Author: Susana

Cryptocurrencies that could surprise in 2024, according to EurocoinPay CEO Herminio Fernandez

Cryptocurrencies that could surprise in 2024, according to EurocoinPay CEO Herminio Fernandez

Diversifying the crypto portfolio in search of the “new bitcoin” is tempting, but the past has shown the high risk involved. The experts consulted, without ignoring the greater “security” that both bitcoin and ethereum offer, reveal a series of alternative cryptocurrencies that, due to the boom in their use or their innovative nature, could surprise favourably in 2024.

It seems that the cryptowinter is behind us. 2023 is the year of the crypto market’s recovery, as evidenced by bitcoin’s 127% rally and ethereum’s 70% revaluation. This context is fuelling hopes of even more remarkable revaluations among lesser-known and smaller cryptocurrencies.

One factor to bear in mind is that, while the crypto market has much higher levels of volatility than “traditional” markets, the volatility of both upside and downside volatility is higher for smaller-cap tokens.

Experts advise investors to proceed with extreme caution if they decide to position themselves in alternative cryptocurrencies or altcoins, as looking for digital currencies with high upside potential involves taking a high degree of risk.

Without neglecting calls for prudence, all experts agree on diversifying the investment portfolio.

In the article “Eleven cryptocurrencies that could surprise in 2024“, published on 30 November 2023 in, expert cryptocurrency analysts, investment fund managers linked to cryptocurrencies and the CEO of EurocoinPay, Herminio Fernández de Blas, are consulted on which crypto trends could have more potential in the medium and long term to diversify the portfolio.

Read the full article on

Options put forward by Herminio Fernández to diversify the portfolio

First and foremost, Herminio makes it clear that:

The price of any cryptocurrency can rise or fall significantly at any time, so it is always important to invest with caution and diversify your portfolio.

Herminio Fernández

These are the cryptocurrencies that EurocoinPay’s CEO sees as having growth potential due to new projects and upgrades:

Solana (SOL): Solana is a blockchain platform that has become one of the fastest and most scalable on the market, gaining remarkable popularity for decentralised finance (DeFi) and non-fungible token (NFT) applications.

Cardano (ADA): Cardano is a blockchain platform that is based on academic research and is developing a series of upgrades that will improve its scalability and efficiency.

Avalanche (AVAX): Avalanche is a blockchain platform that has become one of the most popular for DeFi applications and is characterised by its scalability, efficiency and low transaction fees.

IOTA (IOTA): It is a cryptocurrency with significant growth potential. The cryptocurrency has innovative technology, an experienced development team and a growing ecosystem.

Uniswap (UNI): It is a decentralised exchange protocol (DEX) that allows users to exchange ERC-20 tokens without intermediaries. It is one of the most popular DEXs on the market and has a high volume of transactions, and if it continues to grow in popularity, it could attract more users and liquidity, which could boost UNI’s price.

Polkadot (DOT): It is a blockchain platform that connects different blockchain networks. It has the potential to create an interoperable ecosystem of decentralised applications and if it is a success, it could connect different blockchain networks and create an interoperable ecosystem of decentralised applications.

Dogecoin (DOGE): It is a meme cryptocurrency that became popular in 2021. It has an active and engaged user community. It has been adopted by several companies and celebrities. If it is adopted by more companies and celebrities, it could increase in popularity and price.

Chainlink (LINK): ): It is an oracle platform that provides real-world data to decentralised applications. Chainlink is an integral part of the DeFi ecosystem, and is used by many popular applications. If it continues to grow in popularity, it could become an integral part of the DeFi industry.

IMPORTANT to always bear in mind the volatility of the crypto market and to invest with caution.

Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

Which sectors accept cryptocurrencies as a form of payment?

Which sectors accept cryptocurrencies as a form of payment?

A new study by crypto-tax software CoinLedger revealed that the retail and e-commerce sector has the highest number of companies offering the option to buy via cryptocurrencies.

The study compiled a list of more than 300 large companies known to accept cryptocurrency methods and categorised them into industries, to discover which contains the most companies offering cryptocurrencies as a payment method.

Retail and e-commerce ranked first, with a total of 60 companies accepting cryptocurrency payments. The sector includes clothing and accessories retailers such as Adidas, Yankee Candle and H&M, as well as online shopping platforms such as Etsy.

Second on the list is the Food & Dining sector with 54 companies. Examples include Chipotle, Chuck E Cheese’s, Domino’s and Hard Rock Café, and delivery services such as DoorDash and Uber Eats. Gradually, different services are becoming available in different countries: Burger King Venezuela has been accepting Bitcoin payments since 2020.

Luxury retail comes in third place, with 35 companies offering the service, including high fashion brands Gucci and Ralph Lauren, luxury watch retailer Hublot, as well as jewellers such as Jewelry Affairs and CRM Jewelers.

Further down the list, Travel & Hospitality ranks fourth, with 31 companies accepting crypto payments. They range from commercial airlines, such as Norwegian Air and Vueling, to private jet charters, such as Fast Private Jet, LunaJets and PrivateFly.

Cruise lines Royal Caribbean and Princess Cruises are also on the list, as well as travel organisation help sites such as GetYourGuide.

The top five close with Internet and Online Services companies, as 28 accept cryptocurrency as a payment method. These companies offer a service available to use online on our phones and laptops, such as Google Play and Spotify, and various VPN services such as CyberGhostVPN, ExpressVPN and FrootVPN.

Top 10 industries offering cryptocurrencies as a payment method:

David Kemmerer, co-founder and CEO of CoinLedger, commented on the findings.

“The growing number of businesses accepting cryptocurrency payments reflects the growing acceptance and adoption of digital currencies in the mainstream economy. This trend not only aligns with the changing preferences of tech-savvy consumers, but also offers benefits such as reduced transaction fees and increased security. From large retailers to small businesses, the diversification of sectors adopting cryptocurrencies demonstrates the versatility and potential of blockchain technology. As this trend continues, it is likely to contribute to greater acceptance of cryptocurrencies as a legitimate form of payment, paving the way for a more decentralised and accessible financial landscape.”

At EurocoinPay we have always been committed to a better world and we have expressed our firm intention to contribute to a change in the economy, where the financial transactions we make in our daily lives are faster, safer and more transparent.

Our cryptocurrency payment gateway for Ecommerce provides the solution for all those businesses and companies that want to offer the option of paying their products or services to customers through cryptocurrencies quickly and easily.

It accepts payments with cryptocurrencies through EurocoinPay.


Source: Cointelegraph

Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

Concern over temporary removal of MetaMask from App Store

Concern over temporary removal of MetaMask from App Store

In an unexpected move, Ethereum wallet MetaMask was temporarily ousted from the Apple App Store on October 14, triggering speculation about the increasing challenges faced by decentralized applications (DApps) within the realm of Big Tech.

