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Contents

Introduction

While it’s caught some flak the last few months for being boring (read: no price action) as layer-2 chains and rivals like Solana soar in value, the Ethereum blockchain is with good reason considered as the big daddy for the biggest innovations in Web3. It’s the original and has given birth to smart contracts, decentralized applications (Dapps) and hundreds of thousands of blockchain tokens of many types that still reside on it thanks to its unrivalled decentralization and security.

Until now, tokens have fallen into two distinct categories – fungible (ie. normal crypto tokens, ERC20 standard, e.g. all $LINK tokens are the same) and non-fungible tokens (NFTs, based on ERC721 and ERC1155 standards), which are by design one of a kind. As a result the NFT market went completely Bored-Ape sh*t during 2021’s bull run as everyone tried to get their hands on the next Beeple. Soon enough though, the market downturn in 2022 showed NFT traders the ills of their crypto JPEGs: illiquid markets and a host of other problems.

A new token standard, still in its very early days, aims to democratize and fractionalize NFT ownership, making it much easier to trade. It’s unleashed a storm of hype in 2024’s trigger bull market trading, seeing some of its earliest projects 6x in days to a value of over $25,000.

Here’s how ERC404 works and what it could mean for NFTs and DeFi.

ERC404: A New Hybrid Standard is Born

ERC404 is a new token standard that combines attributes of both fungible and non-fungible tokens into a single hybrid token. This opens up exciting new possibilities in the world of crypto tokens and decentralized apps.

In the simplest terms, ERC404 tokenizes non-fungible tokens (NFTs). This means each NFT can also be traded as a fungible token on decentralized exchanges (DEXs) while still retaining its non-fungible identity.

Why is ERC404 Revolutionary?

ERC404 represents a leap forward for NFT interoperability, liquidity and accessibility:

• Increased liquidity – Being able to trade NFTs as fungible tokens on DEXs massively increases liquidity. This solves a major limitation with existing NFTs.
• Accessibility – The ability to own a fraction of an NFT lowers the barrier to entry for high-value NFTs. This also expands the potential investor and collector base.
• Interoperability – ERC404 tokens can interact seamlessly with protocols in both the fungible token and NFT spaces, merging these previously disconnected areas.
• Programmability – As Ethereum smart contracts, ERC404 tokens open up new possibilities for NFT gamification, breeding, fractionalization and more.

A Short History of ERC404

The ERC404 standard was first proposed in early 2023 by the team behind the Pandora NFT collection, one of the earliest projects to make use of this new standard. Since then, ERC404 has seen swift adoption by other ambitious NFT projects seeking to leverage its advantages. By mid 2023 over a dozen ERC404 projects had emerged, with more launching on a regular basis.

As often happens with pioneering technology, wider understanding of ERC404 is still relatively low. However it seems poised to become more prominently recognized within the wider Ethereum community as familiarity spreads. If its current trajectory continues, ERC404 may very well replace ERC721 as the gold standard for NFTs within the next one to two years, in no small part due to its ability to bring real liquidity to crypto collectibles.

How ERC404 Works

The ERC404 standard creatively mixes elements from the ERC-20 and ERC-721 standards into an innovative hybrid model:

• Like ERC721, each ERC404 token has a unique ID and metadata that makes it non-fungible.
• Like ERC20 tokens, ERC404 tokens are freely transferable and divisible into fractional amounts.

When an ERC404 token is minted, a unique NFT is generated based on programmed rarity metrics. This NFT can then be freely traded as a fungible token. If the fungible token is burned, the linked NFT is destroyed.

For example, when a full PANDORA token is purchased on an exchange, a corresponding Replicant NFT is minted to the buyer’s wallet. Conversely, selling a PANDORA token results in the burning of its connected NFT. This mechanism allows for the trading of NFT rarities and encourages engagement through the “re-roll” of Replicant traits, adding a unique dynamic to NFT trading.

This mechanism connects the scarcity and collector value of NFTs with the liquidity and accessibility of fungible tokens in a creative way.

Comparing ERC404 to Other Standards

ERC721

ERC721 requires each token to be traded directly token-to-token. This provides no fractionalization and requires locating a specific buyer for each token. Suffers from serious liquidity issues.

ERC1155

This NFT standard enables batch minting and transfers of both fungible and non-fungible tokens. However, does not allow interchangeability between these two formats through minting/burning. So does not achieve true hybridization.

The ERC-20 token standard is a set of rules that apply to all tokens operating on the Ethereum blockchain. It defines a common list of rules that Ethereum tokens must follow, allowing them to be easily exchanged, transferred, or used within Ethereum’s ecosystem. This standard ensures compatibility between the various tokens issued on Ethereum, enabling them to interact seamlessly with smart contracts and decentralized applications (DApps). 

The Impact of ERC404 on NFT Trading

ERC404 projects are kicking off all over Ethereum, as well as other chains like Solana and Arbitrum and even Bitcoin. In fact, it’s quite reminiscent of last year’s Bitcoin Ordinals and BRC20 explosion in terms of social media coverage and hype.

ERC404 has the potential to disrupt the NFT space in the following ways:

• Increase mainstream adoption by improving accessibility and liquidity.
• Enable new functionality like leverage trading and options contracts for NFTs.
• Bridge the gap between fungible tokens and non-fungibles.
• More seamless integration between DEXs, NFT marketplaces and DeFi platforms.
• Open up avenues for innovation in areas like Metaverse interoperability and composability.

Pros and Cons of ERC404

Let’s weigh up the good and bad about ERC404 really quick. While it’s certainly innovative, hackers and scammers love complex new developments in smart contract functionality that they can exploit to steal and pillage. Therefore, while it comes with great potential, it also carries significant risk at present, least of all turning your beloved NFT into digital ash.

Pros

• Greatly improved NFT liquidity.
• Lowers barriers to high-value NFT investing.
• Enables new models for NFT platforms.
• Built on secure and decentralized Ethereum infrastructure.

Cons

• Code has not yet been extensively audited.
• Possible vulnerabilities around burning linked NFTs.
• Additional complexity around wallet management.
• Regulatory uncertainty.

Current Top ERC404 Projects

Some of the top ERC404 projects leading the way include:

• Pandora – The first ERC404 project and pioneer of the standard.
• Azuki – Iconic NFT collection that adopted ERC404 in late 2023.
• Imagination – Ambitious metaverse NFT project leveraging ERC404.
• Recvlt – Digital sneaker startup building an ERC404 marketplace.
• Kaiju Kingz – Leading monster battle NFT game implementing ERC404.

ERC404 projects quickly mopped up $87 million volume on DEXs like Uniswap while accruing under $1 million on NFT marketplaces.

ERC404’s first implementation was through Pandora’s Replicants NFT collection with strong price gains from 0.38 ETH to 4.26 ETH, placing the collection in the top 15 by diluted value at $88 million. These numbers may well be outdated by the time this article is published.

Additional projects adopting ERC404 include Blur integrating support within two days, Telegram trading bot BananaGun newly announcing integration, and several other upcoming NFT releases like Web3 social media protocol Farcaster planning implementation. And we’re not slowing down.

Warning: Please note that CoolWallet doesn’t officially endorse or support any of the above projects, and all content is for educational purposes only. Please be careful which projects and Dapps you interact with, especially if they’re still on the experimental side.

The Bottom Line

ERC404 possibly represents the next major evolution in NFT functionality and interoperability. By enabling dynamic and upgradeable NFTs, it unlocks vastly more flexibility and use cases compared to older standards. If not ERC404, then eventually another standard will crack it, as the use case is just too big.

Once launched officially, ERC404 could revolutionize what NFTs can represent and how they integrate with other DeFi protocols. The standard promises to take NFT adoption to the next level across industries like gaming, art, finance, and more. While ERC404 remains unaudited at present, if it gains enough traction and passes all security hurdles you could very likely see it supported by CoolWallet in the future.

Exciting times lie ahead!

Once again, Kraken has been recognized as the Australian crypto industry’s best in class, taking home two prestigious awards at Finder’s 2025 Crypto Trading Platform Awards. We won both Best Crypto Trading Platform and Best Advanced Crypto Trading Platform, while also taking home a Highly Commended for Beginner Crypto Trading Platform.

We won Best Advanced Crypto Trading Platform for the second year in a row, reinforcing our commitment to delivering a secure, innovative and user-centric crypto platform for pro traders in Australia and worldwide.

Finder is one of Australia’s most trusted financial comparison sites across a range of product categories, including investing, savings and insurance. They conducted a comprehensive analysis of exchanges serving Australian clients by evaluating over 1,000 data points across critical areas, such as platform security, trading features, user experience and fee structures.

