We are delighted to announce the listing and support of Enjin (ENJ) on Tap!

ENJ is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold ENJ for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting ENJ will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Playing an important role in the adoption of Web3, Enjin provides a platform of software products designed to allow anyone to harness the power of NFTs (non-fungible tokens) through the development, trade, monetization, and marketing of blockchain assets.

Powering the ecosystem is the Enjin Coin (ENJ), a token used to back the value of NFTs and other assets minted on the platform. When an asset is minted it locks ENJ tokens into a smart contract and effectively removes the tokens from circulation.

Enjin Coin (ENJ) is the native token of the Enjin ecosystem. Built on the Ethereum blockchain and compatible with multiple gaming platforms, the Enjin Coin is an ERC-20 token that allows the in-game items created on the platform to be traded with real-world value. The ENJ token has a maximum supply of 1 billion coins.

Get to know more about Enjin (ENJ) in our dedicated article here.

We are delighted to announce the listing and support of Chiliz (CHZ) on Tap!

CHZ is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold CHZ for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting CHZ will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Chiliz is a fintech company that uses blockchain technology to create new ways for fans to support and engage directly with their favorite sports teams. The company's goal is to be the leading provider of fintech solutions for sports and entertainment businesses around the world. Chiliz enables its users to trade tokens to show their support for professional sports teams.

Chiliz fans can buy their favorite team's Fan Tokens using the native Chiliz token " CHZ " on socios.com, the crowd management platform that Chiliz uses. Sports fans staking $CHZ on Socios.com also have opportunity to receive new Fan tokens as well as a up to 10% $CHZ bonus yield.

We are delighted to announce the listing and support of Curve Dao (CRV) on Tap!

CRV is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold CRV for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting CRV will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Curve Dao is a one of the most used decentralized finance (DeFi) platform that utilises an automated market maker to manage liquidity. Curve is an exchange liquidity pool on Ethereum that allows users to trade stablecoins efficiently, with limited risk and the opportunity to earn supplemental income, this is an attractive option for liquidity providers.

In addition to the income generated from providing liquidity, the Compound protocol or iearn.finance also generates additional income for liquidity providers behind the scenes.

CRV is the active token to the Curve platform. CRV holders are rewarded with governance rights, fee payments, and long term rewards based on their liquidity commitment and length of ownership.

Get to learn more about Curve (CRV) in our dedicated article here.

If you're new to the cryptocurrency market or just new to stablecoins, in this piece we're covering everything you need to know about this digital currency market. As we dive into what's a stablecoin, we're going to look at their use cases within the financial market and at some popular options currently being traded. 

While stablecoins are not designed to provide returns, they provide a means of hedging against losses when the market drops, allow users to tap into the benefits of crypto (that fiat currencies can not otherwise provide), and can still create a significant market cap.

While some might expect the regulation for stablecoins to be different from that of cryptocurrencies, the truth is that they currently both fall under the same (digital asset) umbrella. There are currently motions in place to regulate stablecoin issuers.

Below you'll find a stablecoins definition and everything else you need to know when it comes to stablecoins explained.

What are stablecoins?

A very good place to start - what is a stablecoin, exactly? Crypto stablecoins are digital currencies that are pegged to another currency, meaning that the stablecoin price will always reflect the currency that they are pegged to.

This version of digital money is designed to offer a "stable" market in an industry that is known to be rather volatile. Stable cryptocurrencies allow business firms and banks to tap into the benefits of crypto without falling victim to price volatility or being exposed to counter party risk.

While they don't provide returns typically associated with the crypto industry due to their stable price, stablecoins provide investors with a strategy to hedge against volatile markets. With a number of stablecoin cryptocurrencies on the market, users can simply choose one based on its leadership, reputation, and use case. 

There are two main types of stablecoins, these include fiat collateralized and crypto collateralized. Also mentioned below is algorithmic stablecoins and commodity-backed stablecoins.

Fiat collateralized stablecoins (fiat currencies)

Fiat collateralized stablecoins are pegged to a government-issued fiat currency, such as the United States dollar. These currencies are backed on a 1:1 basis, meaning that the central authority holds one unit of the reserve currency for each stablecoin issued in their bank account.

Some examples of stablecoins in this category include Tether (USDT), Paxos Standard Token (PAX), and USD Coin (USDC). All of these coins are pegged to the U.S dollar and the stablecoin issuers are required to hold an equivalent amount in a reserve account.

Crypto collateralized stablecoins (crypto)

A slightly less common version of stablecoins is the crypto collateralized stablecoin meaning these digital assets remain the same value as the underlying tokenized asset that they are pegged to and do not rely on third parties to hold the correct amount of stablecoin reserves.

