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Business

PancakeSwap Launches Tower Defense Game With CAKE Token Rewards

Decentralized cryptocurrency exchange (DEX), Pancake Swap has launched Pancake Protectors, an immersive tower defense game.  The beta version emerged last week, however, the official launch on Mobox, a player versus player (PvP) Gamefi platform on the Binance chain, was on May 29th.

According to DEX’s announcement, this edition comes with the integration of the platform’s native token, CAKE. 

“Pancake Protectors, powered by the PvP GameFi protocol Mobox, immerses players in thrilling missions where the strategic placement of hero towers is critical. What sets this edition apart is the integration of CAKE, the native token of PancakeSwap. This integration allows players to utilize CAKE tokens within the game and earn rewards while enjoying the gameplay,” the DEX states on its blog.

There are a number of benefits and utilities players will be able to access when using CAKE in Pancake Protectors including claiming game heroes, recharging certain in-game resources, unlocking new levels that will in turn deliver extra rewards, and staking the token to earn additional in-game assets.

However, according to the Pseudonymous Head Chef of Pancake Swap, Mochi,  this game is not play-to-earn, due to the platform avoiding the use of inflationary models to drive the game’s growth. 

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Business

Bitcoin Now Has A Dollar-Backed Stablecoin On Ordinals

Bitcoin’s burgeoning on-chain economy is getting its own dollar-backed stablecoin. U.S.-based Stably, which calls itself a fiat onramp for crypto trading, recently announced the BRC-20 U.S. dollar-backed stablecoin via Twitter.

The new token Stably USD aims to become a go-to currency for traders transacting in the wave of novel assets being built on bitcoin, according to issuing company Stably. The crypto startup says its token can make trading in ordinals cheaper and more efficient than paying in fiat, or even bitcoin itself.

Bitcoin’s quickly maturing ordinals scene has come a long way since January. First envisioned as a method to inscribe NFTs on Bitcoin’s smallest denomination, the satoshi, the ordinals protocol has since become a gateway for creating all sorts of tokens including Stably USD.

This latest so-called “BRC-20” token could make trading in all ordinals a little easier if it catches on. Right now ordinals traders pay in two ways, either by on-ramping stable fiat currency for a fee, or with accessible but volatile bitcoin. Stably says its stablecoin will solve both issues by retaining a stable value and remaining accessible on-chain.

According to Stably’s corporate records, Prime Trust is where it holds the fiat underpinning for Stably USD. In order to exchange their stablecoins for the underlying dollar value, redeemers will have to go through a KYC and AML procedure.

If the company wants to be successful in the long run, its first stablecoin which is linked to Bitcoin will need to perform better than its previous stablecoin offerings. According to etherscan, StableUSD (USDS), Stably’s stablecoin for the Ethereum ecosystem, has only 752 holders and a market cap of $264,000, making it essentially inconsequential when compared to market giants Tether and USDC.

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Business

Nigerian crypto company suspends withdrawals after BTC and naira compromise

Patricia, a Nigerian gift card and crypto trading platform recently encountered a security breach, prompting immediate measures to safeguard its users. As a precautionary step, the platform has temporarily suspended fund withdrawals.

The business disclosed that its Bitcoin (BTC) and naira assets had been compromised due to a security breach. In its statement to users, the company revealed to consumers that the compromise had no impact on client funds or any other cryptocurrency. However, customers cannot withdraw money from the platform while internal restructuring is taking place.

Although Patricia did not disclose the extent of assets compromised in the breach, it revealed that an individual among the syndicated group that perpetrated the breach had been identified with the help of law enforcement. It said it would continue to work with law enforcement and other partners to recover the assets.

Since the suspension of withdrawals on the platform, its users have taken to Twitter to express their opinions, citing inconveniences. Nonetheless, the company emphasizes its ongoing efforts to enhance the platform’s security measures.

According to reports, the specific person within the group was identified through compromised naira assets, with most of the naira assets being linked back to that individual.