The abrupt disappearance of MetaMask from the App Store prompted a surge of unease among its 30 million global users, who rely on the platform’s seamless integration with various Web3 DApps. Users were left unable to download the application, leading to a flurry of concern within the cryptocurrency community.

Such policies have long been a contentious point of contention for crypto firms navigating the world of mainstream app marketplaces.

In response to the temporary removal, MetaMask emphasized the transient nature of the situation, expressing confidence in the imminent reinstatement of the app on the App Store.

FYI: We’re aware that MetaMask isn’t currently available for download on the App Store. This is and not related to anything malicious and our team is working hard to resolve it ASAP.

They urged users to remain vigilant against any counterfeit MetaMask apps that might have surfaced during the brief period of unavailability.

As promised, we’re back on the apple app store. Sorry for the inconvenience!!

This isn’t the first instance of MetaMask facing a challenge from major tech players. Back in 2019, the company encountered a similar hurdle when Google Play suspended its app, citing violations of financial services guidelines and the prohibition of cryptocurrency mining on mobile devices.

The current dilemma highlights the ongoing struggle for crypto firms grappling with the substantial revenue sharing demands imposed by Apple’s 30% transaction fee policy, which has been a persistent obstacle for businesses seeking to facilitate transactions and offer services to iOS users.

As the battle between decentralized applications and Big Tech continues, the incident underscores the growing need for a more nuanced and adaptive approach to regulation and policy formulation within the tech industry, particularly in relation to the burgeoning world of cryptocurrencies and decentralized finance.


Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

IOTA’s Stardust Upgrade and the Evolution of $IOTA Tokenomics

IOTA’s Stardust Upgrade and the Evolution of $IOTA Tokenomics

Sep 15, 2023 announcement on

Key Decisions on IOTA’s Path Forward

Over the past decade, the crypto market has evolved from what was initially a small community of idealists and dreamers experimenting with novel concepts on Bitcointalk Forum, into a global industry with billions in yearly investments and tens of thousands of people working full-time to progress the adoption of distributed ledgers and cryptocurrencies.

When IOTA was started in 2015, the team and our community were driven by a vision to create a better, sustainable, and more equitable future for everyone. Our primary goal was to create an impact in the real world, showcasing the potential of IOTA across all industries together with large enterprise companies and governments. Guided by a scientific approach, we introduced the first DAG-based DLT architecture, and over the years have developed it further into a reliable, global network infrastructure.

With our forthcoming IOTA 2.0 protocol upgrade, we will take the next big step to introduce a unique and highly competitive protocol architecture that is fully permissionless, leaderless, and decentralized. This has the potential to position IOTA as one of the leading technologies for traditional industries and for new Web3 ecosystems to build, grow, and scale on IOTA.

To make this future a reality, we feel that now the time has come to make bold decisions, double down on IOTA, and maximize the utility and economic activity of the $IOTA token. To do so we had to make some key decisions.

The four key decisions we want to share today are:

  1. We will focus on maximizing the utility, scalability, and economic activity of the IOTA network and the $IOTA token, with Shimmer positioned as a complementary staging network to validate and expedite the technical roadmap of IOTA.
  2. After the launch of IOTA 2.0, we will introduce programmability on the IOTA Layer 1 (L1) by integrating general-purpose smart contracts. This will help to maximize the utility of the $IOTA token by increasing the demand for Mana and it will align L2 networks with the IOTA L1 through shared security.
  3. We will not further develop and release the Assembly project and the Assembly token. Instead, we will focus our efforts on IOTA Chains, our generalized smart contract framework for anchoring Layer 2 (L2) blockchains on IOTA, and developing L1 smart contracts. IOTA holders that staked for Assembly tokens will get an IOTA token airdrop.
  4. We will introduce a new Ecosystem Fund that will help further decentralize the governance of IOTA and support ecosystem growth. Several community governance vehicles, committees, and entities will be set up to empower the community to help manage the ecosystem fund. This Ecosystem Fund will be funded through a temporary token inflation that will last for four years, increasing the total supply to 4.6 billion IOTA tokens.

Future-proofing IOTA

IOTA 2.0 will be a consensus and settlement layer capable of securing and tokenizing assets, to enable seamless and frictionless transfers and to connect and create new digital ecosystems for Web3, enterprises, and governments. Our leaderless consensus is one of the best alternatives to the existing validator/miner-based networks by maximizing decentralization and permissionless participation for everyone.

Our generalized smart contract framework (IOTA Smart Contract Chains) will allow anyone to deploy and anchor WASM or EVM-based L2 networks into the IOTA L1. The upcoming launch of the ShimmerEVM on the Shimmer network – the staging network of IOTA – will mark the launch of the first smart contract chain in the IOTA ecosystem. We will continue investing in IOTA Chains to increase customizability, decentralization, tooling, features, interoperability, and broader support with existing solutions. This includes supporting zkRollups and other zk-based technologies in the future.

Just some examples of L2 networks that are currently being developed within our ecosystem are:

  • ShimmerEVM, the first EVM-compatible smart contract chain to launch on Shimmer. This will be the basis for an entire DeFi ecosystem to be created.
  • GovChains, which we have developed through EBSI (European Blockchain Services Infrastructure), are an example of government-operated L2 networks to be built on IOTA to enable new digital services for governments and citizens (e.g. digital identities, digital product passports, registries, etc.)
  • TLIP is a network for trade and logistics, currently already running in a large-scale pilot in Kenya and being expanded across Africa and other countries.
  • Demia is an L2 network for tracking, securing, and making decisions based on verifiable climate data.

These L2 networks will finally introduce programmability and dApps to the IOTA ecosystem. However, unless they are unified and share security with the L1, they will inevitably take activity and liquidity away from it, thereby decreasing its security and growth.

To further expand the possibilities of IOTA and enable shared security and liquidity, we will introduce programmability through general-purpose smart contracts on the IOTA L1.

The full picture:

  • With IOTA 2.0, we will have a highly competitive consensus and settlement protocol to establish IOTA’s unique ledger architecture as a foundational trust layer;
  • With IOTA Chains, we have a framework for building and launching general-purpose and application-specific L2 smart contract networks on IOTA, including EVM and WASM-based networks;
  • With the introduction of L1 programmability, we will have a framework to open up the IOTA base layer to new possibilities for builders to create applications and utility on a single, highly scalable, and composable network and to secure and connect L2 networks built on IOTA.

Smart contracts on IOTA L1

Through a multi-year development effort, L1 smart contracts on IOTA will be introduced through a general-purpose VM (Virtual Machine). This solution will run on the unique DAG of IOTA 2.0 without limiting the overall scalability and throughput of the network.  

Applications built on IOTA through L1 smart contracts will generate significantly more demand for Mana, which in turn will increase the demand for $IOTA tokens. This self-sustaining economic system is key to increasing the security of the IOTA network and in turn, generating more demand for applications and L2 networks to build on IOTA.

