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ATHDAOx: Building the future of Web3 in physical-digital with DAOs

The DAO-centric event took place in Athens, Greece over two days and focused on everything from governance and legal issues to community building and security.

ATHDAOx, an event in the tradition of the Solana Hacker House, took place on Dec. 9 and 10 in Athens, Greece to discuss all things decentralized autonomous organization (DAO).

From governance and legalities to community building and security, the event brought together the local DAO-focused community in Greece and abroad.

Cointelegraph was on the ground for the event and spoke with one of the event’s founders, Dimitris — aka Takisoul — about his experience building a physical space to discuss digital communities.

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Arbitrum DAO passes $23M extra budget to fund all grant applicants

The Arbitrum community is expanding its grant program budget to over $70 million, supporting a total of 56 projects.

The Arbitrum DAO has confirmed the disbursement of millions in extra tokens to fund all projects approved on its latest Short-Term Incentive Program (STIP), boosting its budget by $23.4 million.

The proposal, voted by the Arbitrum community between Nov.

The supplementary capital was approved by 216.7 million votes in favor to 73.1 million against, bringing STIP’s total budget to 71.4 million ARB tokens.

ARB holders approved the addition of 21.1 million tokens for funding grant applications. Source: Tally/Arbitrum

Arbitrum is a layer-2 networking designed to scale transactions on the Ethereum blockchain, allowing funds to be transferred more quickly and at a lower cost.

DefiLlama data shows that Arbitrum generated over $180,165 in fees and $43,342 in revenue just on Dec.

Layer-2 Arbitrum generated over $57 million in cumulative transaction fees. Source: DefiLlama

The new budget includes funding for Gains Network (4.5 million ARB), Wormhole (1.8 million ARB), and Stargate Finance (2 million ARB).

The approval of additional funding was not without controversy.

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Tattooing Bitcoin: Advocates wear cryptocurrency on their sleeve

Inked Bitcoin advocates explain privacy, risks and even the pains of getting a Bitcoin tattoo, a growing trend in the community.

Got Bitcoin ink? Many Bitcoin believers do. But what are the risks? What about privacy? And what happens if — one fateful day — Bitcoin crashes and burns to zero?

Cointelegraph spoke with Bitcoin (BTC) advocates to understand why they have permanently etched a Bitcoin logo, motif, equation or slogan onto their skin. They’ve shown permanent solidarity with the decentralized movement, expressing their support for the Bitcoin protocol and the values it represents.

Taihuttu’s Bitcoin B tatto. Source Taihuttu.

Didi Taihuttu, father of the “Bitcoin family,” explained that he inked himself the moment he went “all in on Bitcoin as I thought it was a very important step in my life.” A familiar face among the crypto community, Taihuttu sold all of his family’s possessions and slept in a campsite while the price of Bitcoin was in the four-figure territory with the “B” etched on his arm.

He now travels the world evangelizing Bitcoin, with his forearm on full view:

“Bitcoin changed my way of thinking about the world and decentralizing it.”

Anita Posch, another globetrotting Bitcoin evangelist, has a lightning bolt tattooed on her forearm. In the Human B Bitcoin documentary film, she said she wouldn’t explain that the lightning bolt symbol (a nod to the Lightning Network) on her wrist is Bitcoin-related but added “Bitcoin is my life” in follow-up comments.

TatumTurnUp and Erik Dale have the Bitcoin supply formula on their skin. Source: Tatum

TatumTurnUP (not his real name), the host of the Bitcoin show “Between Two Asics,” explained that he got his tattoo of the BTC supply formula because “It’s what proves scarcity.”

“Monetary scarcity is something we’ve been deprived of until Bitcoin, and the fact I can write down what proves there will only ever be a certain amount of Bitcoin is a pretty big deal.”

The tattoo on his bicep is a common (but unfortunately not strictly accurate) formula for the supply of Bitcoin. He shared a warning with readers: “The bottom of the Sigma might be the most painful thing I ever experienced. Just a forewarning.”

But what about OpSec?

However, isn’t it risky to advertise one’s love of a digital currency on one’s skin? OpSec, or operational security, is a military term the internet has hijacked. Among the crypto community, it refers to the public sharing of identity or defining features. And a Bitcoin tattoo could put a literal target on one’s back. 