What set Kraken apart?

“Receiving these awards from Finder is a testament to the hard work and dedication of the entire Kraken team,” said Jonathon Miller, Kraken’s General Manager for Australia and Rest of World.

“Whether you are a crypto novice or a full time trader, our goal is to provide a simple, seamless and secure trading experience that meets your needs. This recognition only motivates us to continue our mission and push the boundaries of what a modern crypto trading platform can deliver.”

Contents

Introduction

Ethereum, the world’s largest smart contract blockchain platform, is gearing up to deploy its much-anticipated Dencun upgrade on March 13th, 2024. This upgrade (an amalgam of Denver and Cancun, where it has its conferences) will introduce a host of improvements to Ethereum, most notably a technology called “proto-danksharding” that aims to significantly reduce transaction fees on the network. Dencun is a welcome shot in the arm after a comparatively slow first quarter for Ethereum, but will likely be an important catalyst for its growth the rest of the year, which has spiked with the recent interest in its new ERC404 dynamic NFT protocol.

What is Dencun and Why Does it Matter?

Dencun is the latest in a series of upgrades to Ethereum that collectively constitute its transition from a proof-of-work (PoW) consensus mechanism to a more efficient, scalable, and environmentally-friendly proof-of-stake (PoS) model. This transition process started with the Shanghai upgrade in April 2022.

Dencun represents a major milestone along this trajectory as it will finally enable sharded validation on Ethereum – splitting the network’s transaction validation process into 64 parallel chains or “shards” to boost throughput. However, the initial deployment in Dencun only implements one shard running in parallel with the main Ethereum chain. Hence developers refer to this first phase rollout as “proto-danksharding”.

How Does Proto-Danksharding Work?

Proto-danksharding revolves around a new technology called Binary Large Objects or “blobs”. Blobs are a way to store and transmit large volumes of data in a highly gas-efficient manner, without needing to permanently write all of this data directly to the Ethereum blockchain like normal transactions.

When blob-enabled contracts are called, the input data gets processed and stored securely on blob storage chains that run in parallel to Ethereum mainchain. Only small 16 byte references to this blob data, called Content Identifiers or CIDs, get written permanently to mainchain.

How Proto-danksharding helps Layer-2 chains drop costs

The key benefit this unlocks is gas cost reductions of up to 90% for heavy data-based transactions. For example, instead of paying thousands of dollars to write gigabytes of data on-chain, users can store data in blobs for a fraction of the cost.

This gas efficiency improvement will significantly reduce fees for Layer 2 scaling solutions built on Ethereum, like rollups and validiums (L2 solutions that use Zk-technology to validate transactions off-chain), that rely heavily on calldata to post transaction data back to mainchain. Lower costs will enable wider adoption of Layer 2 solutions.

What is EIP-4884?

On a technical level, proto-danksharding is powered by a core Ethereum Improvement Proposal called EIP-4884. This EIP, authored by leading Ethereum researchers, defines key blob standards like CID references and Merkle roots for blob chains.

EIP-4884 also handles critical functions like aggregating blobs into batches and deleting old blobs that exceed storage periods. All of this happens seamlessly behind the scenes when developers call new blob-enabled functions in their smart contracts.

The March 13th Dencun upgrade will activate EIP-4884 on mainnet for the first time, representing the next leap forward in Ethereum’s technological evolution and paving the way for sharding, the technology that will future-proof the network and help it compete technically with faster and less encumbered “Ethereum Killers” like Solana and Avalanche.

Why Was March 13th Chosen as the Deployment Date?

March 13th was chosen after extensive testing and three successful trial runs of proto-danksharding on the Sepolia, Holesky and other Ethereum test networks over the past month. No major issues were uncovered during these final two testnet deployments, giving developers confidence to schedule the mainnet upgrade.

Leading up to the upgrade, updated Ethereum client software will be released on February 22nd for a further round of testing before the March rollout. This lead time allows node operators to upgrade smoothly without disrupting network consensus.

Ethereum Foundation Onboards More Protocol Developers

In tandem with these technical developments, the non-profit Ethereum Foundation is ramping up programs to train more developers on low-level protocol engineering.

On February 7th, the EF announced a new 10-week Ethereum Protocol Fellowship Study Group (EPFsg) covering topics like cryptoeconomics, execution layer architecture, and research areas like sharding and fraud proofs. The goal is to guide more developers into becoming proficient, contributing members of Ethereum’s core engineering teams over the long-term.

This EPFsg kicks off on February 19th and builds on the Ethereum Foundation’s established Ethereum Protocol Fellowship which has already onboarded four cohorts of contributors.

Ethereum in 2024: Another Watershed Year?

Ethereum has been on an absolute tear since its Beacon Chain upgrade in December 2020 brought with it proof-of-stake, which in 2022 led to the gamechanging Merge upgrade and 2023 Shanghai hardfork which allowed stakers to unlock their ETH stakes. This boosted Ethereum staking and make the digital asset more liquid.

With milestones like proto-danksharding and expanded community education initiatives providing riveting narratives for the near future, 2024 is shaping up to be another massive year for Ethereum technology. Dencun paves the way for future upgrades like Verkle Trees and full multi-chain sharding, that will catapult Ethereum’s scalability to new heights.

As blockchain adoption enters prime time, Ethereum’s blend of cutting edge research and robust community development puts it in pole position to power the next generation of digital economies. The possibilities ahead are endless, so if you can think it, you can probably build it on Ethereum.

Introduction

The Cosmos ecosystem stands out in the blockchain universe, especially in 2024. We’re diving into the latest trends, including significant funding, strategic mergers, and technological innovations. For ATOM holders, the need for secure storage like CoolWallet Pro is more vital than ever.

Latest Trends in the Cosmos Ecosystem

2024 is a remarkable year for the Cosmos ecosystem. The Interchain Foundation (ICF) has dedicated $26.4 million to foster growth, focusing on enhancing the IBC protocol and other technologies like CosmWasm. Notably, Osmosis merged with Umee, marking a significant step toward a unified DeFi space.

The Cosmos Ecosystem Explained

The Philosophy of Cosmos

Its interconnected blockchain ecosystem is closer to reality thanks to increasing adoption and strategic partnerships.

Basic Technology Behind Cosmos

Basic Technology Behind Cosmos: The foundation of Cosmos is built on several key technologies:

• Tendermint Core: A consensus engine that ensures high performance, security, and scalability.
• Cosmos SDK: A framework that enables developers to build blockchain applications quickly and easily.
• Inter-Blockchain Communication (IBC) Protocol: This protocol facilitates secure and reliable inter-blockchain transactions, enabling the exchange of data and assets between different chains.

The Role of ATOM

ATOM, the native token of the Cosmos network, plays a crucial role in maintaining and operating the ecosystem. It serves as the backbone for transaction fees, staking, and governance within the network. This multifaceted utility allows ATOM holders to actively participate in the governance process, contributing to the network’s security and decision-making. By staking ATOM, holders can secure the network further and earn rewards, thus incentivizing participation and investment in the ecosystem’s growth and stability.

Securing Your ATOM with CoolWallet Pro

As the Cosmos ecosystem advances, the security of digital assets like ATOM remains paramount. CoolWallet Pro emerges as an essential tool for ATOM holders, offering unparalleled security, ease of transactions, and support for ATOM staking. With the ecosystem’s growth and the introduction of new functionalities for ATOM, the importance of a reliable cold wallet solution cannot be overstated.

Conclusion

2024 brings exciting developments to the Cosmos ecosystem. With significant funding, strategic mergers, and technological innovations, the Cosmos ecosystem’s future looks bright. For those holding ATOM, ensuring their digital assets’ security through CoolWallet Pro is more important than ever.

• CoolWallet is going to support Solana’s Dapp ecosystem soon.
• Learn more about the best 2024 projects on Solana in DeFi, DePIN, AI, gaming, NFTs and more.

Contents

Introduction

Solana became crypto’s red-headed stepchild in 2022 following the FTX collapse and SBF BFF drama, dropping in value from a November 2021 zenith of $260 per SOL coin to a miserable $8 at one point. It was uncool and unloved, derided as a centralized VC coin with a network that constantly broke down. It was about to be replaced by newer, shinier chains like Sui and Aptos.

Not so fast. CoolWallet attended Solana’s Breakpoint conference in Amsterdam in late 2023 and found that the groundbreaking layer-1 chain was very much alive and kicking at a grassroots level, with smart money piling back in. Soon after, the price of Solana started to skyrocket as its Firedancer announcement and airdrop season started to drive momentum. 