More progress updates and details on the solution will be shared in the coming months. The work on the solution has already started some months ago, with a new team focused on L1 smart contracts. The development of L1 smart contracts is a multi-year effort and we only intend to launch a public testnet of this sometime after the launch of IOTA 2.0.

$IOTA Tokenomics: One token to create a thriving ecosystem

With IOTA 2.0 and the introduction of Mana, the tokenomics of IOTA will receive a major overhaul. The upcoming demand for blockspace through L1 smart contracts, asset tokenization, and IOTA Chains anchoring activity will create more demand for IOTA tokens, thereby underpinning them with intrinsic value and utility. An increase in the value of the IOTA token also directly increases the security of the entire network, which in turn creates more demand for blockspace.

Demand for blockspace is the main driver for the value appreciation of IOTA. The more demand we have for blockspace, the more demand there is for Mana and thus, the IOTA token. With the introduction of L1 smart contracts, we expect to see the demand for Mana increase significantly. This will be a virtuous cycle where more adoption will lead to more demand for IOTA tokens to be staked to secure the network and to gain access to the network. Together with our ecosystem, we want to focus on maximizing the utility and economic activity of the IOTA L1 and the $IOTA token.

A deeper dive into the Tokenomics of IOTA 2.0 and the involvement of Mana will be published in the forthcoming IOTA Tokenomics Whitepaper.

We will not release Assembly and the Assembly token in favor of IOTA

We had initially intended to introduce Assembly because, at the time of the announcement, we did not have a feasible solution to establish programmability through general-purpose smart contracts directly on the IOTA L1. UTXO-based smart contracts were a very limited concept, not capable of delivering the kind of flexibility we envisioned. Over the past year, the DLT space, as well as our research teams, have made great progress in that direction. We have shown that we can indeed achieve programmability by directly embedding smart contracts on our L1 ledger without limiting the overall network’s performance.

This development, in combination with the advancement of zkRollups (which inherit the security of the L1 through cryptographic proofs, thus they no longer require complex mechanisms to guarantee economic security through a native token), proved to us that Assembly’s envisioned technical architecture, while technically feasible, would introduce too much of a delay on our technical roadmap and it would introduce a solution that we deem inferior to our new approach with L1 smart contracts.

With the planned introduction of smart contracts on L1 and the further development of the IOTA Chains framework for AppChains and zkRollups, the role of Assembly within the IOTA ecosystem would be obsolete. While we could continue to invest resources into it, launching a technologically inferior solution and yet another token would further fragment the ecosystem.

Instead of creating further complexity in our protocol, creating a potentially competing solution that takes away value from IOTA and the $IOTA token and diluting our focus, we have made the decision to officially stop Assembly and the Assembly token before its launch.

The ideas, concepts, and the intended value creation of Assembly will instead flow into IOTA. Instead of having competing tokens across the layers, we will embed the $IOTA token within all core functions of our network. The combination of a highly scalable, decentralized, and secure settlement layer with IOTA 2.0, the IOTA Chains framework for AppChains and zkRollups on L2, and the introduction of smart contracts on L1 will position IOTA as one of the leading Web3 ecosystems.  

While this was a difficult decision to make, we are confident that this is the best path forward for IOTA and the future we want to create. IOTA stakers that have received Assembly tokens will be eligible for an IOTA token airdrop. Further details are provided below.

Ecosystem Fund to support IOTA’s growth and adoption

Since the start of IOTA in 2015, we have always done things differently than others. We did not raise a large funding round with our initial token sale (only $500k was raised), 100% of the token supply was issued to the community and we did not reserve any tokens for the founders, team, or the foundation. All development was funded by donations from the community.

As the industry evolved over the years and new token projects started to progressively reserve more of their issued token supplies to spend on marketing activities and adoption, it became increasingly more difficult for IOTA to compete with our limited ability to invest in the ecosystem’s growth and adoption.

The upcoming release of IOTA 2.0 and the launch of smart contracts on IOTA will mark a turning point. Together with our ecosystem we can finally take matters into our own hands and forge our own success. However, technology alone will not help IOTA succeed. Only by combining technology with the ability to invest in growth and adoption will we be able to position IOTA as a leading ecosystem again. Instead of battling for survival, we need to battle for adoption.

Before the launch of IOTA 2.0, we now have an opportunity to change IOTA’s tokenomics from 2015 by making an adjustment to the token distribution for the first and final time. Through a temporary token inflation that will last four years, we are introducing a new dedicated Ecosystem Fund to support the growth and further development of IOTA and realize its vision of the future.

IOTA token distribution with Stardust fork

The new IOTA ecosystem fund will be funded through the vested release of new IOTA tokens created as part of the upcoming IOTA Stardust hard fork (more details below). Following the hard fork, there will be a temporary bi-weekly token release that will last for four years, after which the total supply has been reached. This token release over four years will equate to an average temporary 12% inflation per year. After these four years, the circulating token supply of IOTA will be equal to its new fixed total supply of 4,600,000,000 IOTA. (Note that we are using a new IOTA token denomination: for more details, see the end of this article).

With the new token distribution, existing holders will retain more than 60% of the total supply, while the new IOTA ecosystem funds, contributors, and the IOTA token airdrop to those who staked for Assembly will together be less than 40%.

The following visuals break down the token distribution and release schedule, with the entities that will receive IOTA tokens through this release schedule:

  • IOTA Holders: Existing IOTA holders own a total of 2,529,939,788 IOTA tokens.
  • Unclaimed Tokens: The 176,304,541 unclaimed IOTA tokens from the Chrysalis network upgrade will be removed from the circulating supply and only released once valid claims are processed. After the end of the two-year claim period, the community can decide whether these tokens should be burned to reduce the total token supply or assigned to the IOTA Treasury DAO. More information is below.
  • Treasury DAO: The Treasury DAO will receive 54,896,344 IOTA tokens, as was officially decided in a governance vote in 2022. As part of the unclaimed tokens of the previous migration period, a final valid manual claim of 7,664,631 will be processed.
  • Ecosystem Fund: In total, the ecosystem fund will equal 1,820,469,717 IOTA tokens, which will be gradually released over four years. This ecosystem fund will be used for R&D (IOTA Foundation) and for Ecosystem Funding (TEA and IOTA DLT Foundation), as well as contributors and an IOTA airdrop.
  • Tangle Ecosystem Association (based in Zug, Switzerland): Responsible for ecosystem funding and support, with a key focus on Europe and the US. TEA receives 12% of the total supply, or 552,000,000 IOTA tokens. 10% of those tokens will initially be unlocked, with the remainder unlocked through bi-weekly releases over four years.
  • IOTA Foundation (based in Berlin, Germany):The main entity responsible for the R&D and government affairs work of IOTA.  Receives 7.075% of all tokens, or 325,469,717 IOTA Tokens. An initial unlock of 10% of the locked IOTA tokens, with the remainder unlocked through bi-weekly releases over four years
  • IOTA DLT Foundation (based in Abu Dhabi, UAE): Responsible for ecosystem funding and support, with a key focus on the MENA, Africa, and Asia regions. Receives 12% of the total supply, or 552,000,000 IOTA tokens. An initial unlock of 10% of those tokens with the remainder unlocked through bi-weekly releases over four years.
  • Contributors: Contributors are key partners and dedicated members who are helping IOTA and the ecosystem. They will receive a total of 5% of the total supply, or 230,000,000 IOTA tokens. An initial unlock of 10% of IOTA tokens, with the rest vesting over 24 months.
  • IOTA Airdrop: Airdrop for IOTA stakers that staked for Assembly tokens. A total of 3.5% of all tokens, or 161,000,000 IOTA Tokens, are distributed to IOTA stakers. An initial unlock of 10% of the IOTA Tokens, with the remainder unlocked through bi-weekly releases over 24 months. This airdrop will be directly visible within the wallet of each eligible user.