Erik Dale, whose tattoos are pictured in the above tweet, founded Norway’s “Northern Lightning” conference series. Dale told Cointelegraph he was aware of the implications. His tattoos are “Equations, no logos or tribal markers, for OpSec reasons.”

“Insiders should realize what they are, but not casual observers.”

Rikki, of content creators and investigators Bitcoin Explorers, joked, “We are not particularly concerned about bad opsec.” He added another Bitcoin tattoo to his collection during a giveaway in Guatemala. 

Bad OpSec can lead to doxing or the public reveal of people’s personal data. That’s why some Bitcoin advocates mask their online identities, using anonymous profiles on social media. Not so for Rikki and his partner Laura; they have their Bitcoin support on full view.

Rikki and Laura’s tattoos. “Stack Sats” means save Bitcoin. Source: Rikki.

Piero Coen, the co-founder of Guatemala-based Osmo Wallet, told Cointelegraph that Bitcoin is a “counterculture movement, and getting a tattoo related to it is a way to show our commitment to this movement.”

“It’s like a badge of honor, showing that we are part of this group of ‘pirates’ who are challenging the traditional financial system and are convinced we’re going to change the world. “

Besides, for Rikki and Laura, much of their lives already permanently exists on camera. Rikki explained:

“We are Bitcoin content creators, and so we chose to give up our privacy years ago. Besides, there aren’t just the slightly paranoid, scheming, pessimistic, terra plat-prone Bitcoiners — there are also us, the good-looking, nice, fun, cool and sex-loving Bitcoiners!”

Laura put it even more succinctly in a recent tweet: 

For Tatum, another content creator and a recognizable face in the Bitcoin space, “Value is teaching people about Bitcoin and networking through it, so there’s a constant battle with opsec.”

“At the bottom of it, I am comfortable with my own security and what I do and do not share, but ‘WHY I love Bitcoin’ is always going to be shared.”

Tatum walks around Bitcoin conferences wearing a bulletproof vest in a jocular nod to operational security in the Bitcoin space.

Tatum interviewing guests in a security vest at Pacific Bitcoin 2022. Source: Tatum

But what if Bitcoin goes to zero? 

Unlike tweets, open letters or company creation, Bitcoin tattoos are tricky to delete. They require commitment. 

So what happens if the currency goes to zero, like many other failed projects from Terra to Celsius? Tatum explained, well, “sucks for me!”

“After I got it, I jokingly said, ‘Now I really hope it doesn’t go to zero or I’ll look like an idiot.’ But in reality, my tattoo is kind of why it never will go to zero. If one person finds value in Bitcoin, there’s only ever going to be so many. So they will have value.”

Billionaire Mike Novogratz’s tattoo of the failed Terra (LUNA) token is an eternal reminder of the headiness and hedonism accompanying crypto bull runs. The tattoo remains on Novogratz’s arm, while LUNA is worth next to nothing, and its creator, Do Kwon, might be facing jail time. Fortunately, Novogratz says he learned from the experience saying investing “requires humility.“

Dale explained he’s prepared to live with the tattoos on his wrists even if Bitcoin does fail. He’s committed until the very end: “If I’m wrong about this, I want to carry that reminder every day. And if not, I can’t imagine a prouder badge to wear for the rest of my days.” 

Related: Novogratz says LUNA tattoo is a constant reminder investing ‘requires humility’

For Taihuttu, it’s important to zoom out and focus on the bigger picture. Bitcoin is a long-term play:

“I believe that people who have tattoos from dollar signs or other fiat have a bigger chance of going to 0.”

He’s right; famous rappers and celebrities, including singer Kesha and actor Lena Dunham, have been inked with dollar sign tattoos. It’s unlikely that they were asked if the dollar would go to zero prior to sitting in the tattoo artist’s chair.

Kesha’s dollar sign tattoo. Source: popstartats.com

On a sober note, Taihuttu explained that regardless of the Bitcoin movement underway, the large tattoo on his forearm represents “an amazing 10 years of my and my family’s life since 2013, the year that I started mining Bitcoin.” And that’s more than enough reason to get Bitcoin ink.

Community-driven crypto projects still thriving despite headwinds

Community engagement has always been a key aspect of crypto, and it’s proving its value during bear markets.

