Mark Cuban breaks down the DeFi ecosystem and how he profits from ‘yield farming’ in a new blog. Here are the 8 best quotes.

mark cuban

Mark Cuban made the majority of his fortune selling Broadcast.com to Yahoo! for $5.7 billion in stock near the height of the dot com bubble. Now, the billionaire owner of the Dallas Mavericks says he is earning money another way – through yield farming.

Cuban has become a liquidity provider on DeFi (Decentralized Finance) exchanges, where he earns rewards for enabling users to swap between tokens. The “Shark Tank” star said he is seeing annualized returns of over 200% from the tactic in some cases.

DeFi is an umbrella term that refers to blockchain-run, decentralized financial applications that are seeking looking to muscle into territory held by traditional financial intermediaries like banks.

Cuban broke down his entrance into DeFi in a new blog, highlighting the advantages of what he calls “a model for future technology businesses and possibly all businesses.”

Here are the billionaire’s eight best quotes from the blog, lightly edited and condensed for clarity.

  1. “In a money exchange business, or even a banking business, you have to have the financial depth to be able to offer the range of needed currencies and services. You need to be able to afford to hedge the risk of pricing volatility between currencies. If you want to do this business with scale, across the world, it can be very expensive and risky. Not for DeFi Exchanges. What makes running a DeFi exchange so much better than a traditional centralized financial business of this and ANY kind is that rather than the owners of the business, investors, and their creditors putting up capital for all the transactions to take place, Liquidity Providers (LPs) do it for them.”
  2. “I’m a small LP [liquidity provider] for QuickSwap. I provide 2 different tokens (DAI/TITAN) that enable QuikSwap to offer swaps between these two tokens. As you can see here, this pair is one of many, and you can also see that based on the .25 pct of volume in this swap that Quickswap pays, my return on my initial $75k investment(based on fees only) as of this writing, is an annualized return of about 206%.”
  3. “So in exchange for providing the Liquidity both TITAN and Quickswap need for their businesses, I get .25 of the transaction volume for swaps between these two tokens. As long as I keep making a good return, I will keep my money invested (Volatility can create mark to market losses). If not, I can immediately withdraw it (some platforms have a hold period or penalties). Have enough LPs, and the exchange is far more capital efficient than a similar traditional exchange business, and I get to make some money!”
  4. “Consider Dave & Buster’s tokens. When you buy their tokens, you can only use them in their arcades. You can’t use them at others. One of the foundational businesses of DeFi is the ability to exchange the tokens of one project for those of another. That is why they call them Exchanges. And if the exchange is Decentralized, they call it a…DEX.”
  5. “Every business or financial software service or application business has cloud computing and operating costs that very often grow faster than their revenues. This is not a surprise, it is exactly why software companies raise significant amounts of capital in order for their “software to eat the world.” Companies like Polygon’s capital needs are very different. Why? Because rather than building their business exclusively on a cloud computing platform like AWS, their businesses are decentralized. The foundation of decentralization is built upon an independent party…putting up their own capital to provide computing resources in order to support the network platform.”
  6. “Any other business you have to raise a s–t load of money in order to host your own servers, or more likely pay for cloud computing costs which can be insanely expensive for compute-intensive applications and just as expensive for scaling heavy use applications. Plus, you have to hire all the people, have the CapEx to support them, etc. In the decentralized crypto world, these 3rd parties (minors, validators, etc.) provide the computing power that effectively runs the platform in exchange for rewards in the token of that network.”
  7. “If Polygon, or any of their competitors, took a traditional, centralized business path where they controlled and owned everything, they would have had to raise not just millions but potentially much, much more. Instead, they create a near-zero cost token that they distribute in accordance with the tokenomics they defined to their community.”
  8. “That is not to say that every crypto blockchain or DeFi project will work. They won’t. These facts are not a secret in the crypto world. There is an incredible amount of competition. So much, in fact, many, if not most, will not work. They will not get enough users or generate enough fees to succeed. Crypto is brutally competitive. But in crypto vs. traditional, centralized businesses, all other things being equal, I’m taking crypto every time.”
Read the original article on Business Insider

Nvidia CEO Jensen Huang talks about the value of ethereum, advances in crypto mining and the global semiconductor shortage in a recent interview. Here are the 10 best quotes.

Jensen Huang - Nvidia CEO Jensen Huang speaks during a press conference at The MGM during CES 2018 in Las Vegas on January 7, 2018.
Nvidia CEO Jensen Huang

  • Nvidia CEO Jensen Huang spoke to a group of journalists at the Computex IT conference.
  • He said ethereum will be valuable due to its scalability and credibility in areas including DeFi.
  • He also spoke about Nvidia’s role in the future of crypto mining and said he believes a metaverse is imminent.
  • See more stories on Insider’s business page.

