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Vitalik Buterin Slams Michael Saylor’s Pro-Bank Bitcoin Custody Plan

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Ethereum co-founder Vitalik Buterin has criticized MicroStrategy chairman Michael Saylor’s recent comments supporting institutional custody for Bitcoin.

Michael Saylor’s proposal to have large financial institutions and institutions like the “too big to fail” banks handle Bitcoin custody has raised eyebrows within the Bitcoin community. Buterin and others argued that this approach goes against the decentralized nature of Bitcoin and other cryptocurrencies.

Vitalik Buterin Criticizes Saylor’s Stance

In reaction to what Michael Saylor said, Vitalik Buterin has come out to protest and label Saylor’s approach as “batshit insane.” Buterin, who has been instrumental in shaping discussions around decentralization in the crypto space, argued that relying on large financial institutions like BlackRock and Fidelity for Bitcoin custody contradicts the core principles of cryptocurrencies. 

He also mentioned that the strategy proposed by Michael Saylor results in regulatory capture which is a situation where the powerful financial institutions take over Bitcoin and therefore put the decentralization of Bitcoin at risk.

Vitalik Buterin recalled that earlier he used to speak about certain decentralized principles, however, the appearance of new cryptographic tools such as zk-SNARKs and account abstraction changed the landscape of self-custody. He said that the real value of crypto is decentralization and the ability to work outside the existing financial systems.

Michael Saylor Shift from Self-Custody 

Michael Saylor, who is a Bitcoin enthusiast has before now recommended self-custody as a means of protecting the Bitcoin network. In light of the FTX debacle that occurred in 2022, Saylor stressed that self-custody is crucial since without it, there cannot be a decentralized network. 

Nevertheless, in his recent interview with financial reporter Madison Reidy, Saylor changed his position claiming that large institutions should be responsible for Bitcoin custody, not the users.

Saylor also downplayed the risks of government actions, stating that anyone thinking that governments would seize Bitcoins is a “paranoid crypto-anarchist”. According to him, large financial institutions are more suitable for the role of Bitcoin custodian due to their size and experience. This change of position has raised the ire of the Bitcoin community, with many arguing that Saylor is advocating for the control of a decentralized asset by central entities.

Jameson Lopp and Other Critics Respond

Jameson Lopp, co-founder of Casa, and and an avid supporter of Bitcoin self-custody also chimed into the discussion and emphasized on the significance of self-custody for the health of Bitcoin network.

According to Lopp, the danger of having many Bitcoins in the hands of a few big organizations is apparent. He added that this may result to emergence of new systemic risks like seizure or loss of assets. Lopp also pointed out that self-custody enables Bitcoin users to be part of the network’s governance by running their own nodes and making choices about software updates and forks.

Other figures, such as Simon Dixon and John Carvalho, also criticized Saylor’s pro-bank stance aligning with the Ethereum co-founder. Dixon pointed out that Saylor’s new position could be a result of MicroStrategy’s business strategy, as the company might want to become a Bitcoin bank. Carvalho alleged that Saylor was seeking to diminish Bitcoin to merely an investment vehicle instead of a means of exchange, which, according to him, would pose a risk to the potential of Bitcoin as a decentralized financial system.

Despite these remarks, Michael Saylor’s company, MicroStrategy, holds more than 252,000 BTC, making it the largest corporate holder of Bitcoin. Despite the criticism, Saylor remains optimistic about Bitcoin’s future, predicting that the cryptocurrency could reach $13 million per coin by 2045. 

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Shiba Inu Burn Rate Surges 6750%, SHIB Community Vouch for $0.01 Price Target

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October 23, 2024

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The renowned dog-themed meme crypto SHIB has once again fueled optimism among crypto market traders globally, recording a remarkable surge in the Shiba Inu burn rate on Wednesday. Latest burn data suggests that nearly 27 million coins were taken out of the supply, igniting market optimism surrounding the meme coin’s future movements. Additionally, it’s noteworthy that the SHIB community vouched for a $0.01 price target previously, adding optimism surrounding the coin’s future movements in light of recent developments.

