Bitcoin Foundation's Gavin Andresen: Altcoin Prices Don't Care About Tech

News
Thu, 05/28/2020 - 11:35
article image
Vladislav Sopov
A legend of the Bitcoin (BTC) community and first lead dev of the Bitcoin Foundation, Gavin Andresen, has mocked those saying altcoin price movements aren't speculative
Bitcoin Foundation's Gavin Andresen: Altcoin Prices Don't Care About Tech
Cover image via en.wikipedia.org
Contents

Gavin Andresen, the founder and the first original member of the Bitcoin Foundation in 2012, has mercilessly chastised the bias that the technical progress of a project is a price catalyst for the token behind it.

Guess, which project was down?

Mr. Andresen published two price charts for high-liquidity altcoins. It doesn't take a seasoned blockchain analyst or trading geek to figure out that, in general, both charts looks similar.

Two altcoins demonstrated similar price moves
Image by Gavin Andresen

Mr. Andresen has revealed one important piece of information: one of the charts demonstrates the price of the IOTA token (MIOTA) while the other belongs to ZCash (ZEC).

But, the point is that the IOTA protocol was down for about a month in February and March of 2020. After a devastating hack, all operations through the Tangle data structure were halted.

The ZCash protocol experienced no technical issues and functioned as intended for the whole period in question.

Does technology matter?

Mr. Andresen used this comparison to show that the technical aspects of a product with a popular token only slightly affect its price.

He admitted that the markets shrugged off IOTA's failure to perform its operations. For him, it is the best proof of the highly speculative nature of cryptocurrency price moves. In conclusion, he identified two real catalysts of these moves:

It is all day traders and bots.

It should be remembered that IOTA switched off all operations conducted through the Tangle network on February, 13 after the attack that resulted in $2M in losses.

The IOTA Foundation released a migration tool to mitigate the aftermath of the attack. Also, IOTA founder David Sonstebo decided to spend a significant share of his crypto to cover the losses of victims.

article image
About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

News
Fri, 01/15/2021 - 18:02
article image
Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
Cover image via stock.adobe.com
Contents

While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

article image
About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)