2024-02-15 08:30

The partnership will be a "significant step" in integrating telecom capabilities into the blockchain technology, the firms said. The partnership will help provide an added layer of security to blockchain transactions. Telefónica will introduce the security measure in Brazil. One of the world's largest telecommunication services providers, Telefónica (TEF), is partnering with decentralized oracle network Chainlink (LINK) to ensure security against Web3-related hacks and exploits, including "SIM Swap" attacks. The partnership will provide security for smart contracts that will connect with other Application Programmable Interfaces (APIs) on the "GSMA Open Gateway," according to a statement published on Thursday. GSMA – an organization that consists of over 1,000 mobile operators and businesses – started the GSMA Open Gateway, which introduced APIs to help bring telecom technologies onto the Web3 ecosystem, the statement said. "This collaboration marks a significant step in integrating Telco capabilities into the blockchain industry and demonstrates the need for secure oracle networks to deliver real-world data on-chain," the statement said. "This interconnected ecosystem enhances the functionality and security of Web3 applications, contributing to a more robust and verifiable digital landscape," the statement added. One of the first use case of the initiative will be to prevent exploits such as "SIM Swap" – a form of hacking tool based on identity theft and false impersonation of a financial account holder. The scheme has been used increasingly in the Web3 industry, and one of the recent high-profile cases of such fraud has been a theft of $400 million from Sam Bankman-Fried's FTX as the exchange was collapsing in 2022. The first GSMA Open Gateway API – aptly called SIM SWAP – will be introduced in Brazil by Telefónica to add a layer of extra security to blockchain transactions. "This integration not only enhances transaction security but also introduces an extra layer of security to blockchain transactions by enabling smart contracts to now make information requests to the API, ensuring that a device's SIM card has not undergone any unauthorized changes," the statement said. https://www.coindesk.com/tech/2024/02/15/telefonica-teams-up-with-chainlink-to-provide-security-against-sim-swap-hacks/

2024-02-15 06:07

Bitcoin's ongoing rally is telling of current market perceptions about fiat currencies, with sentiment being weakest for the Japanese yen. Bitcoin reached a record high in Yen terms early Thursday, leaving behind bitcoin's U.S. dollar-, euro-, British pound- and Australian dollar-denominated prices. Continued money printing by Bank of Japan and resurgent inflation have weakened sentiment around the Japanese yen. Fiat currencies like the U.S. dollar, Japanese yen, euro, and others are not backed by a hard asset, and their value is subjective and depends entirely on market perceptions at any point. Bitcoin’s (BTC) ongoing rally is telling of current market perceptions, with sentiment being weakest for the yen (JPY) among major fiat currencies. For instance, early Monday, the leading cryptocurrency, often considered digital gold, hit a new record high of 7.9 million yen on Tokyo-based cryptocurrency exchange bitFLYER. In contrast, the cryptocurrency’s dollar-denominated price stood above $52,000 or 32% short of the record high of $69,000 reached in November 2021, according to data from the charting platform TradingView. The price differential reflects relative stress on the Japanese yen, stemming from the Bank of Japan's (BOJ) continued liquidity easing, resurgent inflation and signs of economic weakness. The Japanese economy slipped into an economic recession at the end of the last year, slipping to fourth place behind Germany. While the Federal Reserve and other central banks raised interest rates aggressively in 2022 and 2023 to tame inflation, the BOJ kept interest rates at zero and continued printing tons of fiat money. Japan’s core inflation, which excludes the volatile food and energy component from the consumer price index, climbed 3.1% in 2023, marking its biggest gain since 1982. Inflation erodes the purchasing power of fiat currencies and catalyzes investments into alternative assets with store-of-value appeals like bitcoin and gold. The yen depreciated 13% and 7.5% against the dollar and is down another 6.4% this year. Bitcoin could continue to trade at a premium in the Japanese yen terms unless the Bank of Japan accelerates the planned exit from the ultra-easy monetary policy, making it relatively attractive to hold the yen over other assets. Note that Japan, Hong Kong, and Singapore are known to have better legal clarity regarding digital assets trading than other developed markets. That, coupled with persistent volatility in fiat currencies, could foster the growth of alternative assets like cryptocurrencies in these regions. https://www.coindesk.com/markets/2024/02/15/bitcoin-hits-record-high-in-yen-terms-reflecting-stress-on-japans-fiat-currency/

