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EU Risk Watchdog Sounds Alarm on Stablecoin Safeguards

by admin October 4, 2025



In brief

  • EU regulators have warned that cross-border schemes could create redemption pressures in the bloc, forcing ECB intervention.
  • The EU has one of the world’s strictest crypto regimes and requires stablecoins to be fully backed by reserves.
  • The stablecoin market is currently valued at over $300 billion, dominated by U.S. dollar-based tokens.

The European Union’s top financial risk watchdog has called for urgent policy action to address vulnerabilities in stablecoins that straddle the bloc and other jurisdictions, warning of potential systemic shocks if safeguards are not strengthened.

In a statement, the European Systemic Risk Board (ESRB), chaired by European Central Bank (ECB) President Christine Lagarde, warned that “third country multi-issuer schemes – with fungible stablecoins issued both in the EU and outside – have built-in vulnerabilities which require an urgent policy response.”

Stablecoins, designed to maintain a steady value by pegging to assets like currencies or baskets of reserves, have grown into a market worth over $300 billion, according to DefiLlama data. The vast majority are dollar-based, led by Tether’s USDT, which alone commands over 58.53% dominance in the sector.

On prediction market Myriad, launched by Decrypt’s parent company DASTAN, users anticipate further rapid growth in the sector, placing a 72% chance on the stablecoin market cap topping $360 billion before February.



The EU and stablecoins

The EU has already enacted a tough crypto regulatory regime, requiring stablecoins issued within its borders to be fully backed by reserves, and some countries would like to tighten further.

But the ESRB and ECB warn that multi-issuer schemes involving non-EU players tilt the playing field. Investors facing turbulence may prefer to redeem in the EU, where protections are stricter, but reserves inside the bloc might not be sufficient, potentially forcing the ECB to intervene.

The warning reflects wider global unease over the sector from traditional finance. In June, the Bank for International Settlements flagged risks to monetary sovereignty and capital flight from emerging markets, while also pointing to repeated breakdowns in stablecoins’ ability to hold their pegs.

Other jurisdictions are pursuing different paths. In the United States, President Donald Trump signed the GENIUS Act in July, establishing a first formal framework for stablecoin issuance. While it bans issuers from paying interest, exchanges remain free to offer yields, sparking fierce debate between banks warning of mass deposit flight and crypto groups dismissing the threat as exaggerated.

In Hong Kong, legislation that took effect Aug. 1 has been followed by multiple regulatory warnings. Authorities noted sharp, speculation-driven market swings tied to stablecoin licensing rumors and cautioned investors against undue risks. Last month, they reiterated that no yuan-pegged stablecoins have been approved in the city.

Last month, the Bank of England proposed a cap on the amount of stablecoins that individuals and businesses could hold in the UK, with individuals limited to between £10,000 and £20,000 ($13,600–$27,200) and businesses capped at £10 million ($13.6 million). The proposal faced widespread pushback from crypto advocacy groups and businesses, with Coinbase’s vice president of international policy dismissing it as “bad for UK savers, bad for the City and bad for sterling.”

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October 4, 2025 0 comments
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Crypto ETFs
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Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown

by admin October 3, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The US government shutdown has significantly slowed operations across various federal agencies, including the Securities and Exchange Commission (SEC), which was expected to begin the approval process for long-awaited spot crypto ETFs.

For the fourth consecutive time, spending proposals intended to reopen the government have been rejected by lawmakers from both parties, pushing the shutdown into next week. 

Spot Crypto ETFs On Hold

As reported by Crypto In America, during a government shutdown, while the SEC retains the ability to act on urgent matters such as fraud and market emergencies, much of its routine work is halted. 

This includes delays in processing initial public offerings (IPOs), exchange-traded funds (ETFs), and other filings, as well as pausing rulemaking efforts. 

With spot crypto ETFs requiring formal approval from the SEC’s Division of Corporation Finance before they can commence trading, product launches for assets like Litecoin (LTC), Solana (SOL), and XRP are now likely on hold until government funding is restored.

