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Belarus Nonprofit Helps Protestors With Bitcoin Grants

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In protest-ridden Belarus, dissidents are using bitcoin to get around political repression. 

On Aug. 8, the day of a highly controversial presidential election, a city hall employee in the town of Pinsk named Maria Koltsyna went to a polling station with a white hairband on her wrist. 

It was a small gesture of protest: Belarusians who voted against the incumbent president Alexander Lukashenko wore white. Maria’s co-workers immediately took notice of her white accessory, and soon after she was fired.

People in Belarus have been protesting the re-election of President Alexander Lukashenko for a month, claiming he was not the legitimate winner. There have also been factory strikes, and some police officers publicly quit their jobs rather than violently break up peaceful rallies. 

The regime has responded to protests with mass arrests, internet shutdowns and even threats to get help from Russia, its bigger neighbor to the East. 

In Belarus, the state maintains an iron grip on the economy, and getting fired for political reasons means you might not find another job, at least not in your town. But Maria heard about a new nonprofit fund, BYSOL, which was helping people who were fired for their protest activities. She applied for help and got it – in bitcoin.

Maria had never touched crypto before, but the team behind the fund taught her how to install a mobile crypto wallet.

She “figured it out in 10 minutes,” she told CoinDesk. With the grant, she bought a new laptop to get a new job in IT. The rest of the money was enough to pay for several months of rent and food, so that Maria could get by until she got a new job, she said.

Maria was one of several dozen people who discovered bitcoin in Belarus thanks to BYSOL, a nonprofit fund started by a group of tech entrepreneurs and civic activists this August. BYSOL has raised over $2 million in donations over the past month.

Controllable channels

BYSOL chose bitcoin as a way to transfer funds as other ways are under the total control of the government, Russian-language publication Forklog reported. The name of the fund is an abbreviation: BY (Belarus country code) + SOLidarity.  

Yaroslav Likhachevskiy is one of the founders of BYSOL and the CEO of Deepdee, a Belarussian-Dutch startup that develops AI solutions for health care. He told CoinDesk that bitcoin is the only payment method that can’t be controlled by the authorities. The regime is strictly monitoring bank transfers and can freeze funds related to protest activities.

Belarus law enforcement is paying particular attention to any money transfers by people and entities related to BYSOL, Likhachevskiy said. He shared with CoinDesk an order issued by the Belarus Ministry of Interior, which told the country’s banks to disclose information about all transactions related to Likhachevskiy and other people helping BYSOL. 

Likhachevskiy said he was once a crypto skeptic, but now he believes bitcoin can really be helpful.  

Can’t block it

BYSOL says it is raising most of its funds via donations through Facebook, with some money also coming via PayPal, transfers to a Revolut bank account and bitcoin and ethereum wallets. More than $2 million has been raised, which include the founders’ contributions, as well as donations from individual supporters and businesses, Likhachevskiy said. 

The fund is registered in Europe for safety reasons. 

“If we did it in Belarus, the funds would be confiscated,” Likhachevskiy said. 

But sending money across borders isn’t easy, either. 

“Right now, all people crossing the Belarus border are getting thoroughly searched to check if they are bringing cash into the country. The KGB [Belarus security services] is monitoring all the transactions from abroad,” Likhachevskiy said. 

A decentralized cryptocurrency like bitcoin can’t be stopped on the border, so BYSOL is sending $1,500 worth of BTC to people who have been fired because of their protest activities or who chose to quit their jobs in protest. 

First, people send applications to BYSOL explaining how they lost their jobs. They need to attach documents to confirm this, such as contract termination notices that are issued in Belarus when people get fired.  

When a case is verified by the volunteers of BYSOL, they send instructions on how to install and use a mobile wallet that can receive BTC. BYSOL partnered with the Ukrainian startup Trustee Wallet, which allows users to connect the wallet to a bank card. Then the applicants share their bitcoin addresses, receive bitcoin and swap it for fiat right in the app, receiving money on their debit cards. 

Normally, fiat gateways can be monitored by authorities, but Trustee Wallet business development director Viktor Manin told CoinDesk that when people sell their crypto in the app, they do it in a peer-to-peer fashion, so there is no centralized bank account in Belarus that can be blocked by the authorities.

Furthermore, when you have multiple people sending money between accounts, it’s harder for authorities to figure out the purpose of the transfers. 

The cost of protest

Last week, law enforcement raided the office of tech entrepreneur Mikata Mikado, one of BYSOL’s co-founders. Four employees at the business, called PandaDoc, were arrested for embezzlement. 

Mikado had previously published a video on Instagram offering help to police officers who rejected orders to beat and arrest innocent people and quit their jobs. 

