Why Ripple Co-Founder Chris Larsen is Pushing for Proof of Stake

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Cryptocurrencies have come under a great deal of pressure. Over the last few days, Bitcoin plummeted after the China Banking Association told financial institutions they should “resolutely refrain” from using digital currencies, as noted by CBS News. Not helping, Elon Musk said Tesla would stop using Bitcoin because of the energy consumption that results from Bitcoin mining. However, as Musk tweeted, “We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.” As a result, Proof of Stake (PoS) or Staking, and related stocks like Tokens.com Corp. (NEO:COIN)(FSE:76M) have benefited.

After all, PoS cryptocurrencies are far different that your Proof of Work (PoW) cryptocurrencies. In fact, according to Decrypt.com, “PoW systems use huge amounts of energy to secure the network. Because PoS networks do not suck up the immense amount of energy consumed by PoW networks like the Bitcoin network, they are environmentally friendlier.” That news could also benefit companies such as Coinbase (NASDAQ:COIN), Riot Blockchain (NASDAQ:RIOT), Marathon Digital Holdings Inc. (NASDAQ:MARA), and Square Inc. (NYSE:SQ).

Even Ripple co-founder Chris Larsen suggested Bitcoin should move away from PoW technology and consider PoS. That’s because, according to Larsen, as noted by Medium.com, PoS has “proven effective in securing their stored value while using a tiny fraction of the energy.”

Look at Tokens.com Corp. (NEO:COIN), for example

Tokens.com Corp. is a Proof-of-Stake technology company that provides with the same upside as crypto-currency miners, but in an environmentally friendly was. The Company provides investors with exposure to the digital assets that power Decentralized Finance and Non-Fungible Tokens, without the burden of buying, managing and securing digital assets themselves.

In addition Tokens.com just announced it acquired approximately 35,000 additional Polkadot tokens (DOT) to further its Staking operations. Staking is the environmentally friendly technology used to process and validate blockchain transactions for digital assets such as Ethereum 2.0.

“We don’t believe that the short-term crypto volatility we’re experiencing now will impact the long-term mainstream adoption of the DeFi and NFT platforms we support. Instead, we see the volatility as an opportunity to grow our operations,” commented CEO Andrew Kiguel.

Polkadot is the 8th largest crypto asset by market capitalization. Created by Ethereum co-founder Gavin Wood, Polkadot launched in 2020. Polkadot is a network designed to connect the dots with all other networks. It’s commonly referred to as a multi-chain network because it can join blockchain networks together.

Polkadot is a programmable blockchain. The Polkadot blockchain network allows blockchains to be designed for very specific uses and still be able to leverage security and data built within the Polkadot framework. As a result, it is a key component for several DeFi and NFT platforms that pay fees to use the Polkadot network for their projects.

Other related developments from around the markets include:

Coinbase co-Founder and CEO Brian Armstrong recently noted, “A decade of work and so many people brought us here. This includes every Coinbase employee, focused for years on building a financial system that’s free, fair, and open to everyone. It also includes you, the 56 million people who use Coinbase. And of course, we have to recognize Satoshi Nakamoto, who started it all by introducing Bitcoin to the world in 2008. We’ve had a number of ups and downs on our way here. Through luck and skill, Coinbase succeeded where many predicted it would fail. We weathered the ups and downs through innovation and keeping our eye on the long term. And along the way, we made cryptocurrency easier to use, introducing millions of people to this new technology. I’m proud of what we have accomplished so far. But we certainly didn’t do all this work just for one day.”

Riot Blockchain, one of the leading Nasdaq-listed public Bitcoin mining companies in the United States, reported financial results as of and for the three-months ended March 31, 2021. Increased mining revenue by 881.1% to $23.2 million for the three-month period ended March 31, 2021, as compared to $2.4 million for the same three-month period in 2020. Increased mining revenue margin to 67.5% for the three-month period ended March 31, 2021, as compared to 40.4% for the same three-month period in 2020. Produced record net income of $7.5 million, or $0.09 per share for the three-month period ended March 31, 2021, as compared to a $(4.3) million net loss, or $(0.15) per share, for the same three-month period in 2020. Achieved a record net income margin of 32.5% for the three-month period ended March 31, 2021. Increased total cash and Bitcoin to $275.6 million, as compared to $235.0 million as of December 31, 2020.

Marathon Digital Holdings Inc., one of the largest enterprise Bitcoin self-mining companies in North America, reported financial results for the first quarter ended March 31, 2021. Total revenues increased to $9.2 million from $592,000 in the first quarter of 2020. Primarily due to a $132 million unrealized gain from the change in value of Marathon’s $150 million Bitcoin investment made in January 2021, net income improved to $83.4 million, or $0.87 per diluted share, from net loss of $1.1 million, or ($0.12) per diluted share. Adjusted EBITDA improved to income of $137.4 million from a loss of $479,000 in the first quarter of 2020. As of May 6, cash was approximately $204.4 million and total liquidity, defined as cash and bitcoin holdings, was approximately $503.2 million.

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Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Tokens.com Corp. by Tokens.com Corp. We own ZERO shares of Tokens.com Corp. Please click here for full disclaimer.

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