The highly anticipated launch and airdrop of Arbitrum’s native governance token ARB took place on March 23, creating a buzz around the layer-2 protocol as hundreds of thousands of eligible users and DAOs tried to claim the token. Overwhelming user demand led the airdrop claim page to crash shortly after its launch, displaying 404 and 429 errors for over an hour, Cointelegraph reported. 

Since Arbitrum was one of the largest blockchain projects without a token, the hype around its drop was expected. Nevertheless, it exemplifies how community-driven projects in the space can still thrive, despite competitors, technical challenges, market downturns and regulatory uncertainty.

Arbitrum wasn’t the first — and certainly won’t be the last — project to mobilize massive audiences. In February, the token distribution of the layer-1 protocol Core DAO followed a similar engagement recipe, with 1.2 million tokens airdropped to individual users. Even before its mainnet launch, the project, established in 2021, had over 1.6 million Twitter followers and over 215,000 Discord members.

“From the start, community ownership and inclusion was a major goal,” Core DAO contributor Brendon Sedo told Cointelegraph. “Transparency is another key for our community. Too many projects keep the curtain closed on their progress and development. We’ve made it a priority to distribute information across a variety of platforms.”

Related: Arbitrum’s ARB token signifies the start of airdrop season — Here are 5 to look out for

Core’s blockchain runs on a combined proof-of-work and delegated proof-of-stake consensus mechanism known as Satoshi Plus. Its airdrop was carried out in partnership with the Satoshi App, an application allowing users to “mine” in-app rewards without requiring a payment or exclusive invite. According to Core, the app was crucial to helping to get tokens into the hands of the true users of the network, with 25% of the token supply dedicated to the partnership.

Community engagement is also key for Web3 games and metaverse platforms. Virtual world Aftermath Islands Metaverse is about to reach 4 million resource pack NFT generated in just 140 days after releasing its first play-to-earn game, adding the last 1 million users in a period of just 15 days, says the company. 

“Our focus is not on the number of users, as our users are anonymously verified using our Proof of Humanity solutions, where they can only have one account with no duplicate accounts, fakes or bots. This effectively removes the ‘eyeball’ measuring and false results, so we focus on what the users are doing,” explained David Lucatch, managing director at Aftermath Islands.

The resource pack NFTs represent real ownership of items that can be traded or used in different ways within the platform as personal items. Pack’s daily generation of real users sits at 60,000, the company claims.

Decentralization and community engagement have always been key aspects of crypto. Core DAO’s Sedo argues that project insiders and lack of community ownership pose threats to blockchain’s potential. “[…] chains had to make tradeoffs between security, scalability, and decentralization,” he explained, adding that “the classic blockchain trilemma gets plenty of time in the spotlight with too few solutions. Many chains and projects simply concede that to be scalable, they must sacrifice decentralization.”

Magazine: 2023 is a make-or-break year for blockchain gaming: Play-to-own

BIS head claims fiat won battle with crypto, Bitcoin community disagrees

BIS general manager Agustín Carstens reckons the war between fiat and crypto has been won by fiat. The community disagrees.

The Bank for International Settlements (BIS) has long taken a cautious approach to Bitcoin (BTC) and cryptocurrencies. However, there is no need for caution anymore as the “battle has been won” between fiat and crypto, according to BIS.

BIS general manager Agustín Carstens, who made the claim, highlighted that “technology doesn’t make for trusted money,” among further criticisms of crypto in an interview with Bloomberg.

As the central bank for central banks, the BIS has emphasized the need for regulation and risk management in the crypto space, but claiming the crypto vs. fiat battle has been won sparked outrage, satire and corrections among the Bitcoin and crypto community.

Ray Youssef, CEO of Paxful and vocal Bitcoin maximalist, told Cointelegraph that it’s “easy to get sucked into these battles but is all a distraction with no ROI.“ He continued, “We must focus on the battles in the global south and fight for every inch and every eyeball. What is happening in Nigeria now is vital for us all.“

“Want to p*ss the clowns off? Ignore their FUD bait and focus all in on the global south and what is happening on the streets of nigeria.“ 

Saifedean Ammous, the author of The Bitcoin Standard, brought Carsten’s statement to his followers’ attention, provoking condemnation and concern in the comments. Florida-based Bitcoin advocate SVN (not his real name), whose frozen bank account prompted a switch to go all in on Bitcoin, told Cointelegraph, “these people are clowns.”

