
Every hour you wait is a signal you miss.

Stop Guessing, Start Trading: The Token Metrics API Advantage
Big news: We’re cranking up the heat on AI-driven crypto analytics with the launch of the Token Metrics API and our official SDK (Software Development Kit). This isn’t just an upgrade – it's a quantum leap, giving traders, hedge funds, developers, and institutions direct access to cutting-edge market intelligence, trading signals, and predictive analytics.
Crypto markets move fast, and having real-time, AI-powered insights can be the difference between catching the next big trend or getting left behind. Until now, traders and quants have been wrestling with scattered data, delayed reporting, and a lack of truly predictive analytics. Not anymore.
The Token Metrics API delivers 32+ high-performance endpoints packed with powerful AI-driven insights right into your lap, including:
- Trading Signals: AI-driven buy/sell recommendations based on real-time market conditions.
- Investor & Trader Grades: Our proprietary risk-adjusted scoring for assessing crypto assets.
- Price Predictions: Machine learning-powered forecasts for multiple time frames.
- Sentiment Analysis: Aggregated insights from social media, news, and market data.
- Market Indicators: Advanced metrics, including correlation analysis, volatility trends, and macro-level market insights.
Getting started with the Token Metrics API is simple:
- Sign up at www.tokenmetrics.com/api.
- Generate an API key and explore sample requests.
- Choose a tier–start with 50 free API calls/month, or stake TMAI tokens for premium access.
- Optionally–download the SDK, install it for your preferred programming language, and follow the provided setup guide.
At Token Metrics, we believe data should be decentralized, predictive, and actionable.
The Token Metrics API & SDK bring next-gen AI-powered crypto intelligence to anyone looking to trade smarter, build better, and stay ahead of the curve. With our official SDK, developers can plug these insights into their own trading bots, dashboards, and research tools – no need to reinvent the wheel.
Understanding REST APIs: Design, Security & Best Practices
Modern web and mobile applications rely heavily on REST APIs to exchange data, integrate services, and enable automation. Whether you're building a microservice, connecting to a third-party data feed, or wiring AI agents to live systems, a clear understanding of REST API fundamentals helps you design robust, secure, and maintainable interfaces.
- What is a REST API?
- Core Principles & HTTP Methods
- Design Patterns and Best Practices
- Security, Monitoring, and Scaling
- Build Smarter Crypto Apps & AI Agents with Token Metrics
- FAQs
- Disclaimer
What is a REST API?
REST (Representational State Transfer) is an architectural style for distributed systems. A REST API exposes resources—often represented as JSON or XML—using URLs and standard HTTP methods. REST is not a protocol but a set of constraints that favor statelessness, resource orientation, and a uniform interface.
Key benefits include simplicity, broad client support, and easy caching, which makes REST a default choice for many public and internal APIs. Use-case examples include content delivery, telemetry ingestion, authentication services, and integrations between backend services and AI models that require data access.
Core Principles & HTTP Methods
Understanding core REST principles helps you map business entities to API resources and choose appropriate operations:
- Resources: Model nouns (e.g., /users, /orders) rather than actions.
- Statelessness: Every request should contain all information to process it; avoid server-side session state.
- Representation: Use consistent formats such as JSON:API or HAL for predictable payloads.
- HTTP Verbs: GET for retrieval, POST to create, PUT/PATCH to update, DELETE to remove. Idempotency and safety semantics matter when designing retries and error handling.
- Status Codes: Use standard HTTP status codes (200, 201, 204, 400, 401, 403, 404, 429, 500) to communicate outcomes clearly to clients.
Adhering to these constraints makes integrations easier, especially when connecting analytics, monitoring, or AI-driven agents that rely on predictable behavior and clear failure modes.
Design Patterns and Best Practices
Building a usable REST API involves choices beyond the basics. Consider these patterns and practices:
- Versioning: Use URI (e.g., /v1/) or header-based versioning to avoid breaking clients when evolving schemas.
- Pagination and Filtering: Support limit/offset or cursor-based pagination and flexible query filters to keep responses performant.
- Hypermedia (HATEOAS): Optionally include links to related resources to improve discoverability for advanced clients.
- Idempotency Keys: For non-idempotent operations, accept idempotency keys so retries don’t create duplicates.
- Documentation and SDKs: Maintain OpenAPI/Swagger specs and generate client SDKs to reduce integration friction.
For teams building APIs that feed ML or AI pipelines, consistent schemas and semantic versioning are particularly important. They minimize downstream data drift and make model retraining and validation repeatable.
