Coinbase’s Ethereum staking dominance risks overcentralization: Execs
Coinbase’s emergence as the Ethereum network’s largest node operator raises concerns about network centralization that could worsen as institutional adoption accelerates, industry executives told Cointelegraph. On March 19, Coinbase published a report disclosing that the US cryptocurrency exchange controlled more than 11% of staked Ether (ETH), more than any other Ethereum node operator. According to Karan Sirdesai, CEO of Web3 startup Mira Network, Coinbase’s growing dominance highlights “a systemic issue in Ethereum’s staking architecture.”“We’re creating a system where a handful of major players control an outsized portion of network security, undermining the core promise of decentralization,” Sirdesai told Cointelegraph. According to the report, Coinbase controlled 3.84 million ETH staked to 120,000 validators, representing 11.42% of staked Ether as of March 4. Liquid staking protocol Lido controls a larger share of staked Ether overall — approximately 9.4 million ETH, according to Lido’s website.However, Lido’s staked Ether is distributed across dozens of independent node operators, Anthony Sassano, host of The Daily Gwei, said in a March 19 post on the X platform.To limit risks, Coinbase spreads staking operations across five countries and employs multiple cloud providers, Ethereum clients, and relays, according to its report. “Diversification at the network level and the overall health of the network is always a priority for us. That’s why we periodically check network distribution,” the exchange said. Coinbase is the largest Ethereum node operator. Source: CoinbaseRelated: Ether ETFs poised to surge in 2025, analysts sayImpending centralization risksEthereum’s network concentration could worsen if US exchange-traded funds (ETFs) are permitted to begin staking — a priority for asset managers such as BlackRock.Coinbase is the largest custodian for US crypto ETFs and holds ETH on behalf of eight of the nine US spot Ether funds, the exchange said in January. “This type of network consolidation brings with it increased risk of censorship and reduced network resilience,” Temujin Louie, CEO of Wanchain, a blockchain interoperability protocol, told Cointelegraph. For instance, high staking concentrations “represent potential points of regulatory pressure… [and] these large staking entities will likely prioritize regulatory adherence over network censorship resistance when faced with difficult choices,” Sirdesai said.Meanwhile, new US regulatory guidance allowing banks to act as validators for blockchain networks adds to centralization risks, several crypto executives said.“If too much stake consolidates under regulated entities like Coinbase and US banks, Ethereum will become more like traditional financial systems,” Louie said. Conversely, more institutional validators could actually improve staking concentrations. Cryptocurrency exchange Robinhood is especially well positioned to check Coinbase’s staking dominance, according to Sirdesai.Robinhood already has “the crypto infrastructure, user base, and technical capabilities to move into staking rapidly. They could realistically challenge Coinbase’s position faster than any traditional bank,” Sirdesai said.Magazine: Ethereum L2s will be interoperable ‘within months’ — Complete guide
Timeline: Jelly token goes sour after $6M exploit on Hyperliquid
Suspicious trading activity led decentralized exchange Hyperliquid to delist the Jelly-my-Jelly (JELLY) memecoin, with details of an exploit unraveling over the course of a few days. The decentralized finance sector has already seen historic exploits in 2025, as the space struggles with issues of oversight and security. The Bybit hack saw North Korean hackers get away with $1.4 billion in February alone.The JELLY incident, in which a whale exploited the Hyperliquid exchange’s liquidation parameters, getting away with millions, is just the latest exploit to rock the industry. Observers roundly criticized Hyperliquid’s reaction to the short squeeze, with one even comparing it to the ill-fated FTX. Here’s a look at how the incident unfolded.Jelly token price crashes ahead of Hyperliquid exploitVenmo co-founder Iqram Magdon-Ismail launched the JELLY token as part of the JellyJelly Web3 social media project. Following the launch on Jan. 30, the token price crashed from $0.21 to just $0.01 some 10 days later. Jelly-my-Jelly token price lost most of its value in the first two weeks of trading. Source: CoinMarketCapWhile the coin’s market cap initially boasted almost a quarter of a billion dollars, by March 26 it had a market cap of roughly $25 million.A short squeeze of JellyJellyThe short squeeze on the JellyJelly token took place over the course of just a few hours on March 26. According to a postmortem