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πŸ‘₯ One in three US congressmen received a donation from FTX founder Sam Bankman-Fried, CoinDesk found out. We are talking about 196 legislators (37%) of the 535 people represented in Congress.

πŸ’¬ Journalists sent inquiries about the future fate of these funds. 19 of them have already returned or are about to return the donation, 34 transferred funds to charities, and the majority (143) did not respond to the request.
πŸ“ˆ In 2022, the SEC increased the number of cases against the crypto industry by 50%

πŸ—“ In 2022, the US Securities and Exchange Commission (SEC) opened 30 cases related to cryptocurrencies. This is 50% more than a year earlier, according to a report by Cornerstone Research.

The indicator amounted to almost a quarter of the total number of law enforcement actions of the regulator for the year - 127 cases.

πŸ“‘ The experts noted that the most frequent allegations against representatives of the digital asset industry by the SEC were alleged fraud (70% of cases) and unregistered securities offering (73%). In half of the cases, the regulator had claims on both counts.

πŸ’΅ At the end of the year, cumulative fines resulting from SEC enforcement were approximately $2.61 billion, of which $242 million were settled during the period.

Of the 30 cases of the regulator, 14 concernedICO, in eight of them the projects were accused of fraud.
βœ… Binance received permission to work in PolandπŸ‡΅πŸ‡±

Cryptocurrency exchange Binance has received approval from the Polish authorities to operate in the country as a virtual asset service provider.

πŸ’¬ β€œBinance Poland has adopted a risk and anti-money laundering policy that meets strict standards,” said local CEO Katarzyna Wabik.

Platform users from Poland must sign the new terms and conditions in order to be able to continue using the services.

πŸ‘₯ The company also announced plans to increase the division's workforce, host events and educational initiatives.
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According to Token Unlocks, tokens totaling $102 billion are subject to unlocking in 2023. XRP, FIL and OP are in the lead, while the gap between XRP is significant.
The 1inch team will release a hardware crypto wallet πŸ’³

Decentralized exchange liquidity aggregator 1inch Network will release a hardware cryptocurrency wallet.

The 1inch Hardware Wallet device is in the final stages of development. It is expected to go on sale this year.

The device for cold storage of cryptocurrencies is being created by an independent team funded by a grant program from the 1inch Foundation.

Among the main features of the device in the project noted:

πŸ”Έcomplete isolation from the network without the need for a wired connection. Data exchange is carried out via QR codes or, optionally, via NFC;

πŸ”Έthe ability to use a transparent signature instead of a blind one, as in some other wallets;

πŸ”Έongoing analysis of call and transaction data. If a signed transaction is compromised on the web or mobile app, the user will receive a notification;

πŸ”Έthe option to create and manage sets of wallets with different initial seed phrases. Each set is protected by its own pin code.
🀝 Polygon and ZenGo non-custodial wallet partnership

This solution is known for the high degree of invulnerability of the seed phrase, which is achieved by advanced biometrics and MPC cryptography.

Instead of a private key, users receive mathematical "shares". Part of the share is located on the user's device, and the other part is on the ZenGo servers, which allows you to always be able to restore access, excluding a single point of failure.
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πŸ‡§πŸ‡· In Brazil, 11 million businesses accept #Tether USDt via SWAPIX.
πŸ”‘ Leak of API keys and inactivity of exchanges: analysis of the 3Commas incident from HAPI

For several months now, the community has been discussing the leak of API keys from the 3Commas platform. The latter acknowledged the data compromise only in December 2022, although the first complaints date back to October.

Experts assessed the damage to clients, explained how assets were stolen from users of centralized platforms, and talked about a class action lawsuit that they are preparing to file against 3Commas in the United States.

πŸ—“ In October 2022, 3Commas, together with the FTX cryptocurrency exchange team, reported the compromise of a number of API keys, which were subsequently used to make unauthorized transactions with the DMM Governance (DMG) token.

Some clients of the algorithmic trading platform have reported that keys have been used to transact on Binance, KuCoin, and Coinbase without their consent.

πŸ’¬ Representatives of 3Commas then called this information "false rumors."
What are appchains ⁉️

1️⃣ Appchain (application-specific blockchain, appchain) is a blockchain designed exclusively for the operation of one specific application.

The use of such solutions gives developers more freedom in the formation of ecosystems, governance structures and consensus algorithms for the decentralized applications they create.

2️⃣ How do appchains work?

Appchains work
in much the same way as the basic blockchain, but on top of the latter. The main difference is that they are app-specific.

In the context of security, appchains rely on first-level (L1) blockchains. Such systems are highly customizable and have significant performance potential because they do not compete with L1 applications for processing power and storage space.

