Category Archives: Bitcoin News

Coinbase Tries AI Assistant Chatgpt for Pre-Listing Risk Assessment of Tokens

Coinbase, a digital asset exchange, has tested the artificial intelligence ( AI) chatbot created by Openai for automated token reviews. According to the U.S.-based trading platform, Chatgpt wasn’t accurate enough to be integrated immediately into its asset review process but it had enough potential to merit further investigation.

This experiment is part Coinbase’s effort to use efficient and effective methods for reviewing token contracts before listing the assets. The exchange explained that the Blockchain Security team uses in-house automation tools to assist security engineers in reviewing ERC20/721 smart contract contracts.

ChatGPT by OpenAI has been a hot topic due to its ability to detect security flaws. We wanted to see if this could be used as a frontline tool and not just for code review.

Coinbase explained that Chatgpt had shown promise in improving productivity across a wide variety of engineering and development tasks. The AI tool can also be used to optimize code or identify vulnerabilities.

A leading American cryptocurrency exchange conducted an experiment to determine if Chatgpt’s token security review was as accurate as a standard review done by a blockchain security engineer using their internal tools. The chatbot needed to be trained to recognize risks according to the platform’s security review framework in order to produce comparable risk scores.

Researchers compared 20 smart contracts risk scores between Chatgpt, and a manual security inspection. The AI tool produced identical results to the manual review 12 more times. Five of the eight missed cases were instances in which Chatgpt mistakenly classified a high-risk asset with a low-risk one. The exchange stated in a blog that underestimating a risk score can be more damaging than overestimating it.

Coinbase claims that Chatgpt’s efficiency has been amazing, despite the tool’s inconsistencies and ‘worst-case failure’. The company believes that the accuracy of the tool could be improved with prompt engineering.

Coinbase stated that the bot can’t be relied on to do a security review. It also stated that the bot can’t be relied upon to perform a security review. However, its team could improve the accuracy. It means engineers could potentially use it to perform additional controls checks to detect potential risks that might have been missed.

Openai’s Chatgpt platform is in the spotlight due to growing popularity of artificial Intelligence applications. Binance, the largest cryptocurrency exchange in the world, had announced that it was launching an AI-centric token ( NFT ).

Bitcoin And Crypto Face These Key Dates In The Week Ahead

This week will again bring important macroeconomic data to the Bitcoin and crypto markets. Investors should be aware of this. While Bitcoin has been able to maintain a positive correlation with the S&P 500, and the Dollar Indexing recent week’s, it is probable that the Federal Reserve will continue to have an impact on crypto.

Even though the week has started quiet, there are two macro events this coming week that could prove to be important. The U.S. stock exchange opens with a day off because of Presidents’ Day. Quarterly earnings will continue Tuesday through Friday.

Major retailers will be able to test the strength and viability of the U.S. stock exchange rally over the coming week. Investors can get a glimpse at the health of consumer spending as well as the effect of inflation on corporate profits. Walmart and Home Depot will publish their reports on Tuesday.

What’s the Deal with Bitcoin Rally?

The FOMC Minutes will be the first major event on Wednesday, 22 January at 2:00 EST. This report provides detailed information on the FOMC meeting February 1 and offers insights into the financial and economic conditions that influenced interest rate voting.

Investors in Bitcoin and financial services will be paying more attention this time around. Last week, several Fed speakers stated that the rate decision was not unanimous. They supported a 50 basis-point increase. Also, there were elevated CPI revisions last week and a strong January report.

Some voices believe that the Fed could use these minutes to make some sly corrections based on the negative data. The Fed Minutes could indicate an imminent rate hike that could sabotage the financial markets.

Powell also indicated that the minutes would provide information about how the Fed will decide when it will pause its rate-hike cycle. This is an important data point for financial market investors.

The Fed will likely request multi-monthly inflation data. This signals that it is on track to reach its 2% target. The Fed will now be focusing on the tight labor market as wage pressures are not compatible for a 2% inflation rate.

Bitcoin investors should be paying attention to the FOMC Minutes to see if Fed increases its hawkish stance. The recent Bitcoin decoupling will likely be tested.

The release of the core PCE price index, the second major event in the week , will be the second. Because it is more accurate than the Consumer Price Index, the PCE price index (Federal Reserve’s preferred measure for inflation) reflects consumers spending habits in a quicker manner than the CPI.

Core is the absence of volatile or seasonal prices for food and energy, which is not included in the PCE. The Core PCE has dropped from 5.1% to 4.4% over the past year, most recently in January.

It is now expected that it will have increased 0.4% in January from 0.3% in December, and 4.3% YoY. If the PCE surprises negatively and it exceeds expectations, then fears of sticky inflation will likely become stronger. This could also put a damper in the Bitcoin price.

