In the future, machines will be the primary workforce. MachineFi is a new paradigm fueled by Web3 that underpins the new machine economy, whereby machine resources and intelligence can be financialized to deliver value and ownership to the people, not centralized corporations.

MachineFi realizes the vision that devices are owned by the people and serve the people. By joining the machine economy, people can now fully monetize their devices and associated digital assets on a global scale.

Introduction

Machines are emerging in our homes, businesses, and cities at a blistering
rate. In 2020, more than 150 new machines were activated every second,
connecting the physical and digital worlds like never before. By 2030,
McKinsey predicts machines will outnumber humans by 10:1 and generate
more than $12 trillion in economic value. From smart thermostats and
fitness trackers to connected vehicles, solar panels, and satellites,
machines are being inserted into practically every facet of the global
economy and our personal lives. But as we marvel at the new machine
economy that is blossoming before our very eyes, we must pause and ask
ourselves: who will own these billions of machines and this future machine
economy?

We are at a pivotal moment in human history. Trust in our institutions is at
an all-time low, while the desire for control and ownership from users is
growing by the day. Over the past decade, centralized corporations have
been the gatekeepers and sole beneficiaries of the largest technology
revolution in human history. Tech giants control our devices, monitor our
activities, mine our data, and earn huge profits with no value returned to
users. Now is the time for change. By re-architecting our world using
blockchain and Web3 technology, we can guarantee that the trillion-dollar
machine economy provides value, control, and opportunity to everyday
people, not omnipotent corporations.

This is the essence of MachineFi. With IoTeX 2.0, we are embarking on a new
journey to equip machines with all of the tools they need to be selfsovereign and allow users to monetize the unique services and intelligence
from their machines. Since day one, we have always believed that
machines, not humans, will one day be the largest users of blockchain. With
MachineFi, we will turn this belief into action.

In this Vision Paper, we are proud to share our long-term vision for
MachineFi, as well as an overview of the IoTeX 2.0 protocols and products
that will make our MachineFi vision a reality. By realizing this vision IoTeX will
lead the masses in transitioning from centralized control to decentralized
freedom, empowering users to own and control their machines, as well as
the data and value their machines generate. Join us on our mission to
enable millions of users to capture the value from the future machine
economy and expand the possibilities of the Metaverse, Web3 world, and
beyond.

MachineFi will connect the Real World and Metaverse

The MachineFi Vision

Machines Will Be Our Future Workforce

The convergence of artificial intelligence, blockchain, 5G connectivity,
virtual reality, and other frontier technologies has sparked a technological
revolution that is fundamentally transforming the way society operates.
Although these technologies have evolved independently over time, they
are becoming increasingly intertwined and packaged into a new productive
asset: intelligent and autonomous machines.

What seemed like science fiction only a few years ago is now becoming a
reality in the budding machine economy. Autonomous taxis are now
delivering the first driverless rides. Doctors are now performing surgeries
from thousands of miles away using remote surgical systems. Warehouses
are now utilizing robots that match or even exceed the mobility, dexterity,
and agility of people. Security cameras are now providing surveillance-asa-service with alarmingly accurate facial recognition. And governments
around the world are now investing heavily in the next generation of robot
armies and drones. Across every industry, machines are not only
collaborating with human workers, but are also replacing cohorts of human
workers altogether.

PricewaterhouseCoopers (PwC) predicts that 50% of all jobs will be partially
automated by 2030, and Deloitte estimates that 30% of the world’s workers
will be replaced entirely by machines within the next 20 years. Whether we
are ready or not, machines will inevitably comprise the majority of our
world’s future workforce.

Which begs the question:
Who will own these
billions of machines and the future
machine economy?