With the removal of the unclaimed tokens from the circulating supply, at the time of the network upgrade, the circulating supply of IOTA will be 2,785,272,714 IOTA tokens which is slightly more than today’s token supply of 2,779,530,283 MIOTA. Over four years, through a release of tokens every two weeks, the circulating supply will gradually increase. After four years, the total supply of 4,600,000,000 has been reached. It is important to mention that the community can vote in the future to further reduce the total circulating supply by burning the unclaimed tokens (more information below).

Governance of the ecosystem funds

In our efforts to further decentralize the ecosystem, two new entities have been established to further streamline and accelerate the growth and support of IOTA and its ecosystem. Separately to the IOTA Foundation, which is primarily focused on the R&D and regulatory affairs efforts, the Tangle Ecosystem Association based in Zug, Switzerland, and the IOTA DLT Foundation based out of Abu Dhabi, UAE, have been set up to support the IOTA ecosystem.

Under the legal umbrella of the Tangle Ecosystem Association and the IOTA DLT Foundation, our community will be empowered to initiate, set up, and run purpose-bound committees that will work collaboratively to improve IOTA and the overall ecosystem. These committees will be able to receive and steward budgets from the newly created ecosystem fund in a transparent manner.

The purpose of these committees, as indicated by their charter, is to support the growth of IOTA and its ecosystem by responsibly managing the new ecosystem token treasury. The governance structure for the Tangle Ecosystem Association and IOTA DLT Foundation have been uniquely designed to empower the IOTA community with special privileges. These privileges are:

  • Governance over token treasury: Through a formal governance process, the IOTA community can propose and vote to establish special committees that will manage part of the token treasury for specific purposes (e.g. establish IOTA gaming ecosystem, IOTA marketing initiatives, Asia adoption, etc.).
  • Oversight and transparency: The community will have oversight over how budgets of token-voted committees are allocated. Updates on the overall spending of the ecosystem funds will be shared every quarter, with a detailed yearly transparency report published at the end of the year.

Through a formal governance process, the community can establish specific committees. Community members will be voted into these committees through a token voting process, and the committees will be hosted under the legal umbrella of the entities. These committees are then directly responsible for allocating a predefined budget and can do so with autonomy.

The tasks of these committees can cover a wide range of important ecosystem responsibilities such as community building, marketing initiatives, public goods funding, pushing adoption in certain markets and industries, infrastructure integrations, organizing hackathons and events, and many others. The community will be empowered to propose these committees for specific tasks and nominate the members for these committees. If such proposals find enough support in the community and align with general guidelines and principles, the proposed committee will be established and will receive a budget from the newly created Ecosystem Fund.

We believe that this is an important step to further decentralize IOTA and to ensure its growth. We look forward to working together with our community to realize the vision of IOTA and allocate the new Ecosystem Fund in the best interest of IOTA.

After the Stardust upgrade, we will invite our community and ecosystem partners to work with us on a detailed process that defines the scope and governance of these committees and the respective allocated assets from the ecosystem fund for this endeavor. Exact details will then be discussed and voted on by the community

IOTA Community Treasury DAO

Once smart contracts are deployed on the IOTA mainnet, we will finally be able to officially establish the IOTA Community Treasury DAO. This DAO will receive 54,896,344 million IOTA tokens, as decided by a community-wide governance vote in 2022. The IOTA Community Treasury funds will be fully available after the IOTA smart contract chain has launched and the necessary governance smart contracts for this DAO have been deployed.

We recommend that the Tangle Treasury (recently established under the legal entity Tangle DAO LLC incorporated in the Marshall Islands) should receive a first budget from the IOTA Community Tokens to begin the operation of an IOTA Community Grant program along with its already successfully running Shimmer Grant Program. This initial budget allocation will make it possible for the IOTA Community Grant program to immediately become operational and start supporting the ecosystem.

After the IOTA Stardust upgrade, a governance vote amongst IOTA token holders will be held to officially enable the IOTA Community Grant Program under the Tangle DAO LLC. The IOTA Community Governance group has already created a governance proposal to facilitate these implementations.

IOTA token airdrop

Part of the total supply of the Assembly token had been distributed to IOTA stakers. To date, this amounts to 12,380,515,719.163956 ASMB tokens or around 12% of the total Assembly supply.

Because the development of the Assembly network has been stopped, stakers will not receive Assembly tokens. IOTA holders who have staked for Assembly tokens will be eligible for an airdrop of IOTA tokens. Following the IOTA Stardust network fork, roughly 161,000,000 IOTA, or 3.5% of the total supply, will be airdropped to IOTA stakers.

Any staker can look up the amount of IOTA tokens that will be airdropped to them by searching for their addresses in the token distribution for IOTA Stardust.

A new version of Firefly that displays the amount of IOTA tokens that will be airdropped to any staker will be released after the IOTA ledger has been upgraded to the IOTA Stardust protocol version. Likewise, the IOTA explorer will display future token unlocks for all addresses.

Apart from an immediate unlock of 10% of the allocated tokens per address, airdrops of IOTA tokens will be happening pro rata, over 24 months through bi-weekly automated unlocks.

Unclaimed tokens

After the IOTA network’s upgrade to the Chrysalis protocol version in February 2021, users were required to migrate their tokens to a new EdDSA-based ledger layout. From this migration period, 176,304,674 tokens still have not been migrated by their owners. The current ability to auto-migrate tokens from the pre-Chrysalis IOTA network via the Firefly wallet will end with the IOTA Stardust upgrade. Once IOTA smart contracts are available on the IOTA network, this feature will be restored and migrations can be processed automatically again.

The Coordinator for the current IOTA legacy mainnet will be deactivated synchronously with the upgrade of the IOTA network from Chrysalis to Stardust. We thank the engaged group of community members who have still been operating nodes in the legacy network since the Chrysalis upgrade in 2021 for their service to the community.