However, altcoin prices saw a significant recovery on Friday, with LTC, SOL and XRP surging by 17%, 16% and 9% respectively over the past seven days. This aligns with the broader crypto market recovery, led by Bitcoin (BTC)’s surge to near record highs.

New Generic Listing Standards

“It’s like a rain delay,” Bloomberg ETF expert Eric Balchunas told Crypto In America,  highlighting the frustration felt by the industry as they await clarity on the SEC’s operations. An SEC spokesperson also confirmed that the shutdown has hindered their ability to respond to press inquiries.

The current challenges follows the SEC’s decision for crypto ETF issuers to withdraw their 19b-4 filings. This, on the heels of the approval of generic listing standards that obviate the need for individual filings; as a result, crypto ETFs could potentially go effective on a rolling basis once the shutdown concludes. 

The daily chart shows the total crypto market cap valuation near record highs. Source: TOTAL on TradingView.com

Featured image from DALL-E, chart from TradingView.com 

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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October 3, 2025 0 comments
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rally at risk as top Fed sends major warning
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rally at risk as top Fed sends major warning

by admin September 29, 2025



The crypto market tilted upward today, Sept. 29, as investors started to buy the dip after last week’s plunge. However, this rally could be at risk after a major warning from Beth Hammack, a senior Fed official.

Summary

  • Cleveland Fed’s Beth Hammack has warned about inflation and interest rate cuts.
  • Aster has passed Hyperliquid as the biggest perpetual DEX in terms of volume.
  • Stablecoin market capitalization is nearing the $300 billion market cap. 

Crypto news today: Beth Hammack warns on inflation

One of the top catalysts for the crypto market recently has been the Federal Reserve, which has started cutting interest rates. However, the pace of cuts may not be as analysts expect, as some Fed officials are still concerned about inflation.

Speaking in a CNBC interview, Beth Hammack of the Cleveland Fed warned that inflation was still a major challenge. She noted that headline and core inflation have remained above the 2% target for four and a half years.

Hammack also believes that the labor market is still strong despite the recent weakness. She cited the unemployment rate, which has remained below 5% this year.

The statement came a few days before the Bureau of Labor Statistics publishes the official jobs numbers. Economists expect the data to reveal that the economy created 59,000 jobs in September after adding 22,000 in the previous month.

Therefore, the crypto market could be at risk if the Federal Reserve slows the pace of interest-rate cuts.

Aster and Lighter overtake Hyperliquid

Another important crypto news today is that Hyperliquid is facing substantial competition pressure from Aster and Lighter. Data compiled by DeFi LLama shows that Aster, which is backed by Changpeng Zhao, handled over $84 billion in volume in the last 24 hours, higher than the $5.6 billion that Hyperliquid handled. This volume brought its 30-day volume to $290 billion, higher than Hyperliquid’s $279 billion. 

Aster weekly volume has soared | Source: DeFi Llama

Lighter handled transactions worth over $7.18 billion in the last 24 hours.

Still, it is unclear whether this data is accurate, as it notes that Aster handled $270 billion in volume last week, up from $10 billion a week earlier.

The data also show that Aster’s total value locked jumped to $2.26 billion, up from $346 million on Sept. 1.

Stablecoin supply nears $300b

Another key crypto news is that the amount of stablecoins in circulation is soaring and is about to hit $300 billion. 

The supply jumped by $4.15 billion in the last seven days. Tether maintains the biggest market share at $174 billion, while USDC has $73 billion. The other biggest players in the sector are Ethena USDe, Dai, Sky Dollar, and World Liberty Finance’s USD1. This stablecoin growth will likely accelerate after the U.S. passed theGENIUS Act. 



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September 29, 2025 0 comments
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Cardano price at risk of a deeper dive as key DeFi metrics crash
GameFi Guides

Cardano price at risk of a deeper dive as key DeFi metrics crash

by admin September 29, 2025



Cardano price has plunged into a bear market by over 24% from the year-to-date high; technicals in the DeFi industry point to more downside.