Fast forward to 2024, and Solana’s ecosystem absolutely bursting out of its seams again as the overall crypto bull run picks up momentum before the next Bitcoin halving. Not even its recent outage, the first in 12 months, could dampen investors’ enthusiasm and it’s now firmly entrenched in most investors’ minds as the number 1 “Ethereum Killer”.

CoolWallet Supports Solana Dapp Ecosystem

Great News: Our CoolWallet Pro hardware wallet and & HOT software wallet are soon going to support connecting to Solana DApps via our CoolWallet App’s Web3 browser, which means that our users will be able to interact with the entire Solana ecosystem.

Let’s take a look at the sectors and leading projects at the vanguard of Solana’s ascent. Many of them like Marinade and Drift don’t have tokens yet, so fire up your CoolWallet and start airdrop farming!

Disclaimer: This article is for educational purposes only, and shouldn’t be construed as financial advice of any kind. Do your own research and take extra care when interacting with new protocols and Dapps due to the threat of phishing or scams. Any projects mentioned here are not off.

What is Solana?

Solana is a high-speed blockchain that supports smart contracts, Dapps and NFTs. Some key things to know about Solana: transactions on the network are very fast and low cost compared to networks like Ethereum; the native cryptocurrency of the Solana blockchain is SOL; and over 192 million NFTs have already been minted on Solana, making it a top NFT blockchain. Its Proof of History consensus mechanism created by founder Anatoly Yakovenko has allowed it to reach a TPS of up to 65,000 transactions per second, at a cost of a fraction of a cent.

Solana Network Overview and Organization

Solana’s architecture is designed for speed and efficiency, utilizing a unique consensus mechanism called Proof of History (PoH) alongside Proof of Stake (PoS) to achieve high throughput. The network supports a wide range of applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs), and has become a popular choice for developers looking for scalability and users seeking cheap and lightning-fast transactions.

Messari published a detailed report recently on the state of the Solana ecosystem, which really captures its explosive growth in especially Q4 2023. You can also use analytical platforms like DappRadar, DeFiLlama and SolanaCompass to navigate its growing universe of Dapps.

Solana DeFi

Solana’s DeFi TVL is surging again thanks to some exciting new players, huge airdrops and lucrative yields for staking and providing liquidity. It grew from $245 million in Q4 2022 to a crazy $1.45 billion in Q4 2023, with a daily DEX volume of $416 million and stablecoins totalling $1.83 billion, according to Messari. Here are a few of the best in each category. 

Solana DEXs

Raydium

Raydium is a well-established and very popular decentralized exchange (DEX) built on the Solana blockchain, offering fast and affordable trading of cryptocurrencies and other digital assets. It’s known for its AMM capabilities and integration with Serum.

This leading Solana DEX allows users to trade directly with each other without intermediaries, providing a more secure and transparent trading experience. Thanks to Solana’s high-performance infrastructure, Raydium can handle lightning-fast transactions with low fees, making it a great alternative to centralized exchanges. Beyond trading, Raydium also offers liquidity pools, staking, and yield farming opportunities, allowing users to earn rewards for providing liquidity to the platform. 

Jupiter 

January 2024’s “Jupuary” airdrop gifted over $600 million to nearly a million lucky Solana users, and if you missed out, don’t worry because the next rounds are scheduled for January 2025 and 2026.

Jupiter offers a comprehensive trading experience with its DEX aggregator, ensuring users get the best prices across multiple exchanges, much like 1Inch does on Ethereum. The platform’s limit order feature allows traders to set specific prices for their trades, providing more control over their transactions.

Orca

Known for its user-friendly interface, Orca‘s Whirlpools feature enables liquidity providers to concentrate their funds within specific price ranges, increasing their potential returns. The platform also has a strong focus on community governance and environmental initiatives.

Drift

Drift brings on-chain, cross-margined perpetual futures to Solana and aims to provide a CEX-like experience on a decentralized platform. Its features include high leverage trading, a full-suite money market for borrowing and lending, and various passive income opportunities for users.

Solana LST Staking Protocols

Liquid staking and restaking (LSTs and LRTs) is all the rage in 2024, and helping users reinvest their staked SOL for more yield. Here are the ones leading the pack:

Marinade Finance 

Marinade Finance offers liquid staking, allowing users to earn staking rewards without locking up their assets. The protocol automatically redistributes staked assets among the most rewarding validators, optimizing returns for stakers.

Jito

Jito kickstarted 2023’s Solana Airdrop season with a belter of a token launch that gave early users up to $100k in JTO tokens. It focuses on maximizing staking yield through MEV rewards. The platform provides a secure and efficient way for users to participate in staking, with the added benefit of liquid staking through jitoSOL.

Solana Lending Protocols

Solend

Solend is an easy-to-use and efficient lending platform, offering various crypto assets for borrowing and lending. The protocol features a liquidation system to manage bad loans and maintain the platform’s stability.

MarginFi

Lending protocol MarginFi’s TVL grew 14x between Q3 and Q4 of 2023, to $337 million, going from the sixth largest to the top Solana DeFi protocol by TVL. It differentiates itself with its focus on risk management, providing users with tools to monitor their loans and manage risks effectively. The platform’s bridge and swap features enhance its flexibility and utility.

Kamino 

Provides a unique approach to liquidity and lending with its CLMM-based protocol. Users can earn yield by providing liquidity and use their Ktokens as collateral for borrowing, creating a synergistic ecosystem within the platform.

Solana Oracles

Pyth Network

Pyth Network is a decentralized oracle solution similar to Chainlink that runs on the Solana blockchain, offering real-time, high-quality data for DeFi applications. By tapping into Solana’s fast and cost-effective infrastructure, Pyth aims to provide accurate data feeds across various asset classes, including cryptocurrencies and traditional markets. This integration with Solana allows Pyth to supply dependable price data that Dapps can use for accurate decision-making and smooth execution of smart contracts. Pyth Network is key to boosting the reliability and performance of DeFi ecosystems on the Solana blockchain.

Solana DePIN

DePIN, or decentralized physical infrastructure network, is a massively important new sector in Web3, laying the foundational decentralized infrastructure for all its future applications. 

Helium 

This Solana DePin project aims to revolutionize internet connectivity by enabling users to set up their own hotspots and earn rewards. The migration to Solana is expected to enhance the efficiency and scalability of the network.

Render Network 

Render has been on the radar of those in the know for a while now, thanks to its potential. It offers a decentralized solution for GPU rendering, enabling creators to access additional computing power for their projects. The integration with Solana is anticipated to improve the speed and cost-effectiveness of the rendering process.

HiveMapper 

Hivemapper is a cutting-edge mapping platform that has recently integrated with the Solana blockchain, leveraging its high-performance infrastructure to enhance its mapping and analytics capabilities. By utilizing Solana‘s fast and low-cost transactions, Hivemapper can offer its users seamless and efficient access to decentralized mapping data and services. This integration not only improves the platform’s scalability and speed but also opens up new possibilities for decentralized mapping applications, such as enabling secure and transparent data sharing and incentivizing community contributions through tokenized rewards. 

Deeper Network

Decentralized VPN network and DePIN hardware maker Deeper Network recently announced its network will move over to Solana. 

Solana Gaming

The gaming sector on Solana is evolving, with projects like Star Atlas leading the way in creating immersive and interactive experiences. The use of blockchain technology in gaming opens up new possibilities for player ownership and in-game economies, and thanks to the network’s incredibly fast and cheap features, it’s perfect for GameFi. 

You can check out this DappRadar chart to see some of the most popular games on Solana, but please be aware that you should interact and invest with caution. Games are notorious for diluting their token supply in order to incentivize users, and with this comes dropping token prices. There are also security risks that come with connecting your wallet to unaudited protocols, so use a new wallet if you have to. 

If you want to ensure you get IDO access to new games when the bull market’s at its peak, check out launchpads like Seedify and Starlaunch. 

Star Atlas

A futuristic metaverse set in space, Star Atlas is Solana’s flagship game, a super-ambitious AAA title that combines real-time strategy gameplay with NFT assets on Solana. Players engage in galactic warfare, resource management, and economic growth within a visually stunning universe. Star Atlas had a high-profile keynote at Solana Breakpoint last year where the team wowed the audience with their progress.

Sidus Heroes

An RPG featuring playable characters based partially on famous celebrities, Sidus Heroes allows players to collect, trade, and battle unique NFT heroes while earning SIDUS tokens on Solana. With a strong focus on storytelling and immersive experiences, this project aims to bridge the gap between traditional entertainment and Web3 gaming.

Aurory

A fantasy MMORPG built on Solana, Aurory invites players to explore a vast world filled with adventure, quests, and PvP battles. Featuring a rich ecosystem of NFTs, Aurory enables players to own and monetize their in-game items and progression.

