A User Pays $430,000 for a Failed Ethereum Transaction | Bitcoin News

Bitcoin News: 14th October 2021

  • Australia is set to launch its first cryptocurrency exchange-traded fund (ETF), but it will not be backed by Bitcoin or Ethereum. [LINK]
  • For a failed payment, an Ethereum user pays $430,000 in transaction fees.
  • SpongeBob and South Park NFTs might result from a crypto startup agreement with ViacomCBS.
  • Parachain Auctions are approved by the Polkadot community
  • The world’s largest Bitcoin mining pool is blocking mainland Chinese IP addresses.
  • Cryptocurrencies, according to Vladimir Putin, have the potential to become legitimate payment currencies. [ Link ]
  • Crypto regulation is a “matter of urgency” for financial stability, according to the Bank of England’s governor.
  • Elon Musk’s Tesla has already made a $1 billion profit on Bitcoin holdings.

Australia is set to launch its first Bitcoin ETF

The Australian Securities Exchange (ASX) is preparing to debut its first cryptocurrency-focused ETF amid growing interest in a Bitcoin ETF approval in the United States. BetaShares, an Australian ETF provider, is nearing the launch of the “BetaShares Crypto Innovators ETF,” which will trade under the ticker symbol “CRYP.”

There is, however, a catch. According to the company’s statement, the fund would focus on global firms operating in the digital asset area rather than being directly backed by any cryptocurrencies.

The fund’s goal is to give indirect crypto exposure to institutional investors who want to put their money into the industry with the least amount of risk.

CRYP will “seek to follow an index featuring a concentrated portfolio of more than 30 prominent crypto pioneers,” according to BetaShares CEO 

“The crypto economy is highly dynamic and growing rapidly, and is built using exciting and disruptive technology. CRYP will be an innovative way for investors to get exposure to the crypto sector in a familiar, liquid, and cost-effective ETF structure.”

Australia is to Release its First Crypto-ETF
Australia is to Release its First Crypto-ETF

Alex Vynokur, according to the release. The Bitwise Crypto Industry Innovators Index, which was created earlier this year to give investors with exposure to leading publicly traded companies working in the cryptocurrency and blockchain industries, is the index in question.

According to the release, existing index components include leading bitcoin exchange Coinbase, Bitcoin mining startup Riot Blockchain, and Michael Saylor’s MicroStrategy.

Furthermore, 85 per cent of the fund’s assets are invested in firms that derive at least 75 per cent of their income from these industries, guaranteeing that investors are adequately protected. Vynokur went on to say that while it took the business six months to get CRYP approved, the wait for an ETF that is literally backed by cryptocurrency might take considerably longer. According to a storey in the Australian Financial Review, the business is still planning to launch such an ETF, but it is running into a number of regulatory roadblocks.

Aussies after Australian Govt. Announces to release a Bitcoin ETF

For a failed payment, an Ethereum user pays $430,000 in transaction fees

Only a few weeks after DeversiFi paid $23.7 million in a single transaction fee (which was fortunately afterwards refunded by the miner), another big transaction fee was spent by mistake. And while $424,000 is little compared to DeversiFi’s price, it’s still a huge blunder.

It appears that the individual who paid the money was attempting to participate in a Strips token sale on SushiSwap’s newly created token sale platform, the MISO launchpad. However, the token auction was so hotly contested that it sold out in six seconds, with 14 addresses scooping up all of the tokens.

During the quick sale, the participant sought to gain an edge by using Flashbots. Flashbots is an Ethereum user-to-miner communication protocol that allows users to effectively pay miners to obtain precedence in newly generated blocks, giving them a significant advantage in a highly competitive auction.

For a failed payment, an Ethereum user pays $430,000 in transaction fees

However, it looks that something has gone wrong. Transactions made by Flashbots are meant to remain private until they’re included in a block. However, it appears that the transaction made its way into the public mempool in this situation. Normal Ethereum transactions are initially kept in the publicly available mempool before being broadcast to the network.

The transaction was processed by an Ethereum miner and included in a block as a result of the error. The transaction failed because the token auction sold out too soon, and the potential buyer received no tokens. Despite this, they were forced to pay the transaction costs, which totaled 123 ETH ($430,000).