Jensen Huang, the CEO of chip and graphics card producer Nvidia, recently spoke to a group of journalists at the IT expo Computex about his views on ethereum’s value, how Nvidia’s products fit into the crypto ecosystem and why he thinks we’re on the cusp of creating a metaverse in an interview published by VentureBeat.

Nvidia’s graphic processing units are top-level graphic cards that also have crypto mining capabilities. Huang, a big proponent of artificial intelligence, unveiled a lower resolution graphics card at the conference that has been designed specifically for crypto mining. He also addressed the global chip shortage, Nvidia’s role in it and whether he believes the Chinese government will interfere in the development of artificial intelligence.

Here are Huang’s ten best quotes from the interview, lightly edited and condensed for clarity.

  1. “Am I excited about proof of stake? The answer’s yes….Ethereum has established itself. It has the opportunity now to implement a second generation that carries on from the platform approach and all of the services that are built on top of it. It’s legitimate. It’s established. There’s a lot of credibility. It works well. A lot of people depend on it for DeFi and other things. This is a great time for proof of stake to come.” – on the opportunities ethereum provides and the network’s value for blockchain and crypto.
  2. “We reduced the performance of our GPU on purpose so that if you would like to buy a GPU for gaming, you can. If you’d like to buy a GPU for crypto mining, either you can buy the CMP version, or if you really would like to use the GeForce to do it, unfortunately the performance will be reduced.” – on how Nvidia is trying to decrease graphic card prices and why they developed CMP.
  3. “We’ll just keep working with our supply chain to inform them about the changing world of IT, so that they can be better prepared for the demand that’s coming in the future. But I believe that the areas that we’re in, the markets that we’re in, because we have very specific reasons, will have rich demand for some time to come.” – on managing the ongoing global shortage of semiconductors.
  4. “It’s now established that ethereum is going to be quite valuable. There’s a future where the processing of these transactions can be a lot faster, and because there are so many people built on top of it now, ethereum is going to be valuable. ” – on the outlook for the ethereum network based on its scalability.
  5. “I believe we’re right on the cusp of it. […] There will be many types of metaverses, and video games are one of them, for example. […] We’ll see this overlay, a metaverse overlay if you will, into our physical world.” – on when and how a metaverse will become real.
  6. “You need that blockchain to have some fundamental value, and that fundamental value could be mined. Cryptocurrency is going to be here to stay. Ethereum might not be as hot as it is now. In a year’s time, it may cool down some. But I think crypto mining is here to stay.” – on the future of crypto mining and blockchain networks.
  7. “I believe that there will be a larger market, a larger industry, more designers and creators, designing digital things in virtual reality and metaverses than there will be designing things in the physical world. […] The economy in the metaverse, the economy of Omniverse, will be larger than the economy in the physical world. Digital currency, cryptocurrency, could be used in the world of metaverses.” – on his vision for the omniverse that Nvidia is developing.
  8. “My sense is that we’re welcome in China and we’ll continue to work hard to deserve to be welcome in China, and every other country for that matter.” – on whether the Chinese government will step in and regulate Nvidia’s work on artificial intelligence.
  9. “One of the most important technologies that we have to build, for several of them – in the case of consumers, one of the important technologies is AR, and it’s coming along.” – on the development and accessibility of augmented reality.
  10. “This is the largest market opportunity the IT industry has ever seen. I can understand why it inspires so many competitors. We just need to continue to do our best work and run as fast as we can.” – on the future of the graphics processing unit industry and the competition within it.
Read the original article on Business Insider

How ethereum got its name: Inside founder Vitalik Buterin’s decision to name the world’s most active blockchain after a medieval scientific theory

Ethereum cofounder creator Vitalik Buterin
  • Vitalik Buterin used a medieval scientific theory as inspiration for the name of the ethereum network.
  • The blockchain’s naming origins are detailed in Camilla Russo’s book, The Infinite Machine.
  • Ether is the disproved concept that there’s a subtle material that fills space and carries all light waves.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Vitalik Buterin was inspired by a medieval scientific theory when he came up with the name for the ethereum network, according to Camilla Russo, former Bloomberg journalist and founder of DeFi news platform, The Defiant.

In her 2020 book The Infinite Machine, Russo said that Buterin looked to science fiction terms for inspiration when he wrote the ethereum white paper in 2013.

Buterin was scrolling through Wikipedia when he came across the word “ether,” and remembered this term from a science book he had read as a child.

Ether is the now disproved concept that there’s a subtle material that fills space and carries all light waves. In the 19th century, scientists assumed ether was weightless, transparent, frictionless, undetectable chemically or physically, and permeated all matter and space, according to Britannica.

“Vitalik wanted his platform to be the underlying and imperceptible medium for every application, just what medieval scientists thought ether was,” Russo said. “Plus, it sounded nice.”

