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Memecoins Are Fueling Growth on Coinbase’s Blockchain

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Memes touch Base

The memecoin frenzy has overtaken Base, a blockchain launched by Coinbase Global Inc. that’s meant to be the centerpiece of its expansion into decentralized finance and nonfungible tokens.

Activity has exploded on Base, with the total value of cryptocurrencies sent to the blockchain topping $1 billion, according to tracker DeFiLlama.

Coinbase’s Base Blockchain Gains Popularity

Memecoins, the highly speculative tokens that mostly aren’t available on Coinbase’s exchange, are driving traders to the blockchain. Among the most-traded tokens on Base, according to tracker DEX Screener, are ANIME, which describes itself as “no utility. just art and $anime,” and DEGEN, a nod to a nickname for traders who embrace the riskiest tokens. Wallets paying the most in Base transaction fees potentially belong to trading bots profiting from memecoins, according to Parsec’s data and analysis by Michael Silberling of OP Labs.

Most-Traded Tokens on Base

When Coinbase announced the launch of Base, known as a Layer 2 because it’s built on top of Ethereum, the company promoted it as a “bridge” between its users and the broader crypto world including DeFi, blockchain-based games and NFTs. Yet the memecoin frenzy highlights the fact that online casinos are still crypto’s biggest use case.

“It’s Coinbase’s L2, so they immediately get a lot more attention and credibility than most others, simply due to the distribution potential,” said Anil Lulla, co-founder of crypto research firm Delphi Digital. “It shouldn’t be the pure focus and goal of all these chains to just become a casino.”

A software upgrade on Ethereum in March has been credited with fueling the growth. One impact of the upgrade, known as Dencun, is significantly lower costs for trading on L2 blockchains. Dencun made L2s like Base “competitive with chains like Solana,” said Ryan Watkins, co-founder of Syncracy Capital.

Base was ready for Dencun on Day 1 and the upgrade brought average fees down from about 10 cents to 1 cent or less, according to a Coinbase spokesperson.

“Base’s mission is to bring the next billion users onchain, and we are encouraged by the recent influx of activity,” the spokesperson said in a statement. “Our focus is making onchain technology accessible to anyone around the world, including by allowing for cheaper onchain transactions.”

Watkins pointed out that while Coinbase may receive criticism for the memecoin frenzy, the exchange has “no control” over what’s launched on Base. Still, analysts say interest in memecoins could be good for Coinbase, and the growth may overshadow any criticism.

“If memecoin mania is what it takes to convince users to set up a wallet and try out your chain, it may be worth it,” said Lulla.

Watkins said that Base is already generating an estimated $2 million daily in fees.

With more applications beyond memecoins, “this would be a big win for Coinbase if Base became one of the most-used chains,” Watkins said.

Hearing them out
“Binance having a board composed primarily of company insiders tells me they are still resistant to outside control and oversight, and the lack of depth on the board of independent members with deep regulated financial risk or compliance experience is not ideal.”
Austin Campbell
Adjunct professor at Columbia Business School and a consultant for blockchain firms.

Source: bloomberg.com

The post Memecoins Are Fueling Growth on Coinbase’s Blockchain appeared first on HIPTHER Alerts.

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Supply Chain Finance Market Forecast to Reach $9.4 Billion by 2029: Increasing Emphasis on Sustainable Sourcing

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Global Supply Chain Finance Market

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Web3 Startups Raise Nearly $1.9B in Q1 2024 Despite Overall Downtrend in Crypto VC Interest

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Venture capital funding for cryptocurrency and blockchain projects has seen a notable resurgence in the first quarter of 2024, marking its first quarterly rise since 2021. Crunchbase data released today indicates that Web3 startups secured nearly $1.9 billion in funding across 346 deals during this period. This represents a substantial 58% increase from the previous quarter, offering a glimmer of hope amidst the ongoing downward trend in overall crypto VC interest.

The recent surge in funding can be attributed to investors adopting a more long-term perspective on Web3, as opposed to the hype-driven “tourist investors” predominant in recent years. Chris Metinko, the author of the report, notes that investors are shifting their focus to the AI sector, indicating a change in investment strategy. There is a growing interest in supporting the foundational infrastructure of the decentralized internet, rather than solely concentrating on crypto wallets and lending platforms, which attracted significant investments during the peak period of 2021 to 2022.