To enhance the security of the platform, the company has enlisted the services of a security firm to conduct an audit. Once the affected arm of the business, that is to say, Patricia Personal receives clearance for operations, customers will regain the ability to withdraw their funds.

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Business

WEF publishes crypto asset regulation recommendations for regulators and the industry

The World Economic Forum (WEF), assisted by its Digital Currency Governance Consortium, has recently published an extensive white paper addressing the crucial topic of crypto asset regulation. Recognizing the pressing need for regulatory measures in this rapidly evolving sector, the paper emphasizes the significance of cooperation among various stakeholders including international organizations, and regulators among others.

Global coordination is necessary for crypto asset regulation to prevent ambiguity, regulatory arbitration, and inconsistent enforcement, according to the paper. 

The authors identified a range of challenges to crypto asset regulation, including the presumption of the same activity, same regulation, claiming:

“Crypto-assets and their ecosystem do not always fit squarely into the existing activity-based, intermediary-focused approach of regulation, even where crypto-asset activities mirror those of the traditional financial sector.”

The authors also claimed that the anonymity provided by crypto mixers, self-hosted wallets and decentralized exchanges also complicates regulation. Meanwhile, increasing interconnectedness with traditional finance also increases potential contagion risks from the crypto industry, which was only recently full of turmoil.

The paper created a variety of classifications of regulatory frameworks for comparison’s sake. Outcome-based, which is characterized as same risk, same regulatory outcome, and risk-based regulation, where the level of regulatory intervention is determined by the activity’s level of risk, were considered.

Furthermore, the white paper states that agile regulation adopts a responsive, iterative approach, acknowledging that policy and regulatory development is no longer limited to governments but is increasingly a multistakeholder effort. 

Regulatory sandboxes, guidance, and regulators’ no-objection letters were cited as examples of an agile regulatory approach. Switzerland’s Financial Market Supervisory Authority was held up as an example of an agile regulator. Switzerland and Japan were cited as examples of self- and co-regulation.

The paper made three broad recommendations each to international organizations, regulatory authorities, and the crypto industry. It emphasized best practice sharing and coordination.

The authors wrote, “Policy-makers and industry stakeholders need to collaborate across jurisdictions to ensure consistency and clarity. As these new technologies start from a position of transparency, it is possible to imagine even better regulatory tools to address cross-border concerns.”

The WEF white paper on crypto asset regulation offers valuable insights and recommendations for crypto assets regulation. By actively engaging industry stakeholders in global coordination, and adopting agile regulatory approaches, hopefully, African countries too can navigate the complexities of crypto asset regulation, and contribute to the development of their growing crypto landscape.

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Business

Worldcoin Raises $115 Million In Round Led By Blockchain Capital

Tools for Humanity, the technology company behind Worldcoin, announced recently that the company has raised s$115 million in series C funding led by Blockchain Capital. The funding will go toward a variety of projects, including an alternative to the oft-derided CAPTCHA test.

“It was this idea of creating a new primitive for the internet that can enable any application to easily and quickly distinguish between machines and humans, or bots and humans. That was something that took me working more closely with our engineering team to really appreciate how big of a problem that already is,” Blockchain Capital General Partner, Spencer Bogart stated.

Bots have been a thorn in the side of blockchain and cryptocurrency projects for a long time.

“[CAPTCHA] has been fairly effective for distinguishing between bots and humans. That’s no longer the case with more advanced automated systems, especially things being powered by AI,” Bogart also commented.

The announcement of the raise comes a week after co-founder and OpenAI CEO Sam Altman was reportedly in advanced talks on a new financing round with an initial target of $100 million.

Worldcoin is an Ethereum-based token designed to support something akin to a universal basic income for people worldwide. The project aims to become the world’s largest and most inclusive identity and financial network, built around World ID and the Worldcoin token, with the eventual goal of becoming a DAO-like entity with decentralized decision-making.

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Business

Coinbase Layer 2 Base Prepares For Mainnet Launch With No Plans To Issue Token

In a Wednesday blog post, Coinbase, one of the leading cryptocurrency exchanges, provided an extensive update on the upcoming milestones and processes for the launch of its Layer 2 network called Base on the mainnet.