Honeyland

A farming simulation game where players manage virtual apiaries and compete in honey production challenges. Built on Solana, Honeyland introduces a novel approach to gamified agriculture, offering players opportunities to earn rewards by participating in the game economy.

Solana Memecoins

Bonk

Bonk, a Solana-based memecoin, emerged as a lighthearted yet significant player in the world of cryptocurrencies. Inspired by internet culture and humor, Bonk has experienced remarkable growth since its launch, increasing over 10,000% in 2023 alone. It positioned itself as the first dog-themed coin on Solana “for the people, by the people” and airdropped a wild 50% of its token supply to its community.

Unlike many other memecoins, Bonk offers unique features that distinguish it from competitors. For instance, it utilizes single-sided staking pools, serving as an incentive mechanism for holding the coin. Additionally, Bonk’s creators allocated 15% of the total supply to a decentralized autonomous organization (DAO), empowering the community to shape the project’s future development and governance.

By late December 2023, Bonk had become the third-largest memecoin by market cap, following Dogecoin and Shiba Inu, and the 43rd largest crypto overall!

DogWifHat

DogWiFi, a humorous take on the popular Dogecoin meme, is another Solana-based doggy memecoin that has captured the attention of both seasoned cryptocurrency enthusiasts and casual observers alike.

Solana AI

The Solana blockchain’s high throughput and low-cost transactions make it a suitable platform for AI applications that require real-time data processing and decentralized computing resources. 

Projects like Render Network and io.net could potentially support AI use cases by providing the necessary computational power, and with a huge demand and shortage of GPU and processing power following the pandemic-induced backlog and rise of AI, these protocols could help drive the next wave of AI adoption. 

Solana has launched a $10m developer fund to attract new AI projects to its network. You can learn more about it here.

Solana NFTs

Solana NFT volume is starting to climb again after a quiet 2022 and 2023.

There are a few main standards for NFTs on Solana.

• Legacy NFTs: The original NFT standard on the network was developed by Metaplex. This Legacy standard is used by early projects like Claynosaurz.
• Programmable NFTs (pNFTs) allow for royalties, rules, and more to be enforced on Solana NFTs. Solana Monkey Business utilizes the pNFT standard. 
• Compressed NFTs (cNFT): NFT standard which uses compression to significantly lower minting costs – 2 million cNFTs can be minted for only 1 SOL. 
• Executable NFTs (xNFTs): First introduced by Backpack’s soaring MadLads collection, xNFTs allow NFTs on Solana to have attached apps and experiences.

Top Solana NFT Collections

Some of the most popular current (February 2024)  Solana NFT collections currently include:

• Mad Lads with a 206 SOL floor price; 
• Tensorians at 80.5 SOL floor; 
• Claynosaurz at 34.4 SOL floor; 
• Degen Ape Academy at 14.4 SOL floor; and 
• Saga Monkeys with a 3.9 SOL floor.

Former top dog DeGods infamously moved during the bear market to Ethereum. 

Getting Your First Solana NFT

Visit Solana NFT marketplaces like Tensor or Magic Eden with your compatible wallet of choice, browse different Solana NFT collections and click “Buy” on one you want to purchase it. There are also free mint opportunities on platforms like DRiP where you can get starter Solana NFTs without having to pay beyond transaction fees.

WARNING: Always make sure you connect to the official website. Failure to do so may result in you getting phished and robbed of your entire portfolio. CoolWallet’s Smart Scan helps crypto users stay safe by identifiying malicious transactions and entities before you approve a transaction.

Creating and Selling Solana NFTs

If you want to create your own Solana NFT collection, Metaplex Studio is the go-to for minting. Once minted, collections can be listed for sale on marketplaces like Tensor or Magic Eden. The process for listing and selling Solana NFTs on those platforms is similar to major Ethereum NFT platforms.

Key Takeaways

Solana’s ecosystem is diverse and rapidly growing, with a strong focus on scalability, efficiency, and user experience. Its low transaction fees and high throughput make it an attractive platform for a wide range of applications, from DeFi to gaming and potentially AI. The network’s continuous improvements and expanding community contribute to its increasing prominence in the blockchain space.

While Ethereum currently has a wider overall NFT ecosystem, Solana has huge growth potential in this space thanks to its speed, low transaction fees, and growing daily trading volume. It’s worth exploring Solana for NFTs alongside Ethereum and other NFT blockchains.

7. Worldcoin (WLD)

The Digital ID Coin

• Name: Worldcoin
• Ticker: WLD
• Launch Date: 2021
• Category: Identity Verification
• Description: Sam Altmans’ controversial Worldcoin project proposes a new global digital currency accessible to everyone worldwide, using advanced biometric data for secure and private identity verification. It’s multiplied several times in value, holding a crazy fully diluted value of over $70 billion in early March 2024.
• Why It’s Important: Its ambitious goal to provide a universal digital currency, combined with a focus on privacy-preserving biometric identification, sets it apart from existing digital currencies and identity solutions.
• Biggest Competitor: Civic, which offers identity verification solutions, is a competitor. However, Worldcoin’s integration of currency distribution and identity verification presents a unique approach.

8. Sui (SUI)

Making Web3 As Easy As Web2

• Ticker: SUI
• Launch Date: 2022
• Category: Layer 1 Blockchain
• Description: Sui is an innovative layer 1 blockchain that focuses on security, speed, and scalability. It uses novel technical solutions like vector commitments and proof of authority to enable next-generation applications.
• Why It’s Important: As a highly secure and fast layer 1 using the Move language, Sui could become the preferred base layer for Web3 development. This could accelerate adoption for decentralized apps across gaming, finance, social media, and more.
• Biggest Competitor: Solana

9. Sei Network (SEI)

The High-Speed Trading Haven

• Name: SEI Network
• Ticker: SEI
• Launch Date: 2022
• Category: Data Privacy
• Description: SEI Network enables the private and secure sharing of data between parties via cryptography and blockchain technology. It allows users to share specific data with select recipients without exposing their entire dataset.
• Why It’s Important: As data privacy becomes more crucial, solutions like SEI allow for selective data sharing without compromising control or security. This empowers businesses and individuals to collaborate while protecting sensitive information.
• Biggest Competitor: Ocean Protocol

10. Stacks (STX)

Building Bitcoin’s DeFi Layer-2

• Ticker: STX
• Category: Bitcoin Layer-2 for Smart Contracts, Apps, DeFi
• Description: Stacks is a leading Bitcoin Layer-2 blockchain that enables smart contracts and decentralized applications to utilize Bitcoin as a secure base layer. It extends the capabilities of Bitcoin without altering the original blockchain, unlocking billions in latent capital. STX became the first SEC qualified token offering in 2019. 
• Why It’s Important: Stacks activates the Bitcoin economy by providing a platform for developers to build apps and smart contracts on top of Bitcoin. It leverages the security, capital, and network effects of Bitcoin, offering a programmable version of BTC to developers through its unique features like Clarity smart contracts and Proof of Transfer consensus mechanism.
• Biggest Competitor: Not explicitly mentioned, but it could be compared to other Layer-2 solutions or smart contract platforms that aim to enhance the functionality of Bitcoin, such as RSK or Lightning Network.
• For more information, you can visit the Stacks website

Bonus: DogeChain (DC)

Bringing DeFi to DOGE

• Name: Dogechain
• Ticker: DC
• Launch Date: 2023
• Category: Memecoin/Layer 1
• Description: Dogechain aims to be a layer 1 blockchain built specifically for the DOGE community and memecoin ecosystem. It would enable decentralized finance functionality for DOGE holders.
• Why It’s Important: Dogechain could catalyze development and adoption for DOGE as an asset with real utility. By bringing DeFi and dApps to the popular memecoin community, it encourages practical use cases beyond speculation.
• Biggest Competitor: Shib Inu

New to Bitcoin and its universe of cryptocurrencies? Bitcoin isn’t easy to understand but this guide will walk you through everything you need to know. Fear not- CoolWallet has answers to your biggest questions!

Contents

Part 2: Bitcoin Wallets for Beginners

Introduction

Bitcoin, Bitcoin, Bitcoin. Now at $70,000 and going! Love it or hate it, but you can’t fade it, as we say in crypto parlance. The world’s fastest-ever growing asset has evolved in only 15 years from an obscure peer-to-peer technology supposedly used by criminals on the Dark Web to a shining new financial asset embraced by traditional financial firms and proclaimed by the likes of BlackRock CEO Larry Fink amidst turbulent global macro-economic conditions as a “flight to quality”.