Community-Owned
Machine Networks

The infrastructure that powers our modern world, often called
Web 2.0, relies on centralized servers and vertically integrated
tech stacks that are controlled exclusively by corporations. The
centralized nature of Web 2.0, amplified by corporations’
capitalistic focus on profits over trust, has unleashed
consequences for users such as data breaches, censorship,
and targeted advertising that are now impossible to rein back in.
If we apply this Web 2.0 philosophy to the new machine
economy, our future workforce of billions of machines will be
monopolized by the same corporations that have exploited our
trust time and time again.

It is time to change the status quo. Thanks to blockchain
technology, a paradigm shift known as Web 3.0 has come to life
which aims to replace corporate-owned, centralized networks
with community-owned, decentralized networks. Key benefits
that are not inherent in a Web 2.0 structure, such as
composability, free market incentives, and user-ownership, are
built-in to Web 3.0 by design

I. Composability

The ability for anyone in a network of distributed participants to leverage
the work of others to create new solutions in a collaborative, communitydriven fashion. Developers can bootstrap their own projects and
communities without starting from scratch by leveraging the collective
mindshare of all network participants to fuel innovation

II. Free Market Incentives
The prices for goods and services in a Web 3.0 network are defined in a
peer-to-peer (P2P) fashion by users that interact with each other without
centralized intermediaries. P2P networks are self-regulated and open to
everyone, where participation is driven not by top-down mandates but by
transparent incentives

III. Community Ownership
Unlike centralized networks that generally gravitate towards zero-sum
relationships where value is extracted from network participants,
decentralized networks reward users that contribute and utilize the
network by delivering ownership/equity of the network in a meritocratic
fashion

The above benefits are paramount to ensure the future of MachineFi is open, fair, and
most importantly community-owned. Only with the creativity and productivity of
pioneering developers and users can MachineFi reach its full potential. Specifically for
bootstrapping machine networks, which are capital-intensive with high upfront costs, the
composability and community-driven nature of Web 3.0 removes significant barriers to
entry by applying free-market incentives to raise capital, build communities, and scale
the network to new heights.

Proof of Anything

“Proof of Work” and “Proof of Stake” are common terms in crypto, but are
often mislabeled as consensus mechanisms. In fact, these are actual
proofs that an entity must provide to the blockchain in order to receive
rewards, permissions, or other benefits. For Bitcoin, if a miner proves that
they have done the work and calculated the correct hash, then they are
granted the right to mint the next block and earn a reward. For Ethereum, if
a validator proves to the blockchain they have staked sufficient ETH tokens,
then they are granted permission to be a network validator. But what if the
“proofs” we provide to a blockchain could also include things that everyday
people and businesses did in the real world?

Proof of Anything:
IoTeX machines deliver proofs of real world activity to the blockchain
real-time GPS location from an asset tracker like Pebble
Proof of Presence:
health-related metrics from a fitness tracker or wearable
Proof of Health:
driving patterns or specific routes taken from a vehicle
Proof of Safety:
building’s energy efficiency score from a smart meter.

Just as Chainlink jump-started the DeFi renaissance by establishing a
“single version of truth” of crypto-asset prices, IoTeX will establish a “single
version of the truth” for things that happened in the real world. Smart home
devices, wearables, vehicles, and all types of devices can adopt our
MachineFi concept to become “proof generators” where the proofs will be
fed as inputs to smart contracts in order to trigger on-chain actions.

For example, insurance companies can reward homeowners every time
they prove they have locked their homes, which is a win-win scenario for all
parties. Possibilities are also abound in gaming, where proof of real-world
activity can transfer to your in-game characters — by proving you are
improving your health in the real world using healthcare wearables, your ingame character can also receive more health points. Finally, by proving your
vehicle’s GPS location, you may be able to receive on-chain offers from
nearby restaurants or receive token rewards for contributing intelligence to
a map application like Waze.