Security, Monitoring, and Scaling
Security and operational visibility are core to production APIs:
- Authentication & Authorization: Use OAuth 2.0, JWTs, or API keys depending on risk profile. Apply least-privilege principles to tokens and scopes.
- Transport Security: Enforce TLS for all traffic and HSTS where applicable.
- Rate Limiting & Throttling: Protect against abuse and ensure fair usage. Return clear retry-after headers to guide clients.
- Observability: Emit structured logs, request IDs, and metrics (latency, error rates) and hook them into dashboards and alerting systems.
- Schema Validation: Validate payloads at the boundary to prevent invalid data from propagating into downstream services.
Scaling often combines stateless application design, caching (CDNs or reverse proxies), and horizontal autoscaling behind load balancers. For APIs used by data-hungry AI agents, consider async patterns (webhooks, message queues) to decouple long-running tasks from synchronous request flows.
Build Smarter Crypto Apps & AI Agents with Token Metrics
Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key
FAQs
What distinguishes REST from other API styles like GraphQL?
REST emphasizes resources and uses HTTP verbs and status codes. GraphQL exposes a flexible query language letting clients request only needed fields. REST is often simpler to cache and monitor, while GraphQL can reduce over-fetching for complex nested data. Choose based on client needs, caching, and complexity.
How should I version a REST API without breaking clients?
Common strategies include URI versioning (/v1/) and header-based versioning. Maintain backward compatibility whenever possible, provide deprecation notices, and publish migration guides. Semantic versioning of your API contract helps client teams plan upgrades.
What are practical steps to secure a public REST API?
Require TLS, use strong authentication (OAuth 2.0 or signed tokens), validate inputs, enforce rate limits, and monitor anomalous traffic. Regularly audit access controls and rotate secrets. Security posture should be part of the API lifecycle.
How can REST APIs support AI-driven workflows?
APIs can supply training data, feature stores, and live inference endpoints. Design predictable schemas, low-latency endpoints, and asynchronous jobs for heavy computations. Tooling and observability help detect data drift, which is critical for reliable AI systems. Platforms like Token Metrics illustrate how API-led data can support model-informed insights.
When should I use synchronous vs asynchronous API patterns?
Use synchronous APIs for short, fast operations with immediate results. For long-running tasks (batch processing, complex model inference), use asynchronous patterns: accept a request, return a job ID, and provide status endpoints or webhooks to report completion.
Disclaimer
This article is educational and technical in nature. It does not constitute investment, legal, or professional advice. Evaluate tools and architectures against your requirements and risks before deployment.
Practical Guide to Building Robust REST APIs
REST APIs power much of the web and modern integrations—from mobile apps to AI agents that consume structured data. Understanding the principles, common pitfalls, and operational practices that make a REST API reliable and maintainable helps teams move faster while reducing friction when integrating services.
What Is a REST API and Why It Matters
Representational State Transfer (REST) is an architectural style for networked applications. A REST API exposes resources (users, accounts, prices, etc.) via predictable HTTP endpoints and methods (GET, POST, PUT, DELETE). Its simplicity, cacheability, and wide tooling support make REST a go-to pattern for many back-end services and third-party integrations.
Key behavioral expectations include statelessness (each request contains the information needed to process it), use of standard HTTP status codes, and a resource-oriented URI design. These conventions improve developer experience and enable robust monitoring and error handling across distributed systems.
Core Design Principles and Endpoint Modeling
Designing a clear resource model at the outset avoids messy ad-hoc expansions later. Consider these guidelines:
- Use nouns for resources: /users/123/orders, not /getUserOrder?id=123.
- Support filtering and pagination: query parameters like ?limit=50&cursor=... prevent heavy payloads and improve UX.
- Version with intent: /v1/ or header-based versioning can be used. Document breaking changes and provide migration paths.
- Return consistent error shapes: include machine-readable codes, human messages, and optionally documentation links.
Model relationships thoughtfully: prefer nested resources for clarity (e.g., /projects/42/tasks) but avoid excessive nesting depth. A well-documented schema contract reduces integration errors and accelerates client development.
Authentication, Authorization & Security Practices
Security for REST APIs is multi-layered. Common patterns:
- Token-based auth: OAuth 2.0 bearer tokens or API keys for service-to-service calls.
- Scopes and RBAC: scope tokens narrowly to minimize blast radius; implement role-based access control for complex domains.