Meanwhile, Lady Anarki, a Bitcoin advocate who recently closed a Bitcoin Security Education company, explained that “fiat and crypto are essentially the same exact scam.”

“For fiat, it is nefarious elite oligarchs creating a rigged game system to enrich themselves while making everyone else poorer. Bitcoin is a technology designed with incentives and sound economic principles that enriches anyone who brings value to the world.”

Bitcoin losing the “war” for money, as Carstens explained, is another reference to the fact that Bitcoin has been declared dead, dead and dead again. The 2022 and 2023 bear market is no different, and Bitcoin advocates on Twitter seized the opportunity to mock financial experts dancing on the imaginary grave of the decentralized currency. 

Nonetheless, Bitcoin is up over 40% from its 2022 lows, and Lightning Network adoption flourishes while the community appears increasingly vocal.

What Bitcoin Did, the popular podcast hosted by Peter McCormack, tweeted some handy statistics to correct another inflammatory statement published by the BIS this week. Notably, from August 2015 to December 2022, the BIS explained that “nearly all economies made losses on their Bitcoin holdings.”

As shown, the Bitcoin price continues to trend higher despite the BIS’ best efforts to the contrary.

The BIS has been a vocal critic of cryptocurrencies, citing concerns about their volatility, scalability and energy consumption. However, the BIS has researched stablecoins and spearheads the development of central bank digital currencies in partnership with several countries, juxtaposing Carsten’s comment in the Bloomberg interview that tech “doesn’t make for trusted money.”

Related: Coinbase staking ‘fundamentally different’ to Kraken’s — chief lawyer

Willem Middelkoop, author and Bitcoin advocate, highlighted that the war between fiat and crypto is far from over. A cursory scroll through the comments on the original tweet from Bloomberg Crypto would suggest that the war is just heating up.

Bitcoin logo imperfection found on original artwork after 12 years

While Bitcoiners preach the “zoom out” narrative during crypto bear markets, zooming in on the original Bitcoin logo shows a small orange line from the background going into the white colored “₿.”

While Satoshi Nakamoto is credited as the anonymous creator of Bitcoin (BTC), what often goes unnoticed are the selfless contributions of the community members — miners, developers, designers, hodlers and investors — that help materialize the original vision. However, one such significant contribution was found to carry an imperfection for over 12 years, invisible to the naked eye.

On Nov. 12, 2010, bitcointalk.org member bitboy (not related to YouTuber BitBoy Crypto) posted the vector files of the iconic Bitcoin logo, which has been widely accepted worldwide. While Bitcoiners preach the “zoom out” narrative during crypto bear markets, zooming in on the original Bitcoin logo shows a small orange line from the background going into the white colored “₿.”

The information was first revealed by Crypto Twitter member @_Bosch_, who then shared an updated Bitcoin logo after removing the mark and improving the stylistic proportions. On further investigation, community member @skyler_fs found that one of the curvatures of the ₿ logo was not smooth either.

Cointelegraph’s investigation of the above claims confirmed the imperfections sported by the original Bitcoin vectors. The image below shows the two locations where the microscopic design issues exist.

Two imperfections found in the Bitcoin logo after 14 years. Source: Cointelegraph

The revelation does not impact how Bitcoin operates and community members have not shown any concerns about it. Even if someone were to create new vectors after fixing the flaws, it would not gain mainstream acceptance unless the community decides otherwise.

Related: Is it possible to achieve financial freedom with Bitcoin?

As markets maintain a positive trajectory toward recovery, Bitcoin mining firm CleanSpark continues to amass equipment from distressed mining companies.

CleanSpark’s chief financial officer Gary Vecchiarelli said that the company envisions “explosive growth” in 2023 through mergers and acquisitions.

“With respect to our strategy regarding M&A, we have been one of the most active miners to date in acquiring infrastructure and machines, and we will continue to be active,” he added.

When meme? Top crypto memes and their meaning

Memes have become an important, if somewhat humorous, part of the cryptocurrency community.

The crypto market is highly volatile, and the prices of cryptocurrencies can fluctuate dramatically in a short period. Memes offer a way for people to express their emotions and cope with the ups and downs of the market in a lighthearted, humorous way.