Mirroring the Real World to the Metaverse

By connecting the real world to the digital world, MachineFi will open a brand
new design space for blockchain builders where, for the first time, users can
earn digital assets or digital reputation based on their real world actions that
are captured/verified by machines. The impact of MachineFi grows even
further when considering the Metaverse, which will be an immersive virtual
world that can mirror events in the real world thanks to IoTeX:

I. Physical World
The world we experience with our bodies and five senses. In particular, the
physical world contains communication, computing, and storage resources
(i.e., tangible assets) that are required for supporting operations of the
Metaverse

II. Digital Transformation
By capturing the status of physical objects, we can create digital twins of
every object in every place to build seamless connections and two-way
interactions between the physical and virtual worlds. MachineFi will serve as
a composable and user-centric computing fabric that enables real world
users/machines and virtual users/machines to exchange value in a
trustworthy manner.

III. Metaverse
An immersive, computer-simulated environment with specific spatial and
physical characteristics. The Metaverse provides a vibrant, parallel world
that enables users to participate in virtual activities, gain virtual status, and
interact with other virtual beings via virtual avatars

Machines, encoded with human intelligence,
will soon be the dominant workforce in the
real world, constantly listening, watching, and
monitoring our activities.

These facts can be used to program the metaverse, enriching virtual
applications with real world information. For example, if you prove you have lost
10 pounds in the real world by connecting your smart scale to IoTeX, then your
metaverse avatar may look slimmer as well. If you prove that you have traveled
to many countries in the real world, then your metaverse avatar may also gain
this real world perspective and unlock new “countries” in the metaverse. And
finally, if you prove that you are a good driver via your vehicle’s telemetry data,
your metaverse avatar may receive permissions in the metaverse to use new
types of virtual vehicles. An infinite number of possibilities awaits!

Enabling the Metaverse to Program the Real World

Play-to-Earn is one of the most innovative concepts in crypto today. Within this
new GameFi industry, users can perform actions in the digital world to earn
digital assets and digital reputation. By mirroring events in the real world to the
metaverse, IoTeX expands on the Play-to-Earn concept by enabling users to
perform actions in the real world to earn digital assets or digital reputation.
This is an innovative concept, but even more groundbreaking is the opportunity
to use the metaverse to program the real world. In other words, enabling users
to perform actions in the virtual world (metaverse) to earn rewards and
benefits in the real world.

The metaverse is still in its infancy, and there is much to discover about how
the metaverse will be built, adopted, and scaled. Regardless of how the
metaverse evolves from here, one thing is clear: building a two-way bridge
between the real world and the metaverse will enable all types of intelligence
to be synchronized and massive network effects to be captured. By instituting
incentives in the metaverse to complete missions, contribute mindshare, or
provide resources, metaverse builders will be able to leverage the borderless
user base and open incentives that crypto has popularized to bootstrap new
virtual ecosystems.

Hey everyone!

Trading & investing is not easy. If it were, everyone would be rich.
Here’s a couple time-honored reasons that traders lose money, and some tips to help you get back to basics.

Lack of knowledge

Many traders jump into the market without a thorough understanding of how it works and what it takes to be successful. As a result, they make costly mistakes and quickly lose money.

Poor risk management

Risk is an inherent part of trading, and it’s important to manage it effectively in order to protect your capital and maximize your chances of success. However, many traders don’t have a clear risk management strategy in place, and as a result, they are more vulnerable to outsized losses.

Emotional decision-making

It’s easy to feel strong emotions while trading. However, making decisions based on emotions rather than rational analysis can be a recipe for disaster. Many traders make poor decisions when they are feeling overwhelmed, greedy, or fearful and this can lead to significant losses.

Lack of discipline

Successful trading requires discipline, but many traders struggle to stick to their plan. This can be especially challenging when the market is volatile or when a trader is going through a drawdown. Create a system for yourself that’s easy to stay compliant with!

Over-trading

Many traders make the mistake of over-trading, which means they take on too many trades and don’t allow their trades to play out properly. This leads to increased risk, higher brokerage costs, and a greater likelihood of making losses. Clearly articulating setups you like can help separate good opportunities from the chaff.