He landed on the word “ethereum,” to describe the decentralized protocol.

“Ether” refers to the cryptocurrency of the ethereum blockchain, a fuel that can be used for payments or to power decentralized apps built on the platform.

The theory of ether was abandoned by scientists after Albert Einstein formed the special theory of relativity in 1905, per Britannica. But the use cases for the ethereum protocol are just getting started, crypto experts say.

Read the original article on Business Insider

VanEck files with the SEC for an Ethereum ETF as it waits for the regulator to approve its bitcoin fund

GettyImages 1228507184
Ether is the cryptocurrency of the Ethereum network.

  • Asset manager VanEck has filed to list an Ethereum exchange-traded fund.
  • The firm is seeking SEC’s permission to list shares of its VanEck Ethereum Trust.
  • The SEC delayed a decision on whether to greenlight VanEck’s bitcoin ETF until July.
  • See more stories on Insider’s business page.

Asset manager VanEck is seeking US regulatory approval to launch an Ethereum exchange-traded fund, with the move taking place as the company waits for word on whether it will be able to introduce trading of the first bitcoin ETF in the US.

The VanEck Ethereum Trust would list shares on the Cboe BZX Exchange, according to an S-1 filing with the Securities and Exchange Commission on Friday.

The firm said the trust, in aiming to reach its investment objective, will hold ether, the currency native to the Ethereum blockchain network, and value its shares daily based on the reported MVIS CryptoCompare Ethereum Benchmark Rate. Ether is the world’s second-largest cryptocurrency by market capitalization, behind bitcoin.

VanEck and the Cboe are waiting for the SEC to render a decision on whether it can list a bitcoin ETF, which the asset manager applied for in March. The regulator last week delayed a decision until at least July 17, leaving investors waiting on the US to greenlight the country’s first bitcoin ETF.

Wall Street institutions are increasingly embracing or signaling openness to including cryptocurrency into their operations. This week, S&P Dow Jones index announced the launch of three indices tracking the performance of the bitcoin and ethereum – the S&P Bitcoin Index, S&P Ethereum Index, and the S&P Cryptocurrency MegaCap Index.

Read the original article on Business Insider

Ethereum co-creator Vitalik Buterin is now the world’s youngest crypto billionaire amid ether’s 350% year-to-date surge

vitalik Buterin ethereum

The 27-year-old co-creator of Ethereum, Vitalik Buterin, is now the world’s youngest crypto billionaire after a 350% year-to-date surge in the price of his cryptocurrency.

Buterin’s Ether address, which he disclosed on Twitter in 2018, currently holds 333,521 ETH, worth some $1,125,299,854 as of 8:19 a.m. ET on Wednesday when Ether’s price was $3374.90.

Ethereum’s market cap is nearing $400 billion after a historic run for the second most popular cryptocurrency, which saw it reach heights of over $3,500 per coin before paring gains.

Changpeng Zhao, the CEO of the largest cryptocurrency exchange in the world, Binance, told Forbes there were several factors driving Ether’s meteoric run.

First, the rise of DeFi or, decentralized finance, is pushing more users into assets not held or distributed by central banks generally.

Second, user demand for ether to buy digital assets like non-fungible tokens (NFTs) could be driving prices higher.

“All of these use cases are moving right now, and people need the other coins to do this type of new transaction,” Zhao said. “Ethereum is one of those clear examples. That’s probably why Ether is going up.”

Ark Invest analysts also laid out three reasons why ether is set to continue its bull run in a note to clients on Monday.

The analysts said a rise in institutional investment, strong “on-chain signals” of increasing ETH use, and “imminent protocol upgrades” are set to buoy the coin moving forward.

EX-Ark Invest analyst James Wang even laid out a case for ether to hit $40,000 per coin in a recent interview.

If the cryptocurrency does rise to those previously unimaginable heights, ether’s co-founder Vitalik Buterin would be worth an incredible $13,340,840,000.

Read more: Ex-Ark analyst James Wang breaks down his bull case for Ethereum as its token breaches an all-time high of $3,300 – and explains why it could eventually reach $40,000

Buterin was born in Kolomna, Russia, in 1994 and later moved to Canada with his family, growing up in Toronto. He then briefly attended the University of Waterloo before dropping out after being awarded $100,000 from the Thiel Fellowship.

The Russian-Canadian Buterin then put all his efforts into Ethereum before revealing the cryptocurrency in a whitepaper in 2013.

The Ethereum initial coin offering (ICO) was the second public coin offering ever when it took place in 2014.

If you had bought 100 ETH at the time, it would have cost around $30. That 100 ETH would be worth $337,490 today.