- Transport security: always require TLS (HTTPS) and enforce secure headers (HSTS, CSP where relevant).
- Validate inputs: server-side validation and strict schema checks prevent injection and logic errors.
Also consider rate limiting, token expiry, and key rotation policies. For APIs that surface sensitive data, adopt least-privilege principles and audit logging so access patterns can be reviewed.
Performance, Caching & Reliability
Latency and scalability are often where APIs meet their limits. Practical levers include:
- HTTP caching: use ETags, Cache-Control, and conditional requests to reduce payloads and server load.
- Pagination and streaming: avoid returning entire datasets; prefer cursors or chunked responses for large collections.
- CDN and edge caching: cache public or semi-static responses at the edge to reduce origin traffic.
- Graceful degradation and circuit breakers: fallback behaviors for downstream failures keep core features available.
Instrument your API with observability: structured logs, distributed traces, and metrics (latency, error rates, throughput). These signals enable data-driven tuning and prioritized fixes.
Testing, Tooling & Developer Experience
Quality APIs are well-tested and easy to adopt. Include:
- Contract tests: verify server responses meet the documented schema to prevent regressions.
- Integration and end-to-end tests: test authentication flows, error handling, and rate-limit behaviors.
- Interactive docs and SDKs: OpenAPI/Swagger specs, Postman collections, and generated client libraries lower friction for integrators.
- Mock servers: let front-end and AI agent teams iterate without waiting on back-end deployments.
Automate CI checks that validate linting, schema changes, and security scanning to maintain long-term health.
REST APIs for Crypto Data and AI Agents
When REST APIs expose market data, on-chain metrics, or signal feeds for analytics and AI agents, additional considerations apply. Data freshness, deterministic timestamps, provenance metadata, and predictable rate limits matter for reproducible analytics. Design APIs so consumers can:
- Request time-series data with explicit timezones and sampling resolutions.
- Retrieve provenance (source, block number, or snapshot id) to allow historical reconstruction.
- Subscribe to webhooks or use polling efficiently to keep agents synchronized without exceeding quotas.
AI-driven workflows often combine multiple endpoints; consistent schemas and clear quotas simplify orchestration and reduce operational surprises. For example, Token Metrics demonstrates how structured crypto insights can be surfaced via APIs to support research and model inputs for agents.
Build Smarter Crypto Apps & AI Agents with Token Metrics
Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key
Frequently Asked Questions
What is the difference between REST and RESTful?
"REST" refers to the architectural constraints defined by Roy Fielding. "RESTful" is an informal adjective describing APIs that follow REST principles—though implementations vary in how strictly they adhere to the constraints.
How should I version a REST API?
Use semantic intent when versioning. URL-based versions (e.g., /v1/) are explicit, while header-based or content negotiation approaches avoid URL churn. Regardless, document deprecation timelines and provide backward-compatible pathways.
When should I use REST versus GraphQL?
REST is simple and cache-friendly for resource-centric models. GraphQL excels when clients need flexible queries across nested relationships. Consider client requirements, caching strategy, and operational complexity when choosing.
How do I handle rate limiting and quotas?
Expose limit headers, return standard status codes (e.g., 429), and provide retry-after guidance. Offer tiered quotas and clear documentation so integrators can design backoffs and fallback strategies.
What tools help document and test REST APIs?
OpenAPI (Swagger) for specs, Postman for interactive exploration, Pact for contract testing, and CI-integrated schema validators are common choices. Combine these with monitoring and API gateways for observability and enforcement.
Disclaimer
This article is for educational and technical reference only. It is not financial, legal, or investment advice. Always evaluate tools and services against your own technical requirements and compliance obligations before integrating them into production systems.
Mastering REST APIs: Principles, Design, Practices
REST APIs power most modern web and mobile back ends by providing a uniform, scalable way to exchange data over HTTP. Whether you are building microservices, connecting AI agents, or integrating third‑party feeds, understanding the architectural principles, design patterns, and operational tradeoffs of REST can help you build reliable systems. This article breaks down core concepts, design best practices, security measures, and practical steps to integrate REST APIs with analytics and AI workflows.
Understanding REST API Fundamentals
REST (Representational State Transfer) is an architectural style for distributed systems. It emphasizes stateless interactions, resource-based URIs, and the use of standard HTTP verbs (GET, POST, PUT, DELETE, PATCH). Key constraints include:
- Statelessness: Each request contains all necessary context, simplifying server design and enabling horizontal scaling.
