Connect with us

Tech

Cryptoverse: ‘Layer two’ tokens enjoy new life as bitcoin soars

Cryptoverse: ‘Layer two’ tokens enjoy new life as bitcoin soars

Published

on

Cryptoverse: 'Layer two' tokens enjoy new life as bitcoin soars

“Layer 2” cryptocurrencies native to projects built on top of “layer 1” blockchains such as Bitcoin and Ethereum – have found a new lease of life after a year in the doldrums, buoyed by a rising crypto tide.

Anticipation of easing U.S. borrowing costs and a possible U.S. spot bitcoin exchange-traded fund have lifted crypto prices since the summer, with market bitcoin gaining by about half since the end of August.

Tokens associated with layer 2 projects – which typically aim to speed up transactions and cut costs – have a combined market cap of about $14.3 billion, about a tenth of the total crypto market, according to data from CoinMaketCap.com.

Matic, the largest layer 2 token with a market cap of $6.90 billion, has jumped 20% to $0.74 over the past 30 days, according to CoinGecko. It’s used on Polygon, a platform that reduces congestion on the Ethereum network.

Advertisement

The next four largest coins – immutable, mantle, arbitrum and optimism – have leapt between 9% and 105% over the past month and trade between $0.5 to under $2 apiece.

All five tokens are down between 16% and 86% from their all-time highs hit over the past two years, though.

Ether, the layer 1 token linked to the Ethereum blockchain on which most layer 2 tokens are based, has leapt 13.8% to $2,028.80 in the past month.

Layer 2 tokens, which have proliferated in recent years, can be a risky business. They are small and thinly traded, meaning they can be highly volatile and unpredictable. Picking long-term winners is tough.

“On average, the growth is not sustainable for those tokens … 100 try and one wins,” said Matteo Greco, research analyst at digital asset and fintech investment firm Fineqia International (FNQ.CD).

Advertisement

“There’s always a bit of thin air behind the moves.”

Price performance is also patchy.

Matic has fallen about 3% in 2023, while gaming token immutable has more than tripled in price, versus bitcoin’s 123% and ether’s 69% gains.

SPECULATIVE CHARACTER
Layer 2 tokens are a gauge of sentiment towards the projects they are linked to, but their extreme volatility also lends them a speculative character. They are often among the last ones to catch a bid when broader crypto market rises and among the first ones to sell off when sentiment is shaken.

While layer 2 tokens are tiny in comparison to big guns like bitcoin, their volatility makes them a favorite among active traders trying to capitalize on market momentum.

Advertisement

“They can be very attractive investments even though they can be very speculative,” said Joshua Peck, chief investment officer at hedge fund TrueCode Capital, whose fund invests in matic. “For a token that’s down 97%, it doesn’t take a lot of capital inflow for it to go three times, four times, five times in price.”

“Active trading is the right approach for these tokens because the market is moving so much,” Peck added.

The future of layer 2 tokens is unclear.

Some analysts see the projects as vital to increasing the practical uses of blockchains like Ethereum, in areas such as finance to gaming.

Yet the market is crowded. Numerous projects and their tokens were launched as the crypto market boomed in 2020, before sinking during the crypto winter of 2022.

Advertisement

“The space feels ‘unserious’ right now … in terms of being able to point to an example of something you’d like to run your business or family’s personal finances on,” said Alyse Killeen, managing partner at venture capital firm Stillmark.

Many investors agree that only projects with useful practical applications will survive.

“In these macro phases, the use cases are not really so important. The real difference between assets that have decent use cases and assets that don’t is (in) the bear market,” said Fineqia International’s Greco.

“Assets that have good use cases are able to resist the downtrend even though they get hit hard.”

Advertisement

Tech

Don’t worry if your Android gets stolen, new Theft Detection Lock comes to rescue

Don’t worry if your Android gets stolen, new Theft Detection Lock comes to rescue

Published

on

By

Don't worry if your Android gets stolen, new Theft Detection Lock comes to rescue

Google revealed plans to introduce a ground-breaking security feature for Android devices: Theft Detection Lock at the Google I/O 2024 developer conference held on Wednesday.

This innovative addition is specifically designed to combat the rising threat of smartphone theft by automatically locking the device when suspicious activity is detected.

Powered by artificial intelligence, Theft Detection Lock utilizes advanced algorithms to identify common motions associated with theft.

For instance, if a device suddenly begins moving rapidly in the opposite direction, indicative of a potential theft scenario, the feature swiftly triggers a screen lock mechanism.

