Blockchain & Web3 Weekly Bytes Edition #25

Spaceport’s Big Play, Bitcoin Bull Signals, and CBDCs vs. Stablecoins

August 10, 2024

Hello Fellow Enthusiast,

I'm back from a short break and excited to share Edition #25 of Blockchain & Web3 Weekly Bytes! This edition is all about refined content, bringing you the latest updates without the fluff. Here's what's inside:

Tech Spotlight: CBDCs vs. Stablecoins – A closer look at how these two digital currencies are influencing the future of global finance.
Week's Highlights: Spaceport brings South Korean gaming IP to Roblox and Fortnite, BitGo secures a payment institution license in Singapore, and more essential updates from the blockchain sphere.
Affiliate Spotlight: Ledger Flex – The next-gen Ledger wallet with a secure E Ink touchscreen, designed to keep your digital assets safe and accessible.
Chart of the Week: Bitcoin Bull-Bear Market Cycle Indicator – On-chain indicators show a shift back to a bull market, signaling potential gains ahead.

Let's review this week's updates and see what's making waves in blockchain and Web3!

🧐 Weekly Trivia

What does the term "staking" mean in the context of blockchain?

A) Lending out your cryptocurrency
B) Holding a cryptocurrency in a wallet to support the operations of a blockchain network
C) Selling a portion of your cryptocurrency holdings
D) Trading one cryptocurrency for another

*Find the answer at the bottom of this newsletter.

🌟 Tech Spotlight – CBDCs vs. Stablecoins

Central Bank Digital Currencies (CBDCs) and stablecoins are at the forefront of the digital currency conversation. While they offer digital alternatives to traditional money, they serve different purposes and come with distinct characteristics.

CBDCs: Government-Issued Digital Money

CBDCs are digital forms of a nation's official currency, directly issued and controlled by the central bank. These currencies are created to mirror the value of a country's traditional money and are backed by the government. Countries like China, with its digital yuan, and the Bahamas, with the Sand Dollar, have already launched or are testing their CBDCs. These digital currencies are designed to offer the security and stability associated with government-issued money, providing a familiar and reliable option in a digital format.

Stablecoins: A Private Sector Solution

On the other hand, stablecoins are created by private entities and are typically pegged to assets such as the US dollar or gold. Examples include Tether (USDT) and USD Coin (USDC). Stablecoins are primarily used within the cryptocurrency market to provide a stable value in a space known for its volatility. They offer a way to transfer value and make transactions within the crypto world without the wild price swings often associated with other cryptocurrencies.

Practical Examples

China's digital yuan is being tested for everyday purchases, allowing users to pay for goods and services with a digital currency that carries the same value as the traditional yuan. This offers a digital method of transaction that is secure and fully backed by the government.
Conversely, stablecoins like USDC are widely used in decentralized finance (DeFi) for trading, earning interest, and transferring money internationally with lower fees than traditional banking systems.

CBDCs and stablecoins serve distinct purposes, each influencing the direction of digital finance. Whether you're engaged in traditional finance or the crypto sector, understanding these digital currencies is key to making informed decisions as the financial sphere evolves.

📰 This Week’s Blockchain and Web3 Highlights

Spaceport Brings South Korean Gaming IP to Roblox and Fortnite: Web3 startup Spaceport has partnered with Com2uS, a leading South Korean gaming studio, to bring its popular gaming IP to platforms like Roblox and Fortnite.

Hut 8 Welcomes Former Citigroup Exec as New CFO: Bitcoin miner Hut 8 has announced Sean Glennan as its new Chief Financial Officer, effective August 21. The company also shared its mining performance report for July, marking a significant period of growth and expansion.

BitGo Secures Payment Institution License in Singapore: BitGo has obtained a major payment institution license from the Monetary Authority of Singapore, strengthening its position in Asia's financial hub. This license allows BitGo to offer a full suite of digital asset services, including cold storage solutions, to meet the growing demand for regulated crypto services in the region.

Franklin Templeton Launches On-Chain Money Market Fund on Arbitrum: Franklin Templeton has rolled out its OnChain U.S. Government Money Fund (FOBXX) on the Arbitrum network, an Ethereum Layer 2 solution.

Solana-Based Andrena Raises $18 Million for Decentralized Internet Services: Andrena, a project focused on creating a decentralized autonomous wireless network (DAWN) on Solana, has raised $18 million in a recent funding round.

Kamala Harris Taps Binance Alumni as Advisors Amid Crypto Scrutiny: U.S. Vice President Kamala Harris has recruited David Plouffe, a former Binance executive, and Brian Nelson, a former Treasury Department official, as advisors.

WazirX to Restore Account Balances After $230 Million Hack: Indian cryptocurrency exchange WazirX has announced plans to restore account balances to their pre-hack levels following a $230 million security breach.

🔗 Affiliate Spotlight: Ledger Flex

For those looking to elevate the security of their digital assets, the Ledger Flex offers a next-level solution. This hardware wallet is crafted to keep your cryptocurrency secure and easily accessible, whether at home or on the go.

Features of the Ledger Flex

Secure E Ink Touchscreen: The world’s first secure E Ink touchscreen allows you to confidently review and approve transactions directly on the device.
Advanced Security: Powered by Ledger’s Secure Element Chip, your private keys remain offline, protecting your assets from online threats.
User-Friendly Design: Combining cutting-edge security with a simple interface, Ledger Flex is ideal for new and experienced users.

For secure management of your digital currencies, consider the Ledger Flex. Protect your assets by purchasing through this affiliate link. Take control of your crypto with confidence—because your private keys should always be in your hands.

😂 A Little Blockchain Humor Break 🤣

Source: CoinTelegraph

📊 Chart of the Week: Bitcoin Bull-Bear Market Cycle Indicator

This week's chart provides a clear view of Bitcoin's market momentum as it shifts back into bullish territory. On-chain indicators, which were teetering on the edge, have now moved firmly into a bull market signal. Remarkably, Bitcoin was briefly available at a discount for three days before the market regained strength.

Key Takeaways

Market Shift: The chart shows a decisive move from bearish to bullish signals, suggesting renewed confidence in Bitcoin.
Brief Discount Period: Bitcoin's price dip lasted only a short time, reflecting the market's quick rebound and the strong demand from investors.

This shift highlights the resilience of Bitcoin and signals a potentially bullish phase ahead. As the market sentiment turns positive, Bitcoin enthusiasts and investors might look forward to more upward momentum.

Source: Ki Young Ju

That wraps up this week's edition! We've covered Bitcoin's bull signals, Spaceport's strategic moves, and the ongoing debate between CBDCs and stablecoins. As always, thanks for being part of this journey with me.

Trivia Answer: B) Holding a cryptocurrency in a wallet to support the operations of a blockchain network.

If you have thoughts or feedback, I'd love to hear from you—let's keep building this community together. See you next week for more updates!

Best,
Ajay Tomar

Disclaimer:

Content in this newsletter is for educational and informational purposes only and is not intended as financial, tax, or legal advice. Always do your research and consult with a professional before making financial decisions. As a solopreneur, I may earn commissions from affiliate links in this newsletter at no extra cost to you. This support helps me bring you valuable content. I only endorse products I trust and believe could benefit you.