- Resource orientation: Resources are identified by URIs and represented in formats such as JSON or XML.
- Uniform interface: Consistent use of HTTP methods and status codes improves predictability and interoperability.
When designing APIs, aim for clear resource models, intuitive endpoint naming, and consistent payload shapes. Consider versioning strategies (URL vs header) from day one to avoid breaking clients as your API evolves.
Design Patterns and Best Practices for REST APIs
Good API design balances usability, performance, and maintainability. Adopt these common patterns:
- Resource naming: Use plural nouns (/users, /orders) and hierarchical paths to express relationships.
- HTTP semantics: Map create/read/update/delete to POST/GET/PUT/DELETE and use PATCH for partial updates.
- Pagination and filtering: Return large collections with pagination (cursor or offset) and provide filters and sort parameters.
- Hypermedia (HATEOAS): Include links to related resources when appropriate to make APIs self-descriptive.
- Error handling: Use structured error responses with machine-readable codes and human-friendly messages.
Document endpoints with examples and schemas (OpenAPI/Swagger). Automated documentation and SDK generation reduce integration friction and lower client-side errors.
Securing and Scaling REST APIs
Security and operational resilience are core concerns for production APIs. Consider the following layers:
- Authentication & authorization: Use OAuth2, JWT, or API keys depending on threat model. Keep tokens short-lived and enforce least privilege.
- Input validation: Validate all incoming data to prevent injection and logic vulnerabilities.
- Rate limiting & throttling: Protect backends from abuse and noisy neighbors by implementing quotas and backoff signals.
- Transport security: Enforce TLS (HTTPS) and configure secure ciphers and headers.
- Observability: Expose metrics, structured logs, and distributed traces to troubleshoot latency and failure modes.
For scale, design for statelessness so instances are replaceable, use caching (HTTP cache headers, CDN, or edge caches), and partition data to reduce contention. Use circuit breakers and graceful degradation to maintain partial service during downstream failures.
Integrating REST APIs with AI, Analytics, and Crypto Workflows
REST APIs are frequently used to feed AI models, aggregate on‑chain data, and connect analytics pipelines. Best practices for these integrations include:
- Schema contracts: Define stable, versioned schemas for model inputs and analytics outputs to avoid silent breakages.
- Batch vs streaming: Choose between batch endpoints for bulk processing and streaming/webhook patterns for real‑time events.
- Data provenance: Attach metadata and timestamps so downstream models can account for data freshness and lineage.
- Testing: Use contract tests and synthetic data generators to validate integrations before deploying changes.
To accelerate research workflows and reduce time-to-insight, many teams combine REST APIs with AI-driven analytics. For example, external platforms can provide curated market and on‑chain data through RESTful endpoints that feed model training or signal generation. One such option for consolidated crypto data access is Token Metrics, which can be used as part of an analysis pipeline to augment internal data sources.
Build Smarter Crypto Apps & AI Agents with Token Metrics
Token Metrics provides real-time prices, trading signals, and on-chain insights all from one powerful API. Grab a Free API Key
FAQ: Common REST API Questions
What is the difference between REST and RESTful?
REST is an architectural style defined by constraints; "RESTful" describes services that adhere to those principles. In practice, many APIs are called RESTful even if they relax some constraints, such as strict HATEOAS.
When should I version an API and how?
Version early when breaking changes are likely. Common approaches are path versioning (/v1/) or header-based versioning. Path versioning is simpler for clients, while headers keep URLs cleaner. Maintain compatibility guarantees in your documentation.
How do I choose between REST and GraphQL?
REST is straightforward for resource-centric designs and benefits from HTTP caching and simple tooling. GraphQL excels when clients need flexible queries and to reduce over-fetching. Choose based on client needs, caching requirements, and team expertise.
What are practical rate limiting strategies?
Use token bucket or fixed-window counters, and apply limits per API key, IP, or user. Provide rate limit headers and meaningful status codes (429 Too Many Requests) to help clients implement backoff and retry strategies.
How can I test and monitor a REST API effectively?
Combine unit and integration tests with contract tests (OpenAPI-driven). For monitoring, collect metrics (latency, error rates), traces, and structured logs. Synthetic checks and alerting on SLA breaches help detect degradations early.
What is the best way to document an API?
Use OpenAPI/Swagger to provide machine-readable schemas and auto-generate interactive docs. Include examples, authentication instructions, and clear error code tables. Keep docs in version control alongside code.