Such solutions usually have a utility token. It is used for staking, as the app's internal currency, and for voting.

Appchains are supported by validators from the main network (if they agree to send resources to a specific application).
3️⃣ What are the benefits of appchains?

Using a new approach
when building applications has a number of advantages compared to L1, second-layer (L2) solutions and sidechains . As already mentioned, appchains bring customization and increase the performance of systems without sacrificing security, since they rely on the underlying blockchain.

Direct use of L1 when creatingdappsinvolves competition with other applications for limited computing resources. This is fraught with the potential for performance degradation and a lengthy platform upgrade process because the developers have no control over the consensus protocol.

Due to competition between dapps based on the same network, it is possible that just one popular application uses a disproportionate amount of resources. This leads to an increase in fees (as, for example, against the backdrop of the launch of XEN Crypto) and delays in transaction processing.

Appchains offer low and predictable transaction costs, which benefits the user experience.

As the popularity of decentralized applications grows, developers may face the need for advanced customization and optimization of various parameters, including throughput, finalization, security level and accessibility (permissionless or permissioned).

For traditional organizations, appchains provide an opportunity to dive into Web3 without making the platforms public from day one. For example, companies may initially require validators to comply withKYC, rely on a limited set of developers, and select specific services for cross -chain collaboration.
4️⃣ What are the disadvantages of appchains?

The main difference and, perhaps, the limitation of appchains is that they are "sharpened" for one specific application. L2 solutions, on the contrary, are able to interact with a wide variety of dapps.

Appchains offer limited composability and some degree of isolation, which can lead to liquidity fragmentation. The problem is largely solved through the integration of cross-chain bridges, however, the latter are often a target for hackers .

If the application is not used actively enough, then launching and maintaining the appchain can be a waste of time and money. Platform-dedicated validators can efficiently deploy resources elsewhere.

The work of the appchain can be fraught with various difficulties. For example, related to the management of additional infrastructure elements likesequencersor validators.

At the disposal of developers, there may not be ready-made solutions β€œout of the box” - block explorers,RPC-providers,indexers, oracles, fiat gateways, etc.

There are advantages to creating L1 solutions - for example, the availability of a huge amount of resources, infrastructure elements, tools for developers (especially beginners). This abundance can facilitate integration with different ecosystems.

With L2, developers can increase the scalability of services without having to make significant changes to the codebase.

Second-tier solutions also offer a high level of security, as they rely on the main blockchain. For example, Optimism and Arbitrum process transactions quickly and send β€œfraud proofs” to the main network thanks to Optimistic rollups technology.
5️⃣ How are appchains different from sidechains?

Sidechains involve
the operation of a parallel network with two-way binding to the main one, but such solutions do not rely on the security of L1. Sidechains differ from L2 in that they do not send transactions to the main blockchain.

Appchains are created for a specific application (app-specific). Sidechains, on the other hand, perform operations of any kind. Their main drawback is reduced security due to limited decentralization.

One of the most famous sidechains is Polygon Proof of Stake, which is part of the Polygon project ecosystem. The latter also includes Polygon Edge, an open source development environment that allows you to create L2 solutions.

6️⃣ Which projects have appchains?

Some blockchain projects provide developers with the ability to create appchains. Among them:

πŸ”ΈPolkadot parachains;
πŸ”ΈSpace Zones;
πŸ”ΈAvalanche subnets (subnets);
πŸ”ΈPolygon Supernets;
πŸ”ΈPolkadot Parachains;

Polkadot is a networkEVM-compatible blockchains - parachains connected to the central network (Relay Chain). The latter specializes in validating transactions of all related systems.

The Relay Chain uses a Proof-of-Stake consensus mechanism where validators stake DOT (Polkadot's native token).

Each group of validators is responsible for a specific parachain, appointed and supported by collators: they collect user transactions and validate blocks based on the Proof-of-Validity algorithm (proof of validity). For their work as nodes, collators receive a reward, the amount of which depends on the specific parachain.

The number of slots for parachains in the Polkadot network is limited to 100. They are distributed through auctions, during which DOT holders vote for projects for their subsequent connection to the Relay Chain.

β€œParachain slots can only be obtained for a certain period of up to two years. At the end of this period, the slot is returned to the auction, ” explains on the project website .

Parachains can also serve as bridges connecting the Polkadot network to external L1 blockchains like Ethereum.

Such solutions provide developers with all the above features of appchains, including the freedom to choose an economic or management structure, allowing the use of utility tokens.

One of the main disadvantages of parachains is the limited number of slots that can be won during the auction. This makes such solutions less accessible.

