GM Readers!📪 It's BitDegree Insider, and here's the Web3 recipe for today. We've got some news and cool stories. So, since it's Tuesday, let's think of this news as cool facts. Cause that's what they are!
⭐️Today's selection:
- 🏃♀️Paypal Makes A Move
- 🔥Ethereum Whale Burns A Whole Lotta ETH
- 😩Don't Get Lost In The Crypto Maze
- 👌Selected Meme of The Day
- 📰Bite-Sized News
PAYPAL MAKES A MOVE
So, the news is… PayPal has launched its own stablecoin – $PYUSD. So, we've gathered all you need to know.
The issuance of stablecoins is managed by the fintech firm Paxos. This organization was also the issuer of BUSD, until it halted minting in February 2023 due to pressure from US regulators.
Additionally, it's backed by United States dollar deposits, short-term Treasuries, and similar cash equivalents.
PYUSD will always be redeemable for the U.S. dollar and can also be exchanged for other cryptocurrencies on PayPal.
By the way, PYUSD was launched on Ethereum, with more chains to follow. They didn't want to miss out right from the start.
Interestingly, there are rumors that…
PayPal initially wanted to issue its $PYUSD stablecoin on Solana via FTX partnership… but… we all know what happened.
Here's another intriguing fact on this topic:
PayPal can freeze assets in its stablecoin. The new company's stablecoin allows for the freezing and even erasure of the balance of any account. Well… that's uhmm…. not a cool fact, I guess?
Paxos (the issuer of $PYUSD) stated that such measures are expected to be used very rarely. Overall, PayPal dominates the online payment processing market, for instance, a whopping 70% of eBay transactions go through PayPal.
In a way, PayPal launching their stablecoin legitimizes crypto, Web3, and stablecoins for the general public and regulators. However, regulations around stablecoins remain ambiguous in the US, while they differ elsewhere.
So, the future is unpredictable, but it promises to be exciting!
TL;DR: PayPal has introduced its own stablecoin, PYUSD, managed by Paxos, known for BUSD. It's backed by USD deposits and government securities, redeemable for USD or other cryptos on PayPal. Initially planned for Solana via FTX, rumors suggest a change, while its power to freeze assets raises concerns. Despite uncertainties in US regulations, PayPal's entry boosts crypto legitimacy and adoption.
ETHEREUM WHALE BURNS 2,500 ETH
Other way to pen down this headline would be: "Or, an odd ETH transfer in which a user burned $4.5 million."
On July 26th, nd4.eth sent 2,500 ETH to a burn address.
While the whispers about this event started then, the full uproar and fascination only exploded onto the scene recently.
Later on, this user did the same with 1.5 ETH, 34.9 GMX, and 600 GNS (amounting to ~$7,000).
"Burning" tokens essentially means dispatching them to an address where they can't ever be used again, effectively diminishing that cryptocurrency's total supply. Yet, the motivation behind nd4.eth's choice to destroy this vast Ethereum quantity is still enigmatic.
Surprisingly, this isn't the first time they've done this. Previously, nd4.eth sent wETH worth $8,000 to another burn address.
And, despite everything, this user and their address currently hold $3.5 million. The majority of the funds are stored in GMX and GNS tokens, which are staked.
While it's a rare occurrence, there have been moments when individuals unintentionally dispatched crypto or NFTs to burn addresses.
For instance, in the previous March, an NFT enthusiast, Brandon Riley, mistakenly sent his CryptoPunk #685, acquired for 77 ETH ($129,437), to a burn address in the process of wrapping it. We previously covered this mishap!
The motive is still a puzzle, but Ethereum maxis are certainly cheering, seeing the swift supply decrease as a potential value boost for ETH.
TL;DR: In an unusual move, a user burned substantial amounts of ETH, GMX, and GNS tokens, effectively removing them from circulation.
DON'T GET LOST IN THE CRYPTO MAZE
So, someone sent millions worth of ETH to a burn address… while some NFT enthusiast mistakenly did the same with their expensive NFT.
Losing money involuntarily is what makes the essential difference here.
Especially when such mistakes happen due to a mishap of one's memory… (like when Stefan Thomas, the programmer forgot his seed phase and lost access to a wallet with 7,002 Bitcoin in it)
Well, with the help of our friends from Coinstats, you can remove the "cry" from "crypto."
Coinstats is the #1 crypto portfolio manager on the market; they support over 400 of the most popular crypto platforms and display them in one dashboard.
Don't get lost in the crypto maze, make life easier, check out the offer right here!
SELECTED MEME OF THE DAY
BITE-SIZED NEWS
- Bitcoin Leads the Way as Crypto Market Witnesses $107 Million in Outflows. Bitcoin saw a significant pullback, resulting in most of the last week's crypto outflows.
- Cypher Protocol Faces $1 Million Loss Following Security Breach. Yet another exploit shakes the crypto industry.
- Monetary Authority of Singapore Grants Payment License to Blockchain.com. The company became the twelfth entity in Singapore to provide digital payment token services.
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