Disclaimer
This article is educational and informational only. It does not constitute financial, investment, legal, or professional advice. Evaluate tools and services independently and consult appropriate professionals for specific needs.
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Non-Fungible Token (NFT): What It Means and How It Works?
The most expensive NFT sale to date was Beeple's Everydays: The First 5000 Days, which sold for $69.3 million. This highlights the growing interest in NFTs and the potential for them to be used as a vehicle for sharing virtually any form of media using the blockchain.
But what is an NFT? Let's find out.
What is an NFT?
NFTs, or non-fungible tokens, are unique digital assets with blockchain-managed ownership. They are stored on a blockchain and cannot be replicated or destroyed, making them resistant to tampering. NFTs can represent a wide range of items, including game items, digital art, collectibles, event tickets, and even ownership records for physical assets.
Unlike traditional cryptocurrencies, which are interchangeable and can be easily replicated, NFTs are non-fungible, meaning they have unique qualities that make them one-of-a-kind. This is why NFTs have gained popularity in the art world, where they can be used to verify the authenticity of a digital artwork and ensure that it cannot be copied or stolen.
How Can We Ensure Unique Authenticity?
When someone purchases an NFT, they not only receive the artwork itself, but also a digital receipt that proves that the piece is original, unique, and authentic. This receipt is stored on the blockchain and can be easily accessed and verified by anyone who wants to confirm the ownership and authenticity of the NFT.
While it is technically possible for someone to take a screenshot of an NFT and claim that they own it, this does not give them legal ownership of the artwork. Just like taking a picture of the Mona Lisa at the Louvre does not mean that you own the painting, taking a screenshot of an NFT does not give you ownership of the artwork.
To legally own an NFT, you must purchase it using cryptocurrency and store it in a virtual showcase. This allows you to own and display your artwork in a way that is secure and verifiable, and it ensures that you are the legal owner of the NFT.
NFT Basics You Need To Know
Non-fungible tokens (NFTs) are unique digital files that are stored on a blockchain. A blockchain is a decentralized, public digital ledger that records every transaction that takes place on the decentralized web. This means that the entire history of an NFT, including its creator, properties, transactions, and smart contracts, is backed by a powerful blockchain.
NFTs are different from fungible tokens, such as Bitcoin or Ethereum, which are interchangeable and store value. In contrast, NFTs store data on the blockchain, making them unique and non-replicable.
Important Traits Of NFTs
Some key characteristics of NFTs include:
- Digital ownership: NFTs are owned and controlled by the individuals who hold them in their digital wallets.
- Permanent: The data associated with an NFT is permanently stored within the token itself. This can include images, messages, signatures, or any other data.
- Permission-less: NFTs can be built on a permission-less blockchain, such as Ethereum, meaning that anyone can create and use them.
- Programmable: Because an NFT is just a piece of code on a blockchain, it can be programmed to have various attributes. For example, an NFT artwork might be programmed to pay the artist royalties on every secondary sale of that artwork.
- Unique: The uniqueness of an NFT can be verified on the blockchain, ensuring that it is one-of-a-kind and cannot be replicated.
How to Own One?
To create an NFT, there are several steps that you can follow:
- Get your media ready: NFTs support a variety of file types, such as MP3 audio, JPG and PNG images, and 3D files like GLB.
- Set up a non-custodial wallet: This will allow you to securely store the cryptocurrency that you will use to buy, sell, and create NFTs. Wallets are also necessary for signing in and creating accounts on NFT marketplaces.
- Buy Ethereum or other fungible tokens: You will need to purchase cryptocurrency to cover the cost of minting your NFT.
- Connect your wallet to an NFT marketplace: Popular options include Rarible and OpenSea. Connect your wallet by tapping the "Connect" button in the top right corner of the screen. This will create your account and allow you to start creating, minting, and selling your NFTs.
- Upload your file and describe your asset: Once you have connected your wallet, you can upload your file to the marketplace and provide a description of your asset. Decide if you want to create a standalone piece or multiple copies of the same NFT.
- Mint your NFT: The minting process requires Ethereum for transaction approvals. Once complete, your digital artwork will be ready to be traded and purchased on the marketplace.
Once you have created your NFT, there are several things that you can do with it:
- Buy and sell it on a marketplace
- Trade or gift it to others
- Use it in apps or games
- Showcase your public NFT inventory on a platform or social media.