Until the new migration solution of the Stardust ledger is implemented, there will be a period in which no further claims can be processed. Therefore, we recommend that anyone who has been waiting for the migration of their tokens from the legacy network to migrate their tokens now to the Chrysalis network with the Firefly wallet’s automated migration functionality before this feature is temporarily deactivated with the Stardust protocol upgrade.

Once the smart contracts-based migration solution is established, the network will continue to service migrations for another two years before the ability to migrate tokens from the legacy network will end. After that time, the community will vote on whether any unclaimed tokens should be burned (thereby reducing the total token supply) or whether they should be contributed to the Community Treasury DAO.

Next Step: IOTA fork with Stardust upgrade

On September 29th, 2022 the Native Tokenization Framework (referred to internally as “Stardust”) was released on Shimmer. Since then, it has been battle-tested for release on the IOTA network. Roughly two weeks from today (potentially on October 4th, 2023), IOTA will be upgraded to the Stardust protocol.

With the Stardust upgrade, IOTA will receive exciting new features that will greatly increase its utility, including:

  • Transforming IOTA into a multi-asset ledger through the ability to feelessly mint, tokenize, and transfer native assets
  • The ability to feelessly mint and transfer NFTs on the IOTA L1
  • Smart contract tokenization, which enables the anchoring of L2 Smart Contract Chains on IOTA’s Tangle via the IOTA Chains Framework and enables IOTA to act as a trustless asset bridge between L2 Chains.
  • Asset wrapping, which enables assets from L2 chains to be wrapped and unwrapped into L1 native assets.
  • The IOTA L1 will become a messaging layer for smart contract requests between L2 networks.

Once the IOTA network has been upgraded to Stardust, the IOTA and Shimmer networks will have feature parity until the Shimmer network advances further to accommodate IOTA 2.0. L2 smart contract chain will be launched on the IOTA network after they have been sufficiently tested and trialed on the ShimmerEVM.

With the Stardust upgrade, the IOTA network will fork. One network will have the tokenomics adjusted to allow for the creation of a new ecosystem fund, while the other network fork will keep the same token supply as today. Technically, two networks will be spawned from the current Chrysalis IOTA network:

  • IOTA Stardust: A network upgraded from the current Chrysalis protocol version to the Stardust version, with a total supply of 4,600,000,000 IOTA and a circulating supply of 2,785,272,581. Over four years, tokens will be unlocked through a temporary token release matching roughly 12% of new tokens per year.
  • IOTA Stardust Classic : A network upgraded from the current Chrysalis protocol version to the Stardust version, with a total supply of 2,779,530,283 IOTA (under the old denomination).

Tokens in both networks will be accessible by their respective owners using their private keys as used in the current Chrysalis protocol version of the IOTA network. There is no user action required to migrate tokens to either of the upcoming Stardust networks. A simple wallet upgrade is sufficient. Tokens held on exchanges are unaffected by this upgrade.

Node operators need to make a decision on which network they support. Instructions will be provided at the time of the upgrade.

Please note that, moving forward, the IOTA Foundation will only support the IOTA Stardust network. Any entity or group eager to take over the operations of the IOTA Stardust Classic network needs to garner sufficient support from the community so the IOTA Foundation can hand over the keys of the distributed validators to them.

The IOTA Foundation will maintain the IOTA Stardust Classic network for four weeks, starting with its launch, but not provide any technical or user support for it, including node software and wallet software, exchange integrations, as well as any adaptations of libraries.

The current Chrysalis DevNet will be deactivated three months after the upgrade of the IOTA network to the Stardust protocol version, to enable large entities and corporations to migrate their applications.

Validator Committee on IOTA Mainnet

Together with the Stardust network upgrade and the new token distribution of IOTA Stardust, the Coordinator node (previously operated by the IOTA Foundation) will be replaced by a permissioned validator committee operated by multiple entities, as introduced this week.

While this new committee setup is only an intermediary step until IOTA 2.0 is introduced on the IOTA network (which will implement fully permissionless and decentralized Delegated Proof of Stake-based validation of the network), it meanwhile offers a higher grade of decentralization, censorship-resistance, and resilience.

We believe this to be a simple but useful intermediary step to further decentralize the network until its next major upgrade to IOTA 2.0 occurs.

The IOTA Stardust Classic network will also receive a validator committee. If an entity or a group gathers sufficient support from token holders to take over the validator committee, that group can take over the nodes in the validator committee and determine who should maintain them.

New IOTA token denomination: moving away from metric unit prefixes

At the inception of IOTA, we intended to adhere to standards by using metric system prefixes. However, indicating a multiple or submultiple of the unit has been proven impractical to deal with daily, especially since, at most, one of those units is used (MIOTA). With the Stardust upgrade, we will therefore change the units of measurement.

Instead of kilo (KIOTA), mega (MIOTA), giga (GIOTA), tera (TIOTA), peta (PIOTA), the new smallest unit in IOTA is called “micro”, or “micros” for multiple units. What was previously 1 MIOTA will now simply be one IOTA. 1,000,000 micros equal 1 IOTA.

These units of accounts are already in place with Shimmer today, where glow is the smallest unit.

Finally, the following timeline outlines the main ETAs detailed in this blog post:

We understand that this is a lot of information to take in. These strategic choices have been made to position IOTA as a prominent protocol for both conventional industries and emerging Web3 ecosystems to establish, flourish, and expand using IOTA. Don’t hesitate to inquire about any uncertainties you may have, either by participating in Dominik’s upcoming online AMA today, Friday 15 September, at 18:00 CEST or by getting in touch with us through Discord.


Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

First Ethereum smartphones sell out in 24 hours

First Ethereum smartphones sell out in 24 hours

The pre-sale of a smartphone based on Ethereum (ETH) turned out to be a great success. The first 50 mobile devices with an operating system based on the smart contract network sold out within 24 hours.

The “Ethereum Phone” is based on the Google Pixel 7a and comes with a unique open-source operating system: ethOS. It is short for the Ethereum operating system, but it also means “character” in Greek.

The Ethereum smartphone

The devices are distinguished from other Web3 smartphones by the integrated Ethereum thin client. This feature allows the ethOS operating system to independently validate blocks, making the device a “lightweight node” in the Ethereum network.

The Ethereum smartphone has several built-in tools for managing payments and receiving and sending messages. In addition, the mobile device includes integration for Ethereum Name Services (ENS), allowing users to make payments more easily.
Moreover, it supports Ethereum Virtual Machines (EVM) and Layer 2 scalability networks.

Smartphone Ethereum “ethOS”. Image source: X (Twitter)

Ethereum smartphones only available through NFT

Only 50 mobile devices were available during the pre-order. To qualify for the purchase of these Ethereum smartphones, interested buyers had to purchase a non-fungible token (NFT) of ethOS. They could burn or destroy it to reserve their phone.