2024-02-14 19:16

Bonk's proponents hope to increase the meme coin's user base by 500,000. Revolut will become the latest mainstream crypto trading venue to list BONK, Solana's biggest meme coin. The European fintech will also run a "learn" campaign that will distribute up to 93 billion BONK tokens to users. European banking fintech Revolut plans to list Solana's biggest meme coin Bonk and run a $1.2 million campaign to incentivize its users to learn about the cryptocurrency, according to a person familiar with the matter. The "learn" campaign plan still requires approval from BONK's governing council, which oversees the project's $100 million+ treasury of BONK tokens. At press time the approval vote had almost reached quorum with six of the council's 12 members voting in favor and none against. Participants expect it to pass. Revolut declined to comment. The listing is set to continue BONK's march into mainstream crypto trading venues after a searing end to 2023 that saw it increase 19,000% in price since Nov. 1, per CoinMarketCap. Coinbase, Binance and other top exchanges listed it during that time. BONK is a token launched by Solana blockchain enthusiasts in the aftermath of FTX's November 2022 implosion as a way to bring some cheer to the hurting ecosystem. It has since emerged as Solana's biggest meme coin that many applications built on Solana use as an incentive mechanism. Revolut, too, plans to distribute BONK to some of its users as a reward for their learning about BONK through the app. The proposal being voted on by BONK's council will automatically earmark 93 billion BONK tokens (worth $1.2 million) for the learn campaign, a person familiar with the plans said. The campaign aims to increase BONK's user base by 500,000, the proposal said. A contributor to BONK said the token's proponents have "lots in the works" to further spread the meme coin's adoption in the coming months. https://www.coindesk.com/business/2024/02/14/revolut-to-list-bonk-distribute-12m-of-meme-coin-in-learn-campaign/

2024-02-14 18:39

Tiger sold 38,850 shares during the fourth quarter. Investment firm Tiger Global Management sold its stake in crypto exchange Coinbase (COIN) late last year, according to a Wednesday regulatory filing. Tiger Global's 13F filing with the U.S. Securities and Exchange Commission showed that it held no Coinbase shares as of Dec. 31. Three months earlier, it had 38,850 shares worth $2.9 million at the time, according to a previous filing. The sales followed a more than 400% rally in Coinbase (COIN) shares as crypto emerged from a deep bear market. Tiger Global was a key investor in Coinbase before its public listing, leading the exchange's $300 million series E funding round in October 2018. https://www.coindesk.com/markets/2024/02/14/tiger-global-exited-coinbase-stake-late-last-year-filing-shows/