by Arkham Intelligence, this is how it went down:The exploiter deposited $7 million on three separate Hyperliquid accounts, making leveraged trades on the illiquid Jelly token.Two accounts took $2.15 million and $1.9 million long positions on JELLY, while the other took a $4.1 million short position to cancel the others out.As the price of JELLYJELLY increased, the short position was liquidated, but it was too large to be liquidated normally.The short position was passed to the Hyperliquidity Provider Vault (HLP).The exploiter meanwhile had a seven-figure PnL from which to withdraw. By this point, the price of JELLY had pumped 400%.The exploiter began to pull withdrawals but Hyperliquid soon restricted their accounts. Instead of attempting further withdrawals, they began to sell their JELLY position.Hyperliquid shuts down Jelly marketAs the trader began to sell their remaining Jelly position, Hyperliquid shut down the market for the token. According to Arkham, the exchange closed the market with Jelly at $0.0095, the price at which the third account had entered its short trades. Hyperliquid announced on X that it would delist perpetual futures trading for the JELLY token, citing “evidence of suspicious market activity.”Related: Long and short positions in crypto, explainedThe exchange said, “All users apart from flagged addresses will be made whole from the Hyper Foundation. This will be done automatically in the coming days based on onchain data.” It further acknowledged the hit the HLP took when saddled with the long positions but said that the HLP’s positive net income was $700,000 over the last 24 hours: “Technical improvements will be made, and the network will grow stronger as a result of lessons learned.”Crypto observers criticize Hyperliquid Some market observers weren’t very impressed with how Hyperliquid handled the situation. The CEO of Bitget, Gracy Chen, wrote, “The way it handled the $JELLY incident was immature, unethical, and unprofessional, triggering user losses and casting serious doubts over its integrity.”She said that the exchange “may be on track to become FTX 2.0” and that the decision to close the Jelly market and settle positions at a favorable price “sets a dangerous precedent.” Alvin Kan, chief operating officer at Bitget Wallet, told Cointelegraph that the Jelly meltdown was just another example of how capricious hype-based price action can be. “The JELLY incident is a clear reminder that hype without fundamentals doesn’t last […] In DeFi, momentum can drive short-term attention, but it doesn’t build sustainable platforms,” he said. The market will continue to expose projects that are built on speculation, not utility, he concluded. Arthur Hayes, the founder of BitMEX, seemed to imply that reactions to the Jelly incident were overblown, writing on X, “Let’s stop pretending hyperliquid is decentralised. And then stop pretending traders actually give a fuck.” Source: Arthur HayesThe exchange had already taken action regarding leveraged trading earlier in March, increasing margin requirements for traders after its HLP lost millions of dollars during a large Ether liquidation. Related: Hyperliquid ups margin requirements after $4 million liquidation lossStill, Hayes could be right — “degen” traders who are at peace with the risk of DeFi may just eat the losses and continue onward. Furthermore, it doesn’t appear that a clear legal framework for DeFi is coming anytime soon, at least not in the United States. There may be no pressure or oversight, other than user reactions, to make “decentralized exchanges” change their ways. The true irony of the exploit is that it seems everyone lost out — the exchange, traders, and even the exploiter.In total, the trader deposited $7.17 million into their accounts but was only able to withdraw $6.26 million, with a balance of around $900,000 still remaining on their Hyperliquid accounts. If they are able to get the funds back, the exploit will cost them around $4,000; if not, it could have cost them almost $1 million. Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder
Bitcoin price drops 3% on hot US PCE data as analyst says $84K must hold
