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ICOs, Are They Worth The Risk?

ICOs, Are They Worth The Risk?
With new statistics showing that nearly 81% of ICOs eventually become scams, it has led many people to wonder if they are really worth the risk. Although they are considered to be incredibly important for blockchain projects, as they allow the creators the opportunity to raise millions of dollars for their project, new research has shown that they are actually very detrimental to this already fragile market. This new doubt has come from recent statistics from Statis Group, who showed that very few ICOs are actually legitimate. Scam ICOs can be recognised if they raise money without fulfilling their promise and never show any working code, and the worrying thing is that these happened all too often. As well as scams, there are also different companies who successfully complete the funding and development, but never get listed on an exchange. Projects like this often cause friction for investors, who are looking to recover their initial contributions. Taking the above into consideration, the research shows that a whopping 81% of ICO are in fact, scams. Just a tiny 8% of all ICOs actually make their way onto a reputable cryptocurrency exchange. This is very concerning indeed. If you consider the projects that are currently listed on exchanges, which have raised between $50 and $100 million, over 55% of them are actually struggling to deliver a working project. The ones that raise the more money appear to be more successful than those that do not; however, it is pretty typical to see these ones struggle at a later stage. The projects with a market capital of over $1 billion appear to be the ones that perform the best, but very few actually make it to that level. Given the statistic shown above, it would imply that ICOs are not worth the investment risk, however, they are needed, and the more people who invest in them, the more likely they are to succeed. It is the classic catch 22 scenario. Featured Image Source: Pixabay  

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DeFi Startup Acala to Build New Oracle Network For Polkadot Ecosystem 

DeFi Startup Acala to Build New Oracle Network For Polkadot Ecosystem 

DeFi project Acala is working to revolutionize the way projects using Polkadot information get their data — specifically, price feeds. 

Oracle exploits in the DeFi world are a hot topic right now: an eye-watering $100 million has been lost recently due to hacks. This is because protocols are getting their data, particularly price data, from just one source. 

Acala, in a technical collaboration with Laminar and Band Protocol, wants to make oracle networks more decentralized. 

How will they do this? 

The idea is that projects on the Polkadot ecosystem will use Acala’s Open Oracle Gateway. This system will speed up and secure the process of moving information off-chain to on-chain. 

Acala will do this by allowing multiple parties to create their own oracle price networks and provide price feeds — as long as they’re approved. 

Those using the Open Oracle Gateway will be able to pick the price feeds they want to use and choose an aggregated feed combining data (something that has been recommended as getting data from a single source compromises security.) 

All price feeds posted to Acala will be up-to-date, valid and refunded with transaction fees incurred, too, making them essentially free to anyone using Acala’s service. 

Why should we care? 

A number of hacks have happened lately because criminals are able to exploit weak oracles. Experts have also warned that this is likely to continue happening unless projects get their data from a number of sources. 

Acala is providing a solution: projects will be able to get price data from a large number of sources and the data will be approved and safe. 

This will protect exciting projects built on Polkadot — an ecosystem that has had a meteoric rise.

Who’s Acala? 

Acala is a DeFi hub and stablecoin platform powering cross blockchain liquidity and applications. The Acala Dollar (aUSD) is a multiple-asset-backed decentralized digital currency without volatility for the Acala network and wants to provide stability to those building on the Polkadot ecosystem.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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BitTorrent Arrives in Huawei’s App Store Following Latest TRON Partnership

BitTorrent Arrives in Huawei’s App Store Following Latest TRON Partnership

TRON, the crypto network whose architects seem to never sleep, is back with another partnership announcement. Its latest, a deal with telecoms titan Huawei, is sure to get tongues wagging, not just within the cryptosphere, but the broader tech industry. Four of BitTorrent’s apps have been added to Huawei’s native app store, making them accessible on up to 3 billion Android devices.

BitTorrent is already the world’s largest file-sharing network, boasting 100 million users who access the service via desktop and mobile. The addition of the app to Huawei’s AppGallery extends the reach of the file-sharing network, placing it in the hands of potentially billions of users. Given the difficulty of having crypto-related apps admitted into Apple’s App Store, the deal will be welcomed by Asian smartphone users seeking a simple way to torrent files and interact with crypto.

No other company manufactures more telecommunications equipment than Huawei, the Chinese tech company that was founded in 1987. Today it has over 194,000 employees and a presence in 170 countries. It is China’s largest tech firm and maintains a strong presence all across Asia.