Crypto culture is heavily centered around online communities and social media, and memes are a widely used form of communication. They allow people to quickly convey complex ideas or emotions in a way easily understood by others in the community.

Many of the concepts and terms in the crypto world can be challenging to understand for those new to the space, and memes are a way to simplify and explain them. Crypto is also filled with speculation and hype, and memes are an outlet to make fun of the more outlandish claims.

Here is a selection of the most popular cryptocurrency memes.

Hodl

“Hodl” originated from a misspelling of the word “hold” in a Bitcoin Forum post in 2013. The original poster, who was apparently frustrated with the volatility of the Bitcoin (BTC) market, accidentally wrote “I am hodling” instead of “I am holding.” The typo caught on, and soon, hodl became a popular term in the crypto community, used to express a long-term investment strategy of holding onto one’s cryptocurrency through short-term market fluctuations.

The meme is often used in the context of the crypto market’s volatility to express the belief that the value of a particular cryptocurrency will increase in the long term. It’s found on social media, forums and chats as a way to express support for a specific coin and a long-term investment strategy.

It is also used as a backronym for “hold on for dear life,” referencing the crypto market’s volatility.

When moon?

Like “hodl,” “When moon?” is a phrase used by people online to indicate excitement or hope that a particular cryptocurrency will increase dramatically in value and offer a massive return on investment.

The “When moon?” meme is often accompanied by images or GIFs of characters or animals looking up at the moon, or people looking excited or hopeful.

When Lambo?

The “When Lambo?” meme is often used as a tongue-in-cheek way to express people’s hopes that they will make massive amounts of money from a crypto investment — enough to buy a Lamborghini, a brand of luxury sports cars known for their high performance and association with wealth and success.

People asking “When Lambo?” often include GIFs and images of Lamborghinis or characters driving them.

When Binance?

“When Binance?” is another popular question asked within the cryptocurrency community by investors who hope their coin of interest will be listed on Binance, the leading cryptocurrency exchange by volume.

Every exchange has standards and requirements, and the listing of an asset on a major exchange is often seen as a sign of the asset’s value and supporting the project’s legitimacy. 

When institutional investors?

Institutional investors are typically large financial organizations such as banks, hedge funds and pension funds with significant financial resources and experience in investing. Their entry into the crypto market is seen as a sign of mainstream acceptance and validation of the technology.

Similar to the “When Binance?” meme, “When institutional investors?” expresses hope that institutional investors will enter the crypto market.

Doge

In the crypto world, “Doge” refers to the Dogecoin (DOGE) cryptocurrency, which was created as a joke in 2013 based on the popular “Doge” internet meme featuring a Shiba Inu dog. Despite its origins, Dogecoin has gained a solid following and has become a significant cryptocurrency, with a market capitalization of over $11 billion at the time of writing.

Images or GIFs of a Shiba Inu, the mascot of Dogecoin, often accompany the Doge meme. The memes often include phrases like “such wow” and “much moon” and are frequently used to express excitement about the potential for Dogecoin to increase in value or to mock other more serious projects.

When Satoshi?

“When Satoshi?” expresses hope or anticipation that the true identity of pseudonymous Bitcoin creator Satoshi Nakamoto will be revealed. Nakamoto’s identity remains unknown, and the mystery surrounding Bitcoin’s creator(s) has generated much speculation and curiosity.

The meme often features characters or people representing Nakamoto or images of the Nakamoto pseudonym.

Community slams NYT for its latest ‘sympathy piece’ on FTX’s Bankman-Fried

The article bizarrely contrasts the alleged fraud carried out by Sam Bankman-Fried with gang violence on the Bahamian island of New Providence.

The online community including some cryptocurrency figures has condemned the latest so-called “sympathy” article from The New York Times written about FTX founder Sam Bankman-Fried.

In the Dec. 26 article published titled “In the Bahamas, a Lingering Sympathy for Sam Bankman-Fried,” New York Times journalist Rob Copeland quotes local Bahamians who appeared to have mostly positive things to say about the cryptocurrency exchange founder.

One resident opined he had a “good heart,” with another local saying they “feel bad for him.” A resident interviewed for the article even said it “doesn’t make any sense” that Bankman-Fried’s alleged crimes landed him in prison.