Bitcoin (BTC) sought a local bottom on March 28 while US inflation data came in higher than expected.BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewBitcoin wobbles as PCE comes in hotData from Cointelegraph Markets Pro and TradingView showed BTC/USD heading to $85,500 at the Wall Street open before reversing.Down over 3% on the day, the pair saw lows under $84,500 on Bitstamp, marking its lowest levels since March 23.The February print of the US Personal Consumption Expenditures (PCE) Index subsequently showed inflation quickening — in contrast to the result from a month prior.While the month-on-month and year-on-year PCE tally conformed to market forecasts at 0.3% and 2.5%, respectively, their core PCE equivalents were both 0.1% higher than anticipated.“Core inflation is back on the rise,” trading resource The Kobeissi Letter concluded in part of a response on X, noting that the January numbers had also been revised higher.Kobeissi argued that the current macroeconomic trajectory forms “the perfect recipe for stagflation in 2025.” “March inflation data will be even more telling as the trade war rages on,” it wrote.US PCE % change (screenshot). Source: Bureau of Economic AnalysisBTC price analysis sees “typical market cooldown”While BTC price action appeared to shake off the inflation warning, market participants were ready for surprises.Related: ‘Bitcoin Macro Index’ bear signal puts $110K BTC price return in doubt“PCE data coming up so it’s going to be a volatile day in the markets I reckon,” popular trader Daan Crypto Trades thus wrote in part of his own X reaction.Others maintained doubts over broader crypto market strength, agreeing that Bitcoin was not yet out of the woods despite holding above $80,000 for several weeks.“Trend remains to be upwards for $BTC, but it starts to look slightly less good,” trader, analyst and entrepreneur Michaël van de Poppe told X followers on the day. “It’s shaking. Drop sub $84K and I think we’ll see a test at $78-80K and perhaps lower before we’ll bounce back up.”BTC/USDT 12-hour chart with relative strength index (RSI) data. Source: Michaël van de Poppe/XFellow trader TheKingfisher likewise saw little chance of a full bullish comeback on short timeframes.“BTC While the short term price action may suggest a localized squeeze, the broader outlook doesn’t yet support the narrative of a sustained bull run,” he summarized. “With volatility continuing to decline, current conditions appear more in line with a typical market cooldown. We could be approaching a seasonal reset, potentially front-running the familiar ‘sell in May and go away’ dynamic.”BTC/USDT 4-hour chart with volume data. Source: TheKingfisher/XThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
How to buy Bitcoin in Australia
Key takeawaysBitcoin is legal in Australia and is regulated by AUSTRAC and the Australian Taxation Office (ATO). You can buy Bitcoin on various platforms, including centralized exchanges, decentralized exchanges (DEXs), P2P platforms and Bitcoin ATMsPayment options are diverse, including credit cards, debit cards, bank transfers and fiat cash deposits at ATMsStore your Bitcoin securely and opt for cold wallets, which protect you better than custodial wallets from crypto exchanges. Bitcoin adoption continues to grow. More and more Australians are discovering the cryptocurrency as an investment vehicle, with ownership rising from 23% in 2023 to 32.5% in 2025, an impressive 41.3% increase. Because there are several platforms to choose from, buying Bitcoin is low-threshold and secure. This article covers several methods and describes the steps to safely start investing in Bitcoin. Is Bitcoin legal in Australia?Yes, Bitcoin is legal in Australia, but it’s not considered a legal tender. The local government considers owning cryptocurrencies like Bitcoin (BTC) as property. Any profit you might make from Bitcoin is subject to capital gains tax (CGT), with Australian Transaction Reports and Analysis Centre (AUSTRAC) ensuring AML and CTF compliance.Of course, there are also various regulatory requirements to abide by. AUSTRAC requires cryptocurrency companies to comply with Anti-Money Laundering (AML) and counter-terrorism-financing (CTF) regulations. This framework aims to protect Australian investors by safeguarding the crypto market against financial crime.A significant update in 2025 requires major crypto platforms to obtain an Australian Financial Services License (AFSL) for enhanced consumer protection, as outlined in government proposals.Did you know? Some Australian exchanges offer instant verification, allowing you to start trading Bitcoin within minutes.Prerequisites to buying Bitcoin in AustraliaBefore buying Bitcoin in Australia, it is essential to prepare properly. To get you started, here are some points of interest: Understand the legal landscape: Bitcoin is legal and regulated in Australia by AUSTRAC, but it is not a legal tender. You can safely deal with cryptocurrencies because the government minimizes risks such as money laundering. Platforms to buy Bitcoin in Australia: If you want to buy Bitcoin or other crypto assets in Australia, use a reliable platform. Choose CoinSpot, Swyftx or Binance. These exchanges comply with local regulations, allowing you to trade safely. Of course, don’t forget to complete your KYC verification. Please note that Binance offers spot trading only, as its derivatives license was canceled in 2023.Set up a non-custodial wallet for self-custody: Choose