Crypto News: WorldCoin, EU Censorship, Ethereum, NEO & MORE!

Foreign To the coin Bureau Weekly News Roundup Here are the top stories in crypto this Week Crypto Market flop coins and tokens drop In response to a more hawkish fed and Then pop in response to an imminent deal To raise the debt ceiling where is the Crypto Market headed next Important ethereum updates the balance Of ethon exchanges hits a multi-year low While layer 2 transactions soar an a16z Introduces an anonymous voting system What does it mean for eth Dystopian digital ID World coin raises Another 115 million dollars from crypto VCS despite reports of a black market For its scary eyeball scans everything You need to know about this creepy Crypto project Online censorship incoming EU Politicians push for a Twitter Crackdown After the social media platform pulls Out of a voluntary agreement to fight So-called disinformation who will Determine what's true And a closer look at last week's top Performing cryptos and where they could Be headed next all this and More in just A moment Good morning afternoon or evening thank You for tuning in my name is Guy none of What follows is financial advice and Here is the news

Last week the crypto Market traded Mostly sideways again as with the Previous week the primary drivers behind Crypto's price action appeared to be Hawkish rhetoric from the FED which is Bearish and an imminent resolution to The debt ceiling debate which is somehow Bullish more on that in a second now if You watched our video summarizing the Fed's most recent press conference You'll know that chairman Jerome Powell Said that the central bank would be data Dependent when deciding if an additional Rate hike is warranted during their next Meeting which is scheduled for the 14th Of June You'll also note that the fed's favorite Inflation figure is the personal Consumption expenditures index or pce Well the pce for April came in higher Than expected and indeed was higher than The previous month suggesting that a Second wave of inflation could be Breaking over the United States The surprisingly strong economic data Including lower than expected jobless Claims added further evidence to this Possibility As a result investors are now pricing in A more than 50 probability that the FED Will raise rates by another 25 basis Points in June now of course higher Interest rates are bearish On the flip side we have the debt

Ceiling debate which seems to be Approaching a resolution over the Weekend top U.S politicians reached a Quote tentative deal to raise the debt Ceiling this deal is tentative because It still needs to be voted on by other Politicians sometime later this week According to the hill this tentative Deal will increase the debt ceiling for Two years put slight restrictions on Spending and clawback pandemic stimulus That's been unused by States and Government agencies more importantly the Deal doesn't include any new taxes now This is significant because President Biden had stated that he wouldn't Support a debt ceiling deal that didn't Include additional taxes on quote Wealthy tax cheats and crypto Traders The absence of any additional taxes Therefore came as a relief to the crypto Market and could have contributed to the Rally Even so it's strange that the crypto Market rallied in response to the Imminent raising of the debt ceiling That's because the first thing the U.S Government will do is start refilling Its bank account at the fed by issuing New debt via the treasury this could Suck up to 700 billion dollars out of The markets for context crypto is very Sensitive to changes in liquidity AKA Money supply so sucking hundreds of

Billions of dollars out of the markets Could hurt crypto the most This ultimately depends on how the Treasury decides to issue debt if it's Spread out over a long enough period the Effect could be minimal in any case the Issuance of debt will likely cause Interest rates to rise further which Could further depress the market funnily Enough this increase in interest rates Could benefit stablecoin issuers since Most of their reserves are held in U.S Bonds This extra Revenue could find its way Back into crypto consider that tether Recently announced it would be using up To 15 percent of its monthly profits to Buy BTC Increase profits for stablecoin issuers Could also benefit eth that's simply Because most stable coins in circulation Exist on ethereum this means that Stablecoin issuers have a vested Interest in developing ethereum's Ecosystem as much as possible and this Development will eventually reflect in Eth's price This is probably why the balance of Ethon exchanges recently hit multi-year Lows Holders are huddling in preparation for The next crypto Bull Run and they're Reportedly doing this by staking their Eth this makes sense considering that

Staking rewards recently spiked due to Meme coin fees What's interesting is that the declining Balance of ethon exchanges could lead to Ever greater volatility in both Directions that's because the less ether Is on exchanges the easier it is to push Ether's price up or down note that the Balance of BTC on exchanges has recently Resumed declining as well so this begs The question of how much more volatile Eth's price would be if most of its Transaction activity were taking place On the main chain For reference transaction volumes on Ethereum's layer twos have spiked Recently according to l2beat the tvl on Layer 2s recently hit 10 billion dollars And remains High If you watched our video about Ethereum's scaling Solutions you'll know That they essentially consist of Processing bundles of transactions off Chain and periodically submitting these Bundles of transactions to the main Chain for security obviously submitting These bundles to the main chain costs Eth according to data from the Block Layer 2s spent a record amount of eth For so-called mainnet publishing fees in May and the month isn't even over yet Now the caveat is that these main net Publishing fees are mounted to 9000 eth Which is only worth around 16 million

