Polygon is a layer 2 solution that augments Ethereum and drives its scalability.
BITCOIN AND CRYPTO MARKET WATCH FRIDAY, OCTOBER 08, 2021 - 18:59




Team Giottus Follow @giottus
Ethereum is a trendsetting blockchain globally and is second only to Bitcoin when it comes to popularity and market cap. Its unprecedented adoption has also resulted in some operational issues with respect to low speeds and higher transaction costs resulting in not so ideal user experience. Basically, Ethereum’s extensive network of clients clog its network and impact its scalability. An Indian-founded blockchain platform is providing a solution to these challenges via its innovative and unique layer 2 solution. Let us find out what it does and why it has a strong future potential.
Polygon (with ticker MATIC) is a complete multi-chained system, a framework as well as a protocol. It connects Ethereum-compatible blockchain networks and is built to solve the scalability issues on the current Ethereum network. It is a layer 2 solution, i.e it works on top of Ethereum’s primary blockchain. Polygon uses side chains to unclog the main platform in a smart and cost-effective manner.
Polygon (MATIC) representation, Source: Giottus
Polygon’s multi-chain network provides an infrastructure for facilitating blockchain networks that can communicate with each other outside of Ethereum’s primary chain though it retains Ethereum’s liquidity, security and interoperability.

MATIC fundamentals

MATIC, Polygon’s token, is the underlying resource behind the Polygon ecosystem. It is primarily used for staking tokens (proof-of-stake algorithm) to safeguard the Polygon network in addition to being an asset.
The MATIC token has a maximum supply of 10 billion, of which more than 67 per cent is already in circulation. It currently ranks among the top 25 cryptocurrencies in the world with a price of $1.4 per token, with more than $9 billion market capitalization.

Short term technical analysis

MATIC started 2021 with a price tag of less than $0.02 per token and hit an all-time-high of $2.45 in May giving early investors (a lot of them from India) great multiples on their investments and making its Indian founders crypto billionaires.
MATIC has traded well in technical frameworks over the past quarter, respecting both resistance and support levels. It bounced off the strong .66 - .618 fibonacci retracement levels - also called the Golden Pocket - that it formed between July to September, before rallying nearly 40% to $1.42 as of today. It has now broken through the .382 fibonacci level and seems to be headed upwards of $1.5.
Source: TradingView, Binance
With bullish momentum prominent on its charts, investors looking to enter may want to wait for a drop to the $1.34 support level. Should that level be lost, MATIC will find support at the $1.19-$1.2 levels, where its 100-day and 20-day moving averages currently reside.
In the medium-term (4-6 months), MATIC has potential to break $5 and beyond giving more cheers to the Indians who have invested in the asset.

Future potential

The potential of Polygon (MATIC) is linked to Ethereum’s strong performance. Ethereum 2.0 will mitigate some of the blockchain’s scalability issues, but Polygon will continue to be relevant as it has already demonstrated substantial success in integrating a network of companies and partners. Polygon’s future surely looks promising.

Disclaimer

This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.
RS 1500RS 2500RS 5000CUSTOM

A large Japanese bank, Emirates to take off on Bitcoin

Crypto exploration and adoption continues to grow around the world.
REPRESENTATIVE IMAGE
BITCOIN AND CRYPTO MARKET NEWS FRIDAY, MAY 27, 2022 - 19:18

 

 

 

Team GiottusFollow giottus
Cryptogram is an India-focused free newsletter on blockchain tech, global crypto markets, and Web 3.0 technologies which promise to change our future. If you would like to subscribe to this newsletter, click here. You can read our past editions here.
In this article, we have curated a list of the top-5 crypto stories from this week that will help you stay in sync with the crypto ecosystem.

Emirates to accept Bitcoin payments soon

Emirates, UAE's largest airline, has revealed its plans to accept Bitcoin payments and to make NFT collectibles tradeable on its website. The Dubai-based airline will be onboarding new employees to focus on blockchain-related projects such as crypto payments, blockchain tracking, metaverse, and NFTs.
Emirates first announced its plans on a metaverse expansion strategy and the development of collectible and utility based NFTs in April, with a launch expected in the coming months.

Kawasaki is Microsoft’s new industrial metaverse client

Tech giant Microsoft announced that Kawasaki is now one of its "industrial metaverse" customers - a factory where workers use a HoloLens headgear to ramp up production and manage supply chains.
Kawasaki will utilise the headsets to construct robots. HoloLens was first released in 2016 and allows users to experience augmented reality, which superimposes digital visuals onto a real-world environment. This unique metaverse aims to construct Microsoft's "digital twin" of a workstation, which will aid in the speeding up of procedures like repairs and the development of new manufacturing lines. Kawasaki will join Heinz, which recently stated that it had made the use of the Microsoft industrial metaverse in ketchup factories and Boeing as manufacturing partners.

PayPal to explore all services in crypto and blockchain

Global payment giant PayPal is working hard to integrate all conceivable blockchain and cryptocurrency interfaces into its services. PayPal customers in the United States and the United Kingdom can currently purchase, sell, and hold Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
PayPal is looking into ways to support the majority of digital currencies as well as Central Bank Digital Currency (CBDC) on its platform, in addition to the current digital currency services it offers. In March 2021, PayPal unveiled its own crypto check-out service to allow retailers to accept crypto payments, in addition to introducing Bitcoin buy and sell options in specific areas. PayPal is also rumoured to be considering establishing its own stablecoin, PayPal Coin.