a non-custodial wallet, such as Trust Wallet or Exodus. This allows you to keep control of your private keys. If you go for long-term storage of your coins, always choose a cold wallet that stores your assets offline. Payment methods and fees: The fastest and safest way is to initiate transactions with a reliable payment method, such as bank transfer, credit card or PayID. Always check the associated transaction fees so you don’t incur unexpected (sometimes high) fees. Secure your investment: Take precautions for your security, too. Enable two-factor authentication (2FA) on your accounts and back up private keys regularly. Ensure your platform offers strong security features such as encryption and cold storage.How to buy Bitcoin in Australia on a centralized exchangeWant to buy Bitcoin through a central exchange, such as CoinSpot? You can do this easily and quickly:Step 1: Create an account. Sign up to CoinSpot with your email address and a secure password. Go through the KYC process with ID verification and get started. As of 2025, CoinSpot complies with AUSTRAC regulations and the new AFSL requirement, ensuring enhanced consumer protection. Step 2: Add a payment method. Link a payment method, such as bank transfer, debit card or Australian-only PayID. CoinSpot supports low-fee options like bank transfers (free via POLi) and PayID, while credit/debit card transactions may incur fees up to 2.58%, so review these costs upfront.Step 3: Navigate to the Bitcoin purchase section. Go to “Buy/Sell” on CoinSpot’s website or in the app and select Bitcoin from the list of over 350 supported cryptocurrencies. Step 4: Enter the amount. Enter how much Bitcoin you want to buy in AUD. The platform will display how much Bitcoin you are buying based on the current exchange rate.Step 5: Check the transaction. Check the details, including fees, before confirming the purchase.Step 6: Confirm and complete the purchase. Click “Buy Now” to complete the transaction. The Bitcoin you bought will appear immediately in your CoinSpot wallet. For added security, you could consider transferring your BTC to a non-custodial wallet like Exodus after purchase to retain full control over your private keys.This efficient process makes Bitcoin accessible to beginners and experienced users, all in a secure, regulated environment. How to buy Bitcoin in Australia using a non-custodial walletNon-custodial wallets give you full control over your Bitcoin. If you want to know how to buy Bitcoin with your Trust Wallet, go through the steps below:Step 1: Set up a Trust Wallet. Download Trust Wallet from the App Store or Google Play. Create a wallet, set a secure password and write down the 12-word recovery phrase.Step 2: Link a payment method. Link a payment method, such as a debit card or bank transfer, via MoonPay or Simplex. Use a service that supports Trust Wallet in Australia.Step 3: Select Bitcoin and start the purchase. Tap “Buy” on Trust Wallet, select Bitcoin (BTC) and enter the amount in AUD. Review the transaction details before finalizing the purchase.Step 4: Confirm and complete the transaction. After confirming the payment details, tap “Confirm” to complete the purchase. The Bitcoin will appear in your Trust Wallet as soon as it is finalized.Use a non-voluntary wallet to always have your Bitcoin in your possession and optimize privacy and security. How to buy Bitcoin in Australia on a decentralized exchange (DEX)Buying Bitcoin on a DEX, such as Uniswap, gives you complete freedom over managing your assets. Here’s how to buy Bitcoin through a DEX: Step 1: Set up a crypto wallet. Download MetaMask and create a wallet. Save the 12-word recovery phrase and put ETH in your wallet to cover transaction costs. Step 2: Connect to the DEX (Uniswap). Visit the Uniswap website and click on “Connect Wallet.” Choose MetaMask or WalletConnect for mobile users.Step 3: Select Bitcoin to buy. Select ETH as the token to exchange and Wrapped Bitcoin (WBTC) as the token to purchase. Step 4: Review and approve the transaction. Check the details, including the ETH amount and WBTC to be received, and confirm the transaction.Step 5: Confirm and complete the purchase. Once you have confirmed everything, the transaction will be processed on the Ethereum blockchain. Your WBTC will appear in your MetaMask wallet.Using a DEX ensures you maintain control over your private keys while enjoying a decentralized trading experience.Did you know? Bitcoin adoption in Australia has been rising recently, leading many Australians to deploy cryptocurrency to diversify their investment portfolios. How to buy Bitcoin in Australia via P2P platformsIn Australia, you have peer-to-peer (P2P) cryptocurrency platforms such as Binance P2P to buy Bitcoin directly from other users, offering flexibility and privacy. Here’s how you can buy Bitcoin