TRON Enters Another App Store

TRON, which owns BitTorrent network, and whose founder Justin Sun is the company CEO, has already gained admittance to Samsung’s Galaxy Store. Earlier this year, a number of TRON-based dApps were listed there and connected with the built-in TRON crypto wallet. Huawei’s decision to partner with TRON can be seen as further evidence of how crypto is permeating every vertical it touches. While no knowledge of cryptocurrencies is required to use the BitTorrent app, its tokenized ecosystem – powered by the BTT token – creates an economy for rewarding file sharers, who provide network bandwidth.

With payment platform PayPal recently adding support for cryptocurrency, which can now be used as a means of payment with online merchants, digital assets are enjoying a rip-roaring end to 2020. It’s a year that has tested the crypto market, and indeed the entire world, as a series of macro forces including economic and biological crises have buffeted society and impacted the markets. Now, with the worst ravages of the pandemic appearing to have passed, and multiple vaccines on the verge of being rolled out, the stage is set for a remarkable recovery.

As TRON’s mission to expand into every major entertainment ecosystem accelerates, so does the case for TRX and BTT being supported by more leading platforms. Coinbase and PayPal are likely to be the next to bow to the inevitable and invite the TRON family into the fold. Those are rumors for another day, though. This week, all that matters is that TRON has entered the Huawei app store via BitTorrent, and it won’t be relinquishing its place in a hurry.

“This is another huge milestone for TRON and BitTorrent to be listed by one of the largest Android manufacturers in the world,” enthused Justin Sun. “We are excited to see the blossoming universe of distributed networks grow via Huawei devices and technology.”

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Two of the biggest economies in the Middle East have teamed up to create a joint CBDC

Two of the biggest economies in the Middle East have teamed up to create a joint CBDC

Quick Take

1 minute read

  • Could a dual CBDC be viable?
  • Two of the biggest economies in the Middle East have joint forces to test a partner CBDC.

A report was released earlier this week from two of the most powerful economies in the Middle East that looked into a year-long joint project for a central bank digital currency and the results are very positive.

Project Aber was first announced in January of last year and is an effort between the United Arab Emirates and Saudi Arabia to help create a “proof of concept“ designed to “contribute to the body of knowledge in CBDC and DLT technologies.“

This is the first project of its kind where two central banks have worked collectively on such a project. The report highlights that the name choice of Aber was particularly chosen as it relates to the core mission of the project.

“The name Aber was selected because, as the Arabic word, for “crossing boundaries”, it both captures the cross-border nature of the project as well as our hope that it would also cross boundaries in terms of the use of the technology.”

The report highlights that the project used a digital currency backed with real money in order to force more research and consideration into issues that surround securities and payment systems that are currently existing.

On top of this, the report ends noting that a dual issued central digital currency was not only possible for cross-border payments but that it can even provide a significant improvement over centralised payment systems.

“The key requirements… were all met, including complex requirements around privacy and decentralization, as well as requirements related to mitigating economics risks, such as central bank visibility of money supply and traceability of issued currency.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Sino Global Capital CEO believe there is no need for FUD just yet

Sino Global Capital CEO believe there is no need for FUD just yet

Quick take

1 minute read

  • Over the past few weeks, the leading cryptocurrency and many alternative digital assets have seen fluctuations in the price value. 
  • There have been numerous price dips last week and many traders seem to be experiencing a lot of uncertainty and doubt.

Over the past few weeks, the leading cryptocurrency and many alternative digital assets have seen fluctuations in the price value. There have been numerous price dips last week and many traders seem to be experiencing a lot of uncertainty and doubt. But the head of research at the blockchain investment company Sino Global Capital, Dermot McGrath, has said that the firm prefers to look long-term.

Last week, the Chinese government had seized $4.2 billion worth of crypto assets as a part of the Plustoken pyramid scheme and the court proceedings relating to it. After news broke on this, rumours were flying around the industry that these tokens were getting ready to be dumped on the open market and as a result, prices crashed further.

On Twitter, the chief executive officer of the blockchain investment company, Matthew Graham said the following on the Ponzi scheme:

Furthermore, McGrath spoke in an interview recently with CT saying that investors should look outside of the immediate headlines going on to note:

“In the crypto and blockchain ecosystems it is important to be able to ‘cut through the noise. We are long term bullish on Bitcoin and we continue to see the industry professionalize and mature as an asset class."

McGrath went on to discuss the topic of Chinese crypto miners saying that many have predicted that these individuals could conduct a 51% attack on the network for bitcoin but rejects this saying:

“Some of the reason that “Chinese miners” have been a “boogeyman” to western traders is simply a lack of understanding. In theory, of course we know that 51% attacks can occur, but the level of centralization/coordination and incentives simply does not exist among the Chinese miner community for top cryptos.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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