Hey, I Left Crypto in 2022 After FTX! What did I miss? 2024 TL;DR

So… you jumped off the Bitcoin bandwagon around the time its price went off a cliff together with FTX and Sam-Bankman Fried, dropping to a shockingly low $15,000 in the doldrums of the brutal 2022 bear market. And now everyone from Donald Trump to Jim Cramer are praising BTC’s powers again. What gives?

In a few words: Spot ETFs. Halving. Election year. FASB Reporting. Quantitative easing. Ordinals. Layer-2s.

• After a decade and dozens of costly attempts, the holy grail of Bitcoin was finally reached when the SEC approved a number of Bitcoin Spot ETFs in 2024, thus opening the door to real mass adoption. The ETF frontran the 4th Bitcoin Halving happening in April 2024 and billions of mainstream money have been into the series of Bitcoin spot ETFs managed by blue chip firms BlackRock, Fidelity, Van Eck, and others, and it shows no signs of abating.
• It’s also better for companies to now put Bitcoin on their balance sheets. The Financial Accounting Standards Board (FASB) last year changed how companies report Bitcoin on their financial statements, starting at the end of 2024. Companies now account for Bitcoin as an “indefinite-lived intangible asset” rather than a current asset like cash. This better reflects Bitcoin’s long-term store-of-value.
• Some fun new inventions have helped to expand Bitcoin’s use case to new arenas such as DeFi, NFTs and even AI. The Taproot upgrade in 2021 has enabled innovations such as Ordinals, the BRC-20 token standard and a slew of layer-2 networks such as Stacks. With billions and billions of dollars from anyone from retail investors to the world’s biggest investment funds to nation states piling into the entire Bitcoin ecosystem, we’re only just getting started.

It’s therefore no surprise that analysts last year found that 88% of Bitcoin didn’t move hands in 2023. It’s now easier and safer to buy and own Bitcoin than ever before and the world is waking up. Investors are stockpiling their sats and HODLing for all they’re worth. They know what’s coming.

Now in March 2024, Bitcoin is back in a big way, skipping over $70,000 and currently in price discovery on the road to $100,000 and beyond. It’s a very slippery slope though, and to help get you started, we’ve compiled a guide that will walk you through the basics of Bitcoin in order to help you decide if it is right for your portfolio. 

We’ll be covering some easy and not so easy questions make sure we get everyone on the same page. Let’s start with the most important information as it pertains to 2024. (Check btc usd chart.)

What Is Bitcoin? 

Bitcoin can be defined as either a digital asset or currency powered by blockchain technology, and was created by the pseudonymous Satoshi Nakamoto in 2009. It is not a security, like stocks, as it is decentralized.

This means that unlike banks or fiat currencies, Bitcoin is not controlled by any centralized authority. Instead, it operates as a decentralized network, with not one entity in control. Transactions on the blockchain are approved by a network of “miners” operating computers that solve complicated puzzles. The information on the network is immutable, transparent and all account holders are pseudonymous, meaning that while their identity isn’t revealed, all their movements can be traced.

What is the total supply of Bitcoin?

Bitcoin has a maximum supply of 21 million tokens. However, only 19.64 million of them are in circulation (date: 3 March 2024) since the mining process is still ongoing. BTC has an average block time of 10 minutes, which is the length of time that each block is added in the chain. 

Mining will end once all 21 million coins are minted, which is expected to occur sometime in the year 2140. Considering that there are tons of “lost coins” or wallets whose users can no longer access, as much as 5 million BTC, there will never be 21 million coins in circulation, which adds to Bitcoin’s scarcity as a store of value.

Many believe that the creator of Bitcoin, Satoshi Nakamoto, owned roughly 1 million BTC, which he first mined in the first two years after Bitcoin’s launch. If he still owns those coins, he would have a net worth of roughly $60 billion, enough to make him one of the richest people alive.

How are Bitcoin and blockchain connected?

A blockchain is simply a distributed database that offers a consensus mechanism that enables two parties that don’t trust each other to transact, as well as a transparent public ledger. Blockchain serves the operating system, with Bitcoin as the first application. Bitcoin is a peer-to-peer payment system that is built on top of a blockchain.

How is Bitcoin different from Ethereum and other coins?

When it comes to system security and decentralization, Bitcoin is in a league of its own. It is best-suited for payment applications thanks to its robust proof-of-work consensus mechanism. However, to achieve this feat, it had to sacrifice other features, such as system flexibility.

Bitcoin vs Ethereum

Unlike Ethereum, Bitcoin can hardly run complex applications, and even when it could, it’s usually too cumbersome to design and costly to execute. Ethereum’s system flexibility allows it to easily execute smart contracts capable of running various decentralized applications (dapps).

Ethereum and many other altcoins use a proof-of-stake (PoS) consensus mechanism, or some variation of it, to power applications built on their blockchains, which has enabled various applications beyond simple payment mechanisms such as decentralized finance (DeFi) and non-fungible tokens (NFTs).

Bitcoin vs DeFi

DeFi refers to an ecosystem of financial applications that replicate and innovate traditional financial systems in a manner that eliminates intermediaries. One could argue that Bitcoin is the first form of DeFi, however, the term, at large, usually involves complex financial applications like decentralized exchanges, lending marketings, prediction markets that cannot be executed on the Bitcoin network per se.

Bitcoin vs NFTs

Non-fungible tokens (NFTs) are blockchain-based tokens that represent unique digital items. The most popular standard for building NFTs is ERC-721, which is powered by the Ethereum network. Back in 2012, Bitcoin had a concept called Colored Coins, which were small fractions of Bitcoins (called satoshis) that were distinct and had the ability to represent real-world assets, sort of like a precursor to NFTs. 

Unfortunately, Colored Coins didn’t pan out as each colored coin could only be as strong as its weakest link since Bitcoin’s scripting language wasn’t designed for this type of activity.

In 2021, Bitcoin holders had to sit and watch as NFTs absolutely exploded on the scene, pulling a lot of attention away. Fast forward to 2023, and Bitcoin Ordinals Theory created by Casey Rodarmour set off the NFT revolution, flooding the Bitcoin main network with micro transactions that facilitate inscriptions on individual satoshis, and driving up its value.

Why is Bitcoin so valuable in 2024?

Value is primarily driven by supply and demand. And Bitcoin has a capped supply of 21 million coins, of which maybe only 16 million will ever be accessible, which makes it quite scarce compared to other currencies like the USD, for example, which has an unlimited supply. 

The emission of each new coin has been decreased due to the Bitcoin Halving event, a process that halves the number of Bitcoins being minted, The last halving in May 2020 took BTC mining rewards from 12.5 BTC to 6.25 BTC, leading to a supply shock as there is now more demand for new Bitcoin than what is being mined. The next one in April 2024 will reduce it to only 3.125 BTC.

The culmination of these events which creates real scarcity have earned Bitcoin the moniker “digital gold”.

In contrast, governments across the globe, especially the US Federal Reserve, went on a printing spree during the Covid pandemic, injecting trillions of fiat money into the economy in order to issue stimulus checks and emergency funds to citizens amidst the coronavirus.

And this has led many individuals and institutions to question their nation’s monetary policy and transfer some of their wealth to safe haven assets like Bitcoin. In fact, institutional demand for Bitcoin has been astronomical, with the likes of MicroStrategy, Tesla, Grayscale, Rothschild Investment Corporation, among many others, getting some exposure to the apex cryptocurrency.

How do I check the Bitcoin price?

Head over to Coinmarketcap and you’ll see a list of cryptocurrency prices, with Bitcoin at the top. There are a plethora of other options as well, such as Coingecko.com. While different cryptocurrency exchanges sell Bitcoin at marginally different prices, which can be used for price arbitrage, the prices are usually very close to being the same. However, Korean exchanges tend to sell Bitcoin at higher prices, resulting in the so-called “Kimchi premium”.

Are There Any Physical Bitcoins? 

No, don’t be fooled by all those internet images of people showing off gold Bitcoin coins. Bitcoin is an entirely digital asset built on a cryptographic distributed technology. This means that all BTC is created, stored, and traded using Bitcoin’s distributed ledger. There are no physical Bitcoins in existence and there never will be. However, it would be theoretically possible to store Bitcoins on a physical storage device and spend them that way, similarly to credit chips in Star Wars. 

Is Bitcoin a Currency or Digital Asset? 

The definition of Bitcoin varies wildly between countries. In the United States, FinCEN has classified Bitcoin as a virtual currency and the SEC views it as a commodity (thankfully!) while other countries like Russia have defined Bitcoin as a digital asset or property.

Instead of viewing Bitcoin as purely a currency or digital asset, it is better to view it as a digital store of value, or digital gold. This means that Bitcoin can be used as a currency, or as a speculative asset. 