on P2P platforms:Step 1: Create an account. Sign up and complete the KYC verification. Have your ID ready and verify your contact details during the process. Notably, Binance P2P, registered with AUSTRAC, ensures compliance with AML/CTF regulations, making it a reliable choice for Australians.Step 2: Search for Bitcoin offers. Browse available offers, filtering by payment method (e.g., bank transfer, PayID), price or seller reputation. Prioritize sellers with high feedback scores (e.g., 95%+ positive ratings) and a history of 100+ completed trades for trustworthiness. Binance P2P displays these metrics clearly. As of 2025, Binance P2P supports over 31 fiat currencies and 700+ payment methods globally, tailoring offers to Australian users.Step 3: Start a trade. Select the amount of Bitcoin or fiat currency you want to trade and click “Buy.”Step 4: Make the Payment. Pay via bank transfer, PayID or another accepted payment method. The platform holds the Bitcoin in escrow until the payment is confirmed. Notably, PayID transactions are instant and free on Binance P2P, while bank transfers may take 1-2 hours. Confirm receipt with the seller via the platform’s messaging system to avoid delays.Step 5: Receive your Bitcoin: Once the seller verifies your payment, the escrowed Bitcoin is released to your P2P wallet (e.g., Binance wallet). This typically happens within minutes for instant methods like PayID. For maximum security, you could immediately transfer your BTC to a non-custodial wallet like Trust Wallet or a hardware wallet like Ledger. P2P platforms aren’t designed for long-term storage. This P2P process offers a direct, flexible way to buy Bitcoin, with Binance P2P standing out in 2025 for its robust escrow system and wide payment options. Always double-check seller credibility and avoid off-platform payments to mitigate risks, aligning with best practices for P2P trading.How to buy Bitcoin in Australia using Bitcoin ATMsBy using a Bitcoin ATM, you can buy Bitcoin quickly and easily. This is how:Step 1: Find a Bitcoin ATM. Search for Bitcoin ATMs with CoinATMRadar. These machines are usually found in shopping centers in major Australian cities.Step 2: Verify your identity. Most ATMs require a government-issued ID, such as a driver’s license or passport.Step 3: Start the transaction. Select “Buy Bitcoin” and enter the amount you want to purchase in AUD or Bitcoin.Step 4: Enter your wallet address. Scan the QR code of your Bitcoin wallet to enter the address so you can receive Bitcoin.Step 5: Deposit the money. Deposit the money in the ATM to complete the transaction.Step 6: Confirm and complete. Check the transaction and confirm the purchase. The Bitcoin will arrive in your wallet after processing.Quick checklist for Bitcoin ATM use in AustraliaLocate a verified ATM via CoinATMRadar.Bring a pre-set wallet QR code and ID.Compare fees/rates to online alternatives.Use in a safe, public location.Confirm receipt and track the transaction.Avoid unofficial QR codes or support contacts.Start with a small test transaction.How to buy Bitcoin ETFs in AustraliaBuying Bitcoin ETFs in Australia is straightforward. Just follow these steps:Step 1: Choose a brokerage platform. Open an account with a brokerage that offers Bitcoin ETFs on the ASX. Make sure it complies with Australian financial regulations.Step 2: Complete KYC verification. Submit proof of identity and proof of address for verification.Step 3: Deposit funds. Transfer funds to your account using secure methods, such as bank transfer.Step 4: Search for Bitcoin ETFs. Use the platform’s search function to find Bitcoin ETFs, such as VanEck Bitcoin ETF (VBTC) or Global X 21Shares Bitcoin ETF (EBTC).Step 5: Place your order. Choose the number of units you want to buy and select a market or limit order.Step 6: Confirm the purchase. Check and confirm the transaction. The ETF units will be added to your portfolio after the transaction has been completed.Did you know: Bitcoin ETFs in Australia are scrutinized by ASIC and ASX to ensure high transparency and investor protection.Best practices for buying Bitcoin in AustraliaStore your Bitcoin securely after purchase using a reputable platform that complies with ASIC and AUSTRAC regulations. Ensure you have a secure internet connection and enable two-factor authentication (2FA). Choose cost-effective payment methods such as bank transfers instead of credit cards. After you have purchased the Bitcoin, move it to an unsecured wallet to have complete control over your private keys. Use a cold wallet for maximum security. Stay up to date on market trends, tax obligations, and changes in regulations to protect your investments. The crypto landscape evolves rapidly, and keeping up to date will help you make better investment decisions while ensuring compliance with Australian laws.