Dollars at today's discounted prices The caveat to the caveat is that Ethereum's adoption has only just begun While these layer 2s aren't generating As much each demand as main chain Transactions the continued adoption of Both ethereum and its layer twos will Eventually generate enough East demand To send it to all-time highs as such This begs the bigger question of who Will govern ethereum and its layer twos As it evolves to become the backbone of The new Financial system The answer will likely be the largest Eat holders and the governance token Holders of these layer twos For the latter category that is mostly Crypto VCS as it so happens crypto VC Firm Andreessen Horowitz AKA a16z Recently revealed an anonymous voting System for ethereum called cicada in Short it uses zero knowledge proofs to Make a voter's decision unknowable until Voting is over it also makes it possible To hide the identity of the person Voting there's no doubt that this kind Of tech is in high demand from crypto VCS like a16z For those unfamiliar crypto VCS have a Significant influence in governance Processes for example a16z recently Voted against a proposal to deploy uni Swap on the BNB chain it raised a lot of Questions to say the least

Regardless of the motivation it's clear That this kind of tech is required for The next generation of crypto governance But it's not the only Tech required a Decentralized digital ID of some kind is Also needed to move away from the Current one token equals one vote system And this is the niche that worldcoin is Trying to fill now if you watched our Video about worldcoin you'll know that It was founded by Sam Altman the Co-founder and CEO of openai Worldcoin first went viral last year Because of its approach to digital ID Which effectively involves paying people In the Project's token to scan their Eyeballs using an orb that resembles Something out of a Kubrick film Besides the fact that worldcoin's token May not have any meaningful value lots Of ethical questions have also been Raised about paying people to scan their Eyes naturally it's resulted in lots of Poor people lining up to look into the Orb multiple reports now suggest that Wealthy investors in Asia and elsewhere Have started purchasing these digital ID Iris scans from people in poor countries For as little as twenty dollars a pop Worldcoin has reportedly denied the Issue is widespread and has taken Measures to prevent this kind of Identity fraud this problem also didn't Deter a16z and other crypto VCS from

Piling an additional 115 million dollars Into World coins coffers this brings the Project's total funding to 140 million Dollars Now to put things into perspective Worldcoin has only onboarded 2 million Users it was expecting 1 billion by 2023 Worldcoin's end game is to create a Global Universal basic income that Sam Hopes will be paid for using the profits Generated from AI this outlandish Vision Has resulted in lots of criticism from The crypto industry with coindesk saying That the recent VC investment is Evidence of quote intellectual decline However it's quite possible that the Recent investment has more to do with The infrastructure that underlies Worldcoin rather than the project itself The recently released worldcoin app Leverages polygon and will likely Leverage other layer twos and scaling Solutions that these VCS have invested In Worldcoin's use of these layer twos and Scaling Solutions is why it's arguably Inappropriate to refer to its digital ID As decentralized aside from the fact That storage of the iris scans is Unclear you'll recall that crypto VCS Have significant control over these Blockchains which are themselves fairly Centralized Still some would say that world coins

Initiative is a step in the right Direction For crypto governance to evolve it needs A truly decentralized digital ID one That is not reliant on an ID issued and Managed by a centralized Authority such As a government otherwise it's no Different from a centralized stablecoin Scanning a person's iris is one possible Approach given that everyone's iris is Unique although there are multiple Loopholes to this kind of ID system Worldcoin might prove that it's possible All that will be left to do is create a Truly decentralized alternative before Governments create their own digital IDs On that note if you've watched our video About digital ID you'll note that Governments around the world are Currently in the process of rolling out Their even more dystopian versions You'll also note that most of them will Be rolled out by 2025 in conjunction With the un's digital strategy for 2022 To 2025. the only unknown thing is what The governments will do to force digital ID adoption a crisis of some kind is a Good candidate the pandemic passports Were basically a dry run However the justification for digital ID Mandates could be as basic as combating So-called disinformation on social media By now most of you will know that Buzzwords like disinformation and

