The bear market has shown no mercy on the cryptocurrency markets as several coins saw support breaks and price spirals. Some cryptocurrencies were more affected by the bear attack, some more than others, with Ethereum [ETH] being a prime example. Ethereum, which had earlier fallen below the $100 mark, has done it again, but this time around, the Vitalik Buterin co-founded cryptocurrency has gone even lower.
At the time of writing, Ethereum was sliding by 7.12 % and was trading for $98.87. The cryptocurrency held a total market cap of $10.455 billion and a 24-hour market volume of $2.176 million. Ethereum bear woes came into the limelight a few weeks back when XRP, replaced Ethereum as the second largest cryptocurrency on the charts. The disparity between the market caps has also increased, with the current difference being close to $4 billion.
A majority of Ethereum’s trading volume was coming from Coinbit, with Ethereum transactions worth $176.672 million being conducted on the cryptocurrency exchange. Coinbit was closely followed by OEX, which had a hold on 6.31% of the total ETH trade.
The price slide has seen a significant part of the Ethereum user base panic, especially with attacks coming in from all quarters. Justin Sun, the Founder of the Tron Foundation and its CEO, has stated multiple times that users need to shift from the Ethereum network to the Tron network.
This statement has always been followed by the Tron official giving out numbers that show that Tron has started surpassing the daily transactions of Ethereum, and sometimes Ethereum and Bitcoin combined.
One of Ethereum’s Co-Founders, Joseph Lubin, had commented on the cryptocurrency market as well as blockchain technology recently, with him stating:
“I believe in #blockchain technology because of the people behind it. The developers, engineers, and technologists who #BUIDL The smart contract experts who audit and secure the code The designers who care deeply about user experience The marketers who tell the story of Web3″
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Facebook’s Libra ‘sounds an awful lot like Proof-of-Stake’ and will ‘run into Ethereum’s problems,’ claims Jameson Lopp
Facebook’s “The Libra Blockchain” whitepaper has created quite a frenzy, not only in the cryptocurrency ecosystem, but also with U.S. government officials. Some people claim that Libra is not a blockchain, while others claim that it is going to kill Ripple, XRP and other similar blockchains. However, Jameson Lopp had a different view, claiming that the Libra blockchain has not solved massive problems that Ethereum has.
Lopp in his Medium article dissected the whitepaper and stated that the Libra Blockchain will be controlled by a set of authorities in a top-down fashion and that it will eventually move from a permissioned to a permissionless blockchain. The blockchain will offer a global currency – Libra coin, which will be backed “with a basket of bank deposits and treasuries from high-quality central banks.”
Since the whitepaper mentions that it will eventually move towards a permissionless and an open system, Lopp speculates that it “sounds an awful lot like Proof of Stake” and like Ethereum, it will face the same problems. He said,
“Apparently the plan is to open up membership after 5 years and hopefully they’ll have figured out Proof of Stake by then… I expect they’ll run into the same problems as Ethereum!”
Lopp added that “Calibra Wallet,” which is used to store the Libra coins, is the only wallet that can hold the coins for now and that it will require strict KYC/AML compliance. Since the blockchain conveniently replaces “stablecoin” for “resources,” Lopp speculates that it will concentrate more on smart contracts since it is built on a custom smart contract programming language called “Move”.
In addition to facing similar problems as those faced by Ethereum, the Libra Blockchain is facing more issues from a political and a regulatory standpoint. There was a lot of speculation even before Facebook dropped the whitepaper.
According to Reuters, United States House Financial Services Committee Chairwoman Maxine Waters issued a statement to halt/pause any and all developments on the project, until and after the Congress and other regulatory bodies have finished reviewing it. A senior Republican, Patrick McHenry, is also calling for a hearing on Facebook’s new cryptocurrency.
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