Connect with us

Ethereum

Ethereum (ETH) Vitalik Buterin on Desired Property of Fairness in NFT Sale

Published

on

Vitalik Buterin recently expressed his thoughts on the “mechanism design” for the sales of limited-supply items like the NFTs and tokens but also about stuff that is inherently blockchainy. He has been contemplating on how to do better than the existing sales, which will sell out quickly to create big and annoying splats in the gas market.

He points to market-clearing price, which is the price at which the amount the buyers are willing to buy exactly equals the amount the seller has to sell. When the seller is not clear about the market-clearing price, the seller should sell through an auction.  The market determines the price through an auction.

When the seller is selling below the market-clearing price, it sacrifices profits. Also, buyers who are willing to pay a reasonable price for the property do not have the opportunity to buy it as the product below the market-clearing price is sold out.

Advertisement

Selling at below market-clearing price is an inefficient approach, and the demand exceeds supply. So some people will buy it and others will not.

He recollected the capped sale during the ICO craze of 2017, when people were willing to pay higher and higher gas price to have their transactions processed quickly, and the sale closed quickly in just 30 minutes. Thus, revenues were going to the miner than the token seller. Different strategies were tried to prevent gas price auctions. Now, NFTs are popular, but they have not learned a lesson from 2017.

NFTs are now making fixed supply sales like ICOs, and buyers are fighting to pay higher gas prices to get in first. Thus, selling below market price is not a new phenomenon; it has been existent forever. Several sellers are not willing make use of auctions or set prices for market-clearing levels.

Advertisement

The important concern in the process is locking poorer people out or losing fans due to the lack of fairness in price.

The auction, like a sale, creates a perception of “greed” about the seller.  Products selling out while there are still long lines waiting to buy make the product more attractive to those who are still waiting in the line to buy the product.

Some buyers like the idea of grabbing up a limited set of opportunities before everyone else can take them as being a lot of fun.

Advertisement

He also points to:  “The most basic rule of community sentiment management is simple: you want prices to go up, not down. If community members are “in the green,” they are happy. But suppose the price goes lower than what it was when the community members bought, leaving them at a net loss. In that case, they become unhappy and start calling you a scammer, and possibly creating a social media cascade leading to everyone else calling you a scammer.”

So, to avoid this situation, the sale price is set very low, but the post-launch market price will be high.

So, With NFT sale, the desired properties are fairness, not creating races, not requiring fine-grained knowledge of market conditions, providing buyers with positive expected returns, and making the sale part fun.

Advertisement

News Source

Ethereum

Ethereum Price Prediction: ETH bears contemplate a drop to $2450

Published

on

  • ETH price is building up downside pressure while clinging to the 200-SMA support.
  • RSI remains flat below the midline, keeping the sellers cheerful.
  • A drop towards $2450 remains in the offing if the 200-SMA caves in.

Ethereum, the no.2 widely traded digital asset, remains under pressure for the second straight day, consolidating Friday’s steep losses.

ETH price snapped its two-day rebound from monthly lows of $2651, as it got sold-off into the latest Chinese crackdown.

The People’s Bank of China (PBOC) on Friday declared all cryptocurrency transactions as illegal, imposing a ban, which saw over $400 million worth of tokens liquidated within 24 hours. Ethereum lost as much as $420 at one point before recovering to $2930.61 at the close.

At the press time, ETH/USD is trading almost unchanged on the day around $2900, having bounced off from daily lows at $2800.

Advertisement

Ethereum price defending 200-SMA but for how long?

Ethereum’s 12-hour chart shows that the price is wavering in a narrow range, remaining in close vicinity of the daily troughs, as ETH price is not out of the woods yet.

Having witnessed good two-way volatility recently, ETH price maintains its range play, with the bearish 21-Simple Moving Average (SMA) at $3185 capping the upside.

Meanwhile, the 200-SMA at $2734 continues to offer support to ETH bulls. However, with the Relative Strength Index (RSI) still holding below the midline and bear cross in play, the path of least resistance appears to the downside.  