Misinformation are often codes for stuff That your government doesn't like However the explosion in generative AI Technologies has reportedly resulted in Lots of genuine disinformation and Misinformation on social media fake Stuff since chat GPT was released late Last year there's been no shortage of Reports about how AI could be used to do Things like manipulate elections just Recently binance's Chief security Officer warned that AI deep fakes are Getting better at spoofing the kyc Process to create an account on the Exchange this is truly terrifying Because it means that all the kyc Verification we find on other platforms Could soon be compromised It also means that any kyc self-imposed By social media platforms would be Insufficient to combat AI this would Result in demand for a new kind of user Verification process you can bet that Governments will present their Centralized digital IDs as the only Solution and it appears that the first Group of governments to go down this Path will be in the EU that's because of Its Digital Services act which is Supposed to go into Force sometime this Summer if you watched our video about The online censorship laws being Introduced around the world you'll note That Digital Services act creates de

Facto ministries of Truth in every European country these ministries of Truth will require social media Platforms to censor certain content or Else face large fines Ever since Elon Musk took over Twitter EU officials have been warning him that His Free Speech stance is incompatible With the provisions in the Digital Services act their anti-twitter rhetoric Ramped up last week when Twitter Announced it would be leaving the eu's Voluntary disinformation code of Practice Thierry Breton one of the biggest Proponents of the Digital Services act Tweeted that Twitter had left the code But quote obligations remain you can run But you can't hide Beyond voluntary Commitments fighting disinformation will Be legal obligation under hashtag DSA as Of August 25. Vera girova one of the Architects of the Digital Services act Also tweeted quote Bye Bye Birdie Hashtag Twitter has chosen a hard way to Comply with our digital laws in June I Will meet signatories so we can step up Our actions especially ahead of the Elections our teams will be ready for Enforcement This not only suggests that social media In the EU will be heavily censored after The 25th of August but that the eu's Censorship efforts will focus on the

Upcoming elections in the United States Thankfully there was plenty of pushback Against these comments most of them Pointed out that the EU is acting just Like the USSR now the Silver Lining to This censorship is that it will be Bullish for decentralized social media Turning to the charts we can see that BTC has yet to confirm a bearish Breakdown of The Head and Shoulders Pattern that everyone's been watching For weeks there's no clear Trend or Pattern on The Daily or weekly chart so It really could go either way I expect To see a big move this week or next the Same is true for eth BTC as you can see Eth has been painting a massive Ascending triangle against BTC for Months and months there have been two Breakdowns so far but both times eth Recovered if it sets another lower high However the medium-term downtrend could Continue So last week's top performing cryptos Were Neo Iota the Hobie token render Network and Carver Starting with Neo its neocoin appears to Have pumped because of a white paper About web3 published by Chinese Authorities this comes less than a week Before Hong Kong is expected to legalize Crypto trading for retail investors note That Neo is a Chinese crypto project Unfortunately Neo's price action isn't

Looking too promising it's struggling to Get above a key level of around 11 where It faces lots of resistance that said Neo has been in a medium-term uptrend if The short-term pump continues the medium Term uptrend could likewise be extended Next up we have Iota who's Iota coin Appears to have pumped because the Crypto project met with some powerful People in the UAE I suspect this has caused speculation That Iota could secure some serious Partnerships or possibly even some Direct investment from some of the Country's Elites Iota's price action paints a very Different picture it's been plummeting For months and the recent rally is Barely a blip on the radar it faces an Incredible amount of resistance to the Upside and is in a very strong downtrend On every possible time frame however a UAE partnership will help as for the Hobie token HT appears to have pumped on The announcement that Hobie will be Launching a crypto trading service in Hong Kong HT is an exchange token meaning there Isn't much point in analyzing its price Action because it depends on what Hobie Does or doesn't do regarding render Network its render token appears to have Pumped in response to the release of the Crypto Project's updated roadmap key

Milestones include increased Transparency better tokenomics and more Developer grants If you've been keeping up with our Weekly crypto reviews you'll know that Render has consistently been a top Performing crypto you might also recall That I thought we had seen a double top Well in the end it was a bullish mat Hold it's possible that render will Continue to Rally but it does face lots Of resistance and finally we have Carver Whose Carver coin appears to have Rallied in response to the news that an Avalanche project called Rome Labs will Be launching a borrowing and lending Protocol on Carver Carver's pump has been impressive given The multi-chain situation but that is a Topic for another time as you can see Carver's long-term price action has been About as poor as Neo and iotas the only Difference is that Carver is still a Little bit below a key resistance level Meaning that it could continue to rally For a little longer That long-term downtrend will probably Take over once the rally is done though And if you want to know why the top Altcoins are pumping in real time be Sure to join the coin Bureau inside the Telegram channel the link will be down In the description And that's all for today's coin Bureau

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