A post on X (Twitter) alerted users to fake NFTs on OpenSea, the largest NFT trading platform.
Some ethOS NFTs are selling on OpenSea for 3 ETH, or almost $5,000. Compared to the regular Google Pixel 7a, which sells for $499 in the US, that’s a 10x difference.

ethOS NFT. Image source: OpenSea

Competition in the mobile Web3 space

While the Ethereum smartphone pre-sale has been a huge success, the Solana (SOL) smartphone has had a less successful start. Only just over 2,000 units have been sold since its launch, according to Flipside records.

To boost sales of user-friendly Solana phones, Solana Labs recently lowered the price from $1,000 to $599. The price reduction followed the announcement of the Ethereum

This news article is intended to provide accurate and timely information. However, readers are advised to independently verify the facts and consult with a professional before making any decisions based on this content.

Source: BeInCrypto

Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

Technology: past, present and future

Technology: past, present and future

Technology has come a long way in the last two decades. Some devices that were in use in the late 20th century and early 2000s are now outdated.

In general, the technological products of the past focused on a few functions that they did well, and today’s innovations focus on offering more possibilities.

For example, older mobiles or “dumb phones” were only good for making calls, sending SMS and, at most, playing fairly simple games. Today, smartphones can do everything.

Pagers, also known as pagers or ‘pagers‘, were telecommunications devices that received short messages and coexisted with analogue mobile phones. Today they have been replaced by apps on smartphones.

In entertainment, items such as VHS, vinyl, cassette tapes and video games have also been replaced by free and subscription-based entertainment apps for smartphones and other devices.

If we make a compilation of these developments, we can find technological products that did not exist two decades ago and that we can hardly live without right now:

Multimedia Content
Free or subscription-based entertainment platforms to watch, share and download music, podcasts, films, series, documentaries…

Social Networking
Platforms that serve to connect people from different parts of the world and is used to share information, news, multimedia content, 24-hour stories and reels.

Instant messaging
Instant messaging applications for smartphones that allow you to chat, send photos/videos and make video calls with friends or family.

High-definition televisionsSmart TVs have a place in our living rooms to enjoy series and films in high quality.

Who would have thought that we would end up shopping online without leaving home?

Mobile phones
They have gradually taken up a space in our lives and have become an essential device in our daily lives.

The perfect device to move from side to side thanks to its size.

Google Drive
Allows users to store files in the cloud, synchronise them between devices and share them.

Google Maps
It’s the perfect application for getting from one place to another thanks to its directions.

Wireless Headphones
The problem of tangled headphone wires is a thing of the past with wireless headphones nowadays.

An app forevery service in your life
There are apps for monitoring your health, exercising, buying clothes online, listening to music, meeting people, among online, listen to music, meet people, among others.

Smart watches
They provide health information, offer workouts, display the time and date, can be linked to a mobile phone and some are able to respond to calls or messages.

It is the mainstay of our lives when we are connected to the net.

In short, the great revolution we have seen in the last decade is that of mobile devices, in which we have gone from being able to do three things to having everything at our fingertips.

New technologies of the future

The new technologies of the future are living with us in our present. The technological changes that have taken place in recent years have revolutionised various sectors, from the productive to the domestic.

The future is not predicted, but created with today’s technologies. The technologies that are creating that future are Blockchain technology, smart contracts, cryptocurrencies, web 3, artificial intelligence (AI)…

A few years ago we imagined a future full of holograms, robots with their own identity, hyperconnectivity and houses controlled by voice commands… and so it has happened! And so it has happened! In fact, it has probably happened faster than we expected.

We are in a constant acceleration of innovation and technology where we must be prepared and walk in that direction. Are you ready?

The new technologies of the future are living with us in our present. The technological changes that have taken place in the last few years have revolutionised various sectors, from the productive to the domestic. The future starts NOW.


Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

Barcelona to host Europe’s largest blockchain event from 24-26 October

Barcelona to host Europe’s largest blockchain event from 24-26 October

Barcelona will host Europe’s leading blockchain conference from 24 October. Introduced in 2018, the European Blockchain Convention connects industry experts, technology leaders and startups. Discussions will explore the massive potential of cryptocurrencies and blockchain.

Meanwhile, the Catalan capital will host the largest blockchain event in Europe since the convention began, with approximately 5,000 delegates.

The buzz of cryptocurrencies in Barcelona

The blockchain event will see Barcelona dominate crypto events during the last weekend of October. In addition to industry professionals flocking to the EBC9 event, the gathering coincides with the much-watched El Clasico tournament between Real Madrid and Barcelona.

The European Blockchain Convention will include C-level executives from Anomoca Brands, Fabric Ventures, Fidelity and Nansen. Speakers from traditional firms such as Volkswagen and Banco will also attend. In addition, representatives from Galaxy Digital and Binance Labs will be in the house.

Organising the massive blockchain evento

Organisers have selected a larger venue, Fira Barcelona, following a substantial increase in participant interest after the previous edition. The new location offers enough space for exhibitors, more engagements and a wide variety of content, according to European Blockchain Convention co-founder Victoria Gago.

Co-founder Daniel Salmeron expressed his enthusiasm for connecting web3, digital assets and TradFi, stating that the participation of multiple financial institutions indicates their optimism and dedication to the future of finance.

Agendas in focus

The ninth edition of the ECB will address several agendas, including the institutionalisation of cryptocurrency, AI, tokenisation, DeFi, privacy, CBDC and sustainability.

In addition to workshop panels and discussions, the programme incorporates a 3,000 square metre area for exhibitors and sponsors. In addition, speakers will conduct AMA sessions. Other events include ECB start-up awards, art galleries and investor meetings.

In addition, the list of side events will feature more than 200 hackers, 20 teams and more than 30 mentors participating in a 2-day hackathon. More details, including ticketing, can be found on the official website:


Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

“Bitcoin Myths”: Tracking down Satoshi Nakamoto

“Bitcoin Myths”: Tracking down Satoshi Nakamoto

  • Is the creator of Bitcoin dead?
  • Has the creator of Bitcoin always been in front of us?
  • What if Satoshi Nakamoto had already shown his true face?
  • What are the opinions for and against these hypotheses?

Finding out who the mysterious creator of Bitcoin is is a difficult task, in fact, today we will tell you about several of the existing hypotheses and a list of possible identities of Satoshi Nakamoto:

Elon Musk

The journey of the Tesla billionaire is one of the success stories that inspires dreamers both in terms of technology and the world of entrepreneurship.

Elon Musk is behind 9 great innovations that in one way or another have shaped the day to day history of mankind. Would Elon Musk have also created Bitcoin?

After all his prowess, it would be tempting to associate the billionaire with the invention of Bitcoin, especially as he is a computer genius and a great libertarian, the philosophy embodied in Satoshi Nakamoto’s piece.

Musk is a big fan of cryptocurrencies. He even adopted one of the pieces from the market and made it his favourite. The “Dogefather”, as he calls himself, did not miss the opportunity to hail and sell the merits of the meme cryptocurrency. Many believe he will make Dogecoin the official currency of Twitter.