Advertisement

This proactive measure aims to thwart thieves from easily accessing sensitive user data stored on the device.

In addition to Theft Detection Lock, Google also announced the introduction of an Offline Device Lock feature. This functionality serves as a safeguard against intentional disconnection from the network, a common tactic employed by thieves to bypass security measures.

Instances such as repeated failed authentication attempts will prompt the Offline Device Lock, providing an added layer of protection for users’ devices.

Google revealed plans to enhance device security with measures aimed at preventing remote factory resets initiated by thieves.

Under the forthcoming update, if a thief attempts to reset a stolen device, they will be unable to set it up again without the necessary device or Google account credentials. This strategic move renders stolen devices essentially unsellable, significantly diminishing the incentives for phone theft.

Advertisement

Continue Reading

Tech

Tesla must face vehicle owners’ lawsuit over self-driving claims

Tesla must face vehicle owners’ lawsuit over self-driving claims

Published

on

By

Tesla must face vehicle owners' lawsuit over self-driving claims

A U.S. judge on Wednesday rejected Tesla’s bid to dismiss a lawsuit accusing Elon Musk’s electric car company of misleading owners into believing that their vehicles could soon have self-driving capabilities.

The proposed nationwide class action accused Tesla and Musk of having since 2016 falsely advertised Autopilot and other self-driving technology as functional or “just around the corner,” inducing drivers to pay more for their vehicles. 

U.S. District Judge Rita Lin in San Francisco said owners could pursue negligence and fraud-based claims, to the extent they relied on Tesla’s representations regarding vehicles’ hardware and ability to drive coast-to-coast across the U.S.

Without ruling on the merits, Lin said that “if Tesla meant to convey that its hardware was sufficient to reach high or full automation, the plainly alleges sufficient falsity.”

Advertisement

The judge dismissed some other claims.

Tesla and its lawyers did not immediately respond to requests for comment. Lawyers for Tesla vehicle owners did not immediately respond to similar requests.

The case was led by Thomas LoSavio, a retired California lawyer who said he paid an $8,000 premium in 2017 for Full Self-Driving capabilities on a Tesla Model S, believing it would make driving safer if his reflexes deteriorated as he aged.

LoSavio said he was still waiting for the technology six years later, with Tesla remaining unable “even remotely” to produce a fully self-driving car.

The lawsuit seeks unspecified damages for people who since 2016 bought or leased Tesla vehicles with Autopilot, Enhanced Autopilot and Full Self-Driving features.

Advertisement

Tesla has for many years faced federal probes into whether its self-driving technology might have contributed to fatal crashes.

Federal prosecutors are separately examining whether Tesla committed securities fraud or wire fraud by misleading investors about its vehicles’ self-driving capabilities, according to three people familiar with the matter.

Tesla has said Autopilot lets vehicles steer, accelerate and brake in their lanes, and Full Self-Driving lets vehicles obey traffic signals and change lanes.

But it had acknowledged that neither technology makes vehicles autonomous, or excuses drivers from paying attention to the roads.

The case is In re Tesla Advanced Driver Assistance Systems Litigation, U.S. District Court, Northern District of California, No. 22-05240.

Advertisement

Continue Reading

Tech

Microsoft asks hundreds of China staff to relocate

Microsoft asks hundreds of China staff to relocate

Published

on

By

Microsoft asks hundreds of China staff to relocate

Microsoft is asking about 700 to 800 people in its China-based cloud-computing and artificial-intelligence operations to consider transferring outside the country, the Wall Street Journal reported on Thursday.

The employees, mostly engineers with Chinese nationality, were earlier in the week offered an option to transfer to countries including the U.S., Ireland, Australia and New Zealand, the report said, citing people familiar with the matter.

The move comes amid spiralling US-China relations as the Biden administration cracks down on various sectors of Chinese imports, including electric vehicle (EV) batteries, computer chips and medical products.

A Microsoft spokesperson told the Journal that providing internal opportunities is part of its global business and confirmed the company had shared an optional internal transfer opportunity with a subset of employees. 

Advertisement

Reuters reported earlier this month that the U.S. Commerce Department is considering a new regulatory push to restrict the export of proprietary or closed source AI models, whose software and the data it is trained on are kept under wraps.

The spokesperson, however, told the newspaper that the company remains committed to the region and will continue to operate in China.

Microsoft didn’t immediately respond to a Reuters request for comment.

Advertisement
Continue Reading

Trending

Copyright © GLOBAL TIMES PAKISTAN