DAI is a prime example of this, a crypto-backed stablecoin created when users send ETH to an Ethereum-based smart contract. 

Algorithmic stablecoins (smart contracts)

Algorithmic stablecoins are pegged to other digital assets' values via smart contracts and work hand in hand with another cryptocurrency. If the algorithmic stablecoin trades above its peg, new coins (of the other crypto) enter circulation, reducing its value; if it trades below its peg, coins are destroyed, thereby increasing the price.

Investing in non-collateralized stablecoins, e.g. an algorithmic stablecoin, is considered to be high risk as any failures in the algorithmic stablecoin system can result in dramatic value losses, as was witnessed with the Terra LUNA crash in 2022.

Other Stablecoins

There are also commodity-backed stablecoins that are backed by commodities and precious metals, such as gold-backed stablecoins. Popular stablecoins among the commodity-backed stablecoins pegged to precious metals include Paxos Gold (PAXG) and Tether Gold (AUXt).

Some stablecoins backed by nothing at all are still pegged to fiat values. These are called central bank digital currencies and are issued by banks to provide a digital version of their local fiat currency. 

How do stablecoins work?

Stablecoins are typically built on blockchain networks that facilitate the functioning of the coin. For example, the most popular token standard for stablecoins is Ethereum's ERC-20 token. These tokens function as any other cryptocurrency, only they use the Ethereum blockchain to facilitate the transactions and maintain the network.

The stablecoin issuer will then be responsible for ensuring that the correct amount of fiat currency or cash equivalents are held in reserve, based on what currency it is pegged to (i.e. the U.S dollar or euro). In the case of commodity-backed stablecoins, the equivalent amount of the commodity will need to be held in physical vaults.

What are stablecoins used for?

While the world slowly integrates other cryptocurrencies into its financial landscape, stablecoins provide a simple and easy means to integrate the crypto world with traditional financial products.

As a rule of thumb, stablecoins provide the benefits of digital currency without the volatility, empowering the crypto ecosystem to better integrate into everyday life.

What are the risks of stablecoins?

There has been some speculation over the companies that have created stablecoins and their methods of securing the reserve asset. Typically, a stablecoin needs to hold an equal amount of the pegged currency (for instance, the U.S dollar or gold for commodity-backed stablecoins) in reserves relative to the number of coins in circulation.

What is the purpose of stablecoins?

While you might be asking yourself why anyone would want to purchase a digital asset that is unlikely to bring about any profits, stablecoins present a number of benefits in the crypto ecosystem. 

Hedge against volatility

For starters, they provide protection against market volatility. As they are pegged to an underlying asset and relatively stable (when compared to more volatile cryptocurrencies) they can provide a hedge against bear markets.

Should a cryptocurrency suddenly be exposed to price fluctuations, moving your funds to a stablecoin can help protect against any losses in value or purchasing power. The funds can easily be moved back once the market has corrected. Instead of liquidating your assets, you can simply move them to another blockchain-powered asset until the market settles. 

Price stability (similar to fiat currency)

Stablecoins also provide a safe means of trade for merchants using crypto in terms of price stability. When sticking with a predominately stable cryptocurrency they omit the chance of their $2 transaction for a coffee being worth $1 at a moment's notice. This mitigates the risk for payment-driven businesses and provides innovation within the finance sector.

Remittance market

Another area that stablecoins provide a valuable service is for cross-border money transfers. Stablecoins bridge the gap of getting funds from one location to another and incur a fraction of the time and costs of fiat transactions. 

Popular stablecoins in the crypto market

Stablecoins went from being relatively controversial to featuring in the top 5 biggest cryptocurrencies by market capitalization. Below are a few of the top stablecoins on the market.

Tether (USDT)

Arguably the most popular stablecoin, Tether is currently listed in the top 5 biggest cryptocurrencies. While the stablecoin has seen its fair share of controversy (in terms of how many actual dollars are held in reserves) compared to other stablecoins, the coin remains a firm favorite amongst organizations, investment managers, and crypto investors alike. 

The coin was first released in 2014 under the name Realcoin and was designed to provide a second layer on top of the Bitcoin network. Later, the coin was created using the ERC-20 token standard and became operable on the following blockchains: Ethereum, EOS, Tron, Algorand, and OMG. 

Dai (DAI)

Dai started out as an earlier version known as Single-Collateral DAI (SAI) which was pegged to a single cryptocurrency. In 2019, the multi-collateral DAI was created and soft-pegged to the U.S dollar, maintaining this value by collateralizing other cryptocurrencies using stablecoin technology, most notably an Etheruem-based smart contract.