Lack of a trading plan

A trading plan provides a clear set of rules and guidelines to follow when taking trades. Without a plan, traders may make impulsive decisions, which can be dangerous and often lead to losses.

Not keeping up with important data and information

The market and its common narratives are constantly evolving, and it’s important for traders to stay up-to-date with the latest developments in order to make informed decisions.

Not cutting losses quickly

No trader can avoid making losses completely, but the key is to minimize their impact on your account. One of the best ways to do this is to cut your losses quickly when a trade goes against you. However, many traders hold onto losing trades for too long, hoping that they will recover, and this can lead to larger than expected losses.

Not maximizing winners

Just as it’s important to cut your losses quickly, it’s also important to maximize your winners. Many traders fail to do this, either because they don’t have a plan in place, telling them when and how to exit a trade. As a result, they may leave money on the table and miss out on potential profits.

Not Adapting

Adapting to changing market conditions is paramount to success in the financial markets. Regimes change, trading edge disappears and reappears, and the systems underpinning everything are constantly in flux. One day a trading strategy is producing consistent profits, the next, it isn’t. Traders need to adapt in order to make money over the long term, or they risk getting phased out of the market.

Overall, the majority of traders make losses because they fail to prepare for the challenges of the market. By educating themselves, developing a solid trading plan, and planning out decisions beforehand, traders can improve their chances of success and avoid common pitfalls.

Bull markets are a time of optimism and growth, and they can be a great opportunity for making substantial gains. However, it’s important to remember that bull markets don’t last forever, and it’s crucial to approach them with a healthy dose of caution while keeping your eye on your long-term goals.

Here are a few more things to keep in mind when dealing with bull markets:

Don’t get caught up in the speculative frenzy
It’s important to remain level-headed and avoid making impulsive decisions based on short-term gains. Take time to thoroughly research any trades you’re considering. It’s always good to focus on ideas with strong fundamentals as well as technicals.

Keep an eye on valuations
In a bull market, it’s common for stock prices to rise, sometimes to levels that may not be justified by a company’s fundamentals. For investors, it can be important to keep an eye on valuations and make sure the stocks you’re investing in are reasonably priced.

Be prepared for reversals
Like all good things, the Bull markets too eventually come to an end. Hence, it’s essential to be prepared for a downturn. It’s always good to manage risk exposure by employing techniques such as diversification and hedging.

Control your risk
It’s natural to want to hold on to the positions that are performing well, but it’s important to remember that bull markets eventually come to an end.
If you’ve made substantial gains, trailing may be a good option to lock in profits should things change quickly. Letting the winners ride by continually trailing your positions is one good strategy for improving a trade’s Risk-Reward ratio.

Keep a long-term perspective
Trading is a marathon , not a sprint . Bull markets can be a great opportunity for gains, but it’s important to keep a long-term perspective about your goals. Did you miss the big moves? Don’t get angry and make bad decisions. There will be more opportunities down the road to apply what you’ve learned.

Bull markets can provide excellent opportunities, however, they must be approached with caution and with defined personal goals. Consider the risks and rewards of each investment, keep an eye on valuations, and always be prepared for a downturn.

We hope you enjoyed! Please feel free to write any additional tips or pieces of advice in the comments section below!

Exchange tokens are native assets distributed by a centralized exchange, often providing the holders’ benefits within its closed ecosystem. Initially, they were created by crypto exchanges to bootstrap funding from users and create a “community ownership” model more palatable to investors.

Exchange tokens and their use case have come under greater scrutiny due to the recent collapse of FTX. The exchange’s downfall was primarily brought about through the misuse of its native token, FTT. We explore what happened with FTT before analyzing and attempting to analyze the value of major exchange tokens.