How Safe is Bitcoin?

As far as emerging asset classes go, Bitcoin is highly volatile — but safe. The proof-of-work (PoW) consensus mechanism helps secure the blockchain. At the moment, most risks are related to user error.

The biggest safety concerns for Bitcoin are: 

• Loss of wallet access: Approximately $130 billion in BTC has been lost and is now inaccessible. 
• User error during transfer: There is no recourse if users accidentally transfer their Bitcoin to the wrong wallet address. 
• Scams and hacks: Bitcoin scams and hacks are on the rise and users need to be careful to avoid social engineering attacks designed to gain access to their wallets. 
• Regulatory risks: These vary from region to region, but some governments are attempting to make Bitcoin trading illegal. 
• Technical risks: Bitcoin’s technology isn’t perfect. Theoretically, miners controlling 51% of the processing power on the network could mint fraudulent blocks, undermining BTC’s price. 
• Market risks: Bitcoin, like all cryptocurrencies, is highly volatile and exposes holders to the risk of losing their investments.

How do I Buy Bitcoin? 

To buy Bitcoin, you first need to convert fiat currency (“cash”) into BTC. To do this you need to use a crypto exchange service or trading app. There are a variety of these that operate globally but the most commonly used services are crypto exchanges like Binance, Bybit and Coinbase, where you can also get a sign-up bonus. Alternatively, you could also opt for instant crypto marketplaces like MoonPay, Changelly, BitPay, ChangeHero, and Simplex that allow you to purchase Bitcoin directly with a credit card, but they tend to be more expensive.

After you have made a purchase, your Bitcoins will be moved to a wallet, normally on the exchange where you made the purchase. It is not recommended to leave your Bitcoins on an exchange unless you’re planning to trade it soon. If not, you could lose it in the event of a hack or data breach. 

How to Buy Bitcoin With the CoolWallet

Buying, exchanging and selling crypto commodities like Bitcoin on the CoolWallet is as easy as it can be to get crypto to your hardware wallet.

The CoolWallet’s app has a marketplace section with integrated fiat-to-crypto and crypto-to-crypto options like BitPay, ChangeHero, Changelly and Simplex, with whom it has all partnered, all available in-app to help you top up on Bitcoin and other crypto assets in no time.

Is It Better to Trade or HODL Bitcoin? 

Whether you should actively trade or hold (Hodl) your Bitcoin purchases long-term will depend on your risk tolerance. It is certainly possible (especially in a bull market) to make money trading. But it adds a layer of risk to an already risky investment. Traders need to beat the market, which requires significant background knowledge in things like technical analysis and candlestick charts. 

For most people the best option is probably to invest a small amount of money over a long period of time to account for highs and lows, which is known as dollar cost averaging. This will enable you to take advantage of the long-term gains in Bitcoin price. 

Should I Invest in Bitcoin? 

Our guide offers no financial advice, unfortunately. Only you can answer this question but hopefully, this guide has helped you figure that out for yourself! Bitcoin is undoubtedly a highly volatile asset but it is still early in its lifecycle. An investment could outperform other assets in your portfolio. If you want to invest in Bitcoin, keep these three golden rules in mind: 

• Diversify: Bitcoin is great, but don’t put your entire portfolio in one asset. Diversification will protect you if things go south. 
• Don’t Invest What You Can’t Afford To Lose: Don’t take out a loan to buy crypto; don’t invest your rent money in Bitcoin. Only spend money that you don’t need to get through the month. 
• Keep Your Wallet Safe: Make sure that only you have access to your wallet’s private keys, and ensure that your seed phrase is stored somewhere safe. 

Can Bitcoin get hacked?

Hacking Bitcoin is possible in theory, but highly unlikely. Firstly, there is no way around Bitcoin’s “proof-of-work,” which means that if hackers want to alter any information in its database, they need to produce at least 51% of the network’s hash power, an incredible feat in and of itself. 

Furthermore, they also need a lot of coordination between colluders to successfully pull it off. And even then, it’s not a guarantee that they could steal some coins let alone take control of the network for an extended period. 

Hacking Bitcoin is too risky and impractical that most hackers don’t even bother. In other words, it is a trillion dollar bug bounty program with no critical vulnerability found in its 12 years of existence.

How anonymous is Bitcoin?

Bitcoin is a pseudonymous cryptocurrency since it doesn’t directly link a user’s address to his real-world identity. However, the user’s public address could be traced back to his IP address or exchange account he uses to send or receive BTC through blockchain analysis.

There are ways to increase anonymity in transacting with Bitcoin, but it usually involves other cloaking mechanisms such using a TOR browser and avoiding the purchase of Bitcoin through credit cards or any service provider that requires KYC.

What is Bitcoin Pizza Day?

Bitcoin Pizza Day is a yearly celebration to commemorate the first account of Bitcoin being used to pay for physical goods, which fell on the 22nd of May in 2010. The transaction involved crypto enthusiast Laszlo Hanyecz, who bought two Papa John’s pizzas and paid 10,000 BTC (its value was about $27 at the time), which is worth roughly around $579 million in today’s price.

What is the Bitcoin Halving?

The Bitcoin halving is an event that happens every time the network has mined 210,000 blocks, which results with the cutting of rewards in half. The “halvening,” which happens approximately every four years, is an ongoing process that ends when all 21 million coins have been minted.

Bitcoin price predictions

When it comes to the future price of BTC, there is no shortage of predictions coming from supporters, skeptics, and impartial entities. For anyone who experienced the great fall from 2017’s all-time highs to 2018’s depths, there will be some bitter memories and reminders on how quickly sentiments can change from FOMO to FUD. Therefore investors should not be swayed by opinions, but do their own research (DYOR).

Most bullish predictions point to the dwindling trust in the fiat monetary system and the recognition of Bitcoin as an alternative store of value that is far superior to gold.

According to MicroStrategy CEO Michael Saylor, “Bitcoin is going to flip gold, and it’s going to subsume the entire gold market cap…until it grows to $100 trillion”. Saylor didn’t give a timeline but if we assume that Bitcoin has a circulating supply of 19 million by then, each Bitcoin would be valued at around $5.26 million, which is 92x its current valuation.

Gemini exchange founders Tyler and Cameron Winklevoss are a little more conservative in their forecast, stating that Bitcoin will hit $500K per coin sometime in this decade. Citibank managing director Tom Fitzpatrick, however, predicts that number one crypto will breach the $318K mark sometime this year.

On the flipside, Bitcoin critic Nouriel Roubini, who has been outspoken about his views on BTC and blockchain technology since 2018, has recently proclaimed that the asset’s fundamental value is negative if we consider its carbon tax. “I predict that the current bubble will eventually end in another bust,” he added.

In 2018, two Yale economists had published a report that showed that the odds of Bitcoin dropping to zero is roughly 0.4%.

What’s up with Bitcoin Laser Eyes?

The viral Bitcoin laser eye movement happened on social media like Twitter and Clubhouse in 2021 following the Gamestop short saga by Wall Street Bets. In order to show solidarity and propel Bitcoin’s price up, many influencers and social media users changed their profiles to the “laser eyes” version, which basically means they’re laser focused on getting Bitcoin to $100,000.

Will the Bitcoin flippening ever happen?

Some pundits in crypto have talked about a concept called “the Flippening,” which is a prediction that sometime in the future, Bitcoin will be usurped by another altcoin as the leading cryptocurrency. Believers of the flippening usually argue that Bitcoin is an outdated system that can’t scale and is dreadful to the environment. 

However, defenders have pointed out that the use of renewable energy within the Bitcoin mining space is increasing while most of its energy consumption comes from excess supply, which would have been wasted if it weren’t used in securing the Bitcoin network.

Some members of the Bitcoin community are more supportive of Bitcoin forks than the main network. Bitcoin Cash (BCH) and Bitcoin Satoshi’s Vision (BSV) adherents have called out Bitcoin’s scaling problem countless times; just as much as they’ve declared that their fork will eventually “flip” BTC due to their higher transaction capacity.

Yet it appears that the crypto community also values attributes other than scalability considering that there are thousands of altcoins that are orders of magnitude faster and more efficient than BTC, yet none of them have ever come close to flipping Bitcoin. XRP, XLM, NANO, and DGB are some cryptocurrencies that are far more scalable than BTC today. But most Bitcoin maximalists argue that BTC cannot be matched since it is the most secure and decentralized monetary system in existence.

