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Pika Protocol Announces Retirement of Pika Token

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  • Pika Protocol has announced the retirement of its native PIKA token, transitioning to operate without a native cryptocurrency and focusing on enhancing its decentralized leverage trading platform.
  • PIKA token holders are provided with a structured process to redeem their tokens for Ethereum (ETH), with the protocol dedicating resources to facilitate this exchange and planning future operations without token-based incentives.

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Pika Protocol, a decentralized leverage trading platform, has announced the retirement of its native PIKA coin, which is a big event. The decision, which was inspired by community feedback and lengthy deliberation, represents a watershed moment in the protocol’s strategy. The Pika team has laid out a detailed plan for the token’s retirement, including information on how holders can exchange their PIKA for Ethereum (ETH).

Redeeming PIKA: A Step-by-Step Procedure

Pika Protocol has established a systematic procedure for PIKA token holders to trade their tokens for ETH. The move effectively dissolves the PIKA token, leaving the platform without a local cryptocurrency. The redemption process is based on a set exchange rate of about 0.0001632 ETH per PIKA, which is roughly $0.34 at the time of the announcement.

Pika has assigned a significant quantity of ETH, specifically 3,538 ETH, to Uniswap v3 to enable the trade. The allocation is limited to a single tick range, resulting in a more efficient redemption procedure. For the following six months, token holders will be able to redeem their PIKA. Following this period, any residual funds will be used to further the development of the Pika Protocol.

The exchange rate was rigorously calculated, taking into consideration the overall circulating supply of PIKA, including prospective esPIKA redemptions, as well as the initial 4,696 ETH raised during the PIKA Token Generation Event (TGE) in May 2023, plus earnings from stETH. The assessment also included six months of operating costs, such as protocol-owned liquidity, dispute incident settlement, and other operational charges.

Background and Rationale Behind the PIKA Protocol Decision

Pika, which was founded in 2021, has been a major player in decentralized leverage trading, focused on an OP native platform. Since its introduction, the protocol has seen four major modifications and a staggering $2 billion in trade activity. The May 2023 PIKA TGE was a critical milestone in establishing PIKA as a utility token to incentivise protocol alignment.

Read Also: Dogecoin (DOGE) Soars 10% as It Targets Higher Increase

Despite these accomplishments, the PIKA token’s impact on the protocol’s growth has been negligible. Concerns and suggestions from the community suggested that the token may not be successfully motivating growth or harmonizing holder interests. The discovery prompted the decision to withdraw the PIKA token, which was deemed the best way forward for the system.

Pika’s Future: A Tokenless Path

With the retirement of the PIKA coin, the Pika Protocol will operate without a native token. The decision makes no modifications to the trading platform or the USDC vault, which will continue to operate normally.

The retirement of the PIKA token affects esPIKA staking as well. Holders can convert their esPIKA to PIKA based on their current vesting status, and a new interface will be available soon to help with the process. Furthermore, all PIKA staking and incentives will be discontinued, and stakeholders are urged to unstack and swap their PIKA for ETH.

It intends to modify the existing trading fee discount structure, eventually eliminating the need for PIKA staking. The change is part of Pika Protocol’s larger strategy to continue advancing its purpose in the absence of a native token, based on its proven track record of success in the pre-token period.

Conclusion

The retirement of the PIKA token represents a fundamental change in the trajectory of the Pika Protocol. The team wishes to thank everyone who has supported and contributed to the protocol, recognizing the hard work that has resulted in a platform positioned to make a lasting influence in the decentralized finance arena. As it begins a new chapter, Pika Protocol is committed to its aim of providing innovative solutions in decentralized leverage trading.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Cryptocurrency Market Update: Bitcoin Slips Below $70,000 Amidst High Liquidation

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In a swift turn of events, Bitcoin (BTC), the pioneering cryptocurrency, dropped below the $70,000 threshold early on Wednesday following a wave of investor sell-offs. Just a day prior, Bitcoin had crossed the $71,000 mark, but market sentiment swiftly shifted, dragging other major altcoins—including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC)—into the red zone.

According to CoinMarketCap data, the overall Market Fear & Greed Index stood at 75 (Greed) out of 100, indicating a mix of optimism and apprehension among traders. Notably, the Bittensor (TAO) token emerged as the top gainer with a remarkable 24-hour surge of over 7 percent, while dogwifhat (WIF) experienced the largest loss, plummeting nearly 16 percent.

Bitcoin (BTC) Price Update Bitcoin’s price tumbled to $69,089.01, marking a 24-hour dip of 3.05 percent, as reported by CoinMarketCap. On the Indian exchange WazirX, BTC was priced at Rs 60.93 lakh.

Other Major Cryptocurrencies Ethereum (ETH) saw a 24-hour loss of 4.81 percent, trading at $3,508.86, while Dogecoin (DOGE) registered a dip of 5.59 percent, currently priced at $0.1879. Litecoin (LTC) and Ripple (XRP) also experienced losses, with Solana (SOL) marking a 24-hour loss of 3.44 percent.