After being rejected again at the critical resistance of $25,223, Bitcoin’s price was at $24,520 at press time.

Expect bitcoin to top $50,000 again within a few years, Anthony Scaramucci says – as crypto markets start 2023 with a bang

Bitcoin could reach $50,000 within a few years as cryptocurrencies recover from a terrible year, according Anthony Scaramucci.

SkyBridge Capital founder stated that he expects 2023 to be a “recovery year” for digital assets. He believes it will create a longer-term bitcoin rally, which will raise the token’s value to between $50,000 and $100,000.

Scaramucci said CNBC last week that while you are taking on risk, you also believe in adoption.

“So, if we get adoption right – which I believe we will – this could easily become a $50,000-100,000. asset over the next two-to three years.”

As traders anticipate that the Federal Reserve will reduce its large-scale interest rate hikes to curb inflation, cryptocurrencies have risen since the beginning of 2023. Investors will be more inclined to save their money in interest-bearing savings accounts than invest it in assets, the higher the rates.

The leading cryptocurrency bitcoin has seen a 26% increase to trade at $21,000. Meanwhile, the second-largest token ether has risen above $1,500 following a 29% surge.

However, the rally was not significant enough to offset the losses suffered by cryptocurrencies in 2022.

Both ether and bitcoin are still below 50% in the last year. The demand for crypto has been impacted by rising interest rates and the implosions of well-known companies such as FTX, Celsius Network and Celsius Network .

Despite the market downturn, Scaramucci continues to believe in the sector. He stated Monday that he will invest his own money in the new crypto startup of former FTX US president Brett Harrison.

“Brett, I am proud to invest in your company. Keep moving. Do not look back. In reply to a tweet thread in which Harrison wrote about his experiences working for the failed crypto exchan, Scaramucci stated that he wished him the best.

Bank of Russia to Test International Crypto Payments With Companies

According to Olga Skorobogatova, the First Deputy Chairman of the Central Bank of the Russian Federation (CBR), the Central Bank of the Russian Federation intends to test international trade settlements using cryptocurrencies.

She said that she was now planning to use cryptocurrency for international settlements.

Skorobogatova, speaking at the State Duma (the lower house of Russian parliament), stated that the pilot project would be conducted with interested companies. Skorobogatova did not name specific market participants who will be participating in the pilot project.

Moscow’s government institutions have been trying to improve the regulation of digital financial assets in order to include decentralized cryptocurrencies. Although the central bank was a strong opponent to legalization of cryptocurrencies in Russia, it has changed its position amid Western restrictions on the invasion of Ukraine that have restricted the country’s access global markets and finances.

Alexey Moiseev, Deputy Minister for Finance, revealed in September that his department had confirmed that Russia would not be able to conduct cross-border cryptocurrency settlements under current circumstances.

The CBR however, maintains its opposition to allowing digital currencies such as bitcoin to circulate freely under Russian jurisdiction. This includes domestic crypto payments. Recently, supported legislation to regulate mining, providing that the minted cryptocurrency is only exchanged outside Russia or under specific legal regimes within Russia.

Grayscale Bitcoin Trust Trading Down By 40%; Is This A Warning?

The global digital asset marketplace has been severely affected by the collapse of FTX, a cryptocurrency trading platform. This crisis has had a major impact on several crypto-exchanges and lending platforms. This wildfire has reached the largest cryptocurrency fund in the world.

Grayscale Bitcoin trust trading with negative premium

data shows that the negative premium for Grayscale Bitcoin Trust Fund Fund (GBTC), grew to a staggering 42.7%. The negative premium for Ethereum Fund fell to 40.12%. Both trust funds are at an all-time low.

According to reports, GBTC, which holds 3.5% of the world’s Bitcoin value, has seen its value drop as investors hesitate to invest in the market due to the recent FTX collapse. Grayscale however stated that it was not affected at all by the collapses of Genesis and DCG’s subsidiary.

The drop in premiums suggests that trust investors have lost 83% since November, when the Bitcoin price reached its All-time high (ATH). The Bitcoin price has dropped by a staggering 65% year-to-date (YTD).

At press time, Bitcoin trades at an average price $16,748, BTC’s market capitalization now stands at $321.7 million.

Are these warnings for crypto investors?

Experts believe that investors’ confidence has plummeted in cryptocurrency since the collapse of FTX. Due to recent events, the global digital asset market has fallen below the critical $1 trillion mark.

Grayscale investors were panicked when Genesis, a crypto lending platform, suspended its services on Wednesday. According to reports, Genesis originated more than $50 billion in loans last year. The collapse of Three Arrows Capital caused a serious blow to its lending arm.

Digital Currency Group’s subsidiaries are Grayscale and Genesis. Genesis was authorized to participate in GBTC. It was responsible for issuing Grayscale securities new shares up to last month.