However, there is a growing number of individuals who feel that dapp-focused blockchains, especially Ethereum, are far superior since Bitcoin has limited smart contract applications and is mainly used as a medium of exchange. In this case, a Bitcoin proponent’s rebuttal would point to the fact that Bitcoin is designed to be programmable money and having a flexible smart contract functionality would compromise this attribute by increasing the cryptocurrency’s attack vector.

Many crypto experts say that Bitcoin and smart contract platforms like Ethereum and Polkadot have very different applications, and hence, should not be in competition in the first place.

What Is a Bitcoin Wallet? 

A bitcoin wallet is essentially your Bitcoin account. You can use your wallet to store, send, and receive Bitcoin. There is no limit to the number of wallets you can have. Wallets are composed of private keys, which only you should know, and public keys, which others can use to send you Bitcoin. 

A bitcoin wallet is essentially your Bitcoin account. You can use your wallet to store, send, and receive Bitcoin. There is no limit to the number of wallets you can have. Wallets are composed of private keys, which only you should know, and public keys, which others can use to send you Bitcoin. 

They typically come in three main forms: 

• Paper Wallets: These are wallets that you store offline. If you keep the paper in a safe place, it can be a very secure way to store your Bitcoin. However, it does make them vulnerable to fire, water damage, etc.
• Software Wallets: These are active online wallets. While not unsafe, they open you up to more risk than a hardware or paper wallet. Most software wallets are stored on your smartphone, which makes them convenient for everyday use. 
• Hardware Wallets: These wallets are, like paper wallets, offline and are never connected to the internet, unlike software wallets. Also called cold storage, they are designed to be a safer storage device than paper wallets. They often operate using some form of two-factor authentication. It is recommended that you hard-reset a hardware wallet before first use, in case it has been tampered with. 

What is the easiest-to-use Bitcoin hardware wallet?

Did you know that the first-generation CoolWallet was the world’s first Bitcoin hardware wallet to connect to a mobile phone, launching in 2016?

It was followed up by the CoolWallet S in 2018 which supports multiple assets.

The CoolWallet S is often labeled the world’s most convenient hardware wallet because it can be stored in your physical wallet and only works with your own mobile phone.This provides users superior cold storage at their fingertips on the go. 

The form factor of a credit card, the CoolWallet’s patented compression technology makes it virtually immune to physical tampering, while its secure element and biometric verifications provide further enhanced security. Moreover, this cold storage, which connects to paired phone via encrypto Bluetooth, is also waterproof and features a unique embedded e-paper screen. 

How Can I Recover a Lost Bitcoin Wallet? 

When you create your first wallet you will be given 12 to 24 random words. This is your seed phrase and is necessary to recover your wallet if something happens. Seed phrases should be stored offline in a safe place (eg, safe deposit box). And you should never share it with anyone, as it will allow them to recreate your wallet and potentially access your funds. 

With the CoolWallet it’s simple: If you lose your phone or card, you can simply restore your funds by accessing it on a different CoolWallet or phone by using your recovery seed. If you don’t have access to a CoolWallet, you can use options like TrustWallet (not advised as software wallets are not as secure as cold wallets). 

Hackers and scammers are having a field day in 2024, with numerous exploits yielding over $200m in stolen assets from exchanges and DeFi protocols in Q1 so far.

Contents

Introduction

With the 2024 crypto bull season in full flow, it’s no surprise to see the usual motley crew of hackers and scammers return to the space to pillage the wallets of investors, DeFi protocols and centralized exchanges once again. 

Web3 is moving faster than ever and as shiny new layer-1 and layer-2 networks launch and degen traders dive headfirst into new trends like Crypto AIs, DePIN, Airdrop Season and uhmmm, full-blown memecoin mania (see Slerf this week), bad actors are rubbing their hands in glee as they relieve ill-prepared investors and protocols of hundreds of millions in crypto. 

In the first quarter of 2024 alone, we’ve seen over $200 million worth of digital assets stolen across 32 incidents, according to a report by blockchain security firm Immunefi. That’s a 15% increase compared to the same period in 2023.

With crypto crime surging again, using a top hardware wallet like CoolWallet is no longer a luxury, but a necessity. Our cold storage solutions have been protecting crypto assets like Bitcoin since 2014, and provide complete peace of mind in crypto. Read or scroll down to the end to find out why. 

Still not worried?
OK, then let’s take a closer look at the biggest crypto hacks of Q1 2024, break down the month-by-month incidents, and explore the lessons we can learn from these costly attacks. Remember, if you own crypto, you are a TARGET.

The Biggest Crypto Hacks of Q1 2024

Ethereum Takes the Hardest Hit

No prizes for guessing that Ethereum was the most targeted blockchain yet again, with 12 attacks accounting for over 85% of the total value lost in Q1. The Bitcoin network and Binance’s BNB Chain each suffered one major incident. Below is Immunefi’s list of hacks in February alone.

PlayDapp –  $32.3 million ($290 million lost)

The largest hack of the year so far targeted PlayDapp, a crypto gaming platform, on 9 and 12 February 2024, resulting in a loss of $32.3 million converted while $290 million were stolen. The exact details of the attack method have not been disclosed.

The attacker managed to mint 200 million PLA tokens (worth around $36.5 million) in the first attack on February 9th. The root cause of the exploit was an access control vulnerability in PlayDapp’s smart contract, which allowed the attacker to gain unauthorized minting privileges. By exploiting this vulnerability, the attacker could create new tokens out of thin air, effectively devaluing the existing tokens. 

The total number of PLA tokens minted by the attacker (1.8 billion) significantly exceeded the pre-exploit circulating supply of 577 million, making it challenging for the hacker to sell the tokens at their original market value.

FixedFloat – $26.1 million

Decentralized exchange FixedFloat suffered the second-largest theft according to Immunefi, losing $26.1 million. The hack was carried out by exploiting a vulnerability in the exchange’s smart contract.

The  cryptocurrency exchange, which does not require user registration or Know Your Customer (KYC) verifications,  initially attributed the massive outflow of funds to “minor technical problems” and switched to maintenance mode. 

However, the team later denied insider involvement and claimed that a third party had exploited vulnerabilities and security gaps in its infrastructure, allowing the attacker to access sensitive functionality within the protocol. 

FixedFloat’s handling of the incident has been criticized for its lack of timely and transparent communication with its users, leading to accusations of a potential exit scam.

Orbit Chain ($80 million)

On January 2, 2024, Orbit Chain, a South Korean blockchain project, fell victim to a hack that resulted in a loss of over $80 million. The breach was attributed to compromised multisig signers, allowing the attacker to drain various cryptocurrencies, including stablecoins, wrapped Bitcoin (WBTC), and Ether (ETH). The stolen funds were then transferred through mixers in an attempt to obfuscate the trail. 

This incident is part of a series of security issues plaguing Ozys’ projects, including previous hacks on KlaySwap and Belt Finance. The Orbit Chain hack highlights the persistent risks associated with crypto security, particularly in relation to multisig wallets and private key management, emphasizing the need for improved safeguards and lessons learned from past breaches.

Shido Hack ($35 million)

On March 5, 2024, Shido, a Layer-1 Proof-of-Stake (PoS) blockchain, experienced an exploit that resulted in the theft of approximately $35 million worth of SHIDO tokens. The attacker managed to drain around 4.3 billion SHIDO tokens, which constituted nearly half of the token’s circulating supply. The exploit was made possible by a change in the contract’s ownership to a new address, which then upgraded the staking contract using a hidden withdrawToken() function to steal the funds. 

This incident led to a steep 94% drop in SHIDO token prices within the first 30 minutes of the attack. In response, the Shido team replaced the compromised deployer address, temporarily closed liquidity provisioning on all DEXs, and contacted CEXs to disable deposits and freeze tokens linked to the hack,which helped to limit the damage.