2024-02-14 18:37

Coinbase is expected to report strong revenue numbers, given an uptick in crypto trading volume towards the end of 2023. Coinbase (COIN) is expected to report strong revenue numbers on Thursday when it reports fourth-quarter earnings after the bell. Analysts predict a strong quarter for the crypto exchange as trading volume had picked up in the final days of the year. FactSet consensus estimates Coinbase's revenue increased to $826.1 million from $674.1 million in the previous quarter. Trading volume and earnings per share (EPS) are also expected to have picked up. Crypto exchange Coinbase (COIN) is expected to report stronger earnings and revenue when it reports its fourth-quarter results on Thursday due to increased trading volume as the broader market rallied during the quarter. “We expect Q4 to be a strong quarter for the company as volumes returned to the space and interest income held up,” said investment bank Needham's analyst John Todaro, who has a buy rating on the stock. The higher trading volume won't likely be a surprise as the digital currency market saw a recovery in prices during the fourth quarter, buoyed by spot bitcoin (BTC) exchange-traded funds (ETFs) getting approved to trade in the U.S. The trend is already apparent from Coinbase's trading platform peer Robinhood's earnings, which reported a 10% increase in crypto revenue in the fourth quarter. Traders could see a similar result for Coinbase, which generates most of its revenue from trading fees. Compass Point’s Chase White, who has a buy rating and expects $895 million in revenue with a $200 price target for 2024, said: “We expect Q4 to be the strongest in terms of revenue and adjusted EBITDA since the first quarter of 2022.” FactSet consensus estimates predict Coinbase’s revenue to have increased to $826.1 million from $674.1 million in the previous quarter. Trading volume is also expected to be higher at $142.7 billion versus $76 billion in the third quarter. The analysts expect the exchange to report fourth-quarter earnings per share of $0.02, compared to a loss of $0.01 per share in the previous quarter. However, despite expecting more robust fourth-quarter numbers, analysts are voicing mixed opinions about the benefits of Coinbase's strong involvement in the spot bitcoin ETFs. One analyst noted that the company’s custodial service for eight of the ten spot bitcoin exchange-traded funds (ETFs) could be negative for the crypto exchange in the future. “The big hope for Coinbase heading into 2024 was that more Bitcoin ETF AUM would drive increased spot trading,” Mizuho analyst Dan Dolev, who has an underweight rating and predicts revenue to come in at $944 million with a $60 price target for 2024, wrote in a note. He points out that outflows from ETFs - driven by Grayscale’s Bitcoin Trust (GBTC) - outpaced the inflows for the funds that Coinbase provides custodial services for, dragging down Coinbase’s ETF-related assets under management (AUM). In addition, spot volumes on the exchange have slowed after the initial excitement surrounding the ETF launch, Dolev said. On the other hand, Devin Ryan, Director of Financial Technology Research at Citizens JMP, said the ETFs have a bigger impact than many appreciate as they are driving more interest in the space and extend well beyond the price of bitcoin. Needham’s John Todaro shares that take, saying that despite the launch of the bitcoin ETFs, he does not see Coinbase lowering trading fees on the exchange. “Their market share is more protected than many on Wall Street think,” he said. Ryan also noted that Coinbase’s recently launched offshore derivatives exchange is bringing in significant volume, which is a big deal. “This matters because the derivatives market is much larger than the spot market currently, so the potential here is significant.” He noted traders should look for guidance on expenses, which will be an important metric going forward as the company continues to invest. The shares of the crypto exchange rose about 13% on Thursday, while most crypto-linked stocks rallied as bitcoin price climbed past $51,000. https://www.coindesk.com/business/2024/02/14/coinbase-to-report-strong-earnings-muted-benefits-from-etf-hype-analysts-say/

2024-02-14 17:54

Wright – who has been battling it out with the Crypto Open Patent Alliance (COPA) in a U.K. trial for the past several days – is trying to prove he is Bitcoin inventor Satoshi Nakamoto. Craig Wright's cross-examination came to a close on Wednesday after a week's worth of questioning. The Crypto Open Patent Alliance, as well as counsel for a group of bitcoin developers who are up against Wright, have asserted his claims are lies numerous times. Wright was taken to court by COPA to ascertain once and for all if he is in fact Bitcoin's creator. Craig Wright wrapped up his testimony in a trial questioning if he is Bitcoin's pseudonymous creator on a defiant note Wednesday, declaring that for him, the trial was about "justice." The trial, brought in the U.K. by the Crypto Open Patent Alliance (COPA), is well into its second week. Wright has testified for the last several days, answering questions about his connections to the world's first cryptocurrency. He was cross-examined by COPA's lawyers as well as counsel for the other plaintiff, a group of Bitcoin developers, who asked questions on cryptographic keys, his expectations for compensation, his validation claims and his self-proclaimed decision to lock bitcoin funds and information in a trust. Both COPA's counsel and the developers Wright faces asserted that Wright was either "wrong" or that his testimony was all "lies" at various times in the trial. Wright's witnesses will begin taking the stand on Thursday, starting with Ignatius Pang, who has known Wright since 2007 and can recount a conversation around 2008 where Wright mentioned blockchain, according to court documents. Robert Jenkins will also be called forward. He met Wright around 1998 or 1999, when Wright worked for Vodafone in Australia and has said he discussed concepts of electronic ledgers with Jenkins. Lastly, Shoaib Yousef will also take the stand for Wright on Thursday. Yousef has known Wright since 2006 and has said he spoke to Wright about digital currency as a concept in the late 2000s. Jesse Hamilton and Sandali Handagama contributed to reporting. https://www.coindesk.com/policy/2024/02/14/craig-wright-cross-examination-ends-as-copa-trial-closes-for-day/