The article suggests that the glowing reviews of Bankman-Fried by locals stem from his millions of dollars in donations to local charities, churches and government entities, including the police. The FTX founder’s plans to build a hotel and FTX’s head office there were considered another positive by locals.

Cryptonator, a self-described “crypto-degen,” said Bankman-Fried “did it like Pablo Escobar” with regard to his donations to local charities and the government. Escobar, a notorious Columbian narcoterrorist and drug lord, spent millions of dollars building infrastructure and donating to charity in an attempt to garner favor with locals.

Only one person interviewed for the article appeared negative about the billions of dollars of alleged fraud by the FTX founder, which included stealing customer funds, saying it gave them a “negative outlook on crypto.”

“Why would you publish this” one Twitter user asked; “this is embarrassing,” another wrote.

“Gotta respect the NYT for doubling down,” one user tweeted in reference to a Nov. 14 New York Times article that was also slammed by the crypto community as a “puff piece.”

Perhaps one of the most egregious parts of the article was a section where it calls Bankman-Fried’s years-long alleged fraud “troublesome” but “hardly comparable to the gang violence” on the island of New Providence.

Olayemi Olurin, a native Bahamian and New York public defender, posted a video to Twitter blasting the article, saying:

“The lengths they will go to try to prop up this white collar criminal and they immediately start trying to criminalize a black nation [with gang violence]. The Bahamas is not some gang violence-ridden country get the fuck out of here.”

“Bahamians do not give a fuck about that man,” she added.

Related: From the NY Times to WaPo, the media is fawning over Bankman-Fried

Others in the crypto community came forward to criticize the piece.

Crypto newsletter founder Alex Valaitis said he “can’t believe your joke of an organization continues to try to publish puff pieces on the biggest fraud since Madoff.” Bernie Madoff was found guilty of running the largest Ponzi scheme to date to the tune of nearly $65 billion.

Podcast host Scott Melker said the article was “astoundingly absurd and inappropriate” and likened The New York Times to United States tabloid newspaper the National Enquirer.

Bankman-Fried was arrested on Dec. 12 on multiple charges relating to wire fraud and money laundering. He was extradited to the U.S. on Dec. 21 and is currently out on bail after his parents posted their Palo Alto home as collateral for the $250 million bond.

Bringing community-based solutions to crypto lending can solve trust issues

The crypto lending space is plagued with trust and security concerns, but crypto lending platform BNPL Pay offers an innovative community-based lending solution.

BNPL Pay: Partnership Material

A type of decentralized finance (DeFi) that allows investors to lend their crypto tokens in return for regular interest payments, the crypto lending space comprises both centralized and decentralized crypto entities that manage the entire process on behalf of their investors.

Offering high annual percentage yields (APY) to investors from whom the tokens have been borrowed, these lending platforms further lend the same assets in the form of collateralized crypto loans to borrowers.

However, despite providing businesses with easy access to capital and promising high yields for investors, the crypto lending space finds itself entwined in liquidity issues stemming from their unregulated and overleveraged lending practices.

As a result, crypto investors have either lost their tokens in debacles such as the Celsius Network meltdown or are gripped with fear that they may be unable to withdraw their crypto staked with distressed crypto lending platforms.

Major problems afflicting the crypto lending space

With major cryptocurrencies correcting by over 70% from levels last seen in November 2021, the crypto lending industry has been mired in a spiraling credit crisis, exaggerated by the crash of the Terra stablecoin in May 2022. The ensuing liquidity crisis has already consumed leading crypto lenders and hedge funds such as Celsius Networks, Vauld, Three Arrows Capital (3AC), Voyager Digital, and Babel Finance, further exaggerated by overleveraged trading and suspect business practices.

Consequently, the crypto lending space has been clouded with severe trust issues, with more lending platforms seeking fund infusions to tide over the current bear market.

As a niche market with limited offerings, investors or crypto firms often employ borrowed capital to indulge in speculation, hedging, or working capital.

Any over-exposure on the part of the borrower could put the lender at an immense risk of marking down the lent amount, leading to liquidity concerns in case a majority of the investors proceed to withdraw their deposited tokens. Making matters worse is the opaque nature in which most crypto lenders function, often using tokens staked by investors to pursue high-risk trades, all in the hope of turning a larger profit.