The initial phase of Base on the mainnet is called Mainnet Genesis. During this phase, Coinbase aims to lay the foundation for the deployment of its Layer 2 network. The main objective of Mainnet Genesis is to establish a stable and secure infrastructure that will support the subsequent development and deployment of decentralized applications (dApps) on the Layer 2 network. It also aims to increase economic freedom and opportunity around the world by onboarding the next million developers and billion users into the crypto economy. 

“Following Mainnet Genesis begins our Genesis Window — a focused, coordinated window for developers to deploy dapps on Base mainnet. During this window, we will be exclusively focusing on developers and providing support to ensure they are successful,” the Base team stated.

Although the blog did not mention a timeline or specific dates as to when the network would go live on the main network, it detailed five specific criteria that will unlock during the event. Two of these criteria have already been met; the successful testnet of the Regolith hard fork and an infrastructure review with the OP Labs team.

Base is built on the same codebase as Optimism, the Ethereum Layer 2 scaling solution developed by OP Labs. This link is the reason that much of Base’s development will be defined by Optimism’s own successful upgrades, including the widely anticipated Bedrock set to go live in June, and is next on the criteria list for Base’s mainnet launch.

After the Bedrock upgrade, Base will go through internal and external audits to confirm there are no critical issues detected and confirm the stability of its testnet.

On other blockchains, native tokens are often used to incentivize development and pay for gas fees. Layer 2 networks like Optimism and Arbitrum recently rewarded their early adopters with airdrops, which drove up activity on the networks significantly before the event. 

Contradictory to the speculation in the crypto community online, Base stated that there are no plans to issue a network token.

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Technology

Solana Blockchain Becomes First Layer 1 to Integrate AI With ChatGPT Plugin

As the artificial intelligence market continues to thrive, the intersection of cryptocurrency and AI has become a focal point for numerous players in the industry. Among them is, the Solana Foundation, the nonprofit organization responsible for the Solana blockchain. 

Solana has taken a significant step by integrating AI into its network through a cutting-edge ChatGPT plug-in developed by Solana Labs.

The plug-in, which was teased by Solana Labs in late April, will be geared toward end users initially, with a focus on helping them onboard into the Web3 space. It can be used to buy and list NFTs, transfer tokens, check out transactions, interpret data and find NFT collections by floor price, Solana Foundation shared.

Solana Labs’ Head of Product, Tal Tchwella, explained that Solana is integrating ChatGPT into an RPC node, allowing it to retrieve data from various on-chain sources and provide that information to users who have queries. This integration opens up a range of possibilities for users to interact with the AI, such as seeking insights about NFT collections or finding out which NFTs they can purchase using their SOL tokens.

Tchwella also expressed optimism about the potential applications of the ChatGPT plug-in, emphasizing the importance of dApp experimentation in utilizing this powerful tool. As the initial focus of the plug-in centers around NFTs, it aligns well with Solana’s thriving NFT ecosystem. With NFT sales on Solana reaching approximately $58 million in the past 30 days, it is evident that this subsector is widely embraced by both the blockchain and its user base. The integration of ChatGPT holds promising prospects for further enhancing the NFT experience and expanding its utility on the Solana network.

“This integration from Solana Labs serves as a reference for how AI can make it easier to understand Solana data and protocols, or surface data about Solana’s computing infrastructure and DeFi projects,” he noted.

The Solana co-founder and Solana Labs CEO Anatoly Yakovenko also commented that AI would make the Solana blockchain more usable and understandable.

“Every developer building consumer-oriented apps should be thinking about how their app is going to be interacted with through an AI model because this is a new paradigm for telling computers what to do,” Yakovenko said.

Solana has seen a surge in activity this month, as higher fees on Ethereum and Bitcoin have pushed some users to explore alternatives. The network saw the seven-day moving average of new addresses hit 323,000 last week, the highest number since June 2022, according to data.