The truth is that Elon Musk is not the developer of Bitcoin and he said so himself in an interview with CNBC in 2014.

Read the full article here.

Steve Jobs

Although nobody knows who the real Satoshi is, one thing is certain: the person is closely related to Japanese culture.

It is common knowledge that Steve Jobs, founder of Apple, loves Japanese culture and has travelled to the Japanese city of Kyoto several times during his life. He also attended the Japanese Soto school of Zen Buddhism and adopted many practices from Sony’s factories in Japan in the 1980s.

On 5 April, blogger Andy Baio revealed in a post that every Apple Mac computer with the latest macOS software has a hidden copy of the Bitcoin whitepaper.

The discovery caused uproar and speculation among Bitcoin and Apple fans. However, while there is a belief that a Bitcoin maximalist employed by Apple added the document, there is also talk of the possibility that Steve Jobs is Satoshi Nakamoto.

It is possible, if implausible, that Jobs is the creator of Bitcoin, but what is clear is that both Jobs and Satoshi have a lot of experience in the technology industry.

Read the full article here.

Craig Wright

Craig Steven Wright is an Australian computer scientist born in Brisbane. Little is known about his professional and academic background.

Craig Wright stands out within the crypto ecosystem as one of the first people to claim to be Satoshi Nakamoto. It all started in 2015, when two US media outlets, Wired and Gizmondo, published an investigation suggesting that he was indeed the creator of Bitcoin.

In May 2019, Craig Wright granted himself the rights to the Bitcoin whitepaper by registering it with the authorities. Since then, he has not hesitated to sue anyone who denies his link to the creator of the famous cryptocurrency.

On the side of the general public, as well as on the side of researchers, it is unlikely that Craig Wright is Satoshi Nakamoto.

For many in the crypto sphere, Craig Wright’s mistakes have repeatedly shown that he was not the creator of the famous orange cryptocurrency. Similarly, the judges who heard his last defamation trial did not recognise his identity.

Read the full article here.

Paul Allen

Paul Allen was an American computer scientist born in Seattle in 1953. He took his first steps in the new technology sector at a very young age.

Bill Gates and Paul Allen, friends since their teenage years and passionate about computers, founded Microsoft in 1975.

Paul Allen never spoke publicly about Satoshi Nakamoto or cryptocurrencies.

For many, his status as a computer genius and his programming skills would make him quite capable of having invented Bitcoin.

At the time of writing, no serious expert or public figure has claimed that Paul Allen could be the most wanted man in the industry.

It is clear that the link between Bitcoin’s creator and the billionaire computer scientist has more to do with speculation than concrete truth.

Read the full article here.

Dorian Nakamoto

Little is known about Dorian Nakamoto.

His birth date has not been publicly disclosed, but it is believed to be around 1950.

In 2014, Dorian Nakamoto’s life changed dramatically after Newsweek identified him in one of his articles as the mysterious father of Bitcoin. Since then, it has been a recurring figure in crypto and even attends certain events that meet the industry actors.

Leaving no mystery about his identity, Dorian Nakamoto immediately claimed that he was not Satoshi Nakamoto and that he would not have been aware of Bitcoin’s existence until 2014.

Read the full article here.

Conclusions on existing hypotheses:

Who founded this revolutionary monetary system that wants to transform the order of global finance?

Many people have been associated with the creation of Bitcoin. Some impostors even claimed to be Satoshi Nakamoto, the famous character behind the cryptocurrency.

While it is true that there are some clues as to the identity of the creator(s), so far, no researcher has been able to establish concrete evidence that would allow them to discover the founder of BTC.

The mystery of the person or persons behind Bitcoin remains unsolved.


Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

Brazil and Spain are in the top 20 countries with the highest number of bitcoin users

Brazil and Spain are in the top 20 countries with the highest number of bitcoin users

According to CoinMarketCap statistics, Brazilians are among the most interested in cryptocurrencies so far in 2023.

  • The United States continues to lead in the ranking of users accessing the CoinMarketCap.
  • Bitcoin is more popular in Europe than in South America.

Brazil is in the top 20 countries with the highest adoption of cryptocurrencies globally, according to the results of an analysis published by CoinMarketCap, one of the leading websites for accessing cryptocurrency market information.

The report presented by CoinMarketCap Research, places the South American giant in fifth place among the countries with the highest levels of cryptocurrency users who accessed the platform during the first half of 2023.

It is also worth noting that Brazil is the only country in Latin America to be ranked among the top 20 in the study. A position that highlights the high level of adoption present in the country and which has been ratified in similar research.

In this regard, a Bitget survey recently revealed that 32% of Brazilians spend up to 15% of their income investing in cryptocurrencies. A higher investment figure than has been identified in countries such as Argentina and Mexico, explains the study.

Precisely because of the magnitude of this market, the Brazilian government passed a law to regulate the use of cryptocurrencies, as reported by CriptoNoticias.

Spain is also in the top 20 in terms of traffic on CoinMarketCap. The Iberian country is in 14th place in the ranking, with 2.92% of the platform’s users.

Within this group of countries, the United States dominates the distribution of cryptocurrency users worldwide, with 17% of traffic. Of the rest, the vast majority of users come from European countries.

Users in the United States are the most interested in bitcoin. Source: CoinMarketCap.

Interest in bitcoin surged in the second quarter of 2023

The report also reports on user preferences for different types of cryptocurrencies, with bitcoin (BTC) attracting the most attention.

The pioneering cryptocurrency “remains the most watched in all regions in the first half of 2023, a similar trend to Q4 2022, which is also reflected in BTC’s dominance over altcoins,” the study notes.

Thus, it reports a 25% increase in attention on bitcoin over the course of the last six months, rising from 40% at the beginning of the year to 50.3% at the end of June. An advance that is attributed to events such as BlackRock’s ETF filing and the upcoming bitcoin halving expected in March 2024.

And although in most regions of the world people prefer bitcoin over other cryptocurrencies, in terms of taste, Europe stands out, where interest is 52%. This percentage contrasts somewhat with what is happening in South America, the area with the lowest percentage of interest in BTC (39%) and the highest interest in Baby Doge Coin or BabyDoge (21.7%), an altcoin based on dog memes.

Regarding ether (Ethereum’s ETH) the study indicates that it “remains a popular currency of interest in most regions, except Asia and Africa”. It is also stated that Ethereum scaling solutions such as Polygon (MATIC) and Arbitrum (ARB) gained mainly attention in South America.

Source: criptonoticias

Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.

Is Bitcoin decoupling from the rest of the cryptomarket?

Is Bitcoin decoupling from the rest of the cryptomarket?