For a failed payment, an Ethereum user pays $430,000 in transaction fees

Crypto startup agreement with ViacomCBS might bring Spongebog NFTs

The NFT business, which is funded by billionaire hedge funder Steve Cohen, revealed plans with ViacomCBS on Wednesday to develop a platform for trading NFTs connected to the corporation’s brands and franchises.

RECUR, founded by Zach Bruch and Trevor George, debuted in the crypto world with a $333 million value thanks to a fundraising round headed by an investment group funded by Steve Cohen. RECUR is attempting to differentiate itself in a competitive industry by negotiating licence agreements with corporations to build NFT markets connected to certain brands.

Crypto startup agreement with ViacomCBS might bring Spongebog NFTs

According to a news statement, RECUR aims to debut the ViacomCBS platform in the spring of 2022.

Recur intends to take a “chain-agnostic” strategy, accepting debit and credit card payments.

ViacomCBS has a diverse portfolio that includes MTV Nickelodeon and Comedy Central, allowing for NFTs based on SpongeBob and South Park. A RECUR spokesperson declined to comment on how the company will prioritise brands or the deal’s economics.

“We are pleased to expand our consumer products presence even farther into the burgeoning metaverse, fueled by popular characters and iconic assets with multi-generational appeal,” said Pam Kaufman, head of ViacomCBS consumer products.

Crypto startup agreement with ViacomCBS might bring Spongebog NFTs

Parachain Auctions are approved by the Polkadot community

Polkadot’s community recently accepted a proposal for the platform’s first parachain auctions. Polkadot’s objective of multichain interoperability is believed to need these parachains as the “final piece of fundamental functionality.”

Polkadot, a layer-1 initiative with the objective of making blockchain networks interoperable, took a big step forward today by voting to accept a proposal to start its first parachain auctions.

Web3 Foundation member Joe Petrowski proposed the suggestion on Polkadot’s community governance debate site, polkassembly.io.

Polkadot should be ready for this important shift, he said, given the success of Kusama’s parachains and Parity’s public judgement that “the code for parachains, auctions, and crowdloans is ready for an initial production release.”

Parachain Auctions are approved by the Polkadot community

Parachain auctions determine which blockchain projects will be chosen to get one of Polkadot’s restricted number of parachain “slots,” which can only be altered by a governance vote. The winners of these slots will have the opportunity to create a parachain that is connected to Polkdot’s main blockchain.

The auction winners are chosen not by the highest bidder at the end of the auction, but by the highest bidder at a randomly selected point throughout the auction’s duration that cannot be known until the auction is over.

Eleven parachain auctions will be held in two waves. The first batch will begin on November 11 with a weekly auction, and the second batch will begin on December 23 with a biweekly sale. The auction will last seven days in both situations.

Parachain Auctions are approved by the Polkadot community

The world’s largest Bitcoin mining pool is blocking mainland Chinese IP addresses

The world’s largest Bitcoin mining pool, Ant Pool, has caved into the government crackdown and declared that IP access to mainland China would be blocked as of October 15th. In the midst of a worldwide crypto meltdown, Ant Pool has also announced the forthcoming introduction of its proprietary KYC verification system, which will help it comply with various country’s crypto legislation.

There have been many shutdowns of unregistered mining farms, as well as registered giants taking efforts to comply with the authorities, after the revelation regarding the Chinese government’s surveillance of IP addresses to filter out unlawful crypto mining activity in the nation.

Bitmain, China’s largest Bitcoin mining equipment maker, stated earlier this week that it will cease delivering Antimers to the nation as of October 11 because to the impending crypto crackdown, which is specifically targeting Bitcoin mining.

The world’s largest Bitcoin mining pool is blocking mainland Chinese IP addresses

“Actively responding to the local government policies of the company’s entities has been Bitmain’s business strategy all along…Strictly abide by the laws and regulations of the locations of the company’s entities is the operating principle that Bitmain has always adhered to. From October 11, 2021, Antminer will stop shipping to mainland China (excluding Hong Kong and Taiwan). For customers in mainland China who have purchased long-term products, our staff will contact them to provide alternative solutions.”, stated the Press Release.

Putin says that crypto has the potential to become legitimate payment currencies

The Russian President, Vladimir Putin, appears to be in support of cryptocurrencies and their usage in the payment industry. Putin said crypto-assets “have the right to exist and can be used as a means of payment” in a recent interview with CNBC. The Russian President’s pro-crypto stance surprised many, given that the Russian central bank has issued several warnings for crypto traders, reminding them of the high risks associated with crypto trading.