While large funding rounds were relatively uncommon in Q1, several notable investments stood out. Exohood Labs, a company integrating AI, quantum computing, and blockchain, secured a remarkable $112 million seed round at a valuation of $1.4 billion. EigenLabs, an Ether token “restaking” platform, raised $100 million in a Series B round led by a16z crypto. Additionally, Freechat, a decentralized social network leveraging blockchain technology, secured $80 million in a Series A round. These investments, among others, contributed to the increase in valuations and the emergence of four new Web3 unicorns in Q1.

Despite the recent progress, the future trajectory of Web3 remains uncertain. Metinko suggests that the next few quarters will be pivotal in determining the industry’s direction. While investors anticipate a rebound in investment as the decentralized internet evolves, it may take another year for venture capital activity to stabilize after the exuberance of 2021. Factors such as the approval of U.S. spot Bitcoin exchange-traded funds and the upcoming Bitcoin halving could also influence the market, given the rising prices of Bitcoin and Ether.

A noteworthy example of significant funding in the Web3 space is Monad Labs’ recent successful funding round, which secured $225 million led by Paradigm. Monad Labs is a layer-1 blockchain compatible with Ethereum, offering faster transaction processing. This funding round harkens back to the golden era of crypto funding in 2021-2022, when L1 solutions attracted substantial investments.

Earlier this year, Balance, a digital asset custodian based in Canada, announced that it had once again reached $2 billion in assets under custody (AUC) amidst the recent market recovery. Similarly, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has experienced remarkable growth in crypto assets under its custody, expanding by nearly 248% in the second half of 2023.

Analysts at Bernstein Research project that crypto funds could reach an impressive $500 billion to $650 billion within the next five years, representing a significant leap from the current valuation of approximately $50 billion. This forecast underscores the growing optimism and potential for substantial growth within the crypto industry in the coming years.

Source: cryptonews.com

The post Web3 Startups Raise Nearly $1.9B in Q1 2024 Despite Overall Downtrend in Crypto VC Interest appeared first on HIPTHER Alerts.

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ASIC cracks down on blockchain mining firms

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Three blockchain mining companies – NGS Crypto, NGS Digital, and NGS Group – along with their directors, Brett Mendham, Ryan Brown, and Mark Ten Caten, are facing legal action from the Australian Securities and Investments Commission (ASIC) for allegedly operating without a license, in violation of Australia’s Corporations Act. ASIC initiated legal proceedings against these entities on April 9, citing concerns about their non-compliance with financial regulations and their solicitation of Australian investors.

According to ASIC, the NGS companies promoted blockchain mining packages with fixed-rate returns to Australian investors, encouraging the transfer of funds from regulated superannuation funds to self-managed superannuation funds (SMSFs) for conversion into cryptocurrency. Approximately 450 Australians invested a total of around USD 41 million in these packages, raising concerns about potential financial losses.

The legal action filed by ASIC alleges that the companies violated section 911A of the Corporations Act, which prohibits companies from providing financial services without a valid Australian Financial Services Licence (AFSL). ASIC is seeking interim and final court orders to prohibit the NGS companies from offering financial services in Australia without an AFSL.

ASIC Chair Joe Longo emphasized the importance of investors carefully considering the risks before investing in crypto-related products through their SMSFs. Longo stated that ASIC’s actions send a message to the crypto industry about the regulator’s commitment to ensuring compliance with regulations and protecting consumers.

In a separate development, the Federal Court appointed receivers for the digital currency assets associated with the NGS companies and their directors to safeguard these assets amid concerns about the risk of dissipation. Mendham was also issued a travel restriction order, preventing him from leaving Australia.

While a court date for the proceedings has not been set, ASIC’s investigation is ongoing, with the regulator continuing to gather evidence and build its case. It is worth noting that the investigated companies share a similar name with NGS Super, a legitimate Australian pensions provider, leading to potential confusion among investors. NGS Super clarified that it is not involved in selling cryptocurrency or related products and has taken legal action to protect its trademark and members’ interests.

Source: iclg.com

The post ASIC cracks down on blockchain mining firms appeared first on HIPTHER Alerts.

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