefore the traceability of the ownership of objects and their economic value in the real world. 

Secondly, using blockchain technology means giving a Metaverse a decentralised structure, this implies that the management of the project is not in the hands of a company or corporation but is given to the users. Owning a certain number of the cryptos in the Metaverse gives the right to participate in governance and vote on decisions and choices about the future of the project. Many virtual worlds in fact rely on DAOs, decentralised autonomous organisations set up by the community. But which are the most popular and capitalised Metaverse crypto projects?

The Sandbox (SAND)

The crypto of The Sandbox metaverse is SAND, an ERC-20 type token based on the Ethereum standard. SAND is one of the main cryptocurrencies in the virtual world and handles most of the transactions and interactions in The Sandbox. It is used to buy accessories and tools to customise avatars, to manage LAND rentals and is distributed as rewards to users who win challenges and achieve goals. Metaverses are virtual worlds and like the real world they are also divided into territories, LANDs, in the form of NFTs. And like in the real world, they are not infinite; for instance on The Sandbox there are 166,464. During the first year of The Sandbox itself, these virtual land plots could be purchased through the metaverse’s crypto, SAND. 

The digital plots of land that exist to date are all sold out and the only way to own one is to buy it with ETH on an NFT marketplace, such as Opensea. 

The LANDs of The Sandbox host various brands and celebrities, some examples? Snoop Dogg, Gucci and Adidas! This Metaverse has also been selected by TIME for the list of the “100 Most Influential Companies” of 2022, under the category “pioneers”.

Decentraland (MANA)

Decentraland’s crypto metaverse is also built on Ethereum, its token is called MANA and can be used to purchase all digital objects in the virtual world, including land. This is a community-driven space where users create digital experiences, content and services and then exchange them with each other. Decentraland is not only developed by its users but is also managed by them, in fact its governance is totally entrusted to its DAO (Decentralised Autonomous Organisation), an organisation in which MANA owners can participate by proposing and voting on initiatives. The crypto of the Decentraland metaverse thus plays a dual role within the virtual world, it is the main exchange token in this economy and also functions as a governance token. With MANA, you can purchase LAND, clothes and accessories for avatars and generally all the assets of Decentraland. These virtual assets also include Decentraland Names, ERC-721s tokens integrated with the Ethereum Name Service that appear as ‘jane.dcl.eth’. They are unique names to give to your avatar but also function as wallet addresses to receive your cryptocurrencies there directly. Why is MANA considered one of the top Metaverse crypto projects? Decentraland is increasingly often the venue for innovative and international events such as Metaverse Fashion Week, an annual event attended by famous fashion brands such as Dolce and Gabbana, Etro, Tommy Hilfiger and many others. 

Axie Infinity (AXS)

Axie Infinity is a cryptocurrency metaverse that revolves around a specific type of digital objects, the Axies, NFT pets that users can collect, care for, and race. On Axie Infinity, users have the opportunity to earn cryptocurrencies in the metaverse by playing, completing quests, and reaching goals. The virtual world of Axie Infinity is made up of many different mini-games, in fact, compared to The Sandbox and Decentraland, it is more focused on gaming rather than entertainment or exploration. Its economy relies on AXS, another ERC-20 token. AXS is used for two purposes: for crypto payments in the metaverse and for voting on governance proposals in the DAO. In addition, Axie Infinity’s cryptocurrency can be staked on the official dapp (decentralised application). 

Otherside (APE)

Yuga Labs, the Web3 company of the Bored Ape Yacht Club, is also building its own metaverse, Otherside. This virtual world was supposed to come out in April 2022, but has not yet been released. For now, all that is known is that it will be an MMORPG (massively multiplayer online role-playing game) on blockchain, and the key will be NFTs. Although the virtual world of Bored Ape does not yet exist, the crypto of their metaverse is already on the market. ApeCoin (APE) will be the token of Otherside and to date is used by the ApeCoin DAO, a decentralised autonomous organisation of which Bored Ape owners are members, where initiatives are proposed for the development of the entire Bored Ape ecosystem. APE, the cryptocurrency of the Otherside Metaverse and the ApeCoin DAO, was released on 17 March 2022 and as of today occupies the 34th position among the most capitalised cryptos on the market. 

Enjin (ENJ)

The Metaverse’s fifth major crypto is not a virtual world, but a platform for creating video games and NFTs on blockchain. We are talking about Enjin and its ENJ token! The project was born in 2009 to make life easier for gaming workers, and over the years it has grown closer and closer to the crypto Metaverses. Currently, Enjin offers a set of tools for developers, enthusiasts or companies to create and monetise any kind of digital content in NFT format. The ENJ token is the medium of exchange for all goods, tools and services offered by the platform; in particular, it is used by users to buy NFTs and by game developers to buy the tools needed to integrate blockchain technology into their products.
Now that you have discovered which Metaverse crypto projects are the most popular on the market, you just have to enter these virtual worlds and start using them. Only in this way can you fully understand how they work and their usefulness in the field of cryptocurrencies and beyond.