How do crypto projects make money? 💰

⠀

Blockchain projects have become a radically new "business model" that has enormous potential to change any industry. And for the investors attracted to the projects, it is the potential that will later be realized in the form of profit that is an important factor when investing funds. The question arises: thanks to what do cryptoprojects generate income?

➡️ Mechanism for receiving and distributing blockchain funds (using Ethereum as an example):

Ethereum, like most other blockchains, consists of a network of validators, smart contracts, and users. When a user interacts with the network, they pay a transaction fee, also known as a "gas fee." A fee, a certain portion of which is "burned off" and another portion is given to the validators.

➡️ Common metrics for most projects when calculating the financial part:

Fees (gas fees): these are fees that users pay for using a protocol or network (gas fees in Ethereum, transaction fees in Uniswap, etc.). The fees are distributed as follows:

- A portion is given to validators who help run the network (validators on Ethereum, liquidity providers on Uniswap, etc.).

- Some of the money goes back to the token holders (often through token burns).

- Another type of expense is the creation of new tokens, which are created and paid to validators or miners.

But if we look at projects like CEX/DEX, the list of revenue sources can add:

- listing fees;

- withdrawal fees;

- market making possibilities.

➡️ What kind of product do blockchains create?

The product of any blockchain is the individual blocks in which transaction data is stored. If you want to complete a transaction, you need to buy space on the next block in the chain.

Let's take bitcoin as an example. Bitcoin has a memory capacity of 1 MB per block. There are 500 to 2,000 transactions per block, with a minimum storage size of 258 bytes. And in order to make a bitcoin transaction, you buy a block in its blockchain.

➡️ Ethereum, on the other hand, has smaller blocks - up to 80 KB. Depending on its complexity, its block can store from 2 to 200 transactions. Ethereum is much faster: in 10 minutes it carries out 4 MB of transactions, while Bitcoin has only 1 MB. More transactions per hour = more revenue (i.e. commissions).

186 banks have the same risks as Silicon Valley Bank 😬

☝🏻 Economists evaluated the portfolios of assets and losses in market value of US banks, as well as the percentages of bank financing.

If half of these uninsured depositors quickly withdraw their funds from any of these 186 US banks, even insured depositors may face devaluation. This is due to insufficient assets available for all depositors. In such cases, FDIC intervention may be required.

🗣️ "Calculations show that these banks are certainly susceptible to potential run risk absent other government intervention or recapitalization."

The FED has started the money printing machine again! 🚨💸

The Fed added $0.3 trillion ($300 billion) in assets to its portfolio last week.

The last and only time they added a larger sum ($0.5 trillion) in a week was just after the COVID crash (March 2020) --> The price of bitcoin multiplied after that over the next 12 months by 15x.

#Crypto

SVB collapses, USDC depegs, Bitcoin still up

Turmoil in traditional finance spilled over into Bitcoin and crypto markets, forcing federal regulators to step in.

🇪🇺 EU Parliament member says "if a government bans drugs, it should also ban crypto."

"Enforce a strict ban" on Bitcoin and crypto. It's "speculative poison."

👉🏻 The suits are scared! 🤡

#Crypto

⁠Bitcoin price hits $27K in new 9-month high as Fed injects $300B

Bitcoin bulls attempt to break higher as Fed liquidity upends quantitative tightening in place since 2021.

In one week the FED undo months of hiking. The money printer goes brrrrrrrrr

Bitcoin surpasses $27,000 for the first time since June, 2022.

🤭 Truck advertising bitcoin next to bankrupt banks

A truck advertising bitcoin near the headquarters of the bankrupt bank Silicon Valley Bank in California produced a fupop.

The action was organized by bitcoin supporter and street artist Cruptograffiti. He put on the side of the machine a photograph of Jerome Powell with a sign "buy bitcoin" and the slogan "become your own bank."

🥳 Britain may ban TikTok by officials over app links to China, British Prime Minister Rishi Sunak.

A TikTok spokesperson expressed disappointment with the possible ban and noted that such decisions are based on unfounded fears.

Previously, a ban on the use of TikTok by officials was introduced in the United States.

👍CYPHERIUM is pumping). Currently trading around $0.12 on the XT exchange (x10 from the purchase price).

P.S. Bought at $0.01-0.015.

📕New cover of The Economist March 18th - 24th ("What's wrong with banks?")

How soon will we see a Bitcoin spot ETF in the U.S.?

Useful services in crypto | 🔤

⠀

We prepared a list with different sites for real crypto! We tried to make this list as diverse as possible, so absolutely everyone will find something useful here, so feel free to share it with your friends!

(Be sure to keep it in your notes)

Here are services every self-respecting cryptan should have in his arsenal 🧠

◾️CoinmarketCap

The site provides information about all tokens, gives smart contract numbers, brief information about projects and a general summary of the capitalization of the whole market.

◾️Crunchbase

A mega-cool service that provides information on investments, funding, founders and CEOs, mergers and acquisitions, news and industry trends. A tip: find a fund we are interested in, look at its recent investments and based on them select projects for early activity.

◾️Coinmarketcal

A calendar of current crypto events. Users and can vote for the validity of the information, and officials confirm / deny it.

◾️Poocoin / Dextools

These aggregators will help in bep20 and erc20 networks to search and trade tokens which are not traded on exchanges. Extremely useful if you're trading shieldcoins that just came out.

◾️TradingView

Considering that many exchanges can block access to them, thanks to tradingview you can follow the rate of absolutely any coin, and look at the history of token since the start of listing on any of the exchanges. Also, it is a very handy service if you are a novice trader/investor.

◾️Defillama

Decentralized aggregator with general information about TVL in different networks and general information about projects providing farming/stacking opportunities. You can choose projects which already have a lot of liquidity + passed the audits. What will increase the safety of your funds.

Write 🔥 if the post was helpful to you!

#NFT in the #Bitcoin network - a new hype 🙅‍♂

⠀

You put a lot of reactions to the post about "Bitcoin ecosystem". Which means it's time to dive a little deeper and explore the Ordinals protocol. Some of the words in the post may not be clear to you. But remember, you can always ask a question in the comments and we will try to answer it as extensively as possible!

➡️ A new Bitcoin Ordinals protocol has made it possible to add pictures to the bitcoin blockchain. The creator of the protocol, Casey Rodarmore, calls them "digital artifacts.

Many analysts criticize this "update" because the pictures increase the load on the network and increase the cost of transactions. The hype around this story is growing because many people want to get NFT on BTC network without thinking too much.

➡️ Speculators are already launching their collections. The number of picture mines is growing rapidly. First of all, high-profile collections are launched, for example with bitcoin punks or domain names.

Here are a few already existing projects:

⚫️#BitcoinShrooms - first 100 entries created, could potentially be a top story.

⚫️#InscribedPepes - collection of 69 pictures of Pepe the Frog, traded above 1 BTC, you may encounter fake sales.

⚫️#BTCToadz - created up to 5,000 entries, includes 111 frog pictures.

⚫️#Punks On Bitcoin - collection with a saple of 10K.

↪️ In a wave of hype, the number of collections is likely to grow in the near future, and the crypto media will fuel interest. But this story could end quickly, as the mint process here is very complicated and the number of buyers is limited. Be sure to do your analysis before you buy something, there is enough scam here as well.