Top Gainers and Losers Bittensor (TAO) led the pack of gainers with a 7.30 percent surge, while dogwifhat (WIF) suffered the most significant loss, dropping by 15.58 percent.

Market Analysis and Expert Insights Experts weighed in on the market scenario, attributing Bitcoin’s downturn to heightened liquidations and cautious sentiment ahead of the upcoming US CPI data release. While Bitcoin’s immediate support rests at $67,700, resistance is expected at $70,400. Ethereum proponents face challenges amid hopes for an ETF approval, with the SEC providing limited updates on the matter.

Final Thoughts The cryptocurrency market remains highly dynamic, with prices fluctuating rapidly and investor sentiment playing a pivotal role. As the market navigates through volatility, it’s essential for investors to stay informed, exercise caution, and seek expert advice before making any investment decisions.

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Cryptocurrency: A Scapegoat for Foreign Policy Failures?

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Cryptocurrency has once again found itself at the center of a heated debate, this time regarding its alleged role in facilitating illicit activities and circumventing sanctions imposed by the United States. The Biden administration, in particular, has come under scrutiny for its handling of the issue, with some accusing it of using digital assets as a convenient scapegoat for broader foreign policy shortcomings.

In a recent hearing before the Senate Banking Committee, Deputy Treasury Secretary Wally Adeyemo raised concerns about the misuse of cryptocurrencies by foreign adversaries such as Iran, Russia, North Korea, and militant groups like Hamas. Adeyemo’s remarks underscored a growing unease within the U.S. government regarding the potential national security implications of unregulated digital currencies.

However, voices from within the cryptocurrency industry and Congress have pushed back against the administration’s narrative. Faryar Shirzad, Chief Policy Officer at Coinbase, one of the leading cryptocurrency exchanges, pointed out that the prevalence of illicit activity in the crypto space is relatively low compared to traditional finance. Instead of demonizing cryptocurrencies, Shirzad argued, the focus should be on targeting bad actors operating offshore.

Senator Tim Scott, the ranking Republican on the Senate Banking Committee, echoed these sentiments, accusing the Biden administration of using digital assets as a distraction from its failure to effectively combat financial flows to sanctioned entities. Scott’s criticism reflects broader skepticism among some lawmakers about the government’s approach to regulating cryptocurrencies.

One area of potential agreement between the Biden administration and the cryptocurrency industry is the need for clearer regulations governing stablecoins, a type of digital asset pegged to a fiat currency like the U.S. dollar. Both sides recognize the importance of addressing the potential risks associated with stablecoin issuance and usage, particularly in the context of national security and financial stability.

The debate over stablecoins has intensified following reports of their alleged role in facilitating illicit transactions, including those linked to Russia’s war effort in Ukraine. The Treasury Department has called for increased oversight of stablecoin issuers and transactions, while also advocating for legislation that would subject them to stricter regulatory standards.

Despite the contentious nature of the discussion, there are signs of bipartisan cooperation on certain aspects of cryptocurrency regulation. A bipartisan bill addressing stablecoin regulation passed the House Financial Services Committee last year, signaling a potential path forward for legislative action in this area.

As the debate over cryptocurrency regulation continues to unfold, it is clear that finding the right balance between innovation and security will be paramount. While concerns about illicit activity and national security must be addressed, policymakers must also recognize the potential benefits of cryptocurrencies in fostering financial inclusion and technological advancement.

Ultimately, the resolution of these issues will require thoughtful collaboration between government officials, industry stakeholders, and lawmakers to develop a regulatory framework that promotes innovation while safeguarding against misuse. Only through constructive dialogue and cooperation can we ensure that cryptocurrencies fulfill their potential as a force for positive change in the global economy.

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Bitcoin Resurgence: Why Wall Street Is Embracing the Crypto Revolution

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Andrew Pratt of Wiser Wealth Management in Marietta, Ga., finds little resistance as he proposes Bitcoin investments to his firm’s committee. With Bitcoin surging 140% in the past year and backed by giants like BlackRock, skepticism has waned. Pratt sees the potential to allocate a modest 1% of client portfolios to Bitcoin, acknowledging the limited downside risk compared to potential gains.

The debate over Bitcoin’s intrinsic value seems to have lost its relevance amidst its soaring market performance. Once dismissed, Bitcoin now boasts a market value of $1.3 trillion, driving the total crypto market to $2.5 trillion. Wall Street, once wary, now views cryptocurrency as an opportunity for profit rather than a speculative venture.

Despite lingering doubts about Bitcoin’s utility beyond speculation, Wall Street executives are increasingly supportive. BlackRock’s CEO, Larry Fink, notably reversed his stance, endorsing Bitcoin’s long-term prospects and championing the iShares Bitcoin Trust, now one of the largest Bitcoin ETFs with nearly $18 billion in assets.

While skepticism persists about Bitcoin’s status as a real asset or currency, its growing acceptance on Wall Street underscores the evolving landscape of finance. As institutions embrace cryptocurrencies, Bitcoin’s journey from pariah to portfolio asset highlights the transformative power of digital assets in reshaping traditional investment strategies.

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