The Polkadot team is working on parathreads , pay-per-use parachains. The solution will allow developers to upload the project code to the Relay Chain and launch several collators without waiting for the parachain auction. In the future, parathreads can be upgraded to parachains in case of participation and victory in auctions.

The number of parathreads supported by Polkadot is also limited to 10,000.

Another drawback of the ecosystem is that Relay Chain does not support smart contracts. This limits the capabilities of the Polkadot network.

Examples of parachain projects:

Acala - DeFi hub for the Polkadot network;
Litentry - cross-chain aggregator of identity solutions.
πŸ”₯ Charles Hoskinson Interested in Buying CoinDesk Edition

Cardano founder Charles Hoskinson is considering buying crypto-industry publication CoinDesk.

πŸ—“ On January 19, it became known that the Digital Currency Group (DCG) is considering selling part or 100% of the publication in order to "raise capital to stimulate its future growth."

πŸ’Έ According to the company's CEO Kevin Worth, over the past few months, the DCG subsidiary has received "numerous signals of interest" from potential buyers. The upper bar of proposals was $200 million.

Hoskinson noted that he has not yet seen CoinDesk's financial filings to make a final decision. In his opinion, the price of $200 million is "a little overpriced."

πŸ’¬ β€œI could afford it if I really wanted to,” he added.

The Cardano founder noted interest in the media and expressed a desire to "figure out how to get back to journalistic honesty again."
πŸ’΅ Nexo to pay $45 million in fines to US regulators

Crypto lending platform Nexo has reached an agreement with US regulators over allegations of an unregistered sale of securities. The company will pay $45 million in fines as part of the claims settlement.

The U.S. Securities and Exchange Commission (SEC), as well as the regulatory agencies of several states, have considered the Earn Interest Product (EIP) crypto-currency interest product as securities.

According to the SEC, the company failed to register the offering under applicable law and circumvented disclosure requirements.

πŸ’¬ β€œWe are not interested in the labels attached to the proposals, but in their economic realities. And part of that reality is that crypto assets are not exempt from federal securities laws,” said Gurbir Grewal, director of SEC enforcement.
πŸ’Ό Robinhood will open access to a crypto wallet to a million users

Online broker Robinhood
will provide access to its own non- custodial Web3 wallet to a million users on the waiting list.

πŸ—“ In September 2022, 10,000 people who were the first to sign up for early access to the iOS app got the opportunity to test its beta version.

Based on feedback, the team has made a number of improvements to the wallet based on feedback from Robinhood General Manager of Crypto Products Johann Kerbrath.

Support for Ethereum and NFT has been added to the application that originally worked on the basis of the Polygon second-layer solution. Through the wallet, you can operate with more than 50 tokens like COMP, MATIC, SHIB, SOL, UNI, USDC and others.

The company will send the access codes within the next few weeks. After downloading and installing the application, customers will receive $5 in cryptocurrency as a bonus.

βœ… Kerbrath noted that the opportunity to join the waiting list is still open.
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πŸ’΅ Crypto Whales are Adding These Cryptos to Their Holdings

As investors ponder the possibilities for crypto markets heading deeper into 2023, whales are continuing to amass promising coins as a possible indicator of an impending bull market sometime in 2023. Despite experiencing a slump during 2022, blockchain technology continues to progress with innovative advancements in areas such as AI and EVs–giving both major investors and smaller traders something to anticipate. But what exactly are some of the crypto whale coins at the moment?

Though Bitcoin, Ethereum, and other large cap coins have stolen the spotlight, there are many more projects that are at the forefront of pioneering multiple aspects of the crypto economy. There are an abundance of possibilities for traders to invest their capital into this industry including within decentralized finance (DeFi) and real-world use cases for non-fungible tokens (NFTs), for example.

If you’re considering investing, you may be wondering: should I begin now, and which investments are right for me? Unfortunately, no one can predict where markets will go in the future. That’s why it is vital to only invest money that you are comfortable with losing.

Protecting yourself from scams is paramount, so it’s essential to guarantee that all ventures you invest in comply with all legal guidelines. Assessing the team involved with a specific venture is equally necessary; confirming they have an established background is a step that should not be overlooked.

When evaluating a blockchain project, be sure to determine whether the proposed use cases provide real solutions to existing problems rather than merely capitalizing on the current buzz surrounding blockchain technology.

Also, consider ways to get into projects early, such as presales of upcoming projects. With the right strategic investments, it’s possible to get higher gains than with many larger cap cryptos.

Some digital assets that meet the above requirements are MEMAG, FGHT, CCHG, TARO and RIA.