Advertisement

Note that the 21-SMA breached the 100-SMA from above, confirming a bear cross on the said time frame on Thursday.

Once the 200-SMA gives way, a test of the horizontal trendline support at $2450 cannot be ruled out. The $2400 round number would be next on the sellers’ radars.

ETH/USD: 12-hour chart

On the upside, immediate resistance is placed at the 21-SMA, above which the horizontal 100-SMA at $3305 will be put to test.

Advertisement

ETH buyers will seek fresh entries above the latter, paving the way towards the downward-pointing 50-SMA at $3418.

News Source

Advertisement
Continue Reading

Ethereum

ETH Locked in DeFi on Historic Highs: Details

Published

on

Total number of Ethers utilized in various decentralized finance protocols spiked over 7.3 million

After a massive plunge in TVL, a decentralized finance ecosystem has recovered to observe some breathtaking metrics.

7,830,000 Ethers locked in DeFi

The net number of Ethers locked in various decentralized finance protocols spiked 12% in the past ten days. On Sept. 15, 2021, this indicator bottomed at a two-month low of about 6.95 million Ethers.

Advertisement
More than 7.8M Ethers are locked in DeFi segment
Image by DeFi Pulse

As displayed by mainstream decentralized finances segment tracker DeFi Pulse, the total quantity of Ethers in all indexed protocols nets 7.8 million Ethers.

Aave Finance (AAVE), Compound Finance (COMP), Instadapp, Uniswap (UNI), Curve Finance (CRV) are the most popular protocols in terms of TVL.

The five leading DeFis are responsible for almost 6.9 million Ethers, or 85% of net TVL, tracked by DeFi Pulse.

Yearn.Finance (YFI), Rari Capital (RGT) are on fire

In the last 24 hours, two DeFi protocols, Yearn.Finance (YFI) and Rari Capital (RGT), registered double-digit gains.

Advertisement

At the same time, the Ethereum 2.0 deposit contract targets almost the same numbers. As of Sept. 25, 2021, it has amassed 7.77 million Ethers.

Amid the current Ethereum (ETH) price dip, this massive amount of value is equal to $22.7 billion. To provide context, this sum can be compared to the market capitalization of Telenor, Credit Suisse, Suzuki and Warner Music Group.

News Source

Advertisement
Continue Reading

Ethereum

Ethereum Network Activity is Stagnant while ETH Price Hovers Below $3k Level!

Published

on

Ethereum price fell amid a broad selloff in the cryptocurrency market, fueled by fears of a brewing property bubble collapse in China. 

There’s a lot of fear and uncertainty in the crypto market right now. With news that China has officially declared all cryptocurrency transactions illegal, the Ethereum price, like the rest of the market, is under attack.

Ethereum Price Analysis:

The Major altcoin has lost 5.76% in the last 24 hours. Although it is now seeking to construct a firm support base at $3000. ETH Price had a tumultuous start, rising to an intraday high of $3,114 in the early morning before reversing course. 

Advertisement

To reach the first big resistance level at $3,149, Ethereum would have to break past the $2,942 pivot. Support from the larger market, on the other hand, would be required for Ethereum to reclaim the $3,100 barrier. Unless there is a sustained crypto rally, the first significant resistance level and Friday’s high of $3,160.48 will likely act as a ceiling on the upside.

Network Activity is Stagnant

According to Santiment, most speculators are shifting away from Ethereum (ETH) in pursuit of better options with larger returns on investment. 

Exchanges are seeing an influx of Ethereum, implying that people are selling their holdings in response to the recent marketwide crypto slump. 

Advertisement

Santiment claims that network growth has been static for several months before the price of ETH fell.

This is attributed to growth in other Layer-1 initiatives like Avalanche (AVAX), Fantom (FTM), and Cosmos (ATOM), as well as decreased speculation in the non-fungible token (NFT) market.

News Source

Advertisement
Continue Reading

Trending