Summary

  • Cardano price has formed a head-and-shoulders and a rising wedge pattern on the daily chart.
  • The total value locked in its DeFi ecosystem has plunged in the past few weeks.
  • It is not benefiting from the GENIUS Act as the stablecoin supply has crashed.

Cardano (ADA) token dropped to $0.7736, its lowest level since Aug. 12, mirroring the performance of most altcoins like Ethereum and Solana.

One of the key fundamental reasons for the plunge is the Cardano’s decentralized finance ecosystem has underperformed its peer chains. The total value locked has plunged to $320 million, its lowest level in months and much lower than the year-to-date high of $680 million.

Cardano has not had any major new DeFi applications in its ecosystem this year. The biggest names in its ecosystem are platforms like Liqwid, Minswap, and Indigo.

Meanwhile, Cardano is not benefiting from the recently passed GENIUS Act as the total stablecoin supply in its network has dropped by 4.4% in the last seven days to $37 million. This supply is much smaller than other newer blockchains like Unichain, Linea, and Plasma.

Cardano’s decentralized exchange ecosystem has also gone quiet, with the volume continuing to falling. These DEX networks handled just $1.4 million in the last 24 hours.

Additionally, there are signs of little institutional demand for Cardano as only Grayscale has filed for a spot ADA ETF. In contrast, coins like Solana (SOL) and Ripple (XRP) have attracted at least 7 applications.

Cardano price technical analysis

ADA price chart | Source: crypto.new

A technical analysis suggests further downside for the Cardano price in the coming weeks. It has formed a rising wedge pattern on the daily chart. A closer look reveals that it has already moved below the lower side of this pattern, indicating further downside.

Cardano price has also formed a head-and-shoulders pattern and has already crashed below the neckline.

ADA price has plunged below the 50-day and 100-day Exponential Moving Averages, a sign that bears have prevailed.

The Average Directional Index has moved to 22, indicating that the downtrend is intensifying.

Therefore, these patterns suggest a potential downside, potentially reaching the June low of $0.5095, which is approximately 35% below the current level.



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September 29, 2025 0 comments
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NYC Mayor Adams Drops Out, Crypto Policies At Risk
Crypto Trends

NYC Mayor Adams Drops Out, Crypto Policies At Risk

by admin September 29, 2025



New York’s crypto hub ambitions could be set for uncertainty after New York City Mayor Eric Adams dropped out of his reelection bid on Sunday.

In a video on X on Sunday, Adams cited financial struggles stemming from his dismissed federal bribery case and the withholding of public funds.

“Despite all that we have achieved, I cannot continue my reelection campaign,” he said before adding that the “constant media speculation about my future and the campaign finance board’s decision to withhold millions of dollars has undermined my ability to raise the funds needed for a serious campaign.”

Adams initially won office in 2022 on a public safety platform during the pandemic recovery and has been credited with reducing crime and boosting the economy. However, his association with various scandals has been seen as a persistent liability.

“Although this is the end of my reelection campaign, it’s not the end of my public service,” said the mayor, before adding, “I will continue to fight for this city.”

Only in America. Only in New York.
Thank you for making my story a reality. pic.twitter.com/efHuyBnITJ

— Eric Adams (@ericadamsfornyc) September 28, 2025

The Big Apple’s Bitcoin advocate 

In May, Adams spoke at a press conference to announce that New York City was “open for business” for crypto firms.

Later in the same month, he said he would create a digital advisory council to attract jobs and investment to the Big Apple and position it as the “crypto capital of the globe.”

“The age of tokenization, which includes crypto and blockchain and other fintech innovations, that age is here, and we’re going to continue to move forward with it,” he said at the time. 

Related: NYC mayor lays out crypto plans as city residents vote in Democratic primary

He also called for a Bitcoin bond to be launched in the city and renewed calls to axe New York’s strict BitLicense program.