Shiba Inu Burn Rate Explodes 6750% Sparking Bullish Investor Sentiments

Per the latest Shibburn data as of October 23, the Shiba Inu burn rate witnessed a 6750% surge in the past 24 hours. This surge is primarily due to 27.10 million coins being taken out of the meme coin’s circulating supply. As per the data, the total circulating supply as of writing totaled 589.26 trillion coins, with the massive burn coming into play.

Simultaneously, weekly burn data indicates that roughly 58 million coins were taken out of the meme token’s supply. The constant reduction in the token’s market supply propels optimism on the coin’s future price movements, abiding by the law of supply and demand as supply takes a hit while demand remains the same. Besides, it’s also worth mentioning that demand for the leading dog-themed meme coin could see further rise in the wake of latest advancements.

Notably, recent ‘ecosystem’ developments have garnered additional optimism toward the meme token, Shiba Inu. A recent CoinGape Media report reveals that the token witnessed another phenomenal burn rate surge previously, sparking optimism over a 2021-like Shiba Inu price rally looming for the token. Further, the report also revealed that the meme coin’s Layer 2 Shibarium saw a notable surge in activity, indicating robust growth for the meme coin’s ecosystem. Overall, recent ecosystem developments, such as the ones mentioned above, project a bullish path for the crypto ahead.

SHIB Price To $0.01 Ahead?

However, SHIB price saw significant turbulence today, plunging nearly 2.5% as of writing to reach $0.00001806. Its intraday low and high were $0.00001785 and $0.00001851, respectively. Notably, the coin’s waning action aligns with the broader market trend today, sparking speculations contrary to the burn rate surge and positive developments.

Nevertheless, the massive continued burning has projected optimism on SHIB’s long-term prospects. Notably, the Shiba Inu marketing lead LUCIE has sparked noteworthy intrigue surrounding a potential $0.01 price target for the meme coin ahead. Earlier this year in March, Lucie revealed that she has been HODLing the token since 2021 and strongly believes in its potential to reach $0.01 ahead, although achieving this feat may take time.

On the other hand, Coinglass data indicated a 5.9% drop in the crypto’s futures OI to $52.65 million today. Further, the derivatives volume dropped nearly 22% to $106.71 million. This data aligns with the coin’s tumbling movement today, although broader prospects shine with optimism, attributable to the abovementioned developments.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ripple Moves 200M XRP Ahead Of US SEC Appeal, What Next?

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1 day ago

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October 22, 2024

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Ripple has moved 200 million XRP tokens worth about $109 million to an unknown wallet. This is notable especially at this time as it happens ahead of the next phase in Ripple’s legal case against the U.S. Securities and Exchange Commission (SEC).

The appeal is a significant moment in Ripple’s fight against the SEC, which claims that Ripple’s XRP sales constituted an unregistered securities offering.

Ripple’s 200 Million XRP Transfer Ahead of US SEC Appeal

The large XRP transfer has elicited questions on what Ripple may be up to given that the transfer was made at the time of the SEC appeal. The appeal is expected to be a direct challenge to the ruling made by Judge Analisa Torres, who had earlier granted a motion in favour of Ripple stating that the sale of XRP through exchanges was not a violation of the U.S securities laws.

Stuart Alderoty, the Chief Legal Officer of Ripple, shared his thoughts on the potential scenarios of the appeal. He said the optimal outcome of the proceedings for the Securities and Exchange Commission could be to have the case sent back to Judge Torres. 

Nevertheless, Alderoty explained that the Securities and Exchange Commission would struggle to challenge the decision, saying: “The SEC could end up arguing to Judge Torres that she wasn’t a person of ‘ordinary intelligence’ when she ruled against them.” Concurrently, Ripple’s legal team remains optimistic about their position in the case, despite the ongoing litigation.

XRP Price Movement and Market Reaction

During this legal fight, XRP has seen an increase in both derivatives and spot trading Data from CoinGlass revealed that XRP’s derivatives trading volume jumped more than 130%, with spot trading volume rising by 108% from the previous day. 

With the total market trading volume at $2.5 billion for both futures and spot markets, the trading volume/market cap ratio is 8%, which indicates that traders are paying more attention to the asset. Concurrently, crypto analysts continue to share varying predictions for XRP’s price movement. 