Lately, Buterin has taken to sharing in the success of his cryptocurrency. The ETH founder recently donated roughly $600,000 in ether and maker tokens to a COVID-19 relief fund for India.

Buterin adds his name to a growing list of crypto billionaires including the Winklevoss twins and Sam Bankman-Fried.

Read the original article on Business Insider

Why ether’s 349% rally this year is less hype-driven than previous bull cycles, according to one crypto researcher

Vitalik Buterin
Founder of Ethereum Vitalik Buterin during TechCrunch Disrupt London 2015

  • Ether hit a new all-time high above $3,100 on Monday.
  • Coindesk’s Noelle Acheson said the rally appears to be less-frothy and driven by more fundamental reasons.
  • Anticipation of a network upgrade and a better understanding of Ethereum’s role in decentralized finance is propelling the latest rally, she said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Ether’s current rally is less hype-driven and based more on fundamentals than in previous cycles as investors begin to understand Ethereum’s role in decentralized finance, according to Coindesk’s managing director of research Noelle Acheson.

The cryptocurrency built on top of the open source Ethereum blockchain hit a new all-time high above $3,100 Monday morning in its ninth straight day of gains.

That takes its year-to-date gains to more than 300%, far exceeding bitcoin’s 95% rise in 2021.

While Acheson said part of the price movement upward is likely driven by investors eyeing the round number of $3,000 and jumping in, it’s nothing like the momentum trading Ether saw from retail investors in 2017 during its last bull cycle.

“This time around there seem to be more professional investors involved…and the retail market is better informed about crypto more broadly,” Acheson told Insider.

When Ether reached $1,000 in 2017, just two years after the coin began trading publicly, it was very “inflated” given the fact that Ethereum network didn’t have that many applications built on top of it, she said.

“Now, Ethereum is powering decentralized finance, it’s powering stablecoins, it’s powering part of the NFT universe,” Acheson added, saying that the potential of the Ethereum network is better understood than four years ago.

Decentralized finance refers to a class of new applications that aim to replace traditional financial products – like lending and borrowing, trading, saving, derivatives, and options – through the use of decentralized tech, rather than relying on a company or bank. Ethereum was made for these “DeFi” applications to be built on top of the Ethereum blockchain.

Ether’s price is also going higher as investors prepare for the Ethereum network to undergo a massive upgrade to “Ethereum 2.0” that will improve the network and make it more scalable, Acheson said.

Though she emphasized that this upgrade and further institutional adoption doesn’t guarantee that the price of Ether will continue to go up.

Read the original article on Business Insider

Major banks are increasingly keen on the Ethereum network – and it’s helping ether hit record highs

2021 02 19T000000Z_1488177917_RC2YVL93EI8S_RTRMADP_3_CRYPTO CURRENCY ETHEREUM.JPG

Major banks from JPMorgan to UBS are increasingly keen on the Ethereum blockchain network, and it’s helping the system’s cryptocurrency, ether, soar to record highs.

Ether rose to an all-time high of $2,710 during Asian trading hours, before paring some gains to stand at around $2,672 on Wednesday.

The world’s second-most popular cryptocurrency had risen 15% over the week to Wednesday, according to data provider CoinGecko. It had gained around 260% in 2021 so far, compared to a 87% rise in bitcoin.

The interest from major banks and institutions around the world in the Ethereum network has boosted ether, which is the native cryptocurrency of the network and is used for transactions on it, analysts say.

On Tuesday, Bloomberg reported the European Investment Bank is planning to sell digital bonds using the network’s technology, offering $121 million of debt. The sale will be led by Goldman Sachs, Banco Santander, and Societe Generale, Bloomberg said.

It follows a rise in interest in the blockchain network, on which a range of applications can be built, including non-fungible tokens or NFTs and new technologies in the world of so-called decentralized finance.

JPMorgan, UBS and Mastercard were among the investors in Ethereum development company ConsenSys in a $65 million funding round earlier in April.

“Enterprise Ethereum is a key infrastructure on which we, and our partners, are building payment and non-payment applications to power the future of commerce,” Raj Dhamodharan, executive vice president of digital asset products at Mastercard, said.

ConsenSys has also worked with central banks in France, Australia and Thailand on central bank digital currency projects.

Analysts also say planned upgrades to the Ethereum network to make it more efficient, lower fees and start to destroy coins are helping the ether price.

Dallas Mavericks owner Mark Cuban told the Unchained podcast earlier in April that the move to a more efficient system will mean “the holdback of the impact on the environment will change immediately.”

He added: “That is going to give some people a reason to use Ethereum as a store of value over bitcoin, right there.”

Lex Sokolin, head economist at ConsenSys, said: “We think that Ethereum will become a global digital economy, settling the movement of all types of value across the world, including a meaningful portion of traditional financial services.”

Read the original article on Business Insider