Huobi Global looks to become key player in Polkadot ecosystem

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Two announcements from Huobi Global on Friday indicate that the cryptocurrency exchange is angling to become a key player in the growth of the Polkadot network. 

In a pair of blog posts, the Seychelles-based exchange announced a Polkadot Sponsorship program, as well as a $5 million Tether stablecoin fund from the Huobi Innovation Lab to support “developers, event organizers, content creators, and ambassadors” throughout the Polkadot ecosystem.

The Sponsorship program allows individuals to recommend Polkadot projects for listing in the “Polkadot ecological zone,” a special asset listing section of the Huobi exchange. Sponsors are also reportedly granted an invite to Huobi’s annual conference, as well as to other offline events.

Sponsors are required to have significant vested interest in the success of Polkadot in order to apply. Minimum requirements include 300,000 DOT tokens (over $1.5 million), of which half must be locked with Huobi as asset certificates.

Huobi’s investments follow a pair of similar announcements from Polkadot on Thursday. The network launched a decentralized finance-focused alliance whose founding members include oracle provider Chainlink and layer-two network Plasm.

Additionally, the Web3 Foundation announced the launch of the “Thousand Validators Programme,” which will provide education, support, and funding aimed at increasing the number of network validators for the platform.

The infrastructure and ecological investments come after Polkadot creator Gavin Wood argued on Thursday that Polkadot and Ethereum can co-exist. In comments made at the Polkadot Decoded summit, the programmer, who also co-founded Ethereum, dismissed the idea that there is only enough room for one layer-1 protocol.

“If Ethereum ends up being a chain that is sort of bridgeable […] I think that there’s a very good chance that Polkadot and Ethereum will happily coexist,” said Wood.

However, layer-1 platforms looking to sap developers and projects from Ethereum might be making some false assumptions about network effects.

In comments today on Twitter Larry Sukernik, the head of investments at Grayscale parent company Digital Currency Group, cautioned platforms like Polkadot not to take developer migration for granted:

According to Coingecko, Polkadot’s DOT token currently sits at a $4.7 billion marketcap, compared to a $67 billion figure for Ethereum. 



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How Bitcoin Gets to $100,000

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Another look at the bitcoin valuation models that could possibly lead to a six-figure bitcoin valuation over the course of the next year.

On this edition of The Breakdown’s Long Reads Sunday, NLW reads a recent piece by Hong Fang, CEO of OKCoin. 

In it, Fang provides a set of valuation models and scenarios that plausibly lead to bitcoin achieving a significant $100,000 value over the course of 2021.

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Bitcoin is already outperforming the halving that sparked $20K all-time high

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Bitcoin price has more than doubled since its latest block subsidy halving and is now outpacing its last bull run.

Data compiled by on-chain monitoring resource ChartsBTC on Nov. 23 shows that versus its two previous halvings, Bitcoin (BTC) in 2020 is right on track to deliver major price gains.

Bitcoin price up 120% since May

Using figures from Coin Metrics and statistician Clark Moody, ChartsBTC’s Halving Index compares Bitcoin’s progress since May’s halving with the six months after the 2012 and 2016 events.

The results show that in terms of price action, Bitcoin is beating its run to 2017’s all-time highs of $20,000. Only 2012 produced quicker upside, at a time when at the halving, BTC/USD traded at just $12.

Six months after the halving, Bitcoin’s price is 2.2 times higher in 2020. 2016 was more like 1.3 times, while 2012 produced a 12-times upside in the same period.

Bitcoin Halving Index chart. Source: ChartsBTC

Waiting on an order of magnitude

The data adds fuel to the argument that Bitcoin in 2020 has little in common with how it looked three years ago. Buyers have changed and now take the form of corporate giants satisfying client demand and investing for the long term, not for speculation.

For PlanB, the quantitative analyst responsible for the stock-to-flow-based Bitcoin price models, this is all too apparent as a catalyst for further price gains.

As Cointelegraph reported earlier Monday, he believes that January 2021 could mark the start of a much more rapid appreciation cycle, which would also chime with performance after both previous halvings.