One week less separates us from the long-awaited migration of the Ethereum network, moving the consensus mode from proof of work to proof of participation. The upcoming merger of ETH has been one of the most anticipated events in the cryptocurrency community for years. This is a capital development of the project, of course, but also a colossal technical challenge. Many compare what awaits developers to change an aircraft engine mid-flight. The stakes are higher than ever!
Despite a recent minor glitch, the mid-September migration date remains in effect. Yesterday, Péter Szilágyi, an Ethereum software developer, announced on Twitter that he had found a regression that results in a corrupt state. In a later update, the developer pointed out that the problem will likely affect version users by damaging their database and leading to data loss. Despite the problems, the developers were able to provide a solution after only one day. Go to Ethereum published in quick fix to fix the bug. After this fix was released, Szilágyi advised the community to wait for development to complete to make sure it was on the “right version”. The developer apologized on Twitter for missing the issue during the testing phase and promised to figure out how to perform better stress tests before the official migration.
It is interesting to note that the amount of ETH deposits in the contracts of staking hit its all-time weekly high … down. We might a priori expect the opposite! What explains this trend?
The more plausible hypothesis is that some investors may believe that short-term returns could be higher if they just keep their ETH tokens on the current chain in hopes of getting some ETHW, the purported cryptocurrency that could come from. a controversial attempt to resist the merger through a hard fork of Ethereum. The most popular platform staking offers a 3.9% return for Ethers staking. Many probably believe that the value of an ETHW token will be worth more. Furthermore, it seems obvious that those who wanted to include their Ether in such contracts have already had enough time to do so, highlighting the fact that over 11% of all Ethereum’s circulating supply has already been placed in staking. Finally, don’t ignore investors who may simply want to wait until after the merger to make sure everything is fine. A few weeks after that, it actually makes a lot of sense.
The Beacon Chain, the new network’s PoS-based coordination mechanism, has been working together with the current Ethereum chain since December 2020, when investors were first invited to deposit their tokens to operate as validators. The total amount of ETH deposited on the Beacon chain is currently over 13.3 million, equal to 11.18% of the circulating supply of Ethereum.
The CME group seems to want to exploit a possible enthusiasm around Ethereum. Indeed, the derivatives exchange is preparing to add ETH options, just prior to the merger. The launch is scheduled for 12 September. Please note that options give the holder the right, but not the obligation, to buy or sell the underlying asset at an agreed price at any time before the contract expires. These Ethereum option contracts would allow investors to bet on the future price of Ethereum with the ability to cash out at any time before the contract expires. “As the highly anticipated Ethereum merger approaches next month, we continue to see market participants turn to CME Group to manage Ether’s price risk.” commented Tim McCourt, Head of Equity and Foreign Exchange Products. “Our new ether options will provide a wide range of clients with greater flexibility and accuracy to manage their exposure to the aether before market events.”
The saga surrounding the Celsius cryptocurrency lending platform doesn’t seem to want to slow down, quite the opposite. The company filed a lawsuit in US bankruptcy court against Jason Stone and his company KeyFi on Tuesday. In this complaint, Celsius claims that Stone misrepresented himself as a pioneer and expert in staking and decentralized financial investments. “Unfortunately, defendants Stone and KeyFi, Stone’s majority-owned corporate vehicle, proved unable to distribute the tokens profitably and appear to have lost thousands of Celsius tokens due to their severe mismanagement,” says Celsius. “But the defendants were not only incompetent, they were also thieves.” Stone, whose KeyFi was acquired by Celsius in 2020, sued Celsius in July for allegedly refusing to honor his contract. In the lawsuit, KeyFi argues that Celsius used client funds to “manipulate cryptocurrency markets, failing to establish basic accounting controls that put those same deposits at risk and failing to deliver on its promises.”
The Ontario Securities Commission today issued a notice noting 13 cryptocurrency companies that “are not registered to trade or advise on securities in Ontario.” The presence of the Kucoin exchange is noted on the lot. In a legal win in June, the OSC successfully prevented Kucoin from operating in Ontario and fined her just over $ 1.6 million for not registering as a securities provider before the April 19, 2021 deadline. Recall that Binance also stopped offering its services to Ontario residents at the end of last year.
A Coinbase customer is suing the exchange for $ 5 million for failing to adequately secure customer accounts and for “neglecting” federal securities laws, among other charges. The lawsuit, filed last week and representing more than 100 people, claims that the largest cryptocurrency exchange in the United States has blocked users from their accounts for long periods of time, damaging them financially. Plaintiffs claim that the exchange crashed during times of market volatility – which is in fact all too common in cryptocurrency exchanges – making it difficult for the user to withdraw money. In the second quarter of this year, Coinbase reported a 60% drop in revenue and posted a net loss of $ 1.1 billion.
At the risk of sounding like a broken old record following a pullback in the equity and crypto markets over the past seven days, investors appear to await comments from Fed Chairman Jerome Powell scheduled for Friday. With inflation appearing to have finally peaked, speculators are now waiting for the direction of the central bank’s monetary policy. Is the Fed still worried enough about inflation, but satisfied with the pace of the current economic slowdown, to maintain its aggressive monetary policy of 75 basis points hike? Or it will show itself dove and announce a more moderate increase of 50 points? The markets are still not in agreement on what comes next.
Technically, bitcoin lost the all-important 200-week moving average again as the week closed. However, the bullish rally was not completely stopped with a rebound to $ 20,800. A technical indicator could also give investors a boost of optimism. Indeed, the 50-week moving average is about to cross upwards with the 100-week moving average. As one analyst put it, “Bitcoin’s 1-year moving average is now crossing the 2-year moving average, in line with the corrective phase after a speculative rise” can be linked, adding that “It looks good from a point of view. technical …, whatever the feeling. Those who bought these levels have already done well “.
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Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..
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