The Curious Case of FTT

An exchange token derives its value from the health of the business of the underlying exchange. How closely the token is tied to the actual cash flows of the exchange is a broad spectrum we will example in further detail in coming sections. FTX’s exchange token FTT sat towards the end of that spectrum with a tenuous tie to intrinsic value besides faith in the FTX entity. FTT only held value if FTX existed, and therefore the token can be thought of as a bet on the solvency and health of the exchange.

FTT maintained a tie to FTX through a buyback and burn mechanism. A portion of FTX’s revenue was used to buy back and burn FTT’s supply, similar to a stock buyback. However, FTX / Alameda also used this token as collateral for loans. Instead of it being a one-way relationship where value flowed from exchange business to token, it became a circular relationship; value flowed back from the token to the exchange as the price of the token had a direct impact on the liquidity, solvency, and future of the business. As the token price came under pressure, the solvency of the business was affected, putting further pressure on the token price, and creating a death spiral.

While FTT used what seems to be a reasonable model of tying exchange value to token value by reducing token supply with profits, the exchange’s undoing was the inherent leverage it/Alameda created through using FTT as collateral. Other exchange tokens have taken different approaches to how to drive value back to the holders.

Exchange Token Value Capture

Equities can be considered a residual claim on the cash flows of the underlying company. Most native cryptocurrencies can be viewed as a claim on the revenue (transaction fees, MEV, etc.) from the blockspace of an underlying network. Within a vertical like DeFi, we can similarly think of token value as the amount of cash flow generated on the underlying network. Exchange tokens may or may not have direct ties to an exchange’s revenue but have other ways to create value for holders.

If you have been in the market for some time, you may have heard of a tool called “Volume Profile”. Today, we are going to take a deeper look at this tool, explain how it works, and leave you with a few tricks that you can use to supercharge your analysis.

What is Volume Profile?

Volume Profile is an advanced charting tool that displays trading activity at specific price levels over a specified time period. On the chart, it plots a horizontal histogram to reveal areas where significant trading volume happened.

Volume Profile vs. Traditional Volume

The core difference between Traditional Volume and Volume Profile is how they consider volume with respect to the time and price.

In other words, Traditional volume tells you when volume happened, and Volume Profile tells you where it happened.

Volume Profile Terminology

The Volume Profile tool has several unique components & terminology that you should know about:

• Point of Control (POC) – The single price level in a given time period where the most volume traded.
• Profile High – The highest reached price level during the specified time period.
• Profile Low – The lowest reached price level during the specified time period.
• Value Area (VA) – The range in which a specified percentage of all volume was traded during the time period. Typically, this percentage is set to 70%.
• Value Area High (VAH) – The highest price level within the value area.
• Value Area Low (VAL) – The lowest price level within the value area.

Tips & Tricks of Volume Profile

Just like with most other tools or studies, Volume Profile has a number of uses.

One common strategy is to analyze where previous period value areas are vs. the current price. If current prices are outside of a previous period’s value area, then it can be assumed that an asset is trending. If price is still within a previous period’s value area, then some may label that asset as being in a consolidation. Determining trend and consolidation are often used in conjunction with trend following and mean reversion execution strategies, respectively.

Another common strategy is to use “Virgin” Point of Control (VPOC’s) as key levels in an asset. VPOC’s are levels that haven’t yet been retested and remain untouched by current price action since they were formed. The idea here is that if there was lots of action at a certain price, then it’s likely that the market’s biggest participants have positions from that level. This can cause predictable behavior which keen-eyed traders can take advantage of.

Hey everyone! 👋

Considering the events from the last few days, we thought it would be a good time to re-visit some of the best things you can do, as a trader and as a human being, to insulate yourself from Black Swan events. While a massive crypto exchange going insolvent is only the most recent example of a Black Swan, Black Swans can exist across all different realms – personal, political, environmental, and more. Because of that, we’re going to walk you through some tips discussing how you can insure your future against unexpected calamity.