The stablecoin is managed by the Maker Protocol and the MakerDAO (decentralized autonomous organization). Such stablecoins also allow holders to earn interest based on their stake. 

USD Coin (USDC)

Another one of the top fiat-backed stablecoins but with a slightly less controversial back story, the USD Coin is currently ranked within the top 10 biggest cryptocurrencies. The company behind the asset, the Centre Consortium, holds $1 in reserves for every 1 USDC that enters circulation.

The reserves are held in cash and short-term U.S. Treasury bonds. The company's goal is to "create an ecosystem where USDC is accepted by as many wallets, exchanges, service providers and dapps as possible" to facilitate cashless and international transactions.  ‍

Acquiring stablecoins

The stablecoin market is notorious for its ability to maintain price stability and protect against market price falls and price fluctuations. Providing inherently stable assets in a world of other cryptocurrencies.

If you are looking to integrate stablecoins into your business or portfolio, acquiring stablecoins will require you to make use of a cryptocurrency exchange. Always ensure that the platform has the necessary licencing and regulation before making use of its services.
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Bitcoin first disrupted the financial industry in 2009 but has since been followed by other cryptocurrencies trying to do the same. 

Some have been more innovative than others, while we do still see tokens like BCH and BSV succeeding, many question whether these tokens are credible for just forking from Bitcoin. Then came Wrapped Bitcoin, but there is a massive difference between these Bitcoin variants. 

What is Wrapped Bitcoin?

Tokens like BCH and BSV were launched to be better than Bitcoin, while debatable to this day, Wrapped Bitcoin was created to allow Bitcoin to be used on other blockchains. Wrapped Bitcoin's goal has never been to be Bitcoin, to be better than Bitcoin, or to take Bitcoin’s community. Wrapped Bitcoin was simply created to provide more utility to those using Bitcoin within the Ethereum blockchain ecosystem. 

What are Wrapped Tokens?

Wrapped tokens provide users with the opportunity to use cryptocurrencies like Bitcoin and Ethereum on other blockchains, while their prices remain pegged ("wrapped") to that of the original coin essentially creating a more tradable version of the coin.

For instance, with Wrapped Bitcoin tokens, Bitcoin can now be used within the Ethereum ecosystem and wrapped Ethereum-based altcoins can be used on the Solana network or any DeFi applications. There is also a Wrapped Ether which can be traded on decentralised exchanges or decentralised finance (DeFi) applications.

Let’s see how WBTC came to be, what benefits it offers, and why it is gaining popularity in the crypto assets space. 

The beginning of Wrapped Bitcoin  

It is widely conceded that stablecoins were the first wrapped tokens to come into existence, due to their pegging to a fiat currency. However, the first crypto-based wrapped token, Wrapped Bitcoin, was launched in January 2019, roughly 10 years after Bitcoins' initial release.

Wrapped Bitcoin is an ERC-20 token on the Ethereum mainnet (therefore requiring Ethereum wallets for storage) and is backed at a 1:1 ratio to the original cryptocurrency, meaning 1 WBTC is equivalent to 1 BTC.

A key benefit of Wrapped Bitcoin over Bitcoin is its integration within decentralized finance protocols, Ethereum's blockchain and ETH-based dapps, wallets, and smart contracts. To convert your BTC to WBTC, you would need to wrap the token using a bridge. 

Wrapped Bitcoin came from the collective efforts of major players within DeFi, including projects like MakerDAO, BitGo, Dharma, Set Protocol, and more. Wrapped Bitcoin is now under the control of a DAO, a decentralized autonomous organization, by the name of WBTC DAO. The ultimate goal was to bring more liquidity into Ethereum’s network through Bitcoin.  

How to get and use Wrapped Bitcoin WBTC

The only way to acquire WBTC is to trade it on a decentralised exchange (DEX) by swapping your BTC for WBTC. 

The process of minting WBTC tokens is done through verification procedures concluded by merchants. WBTC is created by storing funds in a custodian wallet in return for WBTC. When users want to convert their WBTC to BTC, the tokens are burnt and the BTC is returned from the wallet. It is a fairly simple process when done through a trustworthy source. 

WBTC gives one the ability to interact with the whole Ethereum network, inclusive of dapps, games, smart contracts, wallets, and more. WBTC will also allow one to be a part of a greater DeFi ecosystem, enabling them to partake in yield farming, token swapping, liquidity pools, lending, borrowing, and more. The utility is endless as Ethereum continues to evolve. 

