Potential for AI in Crypto Games

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• ETH could reach $4,000.

• Ethereum creator sees potential for AI in Crypto Games

•  FTX expects to fully repay customers.

• India keeps stiff taxes on crypto.

• Argentine drops the crypto tax plan.

• Dictionomics: Liquidity 

Global Biscuits

ETH could reach $4,000.
Standard Chartered, a British multinational bank, predicts that Ethereum (ETH) could nearly double in price to $4,000 if the U.S. SEC approves Ethereum-based exchange-traded funds (ETFs) by May 23, the final deadline. The bank anticipates that ETH ETFs, similar to those for Bitcoin, will enable investors to gain exposure to the second-largest cryptocurrency without needing to purchase and store it directly. Standard Chartered highlights the likelihood of approval, citing the SEC's classification of ETH as a commodity rather than a security, contrasting with its stance on unregistered securities. The bank's previous forecast for Bitcoin hitting $100,000 by 2024 remains plausible, indicating continued bullish sentiment towards cryptocurrencies.

 Ethereum creator sees potential for AI in Crypto Games
In a recent blog post, Ethereum founder Vitalik Buterin delves into the potential intersections between artificial intelligence (AI) and cryptocurrency, likening AI's role in crypto to that of a player in a game. He explores various ways AI can benefit blockchain technology, including as a participant in trading bots for decentralized exchanges, as players in prediction markets like AIOmen, and as an interface to help users understand and navigate the crypto landscape. However, Buterin also highlights significant risks associated with integrating AI into crypto, such as the potential for nefarious actors to exploit AI defences in open-source wallets and the challenges of using AI to make subjective decisions in decentralized autonomous organizations (DAOs). He suggests that while there are promising opportunities for AI in crypto, further exploration and development are needed to determine their scalability and viability.

 FTX expects to fully repay customers.
FTX, the bankrupt cryptocurrency exchange formerly run by Sam Bankman-Fried, aims to fully repay its customers, as confirmed in a recent court hearing. However, the repayment process hinges on FTX's bankruptcy date, which occurred amid market turmoil, leading to declines in asset values. The court proceedings revealed that FTX's defunct platform won't be restarted due to a lack of buyers, shifting its focus solely to reimbursing former clients. The repayment plan involves claimants submitting evidence of their lost assets, which will be reviewed by restructuring advisers. Despite the initial positive response to FTX's repayment plans, its native token FTT experienced a sharp decline in value following the news. Bankman-Fried, previously accused of mishandling customer funds, faces ongoing legal ramifications related to FTX's collapse in late 2022.

Tastes of the regions

India keeps stiff taxes on crypto.
India has maintained its stringent tax policies on crypto transactions in its interim budget, with no changes to the existing 30% tax on profits and 1% tax deducted at source (TDS) on all transactions. The finance minister, Nirmala Sitharaman, presented the budget in parliament amid low expectations for changes in crypto taxation. This interim budget comes ahead of general elections, and major alterations in taxation were not anticipated. The crypto industry in India, which has been adversely affected by the high TDS rates, had hoped for a reduction in the 1% TDS, but no adjustments were announced. The Bharat Web3 Association has been advocating for policy changes to support India's Web3 sector, highlighting concerns about high taxes driving creators and consumers out of the country. Despite calls for tax reduction, the government has not made significant changes in the past two years. However, recent actions against offshore crypto exchanges have redirected crypto activity back to Indian exchanges.

Argentine drops the crypto tax plan.
Argentine President Javier Milei has opted to remove proposed cryptocurrency taxes from the comprehensive reform package known as the "Ley Ómnibus" bill, aiming to expedite its approval without lengthy debates over less critical issues. The move reflects Milei's broader political strategy of stepping back following public pushback and criticism over the initial proposals. While the bill seeks extensive economic, social, and administrative reforms to foster economic development and freedom, its comprehensive scope has generated significant discourse and concern among critics, who argue that it could compromise Argentina's democratic framework. Milei's decision underscores the evolving nature of cryptocurrency regulation and taxation, leaving investors with uncertainty about tax implications. With Milei's party holding a minority in Congress, potential resistance to the bill looms, prompting concessions to navigate the legislative process effectively before the February 15 deadline.

Dictionomics:   Liquidity

Liquidity mining is a way of earning rewards by providing crypto assets to a decentralized exchange or protocol. The rewards can come from the fees that the exchange or protocol collects from the users or from new tokens that are issued by the exchange or protocol. Liquidity mining helps to create more liquidity, which means more trading opportunities and lower costs for the users. Some examples of platforms that offer liquidity mining are Uniswap, Shrimpy and Bybit.

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