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Crypto news summary: Ethereum Merge, Do Kwon, Tornado Cash

While many things happened last week, most people were eyeing the most important event of all; the Merge. Also have a look at other news.

Ethereum has finally merged

Ethereum has just made history by being the first cryptocurrency of its size to switch from a Proof-of-Work mechanism to Proof-of-Stake. This event was widely celebrated, but the price of Ethereum tumbled by almost 20% just a few days after the Merge. Even though this transition is beneficial for the world, crypto markets continue in their bear market.

While markets tumble, experts point to the main long-term advantages of the Merge:

  • approximately 99% less electricity consumption
  • ETH’s transition will save 0.2% world’s electricity consumption
  • Ethereum used to emit about 13k ETH daily, but now it only gives 10% of that amount to validators instead of miners 

Some people don’t like the Merge

Unwelcome attention is being directed towards Ethereum’s new Proof-of-Stake blockchain after it became apparent that a small group of centralized players control the majority of the staking rewards. Although this Merge brings many benefits to the table, it also brings some disadvantages, and one of the main ones is that Ethereum is slowly becoming centralized.

Related article: What is Uniswap – the leader of decentralized exchanges

Estimates say that at the moment, Lido holds 27.5% of the stakes, with Coinbase coming in second place with 14.5%. Moreover, TOP 7 entities reportedly control over two-thirds of the network. 

Arrest warrant was issued on Do Kwon

Do Kwon, the founder of Terra Luna, which had a severe collapse in May of this year, was the subject of a warrant issued by a South Korean court. Do Kwon and five other individuals will be charged with engaging in fraudulent acts under the nation’s Capital Markets Act. 

Allegedly, all of the suspects are in Singapore. However, new information leaked told Do Kwon fled the country even though he claims he did not, and prosecutors asked Interpol to issue a red notice. 

New Canadian leader likes Bitcoin

While Justin Trudeau does not think investing in cryptocurrencies is a good idea, Pierre Poilievre, a proponent of Bitcoin, has been appointed as the Conservative Party of Canada’s newest leader and has vowed to challenge Justin Trudeau. 

Poilievre has alleged that the Canadian government has ruined the Canadian currency and has argued that people should be free to adopt alternatives like Bitcoin. He has criticized the central bank for failing to combat rising inflation and wants to turn Canada into the blockchain capital of the world.

Tornado Cash chaos resolved

The U.S. Treasury Department added Tornado Cash to its blacklist, and all American users will face problems if they do not stop using it. Although Tornado Cash might have been used for money laundering, many random transactions were recently done to celebrities that could do severe damage if it was not explained properly. 

Read moreChina doubles its gasoline exports

An anonymous Tornado Cash user had sent small amounts of ETH to the publicly known crypto addresses of Logan Paul, Beeple, Jimmy Fallon and many others. It’s now been confirmed Americans who started transactions before the penalties were revealed on August 8 will now be able to apply for a special license to finish withdrawals

While the rules are being eased, it is still recommended to avoid Tornado Cash for obvious reasons. Here is the FAQ that could be helpful to you.

Coinbase-related insider trading once again

A former Coinbase employee’s brother admitted to insider trading. According to the Reuters news agency, Nikhil Wahi acknowledged in a virtual court proceeding that he conducted transactions based on secret information. Ishan, who was a former product manager at the exchange, is still denying the accusations made against him.

According to the prosecution, Ishan allegedly revealed information about the coins that Coinbase intended to list to profit. Overall, it’s estimated that the men traded 25 different cryptocurrencies, and their combined profits were worth around $1.5 million.

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

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