Dogechain Offers Smart Contract Capabilities to DOGE Owners

Dogechain Offers Smart Contract Capabilities to DOGE Owners

The U.S. government decided to act upon the Ethereum blockchain, and it’s imposing a ban on Tornado Cash, the cryptocurrency tumbler. 

At the beginning of August 2022, the U.S. Treasury Department announced that it had banned Tornado Cash, the famous crypto-mixing service. In a move likely to have wide-reaching implications for crypto, all American “persons” are prohibited from interfacing with the open source protocol.

Circle, the issuing entity behind USDC stablecoin, immediately removed 38 addresses from their transaction history that were connected to Tornado. Anecdotal evidence suggests that bans are being enforced by other platforms and companies.

By instating this bad, the Office of Foreign Assets Control has created made it a crime to use Tornado Cash. It is now more difficult to maintain transactional secrecy for Ethereum, the most widely used blockchain. Platforms and individuals need to assess their exposure and take steps toward avoiding regulatory action. However, it’s still unclear whether or not the regulators will enforce such a ban and how blockchain protocols will comply. 

What is Tornado Cash?

Tornado Cash is an open-source project that allows crypto users to hide their transactions histories from the public. It is claimed by the U.S. government that Tornado Cash was used to launder more than $103.8 million through hacks of Nomad Token Bridge and Horizon Harmony Bridge earlier in the summer and was also used by Lazarus Group, a North Korean hacker group. 

The U.S. Treasury sanctioned Tornado Cash for its use by Lazarus Group, a North Korean hacker group. Also, it cited the laundering of more than $103.8 million through hacks of Nomad Token Bridge and Horizon Harmony Bridge earlier in the summer.

Since its 2019 launch, Tornado Cash was used to launder more than $7 billion worth of cryptocurrency.

Soon after the U.S. Treasury announcement, the Discord server for that group vanished, and unknown persons also took down the forum on Tornado Cash’s community website. A member of Tornado Cash’s developer group was also taken into custody in the Netherlands by law enforcement.

Who uses Tornado Cash?

Instead of pursuing identifiable bad actors or targeting hackers, the government has placed a ban on the protocol. Elliptic, an analytics firm, claimed it had found $1.5 billion worth of illicit funds through ransomware fraud, hacks, and hacks.

Chainalysis, the blockchain analysis company, released a report that claimed that the use of crypto-mixers hit an all-time high monthly level in April 2022. This was after $51.8 million had been laundered through different platforms.

Tornado is also an important component of the Ethereum money stack. While this wasn’t the only method to anonymize transactions on blockchain, or the only coin tumbler used, it was the most widely used tool. The vast majority of applications supporting ETH will have exposure to the mixing service. Even Ethereum co-founder, Vitalik Buterin, has admitted to having used Tornado Cash before donating money to Ukraine in the spring of 2022.

But a government can’t really ban a blockchain protocol

But as with any smart contract deployed on a blockchain, it can’t be shut down by any authority. Although the use of the Tornado Cash smart contract has been deemed a criminal action, the ruling can’t actually stop anyone from using it or even re-deploying its open-source code on a different blockchain. 

Surely, there have been some reactions to the ban. Some Tornado Cash users have been sending small amounts of crypto to celebrities’ crypto owners. The issue is that anyone who knows your public wallet address (which is not hard to find) can send you transactions, even a transaction from Tornado Cash, and there’s no way to refuse a transaction. In this case, there can be innocent people that might have wallets that can be tied to the banned protocol – but are they really to be blamed?

While some platforms such as Circle and MakerDAO are trying to follow the rules, it is clear that blockchain financial apps can’t exist by following the archaic regulations of governments. 

Crypto and AI Set for Major Energy Consumption Surge by 2026

Crypto and AI Set for Major Energy Consumption Surge by 2026

As the International Energy Agency (IEA) forecasts, AI’s energy consumption is poised for an explosive increase, overshadowing even the substantial growth in crypto’s energy use. Despite AI’s burgeoning demand, the spotlight remains on cryptocurrency for its significant energy footprint.

Dogecoin’s Price Surges as Elon Musk Agrees to Buy Twitter for $44 Billion

Dogecoin’s Price Surges as Elon Musk Agrees to Buy Twitter for $44 Billion

The famous meme coin, Dogecoin (DOGE), surged by 9% after reports that Elon Musk closed the deal with Twitter, and acquired the social media giant for $54.20 per share (a total of $44 billion).

As the news started to surface on social media, and especially on Twitter, the price of Dogecoin (DOGE) jumped up to $0.17, from $0.12, in only a couple of hours. That represents a 25% price increase on a 24-hour timeframe. 

The stock price of Twitter (TWTR) also rose around 6.86% on Monday, April 25, from Friday’s closing price, reaching $52.29. 

However, Dogecoin’s price soon droped to around $14.30. 

Elon Musk buys Twitter for $44 billion

The world’s richest man, owner of Tesla and SpaceX, gains control over Twitter, the favourite social media channel for cryptocurrency projects.

At first, Twitter and its advisors weren’t sure how serious Elon was about this proposal. On April 14, Elon Musk made an offer price of $54.20-per share, which some considered a joke because it included the number 420. This number is a popular insight joke that refers to smoking marijuana. However, Elon Musk submitted financing documents last week to support his bid. They were signed on April 20.

These references are reminiscent of his 2018 tweet “Funding Secured” in which he stated that he was looking to privatize electric car maker Tesla Inc for $420 per share. Musk and Tesla agreed to each pay $20 million to settle allegations that he deceived investors.

Musk claimed that he rounded up the price to $420 after learning about its significance in marijuana culture and thinking his girlfriend would find it humorous, according to a U.S. Securities and Exchange Commission complaint filed at that time.

However, discussions with Twitter became serious when Twitter’s advisors in San Francisco, including Goldman Sachs Group Inc, JPMorgan Chase & Co and Allen & Co began poring over Musk’s financial documents that supported his $44 billion bid.

According to Reuters, Morgan Stanley, Bank of America Corp and Barclays Plc committed to lending $25.5 billion to Elon Musk. Some of this was secured against Twitter stocks, and some tied to Musk’s Tesla stock. Musk also committed $21 billion of cash.

After Musk had submitted it to them with very little detail one week prior, the board of Twitter went into hyperdrive. Five months into his tenure as chief executive of Twitter, Parag Agrawal was already completing an analysis to assign a price to its standalone plan. It also asked its bankers for a triple-check to see if any other bidder could offer more than Musk. But there was nobody else. 

Why does Elon Musk want to buy Twitter?

Musk stated that he didn’t care about the economics of the social media platform. He stated before that he wants to use Twitter to promote free speech. He was disillusioned with many of its platform moderation decisions.

Elon Musk and Dogecoin

Although it may seem like it, the price of Dogecoin and Musk’s impending Twitter takeover are not directly related. Some analysts believe that Musk’s repeated endorsements of the memecoin draw speculation from crypto investors looking for Dogecoin to become part of Twitter’s long-term plans.

Musk has a long history of promoting Doge as a payment method. Tesla started to accept Doge as a payment method for some of its merch since November 2021.