Ethereum, Pos Beacon Chain, Kevin Pan discussed on Markets Daily Crypto Roundup


Want to receive what some anticipate to be the potential Ethereum fork token eth POW. That can only happen if you're holding the actual token, not a token representing a claim on it. And interestingly, another contentious hard fork from the second most valued tokens past mistakes, known as Ethereum classic, or ETC, is emerging as an unlikely winner ahead of the merge event, with network metric surging to lifetime highs, and ETC tokens gaining value in a mostly little change market. The Ethereum classic hash rate is more than 133% since July, and overtaking the previous record, set back in April. ETC tokens, meanwhile, have added 28% of their price in just the past 24 hours, rising as high as $41 in early Asian trading hours before retreating slightly. Futures tracking the tokens log some 27 million bucks in liquidations in the same time period, second only to Ethereum, and had a Bitcoin futures, which usually have the highest liquidations. Other altcoins, meanwhile, also outperformed the world's largest cryptocurrency on Tuesday. With avalanches avax token up 7% and lido Dow home of that steak, eth token we're talking about up about 13%. Today's crypto coverage comes crazy of coin desk, markets analysts, encore grappling, and I'm sure you're my one. Bitcoin is currently treating a $19,700 that's not about half a percentage point in the last 24 hours, while ether is trading at 1640 bucks per token. That's up by almost 4% in the same time period, according to the coin desk price index. And before we get to today's traditional markets roundup, let's take a look at some top headlines. Ethereum's merge is officially underway and is expected to kick off sometime between September 13th and 16th. The so called bellatrix upgrade was activated early this morning, which marks the beginning of the transition of Ethereum's proof of work or POW changed to the proof of stake or POS Beacon chain launched several years ago at this point. During this period, the difficulty level will increase to the point where proof of work mining on Ethereum will no longer be possible. The merge has been a long time coming with the Beacon chain first introduced back in December of 2020. Last month, Ethereum ran its third testnet known as gorely, which was the final dress rehearsal for the mainnet merge. The completion of the merge will mark the end of Ethereum's energy intensive proof of work chapter. And the next steps for Ethereum will be to address scalability issues with sharding and roll ups, assuming everything goes well. More on this and the show notes. And speaking of proof of work, pool in wallet, the wallet service of one of the world's biggest Bitcoin mining pools, is suspending all withdrawals as it tries to preserve assets and stabilize liquidity. The firm said on Monday. Pool and wallet also said it continues to, quote, explore strategic alternatives with various parties. On Sunday, the firm's CEO and founder Kevin pan said that pool and was facing liquidity issues, but assured users that assets were safe. Customers have been complaining at least since last month it withdrawals were slow, quote, pool and wallet plans to pause all withdrawals flash trades and internal transfers within pool and systems, and quote, starting at 2 p.m. GMT on Monday in order to preserve assets and to stabilize liquidity. At the post and the wallet's official media account. A quote feasible and quote solution will be provided within a week, the post also said, echoing pan statement that the company would soon come up with a plan to fix the issues. That plan might include death, according to pan's post. In a separate post on pool insight on Monday, the company announced it will be waving fees for Bitcoin and ether mining until December 7th, starting on September 8th, and for 12 months for users with more than one BTC or 5 eth in their pool balance or in their pool account. Coin desks Eliza grizzy reports on a story that sure sounds familiar to other situations that you wouldn't want to be in. In other news, binance the world's largest cryptocurrency exchange has shaken up the vital stablecoin market, announcing it will automatically move customers funds to its own binance USD stablecoin token from alternatives including the larger USD C token. The company said on Monday that it will convert all investments in USD C pax dollars and true USD or T USD into B USD on September 29th, and customers transferring those tokens to the exchange will see them automatically converted into binance's stablecoin after that date. The decision effectively banishes the second largest stablecoin USD C from one of the most prominent perches in crypto, erecting an obstacle to overtaking tether as the biggest one. USD T or tethers $68 billion market value currently leads USD cs $52 billion market value. While BUSD is in a distant third at 19 billion, USD P and T USD are far smaller. More on that in the show notes. And finally, a wallet belonging to insolve into hedge fund three arrows capital has removed $33 million worth of staked 8th from the curved pool, according to on chain data. The Singapore based fund, which filed for bankruptcy back in July, also removed some 200 Bitcoin, $4 million worth of tether and 4 million worth of wrapped ether. In liquidity from convex, a platform that boosts rewards for curved stakers and liquidity providers. The wallet, which is tagged as belonging to three arrows capital by the firm nansen, has been inactive for ten days since it unwrapped about $9 million worth of steak to eat. Three arrows capital was one of several firms that succumbed to pressures of this year's crypto bear market after making some notoriously bad bets. It currently owes creditors about $2.8 billion according to a 1157 page court filing published back in July by its liquidators, teneo. That followed a series of highly leveraged trades and relation to the Terra or Luna ecosystem, which collapsed in May. Coin desks Oliver night reports. In traditional markets, both U.S. and European stock features rose, as more European nations face hyper inflating energy costs and more energy companies receive government bailouts to keep gas flowing. This is a touch outside the scope of our show, but it's really worth talking about. The situation in Europe is bad and it's likely to get worse. Nations like Germany are largely reliant on Russia for significant proportions of their heating and industrial production power needs. Following the invasion of Ukraine, western nations place sanctions that it turns out have created more problems for European buyers of energy than Russian sellers of energy who have found willing trading partners to buy their excess supply at a slight discount. This is problematic for a couple of reasons. In short, this is a self inflicted supply problem with huge leverage and contagion potential. In Germany, roughly $2 trillion worth of economic activity relies on about $20 billion worth of Russian gas for power that's no longer available. Governments across Europe are asking citizens to cut back on electricity usage, but as they say, the solution to high prices is high prices because this causes usage patterns to change, and the resource, which is now more rare than it should be, to be allocated to the most valuable applications. That is unlikely to happen, and instead what we may see are price caps and even more government bailouts of power companies who are unable to raise prices to consumers to the same degree they're seeing their own costs go up, which means that demand is unlikely to come down by very much. And all of this is occurring against a backdrop of a European Central Bank that is concerned about inflation and desperately wants to reduce demand. Each bailed out entity now has more money to bid up the price of the two rare commodity they are responsible for supplying. And you can probably see how seemingly obvious on their face, but economically, well, stupid policies suggest that things will get a lot worse before they get better. And that same dynamic, by the way, is playing out in the United States right now. As Jerome Powell and the Federal Reserve governors, desperately try to convince markets that things will be worse for longer, which they hope will reduce demand and bring about behavioral changes that will help them tackle inflation. That's what the Central Bank wants, of course, but with midterm elections fast approaching, and the incumbent party historically unpopular, and even worse slowdown is the last thing the executive branch wants. So even as the fetishes people that they should prepare for the worst, the Biden administration's recently announced student loan forgiveness plan estimated to cost between 300 billion 1 $1 trillion will likely have the opposite effect. And it's this dynamic, central banks concerned about credibility and moving swiftly to bring down demand directly conflicts with political considerations required for various parties to remain in

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