Altcoin
Binance Founder Proposes New Idea For Token Issuance
has Binance founder Changpeng Zhao (CZ) is reimagining the concept of token issuance in a new proposal. CZ theorizes a smart contract-controlled unlock for tokens designed to prevent flooding the market with new tokens.
Binance Founder Explores New Standards For Tokenomics
Under CZ’s proposal, only 10% of tokens will be unlocked for sale with the remaining 90% remaining untouched. The Binance founder says the proceeds for the 10% will be deployed for development costs, marketing, salaries, and community building.
A key feature of his “crazy idea” involves strict conditions to be fulfilled before future token unlocks. He argues that issuers must wait for six months after the previous unlock before proceeding with a new unlock.
However, the token price must have doubled its previous unlock price for over 30 consecutive days before the next unlock. According to the Binance founder, token issuers will be allowed to unlock a maximum of 5% of the total holdings each time.
While the maximum unlock is pegged at 5%, the project team has the right to reduce and delay the unlock sizes. Unlocks have the potential to send token prices crashing, accentuated by the incoming $2 billion SOL unlock and tumbling asset price.
“If they don’t want to sell more, they don’t have to,” said CZ. “But the maximum they can sell each time is 5%, and then they have to wait for at least another 6 months AND the price to double again.”
Incentivizing Long-Term Builds And Preventing Token Rug Pulls
Right off the bat, the upsides to CZ’s proposal are clear as a strict vesting schedule prevents early dumping. Improper tokenomics standards have fuelled a wave of exit scams in the cryptoverse with the Libra token crash leaving a sour taste in the mouth of investors.
CZ’s idea involves locking tokens with a smart contract and an independent third party controlling the keys.
“This avoids new tokens flooding the market when prices are low,” said the Binance founder. “It also gives the project team incentives to build for the long term.”
Zhao has previously expressed his displeasure over sharp practices in the space, pledging support for memecoin victims. CZ clarified that he has no plans to launch a new token and that the theory is open for discussion.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Ripple CEO Brad Garlinghouse has commented following Donald Trump’s announcement of a crypto strategic reserve. The US president revealed that the reserve will include Ripple’s native token XRP, leading to a massive surge for the crypto.
Ripple CEO Comments As Trump Includes XRP In Strategic Reserve
In an X post, the Ripple CEO appreciated Trump’s vision of a government digital asset reserve while reaffirming what the crypto industry could achieve if everyone worked together. He further stated that maximalism is the enemy of the industry’s progress. This statement seems directed at stakeholders criticizing the inclusion of other crypto assets besides Bitcoin in the strategic reserve.
Garlinghouse also remarked that it glad to see the US president recognizing that market participants live in a multichain world and that the industry is finally moving past Bill Hinman and the Biden’s administration’s SEC “very broken thinking.”
Earlier today, President Donald Trump announced a strategic reserve that will include Solana, Cardano, and XRP. The president later confirmed that the reserve will also include Bitcoin, Ethereum, and other “valuable cryptocurrencies.” The crypto market rebounded on the news, with SOL, ADA, and the XRP price among the top gainers in the last 24 hours.
Criticisms Against The Strategic Reserve
Amid the Ripple CEO’s comment, there have been criticisms around the inclusion of other cryptocurrencies besides Bitcoin in the strategic reserve. In an X post, Alex Xu, a research partner at Mint Ventures, suggested Trump’s inclusion of SOL, ADA, and XRP will weaken the idea of a Bitcoin strategic reserve and even reduce the chances of the US Congress approving the Bitcoin reserve bill.
Bitcoin critic Peter Schiff also criticized the inclusion of other cryptocurrencies in the strategic reserve. He stated that although he disagrees with it, he gets the idea of a Bitcoin strategic reserve. He explained that there is a gold reserve, and since Bitcoin is labelled as digital gold, it also makes sense to create a reserve around the flagship crypto.
However, on the other hand, he questioned the rationale for an XRP reserve and why the US would need it. In response, Cardano founder Charles Hoskinson stated that there is a need for one because XRP is a “great technology, a global standard, survived for a decade through many cycles, and has one of the strongest communities.” He further opined that the president made the right decision.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
While conversations for a Bitcoin Strategic Reserve have been swirling in crypto circles, US President Donald Trump has confirmed his administration’s intention to proceed with the offering. Rather than put all its eggs in one basket, Trump is eyeing a Crypto Strategic Reserve including altcoins XRP, SOL, and ADA.
President Trump has announced plans to launch a US Crypto Reserve that will include BTC, XRP, SOL, and ADA. The President has since directed the Presidential Working Group on Digital Assets Market to proceed with the establishment of a Crypto Strategic Reserve.
“A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” said Trump on X.
This is a developing story.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The crypto market has concluded another week with riveting price actions, keeping traders and investors on their toes. Bitcoin (BTC) price hit a $78K low before regaining back the $85K level, whereas altcoins mimicked the same volatile trend. Notably, the broader market volatility occurred due to macroeconomic heat and liquidity setbacks, urging a panic-selling sentiment among market participants.
Mentioned below are some of this week’s top crypto market updates reported by CoinGape over the past week.
Crypto Market Updates: Bitcoin & Altcoin Prices Ride Rollercoaster
BTC price closes the week near the $85K level after touching a $78K low in the past seven days, as mentioned above. Further, Ethereum touched a $2100 level low this week. Solana saw a trading session at the $130 level. XRP price slipped to even lose $2 in the past seven days.
Notably, the waning action comes against the backdrop of macro developments causing trade war tensions. U.S. President Donald Trump is set to forge ahead with new tariffs on Canada, Mexico, and the EU. As a result, global markets took a hit, with even the crypto sector mirroring a slump.
Moreover, CoinGape reported that the recent crypto market crash is also attributable to massive liquidations. The market saw over $1 billion in liquidations in just a day, with billions liquidated this week. Traders and investors further reflected a panic-selling sentiment amid massive liquidations.
Nevertheless, BTC and altcoins showcased signs of recovery, with the flagship coin nearing $85K and ETH price closing the week near $2,200.
Heightened Whale Activity Sparks Speculations
Simultaneously, crypto whale activity rose substantially amid the recent market volatility, sparking market speculations. CoinGape reported that Dogecoin whales embarked on a massive buying spree amid DOGE price dip, signaling gains imminent.
On the other hand, Solana whales also bought the recent dip, indicating price gains for the crypto looms. SOL whales’ also unstaked massive amounts amid the current volatility, adding a layer of intrigue among market participants.
Also, Ethereum whales have taken on a buying spree, accumulating heavily amid the recent dip. Altogether, the massive accumulations signal renewed market interest in cryptocurrencies after the recent market turmoil. Traders and investors continue monitoring prices for further shifts.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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