Privacy will unlock blockchain’s business potential
Opinion by: Eran Barak, CEO at Midnight It’s been almost 16 years since blockchain emerged from its esoteric fringes to enter global discourse, evidenced most recently by continued backing from Wall Street incumbents. Despite this remarkable ascendancy, the unfortunate truth is that this technology has yet to realize its true business potential. A core challenge persists: Too much sensitive data remains publicly unshielded.The crux of the issue is that companies must keep business data confidential, and people strive to safeguard their personal information as best they can. Once data is put on a public blockchain, however, it becomes irreversibly and indefinitely exposed.Even if a business takes every possible precaution to conceal data, mistakes made by others or vulnerabilities in the system can expose sensitive onchain data or metadata, including participants’ identities. This can lead to privacy breaches, compliance violations or both, undermining the foundational assumption that blockchain is trusted and underscoring the importance of robust measures to protect sensitive data.On the other side of that coin, concealing activity on a blockchain can open the door to money laundering, triggering negative government responses. Instances in which this has occurred have led to a false impression that governments oppose Web3 privacy, a criterion businesses fundamentally need for them to adopt the technology. From whichever angle we look at it, maintaining privacy onchain is a real and complex issue for Web3. Until we solve it, businesses will not and should not be expected to cross the chasm. The belief that governments oppose privacy on the blockchain is wrongWeb3 entrepreneurs have grown to fear that building decentralized applications and businesses that provide financial anonymity could land them in regulatory trouble. Just look at Samourai Wallet, whose co-founders were charged with money laundering, or Tornado Cash, whose developer was sentenced to 64 months in prison for similar reasons. These responses have led to a consensus that governments are opposed to privacy altogether when it comes to blockchain. Recent: AI agents and blockchain are redefining the digital economyThis couldn’t be further from the truth. Governments don’t oppose privacy but mandate it across industries. Data protection laws, like the General Data Protection Regulation or the Health Insurance Portability and Accountability Act, are in place to ensure businesses protect our customer data from misuse and security threats.The real issue these high-profile cases reveal is that Web3 measures to protect data have created opportunities for misuse, enabling the facilitation of criminal activities that have understandably raised serious concerns on behalf of governments. Blockchain data protection capabilities should not undermine established cross-jurisdictional laws safeguarding the global community from terrorism, human trafficking, fraud and other criminal offenses. This begs the question: What does privacy, done right, look like?Selective disclosureWhen it comes to using blockchain, protecting sensitive data is typically accomplished by either keeping the data offchain, or encrypting data onchain. The latter is not durable privacy given quantum computing’s rapid advances in cracking encryption. The advent of zero-knowledge (ZK) technology, a complex cryptographic technique, allows users to ensure sensitive data remains offchain by sharing attestations about the validity of the data instead. In Web3, ZK has emerged as a transformative way to enhance privacy as it enables untrusted parties to validate that a transaction has occurred without sharing any information about the transaction. Decentralized applications can exercise selective disclosure by choosing between putting data onchain (full disclosure), putting it onchain with encryption (disclosure via viewing keys) or using ZK to only publish attestation about the data (offering utility without any disclosure). Selective data disclosure only solves half of the puzzle. It was not designed to account for metadata.The next privacy frontierMetadata, the information surrounding our data, is an under-discussed component of blockchain’s exposure of sensitive information; it can be used to make inferences, creating an added layer of vulnerability even when the data itself is concealed. For example, through transaction metadata, investment and trading strategies can be inferred in addition to other behavioral patterns. For businesses, the implications of this can be detrimental to their growth and ability to stay ahead of competitors. They can’t afford to have trade secrets and strategies, or even the identities of other parties they are transacting with, made public.The need to protect metadata and remove the ability to make inferences is paramount to security and can be addressed using a private token. Such capability can, however, be easily misused for money laundering.If using a private token is not the solution, and using a public token does not provide sufficient levels of confidentiality, then the way to solve this challenge is to