Dukascopy enables deposits and withdrawals in Tether

Dukascopy Bank SA, a Swiss financial services firm, has authorised blockchain operations in Tether (USDT) for holders of multi-currency accounts (MCAs). The stablecoin can be deposited and withdrawn by MCA clients straight from or to their cryptocurrency wallets, according to a press statement.
As a result, Tether has become Dukascopy's first stablecoin to be supplied to its consumers. After Bitcoin (BTC) and Ethereum (ETH), this is the third crypto asset that may be used to deposit and withdraw funds from a Dukascopy Bank-approved "crypto-fundable" trading account.
Clients' crypto deposits will be converted into fiat money by the bank and the converted revenues are credited in USD to the customer's crypto account. When a client requests a withdrawal, the bank returns a sum in USD, converts it into BTC, ETH, or USDT (depending on the account type) at the current asset price, and deposits the funds in the client's account wallet.

Japan's 2nd largest bank to launch institutional Bitcoin, other services

Sumitomo Mitsui Trust, a Japanese bank, is forming a new company Japan Digital Asset Trust for institutional clients looking for Bitcoin and other cryptocurrency custodial services. Japan Digital Asset Trust will be a joint-venture with Bitbank, a Tokyo-based bitcoin exchange, owning a majority stake and controlling 85 percent of the company.
Mitsui will own the remaining 15 percent of the company. According to reports, the new enterprise will start with $2.3 million in funding and will attract enough money from investors to fulfill its $78 million objective. The new organisation will handle assets such as Bitcoin for large investors and corporations with the hope that a partnership with a trusted financial institution will make investors feel more secure.
Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin
Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
 

How to evaluate a token’s chance of success using token economics?

Bitcoin is limited in supply while Dogecoin adds billions of tokens to the market every year.
REPRESENTATIVE IMAGE
BITCOIN AND CRYPTO DEFI WATCH THURSDAY, MAY 26, 2022 - 17:40

 

 

 

Team GiottusFollow giottus
We have launched Cryptogram, an India-focused weekly newsletter on blockchain tech, global crypto markets, and Web 3.0 technologies which promise to change our future. If you would like to subscribe to this newsletter, click here. You can read our past editions here.
According to coinmarketcap, there are more than 10,000 crypto assets actively trading on exchanges across the world. Some have vaporized into non-existence while others are making steady progress in this ever-changing market. Though the success of a crypto asset depends on a myriad of factors, a key aspect of it is tokenomics. In today’s article, we will explain the definition of tokenomics and the frameworks required for analyzing tokenomics of a crypto project.

Tokenomics

As the name suggests, it is the economics of a crypto token. Tokenomics defines the supply and demand characteristics of a crypto token. It covers all aspects involving a token’s creation, management and removal. Basically, the team behind a crypto asset devises the rules of how the tokens are created as well as how they are distributed to the network users or removed from the network. Some tokens like Binance Coin (BNB) choose to have removal mechanisms (like auto-burn) while tokens like Dogecoin (DOGE) have infinite supply. It all depends on how the crypto asset founders want their network to be incentivized with the tokens.

Framework

Frameworks (defined metrics) can be used to judge whether a particular token’s economics can lead to its success. Success can be defined as continued increase in the price of the token over the years. Let’s look at the supply metrics that will be useful for creating a simple yet powerful framework. 
Maximum supply: The most that can ever exist

Circulating supply: How many exist in the market now

Total supply: How many were created on blockchain

The above three metrics can aid in grasping a token’s supply characteristics and take action accordingly. For example, if a token’s supply is deflationary or reduced by 25%, then one can assume that the demand for the token (if other fundamentals aspects like utility, community etc stay strong) will shoot up in the future. By simply digging a little with these numbers, one can perceive the overall market perception and expectations of how investors are going to behave at any point of time. As a general thumb rule, scarcity adds value. Lesser the amount of tokens available for buying in the market, higher the demand.

Inflation

Another factor that plays a major role in tokenomics is inflation. For calculating, let’s look at market cap (MC) which is attained by multiplying current price by circulating supply and fully diluted market cap (FDMC) which is current price multiplied by maximum supply. A simple ratio to check inflation is to divide MC by FDMC. It indicates how abundant the future supply will be for the current market demand to absorb.
If the ratio is close to 1, then maximum supply has almost entered the market. So, inflation is going to be very low favoring the token’s potential to surge in price. On the other hand, if it's close to 0, then supply has not entered the market yet and there’s going to be high inflation (incoming dump) which doesn’t augur well with token’s price.
To summarize, supply metrics can be used in conjunction with inflation (MC/FDMC) to determine the quality of the tokenomics.
Below are two examples of tokenomics that are viewed from the above perspective. Investors are advised to do their own research while doing so as network upgrades can quickly change the tokenomics.
Bitcoin - inflationary but the supply is fixed (21 million) which means there can never be more bitcoins than 21 million. This is a good scenario to have.
Dogecoin - inflationary with no limitation on supply. 5 billion DOGE will be added to the network every year. This is not a good scenario to have.
Overall, tokenomics is one of the key things an investor should look out for before investing in a token. The other key factors are its use cases and its adoption.
Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin
Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.