“It’s hard to move to the side of good now. But if the reason is financial difficulties, I can help you,” Mikado said in the video. 

According to Likhachevskiy, Mikado put some of his own money into BYSOL.  Likhachevskiy argues that the embezzlement charges are ridiculous. He pointed out the U.S.-headquartered PandaDoc has just closed another funding round and “went through all the circles of due diligence.” Mikado did not respond to CoinDesk’s request for comment by press time.

Road to adoption

In general, Belarus does not have a very active crypto market, said Anton Kozlovsky, head of Paxful in Russia and the Commonwealth of Independent States (CIS) countries.

As the political crisis unfolded, people started buying more U.S. dollars to hedge against the devaluing national currency, the Belarusian ruble, and banks even reported a deficit of dollars last week. But this has not yet prompted any significant growth in crypto volumes, said Kozlov.

Even though the country officially legalized crypto transactions in 2018, not many people use crypto and businesses don’t normally accept it as a means of payment, said Eugene Romanenko, a Belarusian blockchain expert. 

However, more people, especially IT professionals who were not interested in crypto before, are starting to ask and learn about it, Romanenko said, especially when they look for ways to send money between each other or take their funds with them as they leave the country.

“More and more people are learning that cryptocurrencies can be used to solve real-life problems,” Romanenko said. 

If nothing else, crypto can be converted to fiat to pay for daily necessities. According to Likhachevskiy, more than 50 people have already received help from BYSOL over the last two weeks. He added that while $1,500 might seem like not a ton of money, in Minsk, the Belarus capital, you can rent a one-bedroom for about $200 a month.

Outside of the capital, $1,500 can be a life-changing amount of money – like it was for Maria. 

It’s an educational experience as well: Maria said that now that she learned how to deal with crypto, she might use it in the future. Recently, she and her friends used crypto to send money to each other, and that did not seem like a weird thing to do anymore. She added:

“Now I know that anybody can figure it out.” 

Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.





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Opyn Upgrade Aims to Add Capital Efficiency and Liquidity to DeFi Options Market

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Opyn, a marketplace for decentralized finance (DeFi) options, has rolled out a host of new features in its updated protocol that aim to make the crypto options markets more efficient and liquid. 

While Opyn entered DeFi with an insurance-like product for governance tokens such as compound, its focus has since pivoted to the options market in the digital asset space. According to Zubin Koticha, co-founder of Opyn, the pivot is driven both by user interest and by the sort of hurdles decentralized finance currently faces. 

“The biggest issue with DeFi is that [in] traditional finance, you don’t need super over-collateralization,” said Koticha. He added that the differing requirements on capital also eat into DeFi’s competitiveness with traditional finance. 

Put simply, options are financial contracts that give users the right to buy or sell an underlying instrument at a predetermined price on or before a specific date. Depending on what they make of market trends, options allow traders to bet on the future bullish or bearish nature of the market. 

While options have long existed in traditional finance they are relatively new to the crypto space and hence come with their own hurdles. 

Koticha pointed out that under Opyn’s earlier version users needed to put up 100% of the strike price, the agreed-upon price for the option, as collateral in order to mint and sell one. This differs from traditional options markets where the requirements can be significantly lower. 

According to Opyn, the update will add a host of new features to its options marketplace, including cash settlement for options without the need to exchange underlying assets, the ability for yield-earning assets to be used as collateral for options, and margin improvements for options. 

“We changed our system from physical settlement to cash settlement,” said Koticha. Noting that while traditional markets also cater to needs to settle options in physical commodities like grain, he said there is no such physical delivery need in the crypto space and hence little need to actually exchange the asset. Instead, only the difference in price needs to be delivered.  

Although the overall thrust of changes at Opyn are geared toward added efficiencies in how decentralized finance handles capital, the changes are only part of the upgrades in the pipeline. Koticha said Opyn is also plotting a protocol upgrade that will add the functionality to net short and long options together, thereby freeing up more capital. 

Earlier in August, Opyn discoveredf a vulnerability on its platform when attackers were able to exploit a bug and walk away with $370,000. According to report by Cointelegraph, the bug allowed attackers to double-spend Opyn’s oToken and thereby steal the collateral put up by users. 

In response, Opyn laid out in a blog post a set of measures it would adopt to prevent another such exploit and also compensated users affected by it. According to Koticha, the platform has continued to build on its security by performing additional audits and adding a functionality to pause the system. 

While a central kill-switch seems counterintuitive to the ever-bustling crypto markets, Koticha said that with plans to launch a governance token in the future Opyn wants to transfer the kill-switch controls to decentralized governance for the long run. 



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Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

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While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

next Altcoin News, Bitcoin News, Cryptocurrency news, News

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





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eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

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The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.



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