Anyone who is even remotely connected to the crypto world must have heard of the idea that proof-of-work blockchains are harmful to the environment with their carbon impact. It is a cliche that must not have gone unnoticed by those who are already involved in this sector. However, the reality is something different. Contrary to the rumor that has been going around for quite a long time now, the proof-of-work blockchains rather preserve the environment and not destroy it. But it is not easy to say anything with certainty because the world is a complex structure.
What does the research suggest?
Numerous studies and research have been conducted in this field and they have shown different scenarios as well. For example, research that had been conducted by Crypto Carbon Ratings (CCR) took into account six different altcoins that are known to be using the same proof-of-stake consensus mechanism, to test what is their position when it came to electricity consumption. Needless to say, the area is quite huge which is a fact that cannot go unnoticed.
The six altcoins that were considered for this research were Cardano, Polkadot, Solana, Tezos, Avalanche, and Alogrand. These six coins were put to test as per the level of electricity consumption they require each year as well as the amount of carbon each emitted each year.
How did the altcoins perform?
The results, needless to say, came out to be different for each altcoin. Some. of the coins scored well in some areas while others scored well in different areas. It was also suggested in the report after the research that it was Polkadot that required the least amount of energy per year whereas Cardano consumed the least amount of energy for each node. The same report also suggested that the altcoin Solana needed the least electricity for each transaction. However, it was Polkadot that achieved the top position in being the altcoin that emitted the least amount of carbon per year.
More about the research results
It was also stated in a report published by the CCRI that the Polkadot consumed 6.6 times more electricity than a normal household whereas Solana consumed 200 times more electricity than a normal household.
However, it is also essential to mention here that it is quite reductive to look for a coin that does not affect the environment in any way or is eco-friendly. It was not even an easy task to bring six completely different altcoins on the same platform for comparison. The research agency CCRI had to work with unclear metrics as well as conditions.
The research that was conducted took into account the following features of the altcoin:-
• Minimum hardware requirement of each of the blockchains.
• The amount of electricity used up by each node.
• The electricity consumed by each network.
• All other extra information which also includes information such as about transactions.
After taking into consideration several variables and factors, the results that cCRI reached can be considered to be one of the best estimates made in the research.
Conclusion
With time, the concern for the environment and the need to preserve it is growing and ur has given rise to various initiatives in different fields. However, in one case the care and concern for the environment even enraged the people involved with the conservation of Nature. Even though WWF UK termed their token as tokens of nature some believed that the blockchain that these tokens used did no good to the environment. They believed that no kind of blockchain can ever do any good to the environment.
The world financial structure is gradually going ahead toward cryptocurrencies. The crypto market has become one of the greatest concerns nowadays. Several countries' economies are situated in the crypto-world. It is one of the best stages to make a profit through buying and selling. This is a virtual stock market. Despite the crypto market having several potential to make an advanced future, the next-level technology became the reason for fraud, hacks, and money laundering in this market. Nowadays the term, 'pump-and-dump' has become quite famous in the crypto world. Though the term is new, the method is old since the 1700s.
What Is Pump-And-Dump? What Was Its Historical Context?
Pump-and-dump is a fraudulent method in the crypto market through disseminating false information to users. This fraud takes place through sharing wrong information among the users aiming to increase the price artificially. When the price increases the groups sell their accumulated assets and later the price falls again. The investors get cheated. They are bankrupt through this false dissemination.
Since the eighteenth century, this fraudulent technique was used in the economic context. Multiple companies spread misinformation in several ways and used it to raise the price of their shares high. The method of increasing prices through wrong information is called pumping. That means pumping the price up. After getting the fake information users used started buying the commodities or the company sold it out. This condition is called dumping. Contemporary con artists of South Sea Company used to disseminate information. At that time this fraud was named South Sea Bubble.
Pump-And-Dump In The Crypto Market :
At this present time, the same thing as the South Sea Company is taking place in the crypto market. The whole process is organized by multiple 'pump-and-dump groups. The perpetrators accumulate the assets when the price is low in the market. A time span is scheduled to save the assets. After getting their stock of assets, the groups start to make a strategy to get the pump-and-dump operation to succeed. The groups spread misleading information to the targeted users. The information leads the users to buy the assets. Cryptocurrencies are usually not that popular in the market. The names of the tokens are quite different and unknown. After getting the information, the demand increases for the assets. The price becomes at the top. When the situation to sell assets gets favorable, the groups start to sell the assets. After selling to the users, they leave them with the assets. Later, the price falls. The users or investors intend to buy the commodities and sell them at a higher price. But ultimately they get fraud.
The scammers use the common sights to organize the pump-and-dump groups. They use platforms like Discord Server, Telegram, etc. Discord is a voice-over-internet protocol and text chat service and Telegram is a popular instant messaging service. Using these platforms, the perpetrators make groups. The users can easily enter the groups without taking special permission from any authority.