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Business

Watchdog proposes first set of global rules for the crypto sector

The International Organization of Securities Commissions (IOSCO) has unveiled today the first global approach to regulating crypto assets and digital markets, drawing on lessons from last year’s collapse of the FTX exchange that fuelled concerns over consumer protection.

The cryptocurrency industry, known for its adherence to anti-money laundering (AML) checks, has been advocating for a unified regulatory framework on a global scale. Currently, various jurisdictions operate under their own rules, leading to a fragmented regulatory landscape. The urgency for harmonized regulation has been further underscored by recent events, such as the liquidity crisis faced by FTX, a prominent crypto exchange, which resulted in the initiation of bankruptcy proceedings in the United States last November. The severity of the situation prompted regulators worldwide to intervene.

According to Jean-Paul Servais, who chairs watchdog IOSCO, the recommendations are a turning point in addressing the very clear and proximate risks to investor protection and market integrity risk.

Conflicts of interest, market manipulation, international regulatory cooperation, custody of crypto assets operational concerns, and treatment of retail clients are all addressed in the proposed standards.

The 18 measures planned apply long-established safeguards from mainstream markets to eliminate conflicts of interest between the different parts of a crypto transaction.

The watchdog stated that it planned to complete the standards by the end of the year and anticipated that its 130 members around the world would use them to quickly close gaps in national rulebooks.

IOSCO, a collective of regulators that includes the US Securities and Exchange Commission, the Financial Services Agency of Japan, the Financial Conduct Authority of the United Kingdom, and the BaFin of Germany, is polling the public on the regulations.

The action comes as the European Union this month finalized the first set of comprehensive standards in the world, increasing pressure on Britain, the United States, and other nations to develop their own guidelines.

The first set of global rules for the crypto sector by the watchdog carries significant implications for Africa’s crypto industry, considering the continent’s notable surge in cryptocurrency adoption and blockchain technology innovation in recent years. 

Not only do the rules present an opportunity for Africa’s crypto industry to mature, gain credibility, and attract increased investment, they also present a way for African Governments and regulatory bodies to create better and more stable crypto industries.

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Business

Bitcoin Surges To Second Place In NFT Sales In A Matter of Months

In an astonishing turn of events, Bitcoin-based non-fungible tokens (NFTs) have swiftly ascended to the blockchain’s second-highest-grossing NFTs, as revealed and reported by CryptoSlam, a prominent Web3 data platform. This achievement is particularly remarkable considering that the concept of Bitcoin NFTs was practically non-existent prior to the introduction of inscriptions on the Bitcoin mainnet in January 2023.

Recent data indicates that Bitcoin NFTs have amassed approximately $167 million in sales over the past thirty days, placing them behind Ethereum’s dominant position at nearly $397 million. Nevertheless, Bitcoin NFT sales have soared to almost three times the value of Solana network’s NFT sales, which stand at approximately $57 million, according to CryptoSlam.

The rapid rise of Bitcoin in the NFT space can be attributed to the Ordinals Protocol, an innovative mechanism that allows for the inscription of satoshis, the smallest unit of Bitcoin, with various types of data, including JPEG files. Although the concept has faced its share of criticism within the Bitcoin community, the endorsement of the Ordinals Protocol by NFT giant Yuga Labs, who launched their own Ordinals-based collection in February, has contributed to its wider adoption and generated significant hype and capital.

Currently, the leading Bitcoin-based NFT collection, according to CryptoSlam, is Bitcoin Frogs, which has generated an impressive $6.3 million in sales over the past seven days. The collection experienced a significant surge in sales on May 17, amassing a staggering $2.3 million in just one day. The success of Bitcoin Frogs serves as a testament to the growing popularity and demand for Bitcoin NFTs.

As Bitcoin continues to assert its presence in the NFT market, it poses an intriguing challenge to other blockchain networks and paves the way for further innovation and exploration of the intersection between Bitcoin and non-fungible tokens. With its newfound momentum, Bitcoin’s ascent in the NFT space shows no signs of slowing down, and its impact on the broader digital asset landscape is bound to be profound.