However, New York City Comptroller Brad Lander rejected the proposal, claiming it was “legally dubious and fiscally irresponsible.”

No pro-crypto replacements 

Adams, currently polling in fourth place, faced mounting pressure from business leaders who also oppose frontrunner Zohran Mamdani, a democratic socialist assemblyman.

Mamdani has yet to clarify his stance on crypto, but the industry appears concerned that his progressive/socialist approach may be unfriendly to the digital asset industry.

Democrat Andrew Cuomo is second in the race and has a mixed but generally more regulatory approach to crypto. Cuomo previously worked as a paid adviser to the OKX crypto exchange as it dealt with a federal investigation.

Adams previously criticized former Governor Cuomo, stating that under his governorship, New York State “dismantled and destroyed” the crypto industry.”

Mamdani currently leads Cuomo by 84.6% to 14.4%, according to the Polymarket prediction platform. New York City is scheduled to hold the mayoral election on Nov. 4, 2025. Adams will continue serving as mayor until his successor takes office on Jan. 1, 2026.

Mamdani is way ahead on Polymarket prediction polls. Source: Polymarket

Magazine: ETH co-founder moves $6M of ETH, crypto index ETF expands: Hodler’s Digest





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September 29, 2025 0 comments
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Satoshi's Bitcoin Holdings at Risk? Quantum Computing Advances
Crypto Trends

Satoshi’s Bitcoin Holdings at Risk? Quantum Computing Advances

by admin September 26, 2025


Bitcoin’s pseudonymous creator, Satoshi Nakamoto, is believed to hold an estimated 1.096 million BTC, according to Arkham data. Satoshi’s wallet, which made all its holdings from mining the network in its earliest days, has remained untouched since 2010, when it was run on a few laptops.

Satoshi accumulated this Bitcoin, mining over 22,000 blocks between 2009 and 2010. He was one of the first few miners of Bitcoin, with block rewards nearing over 50 BTC at the time.

According to Arkham data, Satoshi Nakamoto’s Bitcoin stash is currently worth $119,640,092,296 ($119.64 billion) at a current Bitcoin price of $109,125.

With a current Bitcoin worth of $119.64 billion, Satoshi Nakamoto ranks among the wealthiest individuals on the planet, but none of the BTC has ever been moved.

Satoshi’s Bitcoin holdings’ fate predicted

Satoshi’s Bitcoin holdings, accumulated from early network mining, have been untouched since 2010, but recent concerns about Quantum computing seem to be shifting this narrative.

Satoshi’s coins will be market dumped. In 2-8 years Quantum will break Bitcoin. These are scientifically calculated timelines. We must upgrade Bitcoin NOW. We are running out of time.

What are you doing about it?

Come to my @token2049 talk: 10:45am, Wed 1 Oct!

“Thank you for… pic.twitter.com/b4GR3S4Qjc

— Charles Edwards (@caprioleio) September 26, 2025

In light of this, Capriole Fund Founder Charles Edwards speculates on what the fate of Satoshi coins might be: they could be market dumped.

As quantum computing continues to advance, timelines for when a sufficiently powerful quantum computer could crack modern encryption algorithms are emerging.

Edwards gives this timeline to be 2-8 years (which would be from 2027 to 2033), stating this range to be “scientifically calculated timelines.”

The timeline of when cryptocurrency encryption standards might be cracked by a sufficiently powerful quantum computer is causing debate among blockchain developers, as well as when migration to quantum-resistant cryptography must occur. Edwards indicated that the time to upgrade Bitcoin is now, as it is running out of time. 





