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Crypto Funds hit half-billion-dollar outflow streak

By
Paul Ugbede Godwin
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0

The crypto market has been experiencing a prolonged period of bearish sentiment, as investors continue to take profits or cut losses amid regulatory uncertainty and environmental concerns. According to the latest data from CoinShares, crypto funds saw net outflows of $493 million in the week ending September 17, marking the third consecutive week of negative flows.

One of the indicators of the market mood is the flow of funds in and out of crypto investment products, such as exchange-traded funds (ETFs), exchange-traded notes (ETNs), and other vehicles that track the performance of crypto assets. According to the latest report from CoinShares, a digital asset investment firm, crypto funds have seen a net outflow of $496 million in the past four weeks, marking the longest streak of outflows since February 2018.

The report shows that bitcoin funds have suffered the most, with a net outflow of $344 million in the past week and $1.3 billion in the past month. Ethereum funds have also seen a net outflow of $64 million in the past week and $278 million in the past month. Other altcoins, such as XRP, Cardano, Polkadot, and Solana, have also experienced net outflows, albeit at a smaller scale.

The report suggests that the main drivers of the outflows are the regulatory uncertainty, the environmental concerns, and the competition from other asset classes, such as equities and commodities. The report also notes that some investors may be taking profits after the strong rally in the first quarter of 2021 or reallocating their portfolios to reduce their exposure to crypto volatility.

The outflows were mainly driven by bitcoin and Ethereum, which accounted for $327 million and $151 million respectively. Bitcoin funds have now recorded outflows for six of the past seven weeks, while Ethereum funds have seen outflows for five of the past six weeks. The total assets under management (AUM) of crypto funds have declined by 14% since mid-May, when they reached a record high of $66 billion.

However, not all crypto assets are suffering from the same fate. Some altcoins, such as Solana (SOL), Cardano (ADA) and ripple (XRP), have managed to buck the trend and attract positive inflows in the past week. These coins have been outperforming the market, thanks to their strong fundamentals, innovative features and loyal communities.

Solana, which claims to be the fastest and most scalable blockchain platform, saw inflows of $13.2 million, bringing its total AUM to $42 million. The coin has surged by more than 300% in the past month, reaching a new all-time high of $214 on September 9. Solana’s growth has been fueled by the launch of several decentralized applications (dApps) and non-fungible tokens (NFTs) on its network, as well as the anticipation of its upcoming Ignition event, which will showcase its ecosystem and potential.

Cardano, which recently completed its long-awaited Alonzo upgrade, saw inflows of $6.4 million, bringing its total AUM to $69 million. The coin has gained more than 100% in the past month, hitting a new record high of $3.10 on September 2. Cardano’s Alonzo upgrade enables smart contract functionality on its network, opening the door for more dApps and NFTs to be built on its platform. Cardano’s founder, Charles Hoskinson, has also announced several partnerships and projects that will leverage its technology, such as with Dish Network and Chainlink.

Ripple, which is still embroiled in a legal battle with the US Securities and Exchange Commission (SEC), saw inflows of $3.1 million, bringing its total AUM to $66 million. The coin has risen by more than 60% in the past month, reaching a three-month high of $1.35 on September 6. Ripple’s rally has been driven by its ongoing expansion in global markets, especially in Asia and the Middle East, where it has signed deals with various banks and payment providers to use its XRP-based solutions.

Ripple’s CEO, Brad Garlinghouse, has also expressed confidence that the company will prevail in its lawsuit with the SEC, which could pave the way for more institutional adoption of XRP.

However, the report also points out some positive signs for the crypto market, such as the growing adoption of crypto by institutional investors, corporations, and governments. The report cites examples such as MicroStrategy’s purchase of additional 13,005 bitcoins in June, El Salvador’s adoption of bitcoin as legal tender, and Paraguay’s introduction of a bill to regulate crypto assets. The report also highlights the resilience of the crypto market, which has recovered from several sharp drops and maintained a market capitalization above $1.5 trillion.