1.) Don’t keep all your eggs in the same basket. 🪺

This one is glaringly self-evident following FTX’s recent troubles, but spreading your assets out among custody providers is an excellent hedge in case any of them have solvency issues. That way, you’re always protected against single-provider risk. Various global governments have tried to take steps to mitigate this (FDIC insurance , financial regulation), but nobody looks out for your interests like you do. Make sure you’re in a good spot.

Never keeping your assets in one place also applies to asset class and geography. Own a lot of property in a single region? You’re suddenly exposed to natural disasters that could hit the area, drastic political changes, and more. Only own a single asset class? Maybe the macro situation just changed against you quickly and it’s all worth a lot less than you thought.

Diversity is the name of the game, not only from a position perspective, but from a total risk perspective. Where are you vulnerable?

2.) Keep some cash on hand 💵

This one is also self-evident for those who are currently unable to access their funds as a result of the recent turmoil, but keeping cash on hand in order to cover short term expenses is a life saver should you ever need it. To some, getting laid off is a great example of a personal black swan event, and something that could set someone back years in their personal finances. Make sure you’re in a position that you’re not financially stressed if something abnormal happens to your regular, everyday life.

3.) Carry no liabilities 🏦

While some purchases in our lives often necessitate the use of debt, the strongest-positioned people during a crisis are those who are not beholden to others financially. Considering that most Black Swans often cause all sorts of financial damage to their victims, having liabilities can cause undue additional stress that removes options from people who would otherwise be able to take advantage of the conditions. Also, those with a strong financial position are often those best able to improve their own standing when bad situations strike, buying up assets at prices that would normally never be available. Debt can prevent this level of flexibility, and therefore in order to reduce risk, you shouldn’t carry any.

4.) Keep some assets on hand, in person. 🪙

This tip is for broader, more macro-scale black swan events like extended power outages, communications network failures, meteor strikes, war, and other things that would typically fall into that category.

But, in a broader regional or global societal collapse, having assets on hand is the best thing you do for yourself. In a situation where you’re unable to access the broader societal infrastructure to which we all buy in, having a backup on hand where you live is really the ultimate insurance blanket. Whether this is cash, gold , seeds or food, don’t get caught without a plan.

We realize this isn’t the most fun topic to talk about, but if you follow these tips, it’s likely you’re much better insulated against all of the disasters and misfortunes the world can throw at you.

Stay safe out there!

What phishing is?

Avoid phishing messages & content

To help you avoid deceptive messages and requests, follow these tips.

Look at the chart of the native token for nearly every Decentralized Exchange (DEX), and you’ll see a familiar pattern: pump followed by, wait for it, dump.

The household name DEXs like Uniswap, Sushi, and even TraderJoe are alive and well despite the lackluster price action of their tokens, but many other DEXs have faded into oblivion. Exchanges you’ve probably never heard of like Smoothy Finance and LuaSwap managed to attract short-lived liquidity, but as their generous incentives for liquidity providers dried up, mercenary LPs dumped the native tokens they got for free and, critically, they proceeded to move their liquidity back to where the volume is (ie. the household names). This was a double blow for the DEXs they sucked dry; when both Total Value Locked (TVL) and token price tank, the result is a death spiral.

Observe the TVL and price action for the above-mentioned Smoothy Finance (SMTY) and LuaSwap (LUA):

The DEX game, it seems, is winner take most:

The DEX space is dominated by a few giants like Uniswap and Curve, but littered with the remains of many short-lived contenders like Smoothy Finance and LuaSwap. Note that Uniswap (pink) and Curve (green) account for over 75% of DEX volume.

Why then, would Bitcoin.com launch the Verse DEX? How can Bitcoin.com’s DEX succeed where so many others have failed, and how can it compete against already well-established DEXs?

To answer this question, we’ll first explain why Bitcoin.com’s Verse DEX will succeed. After that, we’ll go into the reasons for launching a DEX (ie. the advantages the Verse DEX brings to the Bitcoin.com ecosystem).