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September 26, 2025 0 comments
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A hacker in a Guy Fawkes mask using an Apple MacBook.
Gaming Gear

Fraudulent GitHub Pages impersonate trusted companies to trick Mac users into installing malware, leaving financial and personal data at risk

by admin September 24, 2025



  • Atomic Stealer malware installs silently via fake GitHub Pages targeting Mac users
  • Attackers create multiple GitHub accounts to bypass platform takedowns repeatedly
  • Users copying commands from unverified websites risk serious system compromise

Cybersecurity researchers are warning Apple Mac users about a campaign using fraudulent GitHub repositories to spread malware and infostealers.

Research from LastPass Threat Intelligence, Mitigation, and Escalation (TIME) analysts found attackers are impersonating well-known companies to convince people to download fake Mac software.

Two fraudulent GitHub pages pretending to offer LastPass for Mac were first spotted on September 16 2025 under the username “modhopmduck476.”


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How the attack chain works

While these particular pages have been taken down, the incident suggests a broader pattern that continues to evolve.

The fake GitHub pages included links labeled “Install LastPass on MacBook,” which redirected to hxxps://ahoastock825[.]github[.]io/.github/lastpass.

From there, users were sent to macprograms-pro[.]com/mac-git-2-download.html and told to paste a command into their Mac’s terminal.

That command used a CURL request to fetch a base64-encoded URL that decoded to bonoud[.]com/get3/install.sh.

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The script then delivered an “Update” payload that installed Atomic Stealer (AMOS malware) into the Temp directory.

Atomic Stealer, which has been active since April 2023, is a known infostealer used by financially motivated cybercrime groups.

Investigators have linked this campaign to many other fake repositories impersonating companies ranging from financial institutions to productivity apps.


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The list of targeted names includes 1Password, Robinhood, Citibank, Docker, Shopify, Basecamp, and numerous others.

Attackers appear to create multiple GitHub usernames to bypass takedowns, using Search Engine Optimization to push their malicious links higher on search results in Google and Bing.

This technique increases the chances that Mac users searching for legitimate downloads will encounter the fraudulent pages first.

LastPass states it is “actively monitoring this campaign” while working on takedowns and sharing indicators of compromise to help others detect threats.

The attackers’ use of GitHub Pages reveals both the convenience and the risks of community platforms.

Fraudulent repositories can be set up quickly, and while GitHub can remove them, attackers often return under new aliases.

This cycle raises questions about how effectively such platforms can protect users.

How to stay safe

  • Only download software from verified sources to avoid malware and ransomware risks.
  • Avoid copying commands from unfamiliar websites to prevent unauthorized code execution.
  • Keep macOS and all installed software up to date to reduce vulnerabilities.
  • Use the best antivirus or security software that includes ransomware protection to block threats.
  • Enable regular system backups to recover files if ransomware or malware strikes.
  • Stay skeptical of unexpected links, emails, and pop-ups to minimize exposure.
  • Monitor official advisories from trusted vendors for timely security updates and guidance.
  • Configure strong, unique passwords and enable two-factor authentication for important accounts.

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September 24, 2025 0 comments
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New AI System Predicts Risk of 1,000 Diseases Years in Advance
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New AI System Predicts Risk of 1,000 Diseases Years in Advance

by admin September 23, 2025



In brief

  • Researchers unveiled Delphi-2M in Nature, an AI that forecasts risk for 1,000+ diseases up to 20 years out.
  • The model outperformed single-disease tools, predicting co-morbidities and generating synthetic health trajectories from medical records.
  • Trained on UK Biobank and validated on 1.9M Danish health records, Delphi-2M shows promise but faces bias, privacy, and deployment hurdles.

Researchers have built an AI system that predicts your risk of developing more than 1,000 diseases up to 20 years before symptoms appear, according to a study published in Nature this week.

The model, called Delphi-2M, achieved 76% accuracy for near-term health predictions and maintained 70% accuracy even when forecasting a decade into the future.

It outperformed existing single-disease risk calculators while simultaneously assessing risks across the entire spectrum of human illness.