Vladimir Putin accepts the Role of Crypto as Payments
Vladimir Putin accepts the Role of Crypto as Payments

Putin’s remarks about crypto as a possible payment method come at a time when the United States and many other European countries are mulling severe rules on the cryptocurrency industry.

The Russian President also stated that while the technology is young and hence insecure, it has the potential to mature into a genuine payment mechanism over time. He clarified,

“The cryptocurrency is not backed by anything yet. It exists and as a means of calculation can be used, of course, yes, but trading in oil, say, or other primary materials and energy sources – still, it seems to me, it’s too early to talk about this for now.”

“But everything develops, everything has the right to exist. We will see how it will go further, maybe someday it may also be a means of accumulation. We see this market fluctuate. It’s a bit early today.”

Putin’s statements on the cryptocurrency market show that Russia isn’t completely dismissing digital assets. Since 2014, Russia has been subject to US sanctions, and the rising popularity of digital assets might assist the country bypass trade prohibitions, much as Iran attempted to accomplish with Bitcoin.

The US, on the other hand, has stated that it has no plans to outright prohibit crypto, as China has done, but the SEC’s tight regulations and regulatory enforcement might stifle the crypto market’s growth.

Crypto regulation is a “matter of urgency” for financial stability

Regulators all around the globe can’t stop talking about cryptocurrencies due to the tightening links between traditional banking and cryptocurrency marketplaces.

On October 13, Jon Cunliffe, the Bank of England’s deputy governor for financial stability, talked on the threats crypto poses to the financial system, focusing on stablecoins, decentralised finance, and derivatives trading on unbacked digital assets.

Despite the fact that cryptocurrency markets are still tiny, Cunliffe stressed that the risks they represent are dependent on “the degree of interconnectivity between crypto and the traditional financial sector.” That level of connectivity has been steadily increasing.

Cunliffe judged the speed of regulation to be slow, especially in comparison to the rate of change in the sector. Speeding up regulation “must be sought as a matter of urgency,” he added.

Crypto regulation is a “matter of urgency” for financial stability, according to the Bank of England’s governor.

He elaborated:

“Financial stability risks currently are relatively limited but they could grow very rapidly if, as I expect, this area continues to develop and expand at pace. How large those risks could grow will depend in no small part on the nature and on the speed of the response by regulatory and supervisory authorities.”

For a long time, the Bank of England has been involved in crypto legislation, particularly in its position as a monetary authority and in its ongoing work on a digital pound. Cunliffe chairs a newly formed joint task group of the two UK regulators, concentrating on digital money, alongside Katharine Braddick of HM Treasury.

Elon Musk’s Tesla has already made a $1 billion profit on Bitcoin holdings

Tesla’s risky move into the Bitcoin (BTC) market has paid off in 2021, with BTC’s price rising in October to over $58,000 on October 14.

According to Bitcoin Treasuries, Tesla now possesses around 43,200 BTC, which is worth almost $2.5 billion at today’s rates. This is almost $1 billion more than the carmaker paid in February, when Elon Musk’s firm said it had added $1.5 billion in Bitcoin to its financial sheet.

Tesla sold 10% of its Bitcoin holdings in Q2 — around 46,000 BTC — for an average price of around $50,000 per token, according to reports.

The firm said in its Q2 financial report that it had made $128 million in profit from its Bitcoin sale.

Tesla’s net gains from its crypto assets were equal to its income in Q2 following the recent Bitcoin price recovery.

Elon Musk’s Tesla has already made a $1 billion profit on Bitcoin holdings

Tesla’s net profit for the second quarter was $1.14 billion, the first time it had ever surpassed the $1-billion barrier. The profit was part of a total revenue of $11.96 billion, with roughly $10.21 billion coming from automobile sales. The remaining $354 million was raised through regulatory credit sales.

Tesla said on Oct. 1 that it delivered 241,300 electric vehicles in the third quarter, up from 201,250 in the previous quarter. Expectations are high for blockbuster results to be disclosed after the market closes on Oct. 19, when combined with Tesla’s Bitcoin profits.

Read Yesterday’s news here.

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