Laos Halts Electricity Supply for Crypto Mining Amid Drought; Friend.tech Faces Decline; Limited Uptake for PayPal's Stablecoin PYUSD
Summary:
Laos suspends electricity supply to crypto mining firms due to drought impact. Friend.tech faces potential demise as user activity declines. Limited adoption for PayPal's stablecoin PYUSD post-launch.
Laos suspends electricity supply to crypto mining firms due to drought impact on power generation
Laos' state-owned electricity distribution company, Électricité du Laos (EDL), has decided to cut off electricity supply to crypto mining operations in the country. This decision comes as the ongoing drought in the region has negatively affected power generation. The extreme heat and increased electricity demand have put a strain on hydropower plants, making it difficult to generate enough power. The EDL emphasizes that hydropower plants contribute to 95% of the country's electricity and aims to supply power locally while exporting large volumes to Thailand by 2024.
Critics predict demise for decentralized social media app Friend.tech as user activity declines
Critics of the decentralized social network Friend.tech are already claiming that the app is on its way to failure, just weeks after its launch. The platform, hosted on Coinbase's Base network, experienced significant success initially, with peak daily fees of $1.7 million and 525,000 transactions on August 21. However, recent data indicates a steep decline, with fees dropping by 87% to around $215,000 on August 26, according to DefiLlama. Additionally, Dune Analytics data reveals that the app's transaction volume on August 27 decreased by 90% compared to its peak, recording just over 51,000 transactions. Coinbase payments risk manager Lisandro Rodriguez expressed his opinion that the platform is "dead" due to "greed and poor execution."
Limited uptake for PayPal's stablecoin following its launch
On-chain data compiled by Nansen suggests that PayPal's stablecoin, PayPal USD (PYUSD), has witnessed limited adoption since its launch. Paxos Trust, the stablecoin's issuer, currently holds around 90% of the total PYUSD supply. Only 7% of PYUSD is held on exchanges such as Kraken, Gate.io, and Crypto.com, indicating that the coin is not widely circulating in the crypto market. According to Nansen, excluding contracts and exchanges, only 10 holders have accumulated over $1,000 worth of PYUSD. This limited adoption among "smart money" investors and the lack of demand from crypto users raise questions about PayPal's stablecoin as a catalyst for widespread crypto adoption.
Published At
8/28/2023 1:17:20 PM
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