“The progression of human disease across age is characterized by periods of health, episodes of acute illness and also chronic debilitation, often manifesting as clusters of co-morbidity,” the researchers wrote. “Few algorithms are capable of predicting the full spectrum of human disease, which recognizes more than 1,000 diagnoses at the top level of the International Classification of Diseases, Tenth Revision (ICD-10) coding system.”

The system learned these patterns from 402,799 UK Biobank participants, then proved its mettle on 1.9 million Danish health records without any additional training.

Before you start rubbing your hands with the idea of your own medical predictor, can you try Delphi-2M yourself? Not exactly.

The trained model and its weights are locked behind UK Biobank’s controlled access procedures—meaning researchers only. The codebase for training your own version is on GitHub under an MIT license, so you could technically build your own model, but you’d need access to massive medical datasets to make it work.

For now, this remains a research tool, not a consumer app.

Behind the curtain

The technology works by treating medical histories as sequences—much like ChatGPT processes text.

Each diagnosis, recorded with the age it first occurred, becomes a token. The model reads this medical “language” and predicts what comes next.

With the proper information and training, you can predict the next token (in this case, the next illness) and the estimated time before that “token” is generated (how long until you get sick if the most likely set of events occurs).

For a 60-year-old with diabetes and high blood pressure, Delphi-2M might forecast a 19-fold increased risk of pancreatic cancer. Add a pancreatic cancer diagnosis to that history, and the model calculates mortality risk jumping nearly ten thousandfold.

The transformer architecture behind Delphi-2M represents each person’s health journey as a timeline of diagnostic codes, lifestyle factors like smoking and BMI, and demographic data. “No event” padding tokens fill the gaps between medical visits, teaching the model that the simple passage of time changes baseline risk.

This is also similar to how normal LLMs can understand text even if they miss some words or even sentences.

When tested against established clinical tools, Delphi-2M matched or exceeded their performance. For cardiovascular disease prediction, it achieved an AUC of 0.70 compared to 0.69 for AutoPrognosis and 0.71 for QRisk3. For dementia, it hit 0.81 versus 0.81 for UKBDRS. The key difference: those tools predict single conditions. Delphi-2M evaluates everything at once.

Beyond individual predictions, the system generates entire synthetic health trajectories.

Starting from age 60 data, it can simulate thousands of possible health futures, producing population-level disease burden estimates accurate to within statistical margins. One synthetic dataset trained a secondary Delphi model that achieved 74% accuracy—just three percentage points below the original.

The model revealed how diseases influence each other over time. Cancers increased mortality risk with a “half-life” of several years, while septicemia’s effect dropped sharply, returning to near-baseline within months. Mental health conditions showed persistent clustering effects, with one diagnosis strongly predicting others in that category years later.

Limitations

The system does have boundaries. Its 20-year predictions drop to around 60-70% accuracy in general, but things will depend on which type of disease and conditions it tries to analyze and forecast.

“For 97% of diagnoses, the AUC was greater than 0.5, indicating that the vast majority followed patterns with at least partial predictability,” the study says, adding later on that “Delphi-2M’s average AUC values decrease from an average of 0.76 to 0.70 after 10 years,” and that “iIn the first year of sampling, there are on average 17% disease tokens that are correctly predicted, and this drops to less than 14% 20 years later.”

In other words, this model is quite good at predicting things under relevant scenarios, but a lot can change in 20 years, so it’s not Nostradamus.

Rare diseases and highly environmental conditions prove harder to forecast. The UK Biobank’s demographic skew—mostly white, educated, relatively healthy volunteers—introduces bias that the researchers acknowledge needs addressing.

Danish validation revealed another limitation: Delphi-2M learned some UK-specific data collection quirks. Diseases recorded primarily in hospital settings appeared artificially inflated, contradicting the data registered by the Danish people.

The model predicted septicemia at eight times the normal rate for anyone with prior hospital data, partly because 93% of UK Biobank septicemia diagnoses came from hospital records.