rethink Web3’s approach to protecting metadata altogether. We need to combine the benefits of both approaches, effectively creating a dual-asset system in which a public and a private token are used. Each asset functions independently, meaning specific restrictions can be placed to prevent illicit activities such as money laundering while retaining all the benefits.A powerful frameworkThe dual-asset system enables confidentiality without the ailments shielding metadata usually brings, making compliance and business policy enforcement possible. By combining this tokenomics structure with selective disclosure, privacy and regulatory compliance can coexist on the blockchain, which will have resounding effects on adoption and innovation.Opinion by: Eran Barak, CEO at Midnight.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Nasdaq seeks SEC approval for Grayscale’s Avalanche ETF listing
US stock exchange Nasdaq submitted a filing to the US Securities and Exchange Commission (SEC) seeking permission to list Grayscale Investments’ spot Avalanche exchange-traded fund (ETF).The document, filed on March 27, asks for a rule change to list the Grayscale Avalanche Trust (AVAX). The derivative product in question would be a conversion of Grayscale Investments’ close-ended AVAX fund launched in August 2024.Grayscale said on its website that “its SEC-reporting Products present a strong case for uplisting when permitted by the U.S. regulatory environment.” The firm explained that, following the conversion, “the arbitrage mechanism inherent to ETFs would help the product more closely track the value” of the assets.At the time of publication, the Grayscale Avalanche Trust holds $1.76 million worth of assets under management. The current net asset value per share is $10.86 for just over 0.49 AVAX per share, worth $10.11 according to CoinMarketCap data, which puts the fund’s current market price at a 7.4% premium to the value of its underlying assets.Related: NYSE proposes rule change to allow ETH staking on Grayscale’s spot Ether ETFsGrayscale expands crypto ETF offeringsGrayscale’s website lists 28 crypto products, of which 25 are single-asset derivatives and three are diversified. The firm is among those currently waiting for the approval of its XRP spot ETF, as well as other products.Other examples include its spot Cardano ETF filing and its Litecoin Trust conversion to an ETF. These filings also follow the company’s successful conversion of its Ether and Bitcoin close-ended funds into spot ETFs.In 2024, Grayscale Investments also announced the conversion of a part of its Bitcoin and Ethereum ETFs into spinoff products. The new Grayscale Bitcoin Mini Trust (BTC) and Grayscale Ether Mini Trust (ETH) feature lower fees and follow their derivatives, losing capital to more cost-effective options.Related: BlackRock Bitcoin ETP ‘key’ for EU adoption despite low inflow expectationsUnited States Bitcoin ETF assets under management by product. Source: MacroMicroData reported at the end of 2024 shows that over $21 billion has been withdrawn from the Grayscale Bitcoin Trust (GBTC) since its launch on Jan. 11, 2024. This made it the only US-based Bitcoin ETF with a negative investment flow at the time.This product offering has the highest management fee among all the products, set at 1.5% per annum. The other ETFs range from 0.15% for the Grayscale Bitcoin Mini Trust to 0.25% for the highest-priced competitors.The situation, looking at Ethereum ETFs, is quite similar, with the lowest fee being the Grayscale Ether Mini Trust and the highest being its older Ethereum trust product. Competing offerings again do not charge more than 0.25%.Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder
Dog-eat-dog drama erupts in BNB Chain’s Broccoli token showdown
Community members backing a Broccoli memecoin on BNB Chain are outraged, claiming their project was unfairly denied victory in the network’s liquidity support program.The BNB Chain Meme Liquidity Support Program, which kicked off on Feb. 18, offers $200,000 in permanent liquidity to the top-performing memecoins on the chain. But controversy erupted on day two of the competition on Feb. 19 when two memecoins — both inspired by Binance founder Changpeng Zhao’s dog Broccoli — went head-to-head.In the end, the Broccoli token ending in address “714” was declared the winner over the one ending in “F2B.” However, supporters of the F2B token say the result doesn’t add up.Related: BNB Chain scales up network as memecoin activity boosts transaction loadF2B Broccoli community investigation questions scoreAccording to the official leaderboard, both tokens earned a daily score of 5.7 in a system where lower is better. Per competition rules, a tie is broken by comparing trading volume, and 714’s token had the edge in that category.Feb. 19 ranking for BNB Chain’s meme liquidity competition. Source: BNB ChainBut an investigation conducted by the latter’s community now questions whether the 714 Broccoli token deserved the crown.In a video posted by the F2B community viewing the back-end data, their “BROCCOLI” token, with a token symbol in all caps, ranked first in its calculated daily score.Community