The divergence in performance and flows among different crypto assets reflects the increasing maturity and diversity of the crypto space, as well as the varying preferences and risk appetites of investors. While some may prefer to stick with the established and dominant players like bitcoin and Ethereum, others may seek to explore the emerging and innovative alternatives like Solana, Cardano and ripple. As the crypto market evolves and expands, investors will have more options and opportunities to diversify their portfolios and capture value from this dynamic sector.

The report concludes that while the short-term outlook for crypto remains challenging, the long-term fundamentals are still intact and supportive of further growth and innovation. The report states that “we believe we are still very early in this cycle and that there is still significant room for growth across all digital assets.”

Hong Kong influencer arrested over JPEX links amid Probe

By
Paul Ugbede Godwin
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0

A prominent social media influencer in Hong Kong has been arrested for allegedly having ties to JPEX, a controversial organization that advocates for the independence of the city from China, according to local media reports. Hong Kong crypto scams are on the rise as more people are lured by the promises of quick and easy profits from digital currencies.

The influencer, who goes by the name of Kiki Wong, was taken into custody on Wednesday morning by the national security police, who also searched her home and office. She is accused of violating the national security law, which bans secession, subversion, terrorism and collusion with foreign forces.

Wong is known for her lifestyle and beauty videos on YouTube and Instagram, where she has over 500,000 followers. She also runs a clothing brand and a cosmetics line. She has been outspoken about her support for the pro-democracy movement in Hong Kong and has participated in several protests and rallies.

According to the reports, Wong is suspected of being a member of JPEX, or the Japan-Hong Kong Exchange Council, which was founded in 2019 by a group of Hong Kong activists who fled to Japan. The group claims to promote cultural and economic exchanges between the two places, but also advocates for Hong Kong’s independence and self-determination.

Crypto Queen is known for her lavish lifestyle and flashy videos on social media, where she boasts about her wealth and success in the crypto industry. She claims to be a co-founder and ambassador of jpex, a digital token that she says is backed by real estate and gold. She also claims that jpex is endorsed by celebrities and politicians, and that it can generate huge returns for investors.

However, the police said that jpex is a scam that has no intrinsic value or backing. They said that Crypto Queen and her accomplices lured unsuspecting investors into buying jpex tokens at inflated prices, and then transferred the money to their own accounts. They also said that Crypto Queen used fake documents and identities to conceal her identity and evade detection.

The police said they have received more than 300 complaints from investors who lost money in the jpex scheme, totaling more than HK$200 million ($25.6 million). They said they are still investigating the case and looking for more suspects.

Crypto Queen faces up to 14 years in prison if convicted of fraud and money laundering. She has not yet entered a plea or commented on the charges. Her lawyer declined to comment on the case.

The national security police have been investigating JPEX since last year, when they arrested four former members of the group who had returned to Hong Kong. They alleged that JPEX was a front for a secessionist organization that received funding and support from foreign forces.

Wong’s arrest has sparked outrage and concern among her fans and fellow influencers, who have expressed their solidarity and called for her release. They have also criticized the national security law for suppressing freedom of expression and political dissent in Hong Kong.

How does Proof-of-Space-Time work?

By
Paul Ugbede Godwin
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0

Proof-of-Space-Time (PoST) is a novel consensus algorithm that aims to replace the energy-intensive Proof-of-Work (PoW) scheme used by Bitcoin and other cryptocurrencies. PoST allows a network participant to prove that they have allocated a certain amount of storage space for a certain period of time, without requiring much computation or electricity. In this blog post, we will explain the basic idea and benefits of PoST, as well as some of the challenges and open questions.

The motivation behind PoST is to use a more environmentally friendly and scalable resource as a payment for participating in a decentralized network. PoW requires participants to compete for solving hard cryptographic puzzles, which consumes a lot of CPU power and electricity. This leads to high operational costs, centralization risks, and environmental concerns. PoST, on the other hand, uses storage space as the main resource, which is cheaper, more abundant, and more distributed than CPU power.

Moreover, PoST can adjust the difficulty of the proof by varying the time duration of the storage, rather than increasing the computation complexity. This means that PoST can achieve a similar level of security as PoW with less energy consumption.

The basic idea of PoST is as follows: A participant who wants to join the network must first reserve some storage space on their device and fill it with some random data. Then, they must periodically prove to the network that they are still storing this data and have not modified or deleted it. This proof is called a Proof-of-Space-Time, and it consists of two components: a Proof-of-Space (PoS) and a Proof-of-Time (PoT).