The future of the Wrapped Token (WBTC)

Is it extremely innovative? Maybe not. Does it bridge the gap in allowing Bitcoin holders to utilize and benefit from other blockchains' synergies? Yes. It has more use cases than it is given credit for, which is why we wanted you to learn more about it.

This is not financial advice, but a look at some of the possibilities and projects out there finding success. There is no saying whether Wrapped BTC will be as big of a success story as BTC, especially since it's a wrapped version of BTC. One thing we do know is that wrapped tokens present additional benefits on top of existing tokens, and that's something worth learning about.

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As we move into a more digital world with enhanced security systems, so too are hackers and fraudsters. With millions of dollars lost each year at the hands of these ill actors, in this article we take a look at the 5 most common crypto scams and how to spot them. The financial world need not be a scary place, with a few precautions in place you can bank on being able to avoid them.

What is a crypto scam?

A crypto scam is a type of investment fraud revolving around cryptocurrencies. According to a report by Chainalysis, a record-breaking $14 billion of crypto was stolen last year through crypto scams. While there are many different types of crypto scams, of which we'll explore 5 below, the common thread is that crypto is wrongfully taken from a user through fraudulent activities. 

The biggest crypto scam of recent times was in late 2020 when people hacked into the Twitter accounts of high profile individuals and claimed that if someone sent Bitcoin or Ethereum to an address they will receive twice the value back. These accounts included the likes of Barack Obama, Elon Musk and Joe Biden. 

The top 5 most common crypto scams

While there are an infinite amount of crypto scams out there, below we are highlighting the 5 most common ones.

Fake crypto exchanges

These types of exchanges provide a buy/sell platform on which users can trade cryptocurrency, however, once they have deposited the funds they cannot withdraw any money. These funds might still appear on the platform although the money is long gone. 

Always read the reviews of a platform, and do your own research before depositing money anywhere. Cryptocurrency exchnages should also be licenced and regulated, if you cannot find this information on their website, do not proceed.

Ponzi schemes

Ponzi schemes might have started in the late 1800s but they're still here. The scheme works in such a way that each member earns rewards by recruiting new members, whose money is then used to pay off older members. This eventually reaches a saturation point after which it collapses. 

Always do your due diligence and ensure that the scheme you're investing in is legitimate. If it sounds too good to be true, it probably is.

Fake investment schemes

Be wary of an investment opportunity promising to deliver unbelievable gains. This might be in the form of depositing funds on a platform only to lose the money or struggle to withdraw it at a later stage. These are often circulated through well-known publications or on social media with celebrities "endorsing" the products. 

Pump and dumps also fall into this category. These schemes are created when a large group of people decide to invest in a coin, only to drive up the prices and cash out at the top. Many people are then left with a worthless coin at the end, having lost their investment. 

Imitating a crypto exchange

Similar to the concept of phishing, someone might create a social media account of a big exchange and contact the user "on behalf of the company". This is intended to gain your trust and is either done in an attempt to gain your passwords, or with a message that you owe large amounts in tax which needs to be paid in Bitcoin immediately to avoid imprisonment. 

Never follow links in an email, rather access the site from your own browser directly and be sure to check the URL. Successful scams of this nature often have a small typo in the URL which goes unnoticed. 

Malware & ransomware

The malware allows scammers to gain access to your computer, either locking you out of files or stealing credit card or crypto address details. With this information, they can drain your accounts in minutes. 

Ransomware works slightly differently in that the scammers lock the entire computer and demand a ransom to gain access again. This is often paired with blackmail where the victim, and in some cases, organizations, are threatened that if they don't pay sensitive information will be released. A lot of victims in this situation manage to get out of it unharmed.

These might sound very scary, but should you maintain safe online protocols and check URLs before entering your details, they should be entirely avoided. 

5 tips on how to avoid crypto scams

These might sound obvious but it never hurts to read them again. Below are 5 tips on how to stay vigilant and avoid crypto scams entirely.

• Be wary of phone calls and emails claiming to be from exchanges and never click the links from them. 
• Never give your password, private key or security codes to anyone.
• Never give someone remote access to your device.
• Look out for social media accounts imitating legal firms or exchanges or a prominent person in the industry. Support will never contact you from a social media account.
• And lastly, if it sounds too good to be true - it probably is. 

Easily avoided, comfortably secure

We hope this information assists you in keeping your data and money secure online, proper security is always imperative when using payment methods or services on the internet. As technology evolves, so too must our security systems and vigilance. With these tips above you should be well on your way to spotting something that doesn't quite look right, and avoiding crypto scam.