The group admin controls the whole process. The group members are divided into high-ranked and less-ranked. High-ranked members get notifications regarding accumulating assets at a low price. Whereas the low-ranked members get the notifications a little bit delayed. The high-ranked members have more chances to buy the assets than the low-ranked. After accumulating the assets, group administrators convey the ‘to-do’ list to the members. How the misleading information will be disseminated among the unaware users, at what point the demands should be free to rise, and all the pre-planning made in those groups? After proper homework, the pump-and-dump fraud gets started.
The Indian Crypto Exchange WazirX is under investigation by the Enforcement Directorate (ED). The exchange company is allegedly charged with several illegal activities. Initially, it was claimed that WazirX is owned by the global crypto exchange platform Binance. But after the charges, Binance rejected the ownership 'rumors' and clearly stated that they don't have any stake or ownership in WazirX! This shocking announcement became one of the greatest concerns in the crypto market. Also, the defender WazirX stated numerous unknown matters regarding the ownership.
Binance vs WazirX :
After rejecting the ownership idea by Binance, the parent company Zanmai Labs is taking the headlines. It is claimed that the real owner company of WazirX is Zanmai Labs, not Binance. Recently, a money laundering investigation is taking place by ED on this crypto exchange company. The 'rumored' owner Binance's founder and chief executive Changpeng Zhao stated clearly that Binance does not have any ownership or shares in Zanmai Labs, the entity operating WazirX, or any other organization under the company.
It seemed that Binance acquired WazirX. But Zhao said that the company published an 'acquired' blog post in November 2019. But the process and transaction never happened.
On the other side the founder and executive of WazirX, Nischal Shetty stated, that Binance indeed took ownership of WazirX two years ago. He said Zanmai Labs is a different entity. It has the license to operate INR or crypto pair on WazirX. While other activity like cryptocurrency transaction and withdrawal is operated by Binance itself through the ownership of WazirX. Ultimately, the exchange company WazirX is still acquired by Binance said, Mr. Shetty.
After the statement of Shetty, Zhao shared that Binance does not hold the owners of WazirX, but it provides only wallet services as a technical solution. That means Binance is a service provider of WazirX, not the owner, according to its executive.
Zhao also stated that the other responsibilities such as user sign-up, log-in, KYC (Know Your Customer), etc. are under the control of WazirX. According to him, apart from providing wallet service, no connection is there between Binance and WazirX.
Zhao further said that his company and its team will help ED if needed. The founder is free to connect with the investigation. Even he proposed ED reach them out for any query.
What Is Happening?
In the last couple of days, WazirX and Binance controversy has been dominating the crypto headlines. ED stopped the WazirX activity after getting the suspect. The enforcement directorate searched on WazirX internal teams. One of the directors of Zanmai Labs was suspected and ED has ceased its bank account. The account had 64.67 crore rupees. ED ordered to freeze the account.
It is charged against WazirX that the exchange company helped 16 fintech companies who are charged with money laundering and illegal activity. Not only indirect money laundering but also, but WazirX was also accused of its complicated unclear ownership structure. Additionally, the company is charged with violating KYC norms and even failing to conduct any enhanced due diligence (EDD).
Other Allegations :
Later it was revealed that WazirX had also issued the transaction record. Most of the transactions were not recorded in its blockchain. Even which bank account is connected or which funds are coming to purchase the assets, are unknown. No records were there. Also, No physical address verification or source checking of funds of the clients are not listed or recorded to the platform.
On the other hand, Binance is a prominent global crypto exchange company. But the controversy between these two renowned companies has sensationalized the crypto market. Both platform users are in a panic.
In this generation of crypto trading, Binance is one of the renowned marketing platforms. Binance comes on the list just before the top crypto currency blockchain like Bitcoin and Ethereum. In this crypto-winter, Binance performed well for its users. It was primarily only a crypto blockchain like other platforms. Later, it became a smart chain. Where users can make their smart contracts without any permissions or costly equipment.
Overview Of The Binance Smart Chain :
Binance started in 2017 as BNB. 3 years later it enhanced the network and aimed to provide a more user-friendly ecosystem. Then it shifted into a smart chain. This smart chain was named Binance Smart Chain. It was a great revolution for the global crypto market. Users and traders got impressed with the Binance smart Chain. It increased a massive interest among the community.
Binance was initially renowned as Binance smart chain but, after a time it was renamed as BNB chain. This chain was expected to gain over 1 billion users within a short span. Above all, this network is a great instance of MetaFi. At that time, the network was planning to become MetaFi. It focused to create the world’s parallel virtual universe. That will consist of games, multiple applications, social media, etc.
After getting overwhelming responses, Binance started to be recognized as a free, open, multi-chain network for creators and investors. This chain does not want any permission. It is a forever decentralized platform that allows the community to create their contracts, and tokens and implement them into the network. Even, this BNB smart chin became larger than the Binance blockchain.