A Proof-of-Space is a proof that shows the participant has reserved a certain amount of storage space and has filled it with some specific data. This can be done by using a hash function that maps the data to a short output, called a commitment. The participant sends this commitment to the network as a proof of their storage allocation.

The network can then challenge the participant to provide some portion of their data that corresponds to their commitment. The participant must respond with the correct data within a short time frame, otherwise they are considered dishonest or offline.

A Proof-of-Time is a proof that shows the participant has kept their storage space unchanged for a certain period of time. This can be done by using a verifiable delay function (VDF) that takes a long time to compute but is easy to verify. The participant applies this function to their commitment and obtains an output, called a proof. The participant sends this proof to the network as a proof of their storage duration. The network can then verify that the proof is correct and matches the commitment, and that it took at least the expected time to compute.

By combining these two components, PoST ensures that the participant has spent both space and time resources to join the network. The more space and time they spend, the more likely they are to be rewarded by the network for their contribution. PoST also prevents participants from cheating by reusing or sharing their storage space with others, or by pre-computing or outsourcing their proofs.

PoST is an elegant and simple solution for achieving consensus in a decentralized network without relying on wasteful computation or electricity. However, it also faces some challenges and open questions that need further research and development.

To participate in a PoST network, a node has to generate and store a large dataset, called a plot, on its disk. The plot consists of cryptographic proofs that are derived from a public parameter, called a challenge. The challenge is periodically updated by the network to ensure that the plots are fresh and valid.

To generate a new block, a node has to submit a proof that it has stored the plot for a certain amount of time, called an epoch. The proof consists of a subset of the plot that matches the current challenge. The node that submits the fastest and most accurate proof wins the right to produce the block and receive the reward.

The network verifies the proof by checking that it corresponds to the challenge and that it is consistent with the previous proofs submitted by the same node. This ensures that the node has not tampered with or deleted its plot during the epoch.

Proof-of-Space-Time has several advantages over other consensus mechanisms:

It is more energy efficient than PoW, as it does not require intensive computations or specialized hardware. It is more secure than PoS, as it does not depend on the distribution of wealth or stake among the participants.

It is more scalable than both PoW and PoS, as it allows for parallel block production and verification, reducing the network latency and increasing the throughput. It is fairer than both PoW and PoS, as it gives equal opportunities to all nodes regardless of their resources or influence.

Proof-of-Space-Time is still an emerging technology that faces some challenges, such as plot generation time, storage cost, and network synchronization. However, it is also a promising solution that could enable more efficient, secure, and inclusive blockchain networks in the future.

What are the disadvantages of Bitcoin?

By
Paul Ugbede Godwin
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0

Bitcoin is a decentralized digital currency that operates without the need for a central authority or intermediary. It is powered by a network of computers that verify and record transactions in a public ledger called the blockchain. Bitcoin has many advantages, such as low transaction fees, fast and global transfers, censorship resistance, and limited supply.

However, it also has some disadvantages that potential users and investors should be aware of. Here are some of the main drawbacks of Bitcoin: Volatility: Bitcoin is known for its high price fluctuations, which can make it unpredictable and risky for long-term holders. The price of Bitcoin can change dramatically in a short period of time, depending on factors such as supply and demand, media attention, regulatory developments, technical issues, and market sentiment.

For example, in 2017, Bitcoin reached an all-time high of nearly $20,000, only to drop to below $4,000 in 2018. In 2021, it surpassed $60,000, but then fell to around $30,000 in a matter of months. Such volatility can make it difficult to plan and budget with Bitcoin, as well as expose users to significant losses if they are not careful.

Scalability: Bitcoin has a limited capacity to process transactions, which can result in congestion and delays on the network. The Bitcoin protocol limits the size of each block (a batch of transactions) to 1 megabyte, which means that only about 7 transactions can be confirmed per second on average. This is much lower than the throughput of traditional payment systems, such as Visa or PayPal, which can handle thousands of transactions per second.