The researchers trained Delphi-2M using a modified GPT-2 architecture with 2.2 million parameters—tiny compared to modern language models but sufficient for medical prediction. Key modifications included continuous age encoding instead of discrete position markers and an exponential waiting time model to predict when events would occur, not just what would happen.

Each health trajectory in the training data contained an average of 18 disease tokens spanning birth to age 80. Sex, BMI categories, smoking status, and alcohol consumption added context.

The model learned to weigh these factors automatically, discovering that obesity increased diabetes risk while smoking elevated cancer probabilities—relationships that medicine has long established but that emerged without explicit programming. It’s truly an LLM for health conditions.

For clinical deployment, several hurdles remain.

The model needs validation across more diverse populations—for example, the lifestyles and habits of people from Nigeria, China, and America can be very different, making the model less accurate.

Also, privacy concerns around using detailed health histories require careful handling. Integration with existing healthcare systems poses technical and regulatory challenges.

But the potential applications span from identifying screening candidates who don’t meet age-based criteria to modeling population health interventions. Insurance companies, pharmaceutical firms, and public health agencies may have obvious interests.

Delphi-2M joins a growing family of transformer-based medical models. Some examples include Harvard’s PDGrapher tool for predicting gene-drug combinations that could reverse diseases such as Parkinson’s or Alzheimer’s, an LLM specifically trained on protein connections, Google’s AlphaGenome model trained on DNA pairs, and others.

What makes Delphi-2M so interesting and different is its broad scope of action, the sheer breadth of diseases covered, its long prediction horizon, and its ability to generate realistic synthetic data that preserves statistical relationships while protecting individual privacy.

In other words: “How long do I have?” may soon be less a rhetorical question and more a predictable data point.

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A weekly AI journey narrated by Gen, a generative AI model.



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September 23, 2025 0 comments
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Sentiment signals could spark the next rally
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Bitcoin faces quantum risk: Solana co-founder issues warning

by admin September 21, 2025



Solana co-founder Anatoly Yakovenko has warned that Bitcoin developers must prepare for a potential quantum computing breakthrough that could render the network’s current security measures outdated.

Summary

  • At the All-In Summit, Solana co-founder Anatoly Yakovenko reignited debate over Bitcoin’s long-term security.
  • There’s a “50/50” chance that quantum computers could break its cryptographic defenses within five years. Rapid advances in AI show how quickly theory can become reality.
  • The question is not just if Bitcoin must migrate to quantum-safe cryptography—but when.

According to Yakovenko, who was speaking at the All-In Summit 2025, there is a “50/50” probability that within five years, quantum computers will be strong enough to crack the cryptographic safeguards protecting Bitcoin wallets.

The concern centers on quantum machines running algorithms like Shor’s, which could crack the Elliptic Curve Digital Signature Algorithm currently protecting Bitcoin (BTC) private keys.

This would allow attackers to forge transactions and compromise wallets, creating an existential risk for the network.

Yakovenko argued that “we should migrate Bitcoin to a quantum-resistant signature scheme” before such technology becomes viable.

Skeptics like Blockstream’s Adam Back downplay immediacy of threat

The Bitcoin community remains divided on the urgency of quantum threats. Adam Back, CEO of Blockstream, estimated that the technology is still relatively far away and argued that making Bitcoin quantum-ready is “relatively simple.”

Bitcoin Core contributor Peter Todd dismissed current quantum computers as non-existent, stating that “demos running toy problems do not count.”

Luke Dashjr, another Bitcoin Core contributor, suggested quantum threats pose less immediate danger than spam transactions and developer corruption issues the community currently faces.

Bitcoin’s design complicates any quantum upgrade. A migration to post-quantum cryptography would require a hard fork, a highly contentious and technically complex process needing widespread network support.

Yakovenko countered skepticism by pointing to quick AI advances as evidence of how quickly laboratory research can transition to real-world applications.

He suggested that when tech giants like Apple or Google deploy quantum-safe cryptographic stacks, “it’s time to migrate” Bitcoin’s security infrastructure.