members discovered their token ranked second publicly, even though it came first in back-end data. Source: F2B BROCCOLI communityThey then move to analyze the back-end data of the 714 Broccoli token (spelled without all caps), which had a daily score of 5.700000000000001 and ranked second.Rival Broccoli token ranked second in back-end data. Source: F2B BROCCOLI communityThe F2B community also attempted to calculate the scores themselves based on the formula cited by BNB Chain in a Feb. 14 blog post, and again in a Feb. 18 X post:“Score = (Market Cap Rank × 30%) + (24h Price Change Rank × 20%) + (24h Volume Rank × 50%)”Under that rubric, F2B appeared to have a clear edge — 5.5 points compared to 714’s 5.9 points.Related: BNB Chain flips Solana in daily fees, beats out all chainsBNB Chain claims score is legitIn a detailed response to the community inquiry shared with Cointelegraph, BNB Chain said that the community’s calculations relied on deprecated metrics. The actual scoring formula used by BNB Chain reflects:init_price_change_rankmarket_cap_rankacc_volume_rankThe community’s calculation relied on the deprecated “percent_change_24h_rank” and “volume_24h_rank.” When recalculated under the updated formula, both tokens scored 5.7 — making the official tie-breaker (volume rank) valid, according to the network. BNB Chain said the deprecated dimensions were removed on Feb. 21 to “prevent miscalculations by the community.” BNB Chain said the community relied on metrics that aren’t part of the official ranking formula. Source: BNB ChainBNB Chain also dismissed concerns about the overly precise 5.70000001 score, saying it was simply a result of floating-point deviations caused by the IEEE 754 standard and held no reference value for the actual score.Despite the clarification, many in the F2B camp remain unconvinced, arguing that the rules lacked transparency and shifted mid-competition.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express
Avalanche, Gelato launch enterprise sovereign chains for institutions
Blockchain developer platform Gelato is launching a new blockchain-as-a-service solution on Avalanche to meet the growing demand for sovereign blockchain infrastructure during a crucial “tipping point” for institutional adoption.Gelato, which previously developed blockchain solutions for companies such as Kraken and Animoca Brands, unveiled the new upgrade that aims to let developers deploy fully sovereign chains faster and cheaper with full interoperability via Avalanche InterChain Messaging (ICM).Gelato emphasized that its service is ideal for advanced applications such as financial technology (fintech) requiring identity verification (KYC) and specialized gaming economies, according to a March 28 announcement shared exclusively with Cointelegraph.The service lets companies quickly deploy independent (“sovereign”) blockchains with fewer costs and faster launch times.Luis Schliesske, founder of Gelato, said previously launching a blockchain required extensive technical knowledge and significant engineering resources. Gelato’s new product reduces the complexity involved. He told Cointelegraph:“Gelato’s RaaS on Avalanche streamlines everything from deployment and upgrades to real-time monitoring and scaling. It’s a plug-and-play solution that slashes time-to-market and operational burden bringing AWS-level infrastructure to the rollup era.”“The future of enterprise blockchain is sovereign, interoperable, and invisible to the end-user,” he added.Related: BlackRock Bitcoin ETP ‘key’ for EU adoption despite low inflow expectationsThe new solution will enable one-click layer-1 (L1) network deployment on Avalanche and leverage key network advancements such as dynamic fees and the removal of the Avalanche (AVAX) token staking requirements.“Avalanche L1s mark a paradigm shift in blockchain infrastructure, enabling a future where every application can run on its own sovereign chain, optimized for its unique needs,” according to Martin Eckardt, senior director of developer relations at Ava Labs.Total value locked, all chains. Source: DefiLlama Avalanche is the industry’s 10th largest blockchain network, with over $1.1 billion in total value locked (TVL) across its DeFi applications, DefiLlama data shows.Related: Fidelity plans stablecoin launch after SOL ETF ‘regulatory litmus test’Reliable infrastructure is a “prerequisite” for institutional crypto adoptionThe crypto industry is at the “tipping point” for institutional blockchain adoption, with increasingly more financial institutions looking to adopt the technology.However, financial institutions need more robust infrastructure to have the confidence to adopt blockchain and more crypto offerings, Schliesske said, adding:“Institutions will not build on crypto infrastructure that feels experimental or unreliable. […] That reliability is a prerequisite for onboarding financial institutions, governments, and large enterprises.”Fox News and eBay are some of the most prominent brands that have launched blockchain-based solutions on Gelato’s development platform.Magazine: Ex-Alameda hire on ‘pressure’ to not blow up Backpack exchange: Armani Ferrante, X Hall of Flame