As the demand for Bitcoin transactions grows, the network becomes more crowded, and the fees required to get a transaction confirmed increase. This can make Bitcoin impractical for small or frequent payments, as well as reduce its accessibility and inclusiveness for users with low income or limited resources.

Security: Bitcoin transactions are irreversible, which means that once they are confirmed on the blockchain, they cannot be undone or modified. This feature is designed to prevent fraud and double spending, but it also has some drawbacks. For one thing, it means that users are responsible for safeguarding their own bitcoins and private keys (the passwords that allow them to access their funds). If they lose their keys or their devices are hacked or stolen, they may lose their bitcoins forever.

There is no recourse or recovery mechanism for lost or stolen bitcoins, unlike with traditional financial services that offer insurance or protection. For another thing, it means that users have to trust the security and reliability of the Bitcoin network and its software. If there are any bugs, glitches, or attacks on the network, such as a 51% attack (where a malicious entity gains control of more than half of the computing power on the network), the integrity and functionality of Bitcoin could be compromised.

Regulation: Bitcoin operates in a legal and regulatory gray area, which can create uncertainty and challenges for users and businesses. Different countries and jurisdictions have different laws and rules regarding the use, taxation, and regulation of Bitcoin and other cryptocurrencies. Some are more friendly and supportive of Bitcoin, while others are more hostile and restrictive. For example, some countries like Japan and Switzerland have recognized Bitcoin as a legal tender or an asset, while others like China and India have banned or limited its use and trade.

Users and businesses have to be aware of the local laws and regulations that apply to them when using or dealing with Bitcoin, as well as the potential risks and consequences of non-compliance. Moreover, they have to be prepared for possible changes or updates in the legal and regulatory landscape, as authorities may introduce new policies or measures to address the challenges or opportunities posed by Bitcoin.

Nigerian Government Approves 25% Pay Raise for Lecturers, Academic Staff

By
Samuel Nwite
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0

The Federal Government has approved a 25% pay increase for lecturers in all federal institutions, marking a departure from its previous stance of not raising their pay.

The decision was communicated in a circular marked: OAuGF/ SW/C/QP/1395/VOL.1/11, and dated September 21, 2023, which was issued by the office of the Auditor General of the Federation to Polytechnics and Colleges of Education.

The Auditor General said the implementation was approved by the Presidential Committee on Salaries at its 13th meeting. This is coming after the salaries of professors were raised by 35%.

The circular said that the decision was taken after taking into consideration various stages of collective bargaining.

The upward review of salaries of lecturers, professors, and academic staff has been an integral part of demands by the Academic Staff Union of Universities (ASUU), leading to repeated industrial strikes.

This circular followed a letter from the Chairman of the National Salaries, Incomes, and Wages Commission (NSIWC) dated September 14, 2023. The letter was addressed to the Minister of Education, Tahir Mamman, and conveyed the government’s decision to raise the salaries of workers in federal government institutions, including the 25% pay raise for lecturers.

According to the letter, which was signed by Ekpo Nta, Chairman of the Commission, the 23.5% earlier approved was increased to 25%.

In the letter, Nta expressed satisfaction with the positive outcomes achieved through informal discussions with the Minister. It conveyed the Commission’s commitment to supporting the Minister’s efforts to revamp the education sector. The letter also included additional circulars related to the four salary structures in universities, polytechnics, and colleges of education.

The decision seems to have brought a reprieve to the contention between the federal government and ASUU regarding the salaries of federal university lecturers.

Former Minister of Education, Adamu Adamu, had previously maintained that the Federal Government could only manage a 23.5% salary increase for all employee categories in federal universities. However, individuals in the professorial cadre were approved to receive a higher increase of 35% in their salaries.

Adamu, who initiated the controversial no work no pay policy, said last year that “A sum of N150 billion shall be provided for in the 2023 Budget as funds for the revitalization of federal universities, to be disbursed to the institutions in the first quarter of the year,” and “That a sum of N50 billion shall be provided for in the 2023 Budget for the payment of outstanding areas of earned academic allowances, to be paid in the first quarter of the year.”

But ASUU reiterated its stance that it will not accept any salary increase proposed by the Federal Government without subjecting it to collective bargaining in accordance with labor law provisions.

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