Exposed keys create vulnerability

Bitcoin’s quantum vulnerability stems from two primary attack vectors. The network uses ECDSA based on the secp256k1 curve to secure private keys and validate transactions.

This makes it particularly vulnerable to Shor’s algorithm, which could derive private keys from public keys in polynomial time.

Approximately 25-30% of all Bitcoin, over 4 million BTC, including Satoshi Nakamoto’s early holdings, sits in addresses with exposed public keys.

These legacy Pay-to-Public-Key addresses are immediately vulnerable to quantum attack since their public keys are already visible on the blockchain.

Transaction windows create additional risk exposure. When Bitcoin users start transactions, they reveal public keys during the roughly 10-minute confirmation window.

A sufficiently powerful quantum computer could exploit this brief exposure to derive private keys and redirect funds before transactions confirm.



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September 21, 2025 0 comments
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Low Risk DeFi Could Drive Ethereum Fees While Keeping Values Aligned
Crypto Trends

Low Risk DeFi Could Drive Ethereum Fees While Keeping Values Aligned

by admin September 21, 2025



Ethereum co-founder Vitalik Buterin said revenue from low-risk decentralized finance protocols could give the network economic stability — much like Google Search supports Google — while letting nonfinancial apps uphold Ethereum’s cultural values.

Low-risk DeFi could address “important tensions” in the Ethereum community over whether apps that bring in enough revenue to economically sustain the ecosystem align with the cultural and ethical values that brought people to Ethereum in the first place, Buterin said in a blog post on Saturday.

The former has been a combination of nonfungible tokens, memecoins, and speculative trading, while the nonfinancial and semifinancial apps that reflect Ethereum’s cultural values have either struggled to gain widespread adoption or haven’t generated enough fees, he said.

“This disjointness created a lot of dissonance in the community,” Buterin said, before making his case for low-risk DeFi being Ethereum’s main fee generator. One example Buterin highlighted was deposit rates for stablecoin lending on DeFi protocol Aave, which hover around 5% for blue-chips like Tether (USDT) and USDC (USDC) and above 10% for higher risk stables.

Similarly, Buterin noted that Google does many “interesting and valuable things” — such as its Chromium family of browsers, Pixel phones, its open-source AI Gemini models, and more — but the revenue they make from those products is a fraction compared to what it makes through search and advertisements. 

It comes as the total value locked on Ethereum DeFi recently surpassed $100 billion for the first time since early 2022. DeFi TVL tanked massively across the ecosystem during the 2022-2023 bear market, and TVL figures have largely trailed the performance of top layer 1 tokens this bull market.

Source: Djani

Related: Ethereum is the ‘biggest macro trade’ for next 10-15 years: Fundstrat

However, DeFi has picked up lately amid an increase in regulatory momentum, particularly the Digital Asset Market Clarity Act, which is tipped to push DeFi adoption even further. A recent survey from the DeFi Education Fund found that over 40% of Americans are open to DeFi if stronger laws are put in place.

Ethereum has the potential to “do much better” than Google

Ethereum has the potential to “do much better” than Google due to its decentralization. Unlike Google, Ethereum’s decentralized structure better positions low-risk DeFi to align financial success with ethical outcomes, creating harmony between “doing well” and “being good.”

“The revenue generator does not have to be the most revolutionary or exciting application of Ethereum. But it does need to be something that is at least not actively unethical or not embarrassing.”

Buterin criticized Google’s incentive model, noting that advertising revenue pushes the company to hoard user data, conflicting with its original open-source and positive-sum ethos.

Vitalik advocates for basket currencies, flatcoins 

While low-risk DeFi is often about enabling easier access to the US dollar — particularly those in low-income and high-inflation countries — Buterin would like to see other innovations that provide economic support to Ethereum.

Buterin pitched the idea of building cryptoassets that track a basket of currencies and flatcoins that are based directly on consumer price indices.

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September 21, 2025 0 comments
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