The first cryptocurrency fell below $43,000, the US Federal Reserve System (Fed) maintained the key rate, FTX refused to restart the exchange, the Dencun update was deployed in the Sepolia Ethereum testnet, and other events of the past week.
Bitcoin price fell below $43,000
During the week, the first cryptocurrency was trading in a range from $42,000 to $44,000. At the time of writing, Bitcoin is valued at $42,900.
Most of the top 10 digital assets by capitalization ended the week in the green zone. However, XRP lost 3.3%.
The total capitalization of the cryptocurrency market is $1.72 trillion. Bitcoin dominance index – 52.5%.
The Fed kept its key rate
On January 31, the Fed maintained the key rate range at 5.25–5.5% per annum. The decision coincided with market expectations.
Inflation has fallen over the past year but remains high, according to the Fed. The department also noted the low unemployment rate. Over the long term, the Fed aims for 2% inflation and maximum employment.
FTX will issue full refunds to customers, but will not relaunch
The bankrupt FTX exchange plans to fully repay its obligations to clients, but restarting the platform is not being considered. In February, lawyers intend to present a detailed compensation plan.
According to FTX attorney Andrew Dietderich of Sullivan & Cromwell, after a “comprehensive effort” as part of the restructuring, the team abandoned its plan to relaunch the platform under the code name FTX 2.0.
“No investor is willing to invest the necessary capital to relaunch the offshore exchange, and no buyer has emerged for a going concern. The costs and risks of creating a viable structure from the rubbish Sam Bankman-Freed left behind are prohibitively high,” he said.
In this regard, the lawyer added that FTX 2.0 was a disappointment for the team, since the company “still has valuable customer data and information that can be monetized.”
What to discuss with friends?
- Vitalik Buterin accidentally pumped up BITCOIN by 70%.
- Neuralink implanted the first brain chip in a human.
- Robert Kiyosaki called Bitcoin “protection against wealth theft.”
- German authorities seized about 50,000 BTC from the “pirates.”
Dencun update deployed on Ethereum testnet Sepolia
Ethereum developers have successfully implemented the Dencun (Deneb-Cancun) hard fork in the second test network of the ecosystem – Sepolia.
One of the main components of the update is EIP-4844. It includes the option Proto-Danksharding, designed to scale the network by creating a new type of transaction for large binary data arrays (BLOBs). It is expected that this will reduce commissions for L2 solutions based on Rollups technology by approximately 10 times.
It is planned that on February 7 the update will be deployed on the third testnet – Holesky. After this, the developers will determine the date of the hard fork on the main network.
The expert suspected the theft of $112 million from Ripple as a result of hacking
The Ripple blockchain project was likely hacked for 213 million XRP (about $112 million at the time). This was reported by on-chain researcher ZachXBT.
According to him, the funds went to the cryptocurrency exchanges Binance, Kraken, OKX, HTX, MEXC, Gate and others.
Ripple co-founder Chris Larsen said that on January 30, unknown individuals gained unauthorized access to several of his personal accounts.
“We were able to quickly identify the problem and notify exchanges to freeze the affected addresses. Law enforcement agencies have joined the investigation,” he wrote.
The next day, Binance CEO Richard Teng announced that the cryptocurrency exchange had frozen $4.2 million in XRP related to the hack of Larsen's personal wallet.
Also on Cryplogger:
- Visa has opened the withdrawal of cryptocurrencies to fiat on its cards in 145 countries.
- Tether's net profit in the fourth quarter reached $2.9 billion.
- The OPNX exchange of the founders of 3AC announced its closure.
- Reality Labs' loss from Meta amounted to $4.7 billion.
Vitalik Buterin is 30 years old. The developer shared his vision for the future of the blockchain industry
On January 31, Vitalik Buterin published an essay “The End of My Childhood,” dedicated to his 30th anniversary. The Ethereum co-founder recalled his journey as a blockchain developer and shared his thoughts on the future of digital assets.
During the presentation of Ethereum in January 2014 at the BTC Miami conference, which demonstrated people's interest in the technology, he decided to drop out of university.
For the next three years, Buterin dealt with the project's management issues, which included “responding to pressure and responding to other people's requests.” In 2017, at the St. Petersburg International Economic Forum, the developer met with Russian President Vladimir Putin, “briefly” discussing with him the issues of integrating blockchain technologies.
According to him, he did not try to organize a meeting, but was offered to do so. Buterin subsequently regretted this event for many reasons, both personal and political.
“I decided to become careful about what other people's plans [людей] I'm supportive, and more thoughtful about the plans I make for myself: fewer ill-conceived meetings with random powerful individuals who were only interested in me as a source of legitimacy, and more things like Zuzalu“added the co-founder of Ethereum.
Buterin also remembered his viral photo. According to him, there was a “rolled up USB cable” in his pocket.
According to the co-founder of Ethereum, the crypto industry emerged at the end of 2008 after the global financial crisis. He recalled that the Bitcoin genesis block contained a link to an article from the British The Times on additional government assistance for banks amid a “lending drought.”
Such a narrative influenced the development of Bitcoin and its perception as a “killer of the banking system,” Buterin emphasized. However, as the developer notes, after 15 years such theses have practically disappeared.
He believes that the blockchain industry has long gone beyond the financial system, although it is still part of it:
“Go beyond and use our technologies to create a more holistic vision of an alternative, freer, more open and democratic technology stack, and how developments can contribute to either significant improvements to society or tools to help those without access to digital infrastructure “
Buterin added that cryptocurrency is one of the few technology industries that is “really highly decentralized, with developers scattered all over the world.”
What else to read?
This week, Cryplogger talked about how EIP-4844 will affect ordinary Ethereum users and whether smart contracts will replace notaries in Ukraine.
The traditional digest collected the main events of the week in the field of cybersecurity.
The decentralized finance sector continues to attract increased attention from cryptocurrency investors. Cryplogger has collected the most important events and news of recent weeks in a digest.
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