BNB is merged with two primary chains. These are BNB Beacon Chain or the Binance chain and the BNB smart chain. The first chain is considered as BNB chain governance. Whereas, the second chain is regarding EVM compatible, with consensus layers with hubs and multi chains.
Smart Contract: Toothesmart :
This smart chain is connected with large-scale applications, games, social, metaverse, etc. Through this user-friendly platform, smart contracts are developed in various enhanced ways. One of the remarkable smart contracts developed in this network is Toothesmart. This smart contract offers miners purchasing without costly equipment. Toothesmart provides no costly equipment and no pay for electricity virtual miners. Even buyers could get up to 5% revenue after purchasing miners. Toothesmart is a play-to-earn mining Farm, built on Binance smart chain.
The goal of Toothesmart was to create an international community and develop the Toothesmart ecosystem in the market. This smart contract offered some attractive revenue-generating activities to the users. After launching this contract, early members were rewarded if they launched their new product into the network. Whenever users buy miners, each miner will bring 1 mine token every second. These tokens can use to get stablecoins like BUSD. Then it can be reinvested into the market or the miners.
Toothesmart organized an ambassador program where users could earn from each purchase of miners. Even, revenue can be generated from their followers for further purchasing.
Toothesmart was an open smart contract with unique mathematical models. That is based on the successful mining model of Bitcoin and other top cryptocurrencies.
Conclusion :
The Binance smart chain was popularised for its MetaFi. Keeping the eye on the upcoming era, Binance started to shift into the virtual world as much possible as they can. The platform was primarily famous for its crypto exchange services Later, it became one of the renowned bases to develop smart contracts. Users are open to using this stage to create and implement their creativity. They do not need to get any special permission to perform their invention.
Since the last month of 2021, the global crypto market has been trading in a very downtrend. Top cryptocurrencies' falling prices led the whole market downward. The market crash is still now affecting crypto-related funds and organizations. Celsius is one of the leading companies in the crypto market. The US-based crypto lending company recently filed bankruptcy protection to the court. Where all the users are suffering from their withdrawals that are deposited to Celsius. It was reported that Celcius owes $4.7 billion from its users!
What Is Celsius?
Celsius is a prominent lending company for crypto users. It offers a deposited interest to the users. Where a user has to deposit their savings and instead of that deposit Celsius will provide an amount of interest or loan. The fiat assets should be deposited to the company to get a good amount of loan. When it needs to withdraw, Celcius offers some other facilities to the user. Other than this lending service, Celsius has its crypto mining platforms also.
How Did The Concern Arise?
The crypto-winter started last year. Though the new year became more challenging for crypto investors. Along with the altcoins, the stablecoins also fell rapidly. The fall of stable coins like Luna and Terra during May this year, affected several crypto companies. Companies like Celsius, and Stake Ethereum have collapsed due to this stable coin’s downtrend. The companies are connected with the collateral loans in Celsius. But the crash became the main cause of the chaos in Celsius.
On June 12 this year, Celsius suspended all withdrawals of users. The deposited assets were not free from the company. The uses fell into increasing chaos. Other than that, the company started to lay off its employees for cost-cutting. It laid off over 500 employees during this concern.
The number of users' deposits was 4.7 billion US dollars. According to the filing of bankruptcy protection, the company’s total liabilities amounted to $ 5.5 billion. Whereas the total assets of the company are $4.3 billion as of June 13. It was reported that Celsius has repaid loans to Defi lending protocols Aave, Maker DAO, and Compound.
This crypto lending company has also separated the crypto mining unit that is Celsius Mining. During this crash, this mining unit also failed to perform. That’s why the ceasing activity of withdrawals has taken place. The company has invested $500 million into USA’s Bitcoin activities. Also, Celsius was planning for an initial public offering or IPO. This was supposed to launch in May this year. But it did not happen because of the downfall of the market.
While the crypto market crashed, the price of top cryptos started to decline massively. At that time Celsius also took steps to retain its business. Additionally, all miners were sold out with a high discount rate.
The CEO-Statement Affects :
The CEO and the filing person of Celsius, Alex Mashinsky shared the company’s steps that were taken. According to him, the company's digital assets were growing faster than the company aimed to deploy. Then it was decided to deploy certain poor assets of the company. This statement of the CEO made another lane of the crisis. Several users and experts narrated the shared view of the CEO as incorrect. Though, this statement has raised another concern that the bankruptcy was just a rumor! Though as the reports say, the bankruptcy protection was filed just after 9 days of filing activity of the crypto broker Voyager Digital in the same court.
Furthermore, the suspension of the withdrawal took place after the collapse of Singapore-based crypto hedge fund Three Arrows Capital. The filing claimed that Celsius has a hole of $1.2 billion according to its balance sheet.