As in the case of Celsius Networks, many lenders continue to be at risk of becoming insolvent if cryptocurrency prices dip further, potentially setting off another domino effect.

What are the possible solutions to these overriding concerns?

The major problems with collateralized crypto lending are exposed during volatile market conditions, especially when cryptocurrency prices drop consistently. With a lender’s ability to repay investors hinging on price movements of the underlying staked tokens and the amount of collateral collected, there is a clear need to delink crypto lending and adopt a more community-focused approach to finding a solution.

One such example is BNPL Pay, a decentralized crypto platform where communities can create banking nodes to borrow and lend from one another.

Based on the assumption that communities can better manage trust, BNPL Pay allows each banking node to be self-governed and decide which loan requests to accept or decline. Borrowers, on their part, can set the loan terms, decide on the percentage of collateral they are comfortable with and provide any additional information as deemed fit.

As a result, both lenders and borrowers enter into an agreement with conditions set by both parties at the very start of the contract. BNPL Pay merely acts as a technology provider and facilitator without interfering with the assets covered by the contract.

With funds managed via the BNPL Smart Contract suite that is additionally audited by leading cybersecurity firm PeckShield, there remains no scope for BNPL Pay to misappropriate capital or face solvency issues in the event that a borrower defaults on payments.

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Where is the crypto lending space headed?

With crypto markets currently going through one of the most challenging bear periods yet, it is time for DeFi providers like crypto lenders to develop new business models unaffected by market volatility. Building trust within the stakeholder ecosystem is a must, and BNPL Pay has shown one unique way to do this.

As developers and entrepreneurs learn from the mistakes made by the growing list of bankrupt crypto lenders, the space will witness rapid transformation in the days to come. The focus needs to be on building solutions that promote financial inclusivity, targeting real-world businesses like mom-and-pop stores and solving their working capital requirements.

This will require crypto lenders to adopt more transparent business practices and adhere to stringent self-regulated disclosure norms, at least until a formal regulatory framework is mandated by the various governments worldwide.

What is certain, though, is that the next leg of growth for crypto lenders will come from attracting more mainstream crypto investors, focusing on their ability to help communities lend and borrow within themselves for greater trust and security.

Material is provided in partnership with BNPL Pay

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

Crypto community baffled by SBF dictating terms over congressional hearing

Many in the crypto community pointed towards Bankman-Fried’s political donations and good Democratic connections via his parents, being one of the key reasons for him to evade arrest.

Sam Bankman-Fried, the former CEO of now-bankrupt cryptocurrency exchange FTX has declined to testify before the United States Congress until he’s “finished learning and reviewing what happened.”

Bankman Fried’s unwillingness to testify before the Congress slated for Dec. 13, despite a barrage of media appearances, didn’t go down well with the crypto community. After a spiral collapse of FTX and its sister companies in the second week of November, Bankman-Fried made his first live public appearance on Nov. 30 during the New York Times’ DealBook Summit. A day later, he appeared in a Good Morning America interview and a Twitter space hosted by IBC Group founder and CEO Mario Nawfal.

Alex Berenson, an author by profession, took a quip at Bankman-Fried’s refusal to testify despite his media frenzy and said that the former CEO is “happy to talk to anyone and everyone… just as long as he’s not under oath.”

Related: Regulators face public ire after FTX collapse, experts call for coordination

Zerohedge, a popular libertarian financial blog, mocked the whole debacle and how Bankman Fried has managed to dictate terms with the lawmakers.

Another user pointed toward the hefty donations made by the former CEO to the democratic party, implying that his donations have given him leverage to get away with stealing people’s money while telling Congress when he will testify.

A popular crypto influencer that goes by the Twitter name Crypto Bull called Bankman Fried, a “Democrat rat” who stole $8 billion in people’s money without facing any consequences while there are people in jail for smoking marijuana.

Another Twitter user called it a disgrace that a man who stole money from customers has the leisure to dictate terms with Congress. The user wrote:

“He shouldn’t have the option of “at his leisure” – they need to subpoena him to show up and get the handcuffs ready. Learning what happened is a complete lie.”

Many in the crypto community have questioned the lawmakers in the U.S. over their failure to act swiftly against the disgraced CEO. Others have pointed toward Bankman-Fried’s hefty donations to democrats and his political affiliations.