  • Excluding the Ethereum merger, Bitcoin’s correlation with Ethereum is at its lowest point since 2021
  • Bitcoin’s dominance over the entire cryptomarket rose steadily in 2023, now at a 2-year high
  • Numbers say BTC could delink, regulatory crackdown changes crypto trading patterns

In recent years, it has been a fair statement to declare that most cryptocurrencies are traded as leveraged bets on Bitcoin. The world’s largest cryptocurrency goes up in value, altcoins go up some more. Bitcoin falls, altcoins fall some more. As generalisations go, it is reasonably fair.

However, within this general pattern, there have been periods when this relationship has deviated from the norm. One such moment is now, when some of the underlying numbers seem to imply that Bitcoin may be decoupling from the rest of the market.

First, the most obvious way to investigate this is to plot the correlation between Bitcoin and the second largest cryptocurrency, Ethereum. The chart below shows that the normally super-high correlation has fallen to its second weakest mark in the last eighteen months, behind only September 2022, when the Ethereum merger was executed.

Ether / Bitcoin Correlation

Pearson 60-Day Correlation Coefficient

Source:  @DanniiAshmoreInvezz

The Ethereum merger last September was not only an Ethereum-specific event, but the correlation almost immediately returned to normal levels. If we discount this event, you would have to go back to 2021 to see the correlation between Bitcoin and Ethereum as low as it is today. Of course, it is still not exactly “weak” at 0.7, quite the opposite, but it is remarkable in the context of the historical relationship, where the average has been a near-perfect 0.9 since early 2022.

The graph shows that the correlation starts to decline around April. The next chart shows this in a different way, depicting the performance since early 2022 of Bitcoin and Ethereum. The two assets move at roughly the same time, but you can see a slight divergence emerging around April this year.

Bitcoin & Ether, Returns Since 01-Jan-2022

Source: @DanniiAshmoreInvezz

By the way, the reason I am taking the sample space from the beginning of 2022 is not strictly for a nice round number. This was when the stock market peaked and represents a transition to a new paradigm for financial markets. While interest rates only started to rise in March 2022, inflation was rising, confidence was falling and concern was close at hand, exacerbated by Russia’s invasion of Ukraine in February and the unleashing of an energy crisis. In other words, the pandemic party, also known as zero interest season, was over. It represents a structural break in the macro climate and financial markets in general.

Bitcoin went down, along with other risky assets, as rates continued to rise. But, now we ask: are we at another inflection point for Bitcoin? Why is Bitcoin’s relationship with Ethereum weakening?

Is Bitcoin carving out its own niche?

This weakening relationship has more to do with Bitcoin than Ethereum. In the chart below, we see the oft-referenced Bitcoin dominance chart, which plots the market capitalisation of Bitcoin against the market capitalisation of the entire cryptocurrency sector.

The chart shows that it has increased considerably since the beginning of 2023, jumping from 41% to 51%. That means that 51% of the total crypto market capitalisation is made up of Bitcoin, the highest mark in two years.

What is interesting is that, traditionally (if we can use that phrase in an industry that is barely a decade old), Bitcoin’s dominance falls in times of rising cryptocurrency prices. In general, Bitcoin jumps higher, before money flows into altcoins with the falling dominance ratio. This time, that is not happening.

Again, why? The answer may lie in regulation and the fact that the market increasingly sees Bitcoin as an asset that is carving out its own niche. For many cryptoheads (myself included), this has long been a point of contention. In terms of fundamentals, Bitcoin and Ethereum don’t really have much in common, except for the fact that they both run on something called the blockchain (and those two blockchains, as of the merger in September 2022, are completely different beasts).

But my point is redundant. However, the letter of the law is not; more importantly, it seems that US regulators are beginning to take the same view. As Coinbase CEO Brian Armstrong lamented after his exchange was slapped with a lawsuit last month:

We got this information from the SEC that, well, actually anything that’s not Bitcoin is a security. And we said to ourselves, well, that’s not our understanding of the law.

Brian Armstrong, CEO of Coinbase

Coinbase can complain all it wants (and it will have its day in court), but the reality for the market is that this is happening, whether it is fair or not, and it may affect the way price action in crypto moves from now on. The SEC even formally described several cryptocurrencies that it formally considered securities, including Solana, BNB and the native tokens for Cardano and Polygon. Tracing the correlation between Bitcoin and a pair of these assets as an example, the breakout is clear in June, as the market sells off in response to the confirmation of securities.

Bitcoin Correlations

Rolling 60-Day Pearson vs ADA & SOL
ADA & SOL named as securities by SEC on June 5th

Source: @DanniiAshmoreInvezz

Of course, this is a stronger sell-off and a bigger drop in correlation than what we saw previously with Ether. The world’s second largest cryptocurrency seems to be operating in a grey area, which perhaps explains why the sell-off has not been as large as, for example, ADA and SOL, but also why it is not on par with Bitcoin.

Spot ETF applications paint a brighter picture for Bitcoin

Then there is the case of spot ETF applications, coming from a handful of the world’s largest asset managers. These are Bitcoin ETFs, not Ethereum or crypto ETFs. While approval would be a boon for the cryptocurrency sector in general, as it could open the door to similar vehicles for other assets in the future, the many hurdles Bitcoin has had to evade to remain in the ETF discussion are numerous. There is still no guarantee that these ETFs will be approved; certainly, other assets seem a long way off. Therefore, the simultaneous SEC security-driven crackdown and the plethora of Bitcoin ETF applications is driving a wedge between Bitcoin and other cryptocurrencies.

The million-dollar question is whether this all goes back to normal once the furore subsides. There is no doubt that the relationship remains strong here and Bitcoin continues to lead the market. But there may also be reason to believe that there has been a structural break and that the previous hand-holding relationship will not be so close in the future.

Crypto has had a rough patch recently. The 2022 scandals were plentiful (Terra, Celsius, FTX, to name a few) and capital flight has been staggering, as (for whatever reason) investors have chosen that Treasury bills paying 5% are preferable to centralised cryptocurrencies paying -100% (hopefully -90% after many years of bankruptcy court proceedings).

While Bitcoin has also been immensely affected by the pain of 2022, its first mover advantage and lack of counterparty risk could help it avoid being tainted by the same tainted brush in the eyes of e-commerce investors. Altcoins are definitely not fashionable at the moment, and the reputation of the non-Bitcoin crypto sector has been greatly tarnished in the eyes of institutional capital.

The great Bitcoin decoupling, which would be Bitcoin cutting its correlation with risky assets and instead claiming the status of an uncorrelated store of value, seems a long way off yet. But a lesser type of decoupling, where it separates itself from other cryptocurrencies, may not be as far away as previously thought.

Once again, the numbers could immediately return to normal. Perhaps it is just a hint of what may come at some point down the road. But either way, it is one of the most crucial and intriguing trends to keep an eye on in the crypto space, even if this episode turns out to be all smoke and mirrors.


Disclaimer: The information set out herein should not be taken as financial advice or investment recommendations. All investments and trading involve risk and it is the responsibility of each individual to do their due diligence before making any investment decision.