As Bitcoin continues to assert its presence in the NFT market, the future holds exciting possibilities for both global creators and Africa’s vibrant artistic communities, fostering innovation, inclusivity, and economic empowerment in the digital age.

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Blockchain

Understanding BRC-20 Tokens: Exploring Bitcoin’s Native Token Standard

Introduction

BRC-20 tokens, the latest cryptocurrency trend, have garnered significant attention from investors and traders. These tokens are built on the Bitcoin blockchain, which has traditionally been seen as a store of value. With BRC-20 tokens, users can mint their own tokens and foster communities around them, opening doors to substantial growth and profitability. Despite associated technical risks, their popularity continues to soar. This article delves deeper into BRC-20 tokens, highlighting their key features, distinctions from other tokens, and the potential impact they may have on the cryptocurrency world.

BRC-20 Tokens and Bitcoin’s Evolution

Introduced in March 2023 by an anonymous developer known as Domo, BRC-20 (Bitcoin Request for Comment 20) is inspired by Ethereum’s ERC-20 protocol (Ethereum Request for Comment 20). BRC-20 tokens serve as Bitcoin’s counterpart to ERC-20 tokens.

ERC-20, an Ethereum token standard, empowers developers to create tokens compatible with the broader Ethereum network, featuring built-in smart contracts. These tokens can represent a wide range of transferable assets or rights, including ownership interests, access rights, or even different cryptocurrencies. Examples of ERC-20 tokens include Tether and Shibu Inu coin.

Bitcoin’s November 2021 Taproot upgrade paved the way for BRC-20 tokens by enabling ordinal inscriptions. Ordinals inscribe a serial number onto a satoshi, the smallest unit of bitcoin. This serial number, along with the ordinal data, is inserted into the witness signature field of a Bitcoin transaction, verifying legitimate ownership and preventing double-spending.

Although ordinals facilitate BRC-20 tokens, not all ordinals are BRC-20 tokens. This explains the vast number of ordinals compared to the approximately 14,000 BRC-20 tokens available.

Functionality and Distinctions

BRC-20 tokens utilize JSON (JavaScript Object Notation) ordinal inscriptions to initiate token contracts. However, the current BRC-20 protocol has limited functionality compared to ERC-20. Presently, users can only mint, deploy, and transfer tokens. It is important to note that BRC-20 is not an approved standard and remains in the proposal phase. Unlike ERC-20 tokens, BRC-20 tokens are not easily tradable on exchanges at this time.

Limitations of BRC-20 Tokens

While BRC-20 tokens are considered fungible, they can be more accurately described as semi-fungible since they can only be exchanged in specific increments.

To mint BRC-20 tokens, users need to create a mint JSON NFT (Non-Fungible Token) specifying the desired amount and then participate in a priority gas auction to finalize the minting process. When exchanging BRC-20 tokens natively on Bitcoin, sellers must create transfer NFTs to break up the original mint NFT into smaller portions, allowing for predefined batches of token sales. Similarly, buyers seeking a specific amount of BRC-20 tokens must find sellers offering the exact quantity they wish to purchase.

Furthermore, to determine the BRC-20 token balance of a wallet, users must rely on an off-chain indexer running the ruleset that interprets the inscriptions. Simply having a Bitcoin full node is insufficient for this purpose.

Domo, the creator of BRC-20, considers this token standard an experimental demonstration of creating off-chain balance states with inscriptions. It should not be regarded as the definitive fungibility standard for Bitcoin with ordinals, as Domo believes there are likely better design choices and optimization improvements to be explored.

The Future of Tokens on Bitcoin

While previous attempts, such as Colored Coins, and recent explorations like Taro, have aimed to represent assets on Bitcoin, BRC-20 tokens provide a novel approach to creating semi-fungible tokens natively on the Bitcoin network.

Although even the creator of BRC-20 expresses uncertainty regarding its long-term viability as a token standard, the open-source developer community may embrace this concept, evolving it further, and pushing the boundaries of what is achievable with Bitcoin’s scripting capabilities.