Notable Crypto Hacks So Far in 2024 (Month by Month)

January 2024

Project	Date	Value Stolen	Hacking Method	Lessons Learned
Orbit Chain	Jan 2	$80 million	Compromised multisig signers	Improve multisig security and private key management
Radiant Capital	Jan 3	$4.5 million	Price manipulation exploiting rounding error	Careful consideration when forking existing codebases
Gamma Strategies	Jan 8	$3.4 million	Flash loan attack manipulating price thresholds	Set conservative price change thresholds
CoinsPaid	Jan 8	$7.5 million	Unauthorized withdrawals, method unknown	Ongoing investigations, no comment from CoinsPaid

February 2024

Project	Date	Value Stolen	Hacking Method	Lessons Learned
PlayDapp	Feb 9, 12	$290 million	Unauthorized minting using compromised private key	Secure private keys, monitor for suspicious activity
Abracadabra Finance	Feb 20	$6.5 million	Rounding error exploitation	Thorough testing and auditing of smart contracts
Blueberry Protocol	Feb 23	$1.34 million	Exploitation of upgradable contracts	Carefully manage upgradable contracts and access control
FixedFloat	Feb 16, 17	$25.95 million	Method under investigation	Ongoing investigation, website in maintenance mode
Miner (@minerercx)	Feb 14	$463,400	Vulnerability in ERC-X token standard	Careful consideration when using experimental token standards
Narwhal	Feb 5, 6	$1.5 million	Compromised signer key or exit scam	Ongoing investigation into true nature of incident

March 2024

Project	Date	Value Stolen	Hacking Method	Lessons Learned
Mozaic Finance	Mar 15	$2.5 million	Compromised private key on Arbitrum chain	Swift action and transparency in addressing security incidents
GAMEE Token	Mar 22	$7 million	Lack of access control, compromised deployer	Implement robust access controls and secure development practices
Shido	Mar 5	$35 million	Ownership change and hidden withdraw function	Regularly audit and monitor smart contracts for vulnerabilities

7 Top Tips Stay Safe From Hacks in 2024

1. Secure your keys: Many hacks stemmed from compromised private keys or multisig setups. Implementing robust key management practices is crucial. CoolWallet enables users to set up their recovery seed phrase completely offline if needed, and it’s strongly recommended to NEVER create or keep a digital copy of it. 
2. Audit, test, and monitor: Regular audits, thorough testing, and continuous monitoring can help identify and mitigate vulnerabilities before they’re exploited.
3. Be cautious with upgradable smart contracts and experimental standards: While useful, these features can introduce new attack vectors if not managed carefully.
4. Swift action and transparency matter: Projects that quickly acknowledged incidents, took corrective measures, and communicated openly with their communities fared better in the aftermath of a hack.
5. Diversify your holdings: by using different devices and wallets if you’re going to actively trade your crypto and interact with a number of decentralized applications. 
6. Protect Your Privacy: Where possible, use a VPN to hide your IP address from hackers and scammers.
7. Stay Safe From Stranger Danger: Do not click on any suspicious links on any site or email or approve any blind signing requests when transacting. 

CoolWallet- Cold Storage’s Smartest Choice Since 2014

In an industry built on trustless technology, there are still some areas where trust matters above all else, namely which crypto wallet to keep your digital assets on.
CoolWallet is celebrating its 10th year in 2024, and still holds an undefeated safety record in the blockchain security businesses, unlike some of our more esteemed peers. 

Users can choose from two battle-tested models, the CoolWallet S ($99) for HODLers and newbies, as well as our flagship CoolWallet Pro model ($149) for more sophisticated investors who like a cold wallet that’s portable and ultra-secure. 

Elite safety features include an EAL6+ secure element, military-grade encrypted Bluetooth, a tamper proof and waterproof casing, biometric verification and our  anti-phishing Web3 transaction screener, SmartScan. And of course, open-source coding for full transparency. 

As the crypto space continues to evolve, so do the tactics of hackers and exploiters. By learning from these incidents and implementing best practices in security and smart contract development, projects can better protect themselves and their users from falling victim to the next big hack.

Stay safe out there, fellow crypto enthusiasts! And remember, when in doubt, always do your own research and never invest more than you can afford to lose.

Don’t trust your precious crypto on exchanges or unsecured software wallets. Not Your Keys, Not Your Crypto!

On March 5, 2024, Bitcoin (BTC) defied the crypto naysayers yet again to surge past its previous all-time high (ATH) of November 2021, setting a new record at $69,170 on CoinMarketCap charts. Only 3 days later, it has done the previously unimaginable, hitting the magical $70,000 mark for the first time.

Let that sink in for a minute.

$70,000.

This milestone marks a significant rebound from the nasty bear market, clocking a 50% gain in value for crypto’s flagship asset this year alone. And we’re not done yet.

Bitcoin’s March rally has been punctuated by record trading volumes and open interest in Bitcoin futures, indicating strong demand and participation from both institutional and retail investors who have woken up to the fact that in the Year of the Dragon it’s best to go LONG on Bitcoin in 2024, like we already told you last year.

While the first ATH celebration at $69,000 was brief, with Bitcoin soon retracting to around $59,000 to flush out overleveraged long positions before settling back in at over $65,000, the move has reignited discussions about the cryptocurrency’s potential and just what is driving its latest bull run. Let’s dig in.

But first, some Dave Portnoy!

https://www.youtube.com/watch?v=zje3n6nIKC8

Contents

Key Factors Driving Bitcoin’s Crazy 2024 Rally

Spot Bitcoin ETFs

The recent approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has been a game-changer. These ETFs have attracted massive inflows, creating consistent buy pressure as they accumulate actual BTC to back the ETF shares. Notable players like BlackRock, Fidelity, and Grayscale have launched their own spot Bitcoin ETFs, making it easier for institutional investors to gain exposure to BTC than ever before, without all that pesky Not Your Keys, Not Your Crypto nonsense (which actually gives it its real value).

Bitcoin Halving

The anticipation of the Bitcoin halving event, expected in April 2024, has helped to amplify the momentum that the spot ETF launches have created. The halving, which will reduce the block reward for miners from 6.25BTC to a miserly 3.125 BTC, has historically led to a deflationary pressure and significant price rallies in the past, kicking off some epic bull runs.

DeFi and Ordinals

Following the Taproot upgrade in 2021, Bitcoin’s evolving ecosystem, including the growth of decentralized finance (DeFi) and the emergence of Bitcoin Ordinals, has added new dimensions to its utility and appeal. With BRC20 tokens popping up and off everywhere and Bitcoin layer-2s using the network’s well-documented safety and decentralization to build new financial networks, the arguments of Bitcoin simply being boring old digital gold are not holding much water anymore.

Macro Environment

The macroeconomic landscape, including persistent inflation and the prospect of interest rate cuts, has bolstered the appeal of Bitcoin as both a hedge against inflation and a speculative asset. Moreover, the way Bitcoin is reported on US company balance sheets will soon change as the new FASB reporting rules take effect. Add in a US election year and its classification as a commodity by the SEC, and things are all lining up for mass adoption.

Bitcoin Price Predictions and Future Outlook

As Bitcoin regroups for another imminent attempt at the $70,000 resistance level, predictions for its future price are varied but generally very optimistic. Analysts forecast a range from $100,000 to $150,000 by the end of 2024, with some like Cathie Wood even projecting a long-term target of $250,000 to $1 million. The smart money believes that as inflation and central banks’ money supply manipulation continue, a scarce asset like Bitcoin with its maximum 21 million coins can only go up in value over time.

Also, in a recent podcast, crypto investor Raoul Pal remarked that we’re still very early in mainstream adoption, as institutional investors or billionaires will gradually increase their investment over time. Couple that with the fact that millennial investors can now add Bitcoin to their 401k savings each month with no hassle, and the future is looking very bright.

Jul 2010, BTC was 0.7 cents, it popped 10x in 5 days, then another 1000x 2 years following.

Why?

BTC was introduced to global liquidity with the advent of MtGox.#Bitcoin just got listed on the worlds stock markets which holds ~$100T of capital, and they are piling in. pic.twitter.com/m7yxyUudK7

— Willy Woo (@woonomic) March 7, 2024

Conclusion

The success of spot Bitcoin ETFs, the upcoming halving event, new use cases such as Ordinals and DeFi that bring with it mountains of new transaction volume, and the continued adoption of Bitcoin as a store of value are key factors that you can’t ignore. And as history has shown, Bitcoin gains eventually make their way down the funnel to other areas such as DeFi, Web3 and NFTs over time.

Despite the excitement around Bitcoin’s new ATH, it’s essential to approach the market with caution. The cryptocurrency remains volatile, and the current rally could be followed by significant corrections. Therefore a steady hand may be the best approach for navigating the ever-evolving crypto landscape.

HODL Bitcoin with CoolWallet

Nothing is as steady as Bitcoin in cold storage, and if you’re looking to accumulate BTC in an elite and convenient hardware wallet, look no further than CoolWallet Pro (for experienced investors) and CoolWallet S (for novices and HODLers). Did you know it was the world’s first Bitcoin mobile hardware wallet in 2016?

With a cutting-edge EAL6+ secure element, open-source code, biometric verification on its accompanying CoolWallet App, tamper proof and waterproof protection, and real-time Web3 Smart Scan technology helping you to thwart those dangerous phishing attempts, CoolWallet remains the smartest choice for serious crypto investors who don’t want to sacrifice security for ultimate convenience.

Disclaimer: This article is for educational purposes only and none of its content is financial advice. Cryptocurrency investment is highly volatile and risky. The author’s opinions are his own.