Crypto analyst Amonyx also identified the bullish pennant formation on the XRP weekly chart and expects a breakout that may take the price to as high as $589. As noted by CoinGape, the current consolidation within the pattern, together with the overall market conditions, may open the door to major price fluctuations in case of positive change in the legal status of Ripple.

MetaMask Integrates with XRP Ledger Amid XRP Transfer

During the massive XRP transfer, Ripple revealed that the XRP Ledger (XRPL) is now integrated with MetaMask, a Web3 wallet service. By integrating XRPL Snap, users of MetaMask can now engage with the XRP Ledger from their wallets. 

This integration enables XRP account management, transaction signing, and interaction with the XRPL-based decentralized applications (dApps).

In addition, the integration will enable the XRP Ledger to be taken to MetaMask’s 30 million monthly active users making XRP and the XRPL more accessible to developers and the retail audience. The new tool provides functionalities such as network flexibility, security checks, and developer documentation for developers seeking to integrate with the XRP Ledger.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Solana’s Co-Founder Questions Ethereum’s Utility Without Base L2

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1 day ago

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October 21, 2024

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In a recent discussion, Solana’s co-founder, Anatoly Yakovenko, raised questions about the vitality of the Ethereum ecosystem without the contributions from Base, a Layer 2 solution. This query comes amidst observing the metrics of growth shown by Base, particularly in user activities and transaction volumes.

Rapid Growth In Base Layer 2 Solutions

Base has seen an exceptional increase in key activity metrics such as Active Addresses, Transaction Count, and Throughput, all achieving new peaks recently. This growth trajectory is also mirrored in its Stablecoin Market Cap and Total Value Locked (TVL), which are reported at all-time highs. 

Base Layer 2 integration with Coinbase’s existing large user base is seen as a significant factor driving its demand and subsequent rise in these metrics.

Additionally, the surge in Base’s activity is attributed partly to the popularity of meme coins within its ecosystem, notably MOG and BRETT. These coins have ascended into the top 100 cryptocurrencies by market cap and are nearing their peaks. 

According to DefiLlama reports, Aerodrome Finance has played a significant role in the surge of Base’s Total Value Locked (TVL), with memecoin trading as a key driver. The platform has contributed to $1.36 billion TVL on Base Layer 2, making it a substantial force behind the rapid growth. 

Following the impressive performance by Base Layer 2, Anatoly Yakovenko commented,

“So basically without Base, Ethereum ecosystem would be dead in the water right now.”

However, on-chain economist Lily Liu highlights a potential issue with how the visualization groups active addresses, suggesting it could be misleading. According to Liu, Solana reports significantly higher monthly active addresses, about 100 million, more than four times the 22 million reported by Base. This substantial difference shows that the grouping used in the visualization is not an accurate representation of the ecosystem’s activity levels.

Liu proposes a more precise method of presenting this data would be to use a single bar chart with EVM and non-EVM bars shaded differently. This would allow for a clearer distinction and more accurate comparison. 

Additionally, the claim that “Base and Solana” have the highest monthly active addresses overlooks that the NEAR Protocol has 31 million MAA, outpacing Base. Liu highlighted,

“The headline should therefore read, …Solana and Near as the most active.”

Source: State of Solana ReportSource: State of Solana Report
Source: State of Solana Report

Impact on Ethereum Market Position

Conversely, Ether has faced challenges since its Dencun upgrade, marked by an inflationary supply and declining revenues. In contrast, Base Layer 2 rise has been conspicuous, capturing a notable share of transactions and revenues. This has positioned it as a leading contender among Ethereum’s Layer 2 solutions.

The divergence in performance between Ethereum and Base highlights the evolving dynamics within the blockchain ecosystem. Layer 2 solutions are becoming ecosystems in their own right with distinct communities and economic activities.

At press time, ETH price is $2,678, showing a slight 7-day increase of 2%. The 24-hour trading volume surged by 68% to $19.68B showing heightened trading activity and investor interest.

Moreover, most recently, Anatoly Yakovenko shed light on the differences between Solana and ETH. Despite its technological advantages, Solana has not gained the same institutional attention as Ether. He pointed out that the contrasting scaling methods of the two platforms might impact institutional interest. Solana emphasizes hardware scaling, while Ethereum focuses on software solutions.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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