The Secondary Markets for NFTs
NFT minting platforms enable creators to create non-fungible tokens (NFTs) to retain more control over their creative output. These NFTs can be sold on the following secondary marketplaces:
- OpenSea: The first and largest marketplace for NFTs, OpenSea is committed to using open protocols like Ethereum and interoperable standards like ERC-721 and ERC-1155 to enable new digital economies. The platform allows consumers to trade items freely, creators to launch new digital works, and developers to build marketplaces for their digital items. It recently launched the beta version of its Solana-based NFT marketplace.
- Coinbase NFT: Coinbase recently opened its NFT marketplace to the public in beta. The marketplace acts as a social media platform where users can buy, sell, and interact with NFTs. It aims to make minting, purchasing, showcasing, and discovering NFTs easier.
- Solanart: Solanart is the first and largest fully-fledged NFT marketplace on Solana. Users can easily access digital collectibles and explore, buy, and sell NFTs that run on the Solana blockchain.
- Rarible: Rarible is a do-it-yourself NFT marketplace where creators can mint NFTs with ease. The platform's native governance token, "RARI," is used to incentivize users and give the community a voice. However, unrestricted access means that Rarible has become a place for people to mint counterfeit versions of existing NFTs.
- Nifty Gateway: Owned by the Gemini crypto exchange, Nifty Gateway is a popular NFT marketplace that focuses on user-friendly and viral drops by celebrated artists.
- SuperRare: SuperRare (SR) is one of Ethereum's first crypto-art NFT marketplaces. Only accepted artists can participate in the platform, where users can discover, buy, and sell tokenized digital art and showcase their collections.
The demand for secondary NFT sales is growing rapidly, leading to increased competition among these marketplaces. Like the early days of Web 1 and 2.0, the emergence of Web 3.0 has created an open market where these platforms must find ways to attract and retain customers.
Some Notable NFT Projects
The thriving NFT market has led to the launch of several high-value projects, including the following companies:
- Yuga Labs: a blockchain technology company that develops Ethereum-based NFTs and digital collectibles. Yuga's first project, Bored Ape Yacht Club, is one of the most valuable NFT collectibles in the space. The company has also rewarded its holders with free NFTs and other perks. Yuga Labs recently acquired Larva Labs, which brings high-value projects like Cryptopunks and Meebits under the Yuga brand. The company is backed by investors like Coinbase, Samsung, and Mark Cuban.
- Doodles: a collection of 10,000 Ethereum-based NFTs featuring unique visual traits designed by BurntToast. The Doodles collection includes rare heads, costumes, and colorways, and the universe is ever-expanding. Owners of Doodles have exclusive access to new products, merchandise, and events.
- Okay Bears: a collection of 10,000 Solana-based NFTs. Ownership of an Okay Bear grants access to a virtuous community that will extend beyond the internet into the real world.
The Future of NFTs
Blockchain technology is known for its ability to represent assets and prove ownership. NFTs take this a step further by enabling people to potentially purchase non-fungible assets like land and gold. The global market cap for gold and real estate is over $300 trillion, so even a small percentage of that being tokenized would greatly increase the total crypto market cap. Tokenized real estate offers ordinary people the opportunity to invest in real estate, which has traditionally been difficult for the average person to participate in.
NFTs also have applications in other industries. For example, Nike recently filed a patent for NFT-enabled sneakers called "CryptoKicks." In 2019, Louis Vuitton announced plans to use NFTs to track the ownership of luxury fashion items. NFTs can also be used to tokenize certifications, degrees, and licenses, as well as sensitive data like medical records. The potential for NFTs to show ownership of any non-fungible commodity, whether real or virtual, is vast.
In conclusion, the use of non-fungible tokens (NFTs) has expanded beyond digital art and collectibles to include a wide range of real and virtual assets. The ability of NFTs to represent and prove ownership offers exciting possibilities for industries such as real estate, fashion, and even healthcare. As the technology and market continue to evolve, the potential applications for NFTs are endless.

Future of Cryptocurrency - Is Crypto the Future?
If you are wondering about the future of cryptocurrency, we did some digging to answer that, and more.
Cryptocurrency has gained popularity and value in recent years, with the most well-known cryptocurrency, Bitcoin, reaching an all-time high in late 2021. However, the future of the crypto market is uncertain and the subject of much debate. Some analysts predict continued growth, while others foresee a potential crash. In this article, we will explore the potential future of cryptocurrency, including potential growth, crashes, and the role of regulation. We will also discuss predictions for specific cryptocurrencies, such as Bitcoin and Ether, as well as altcoins and decentralized finance (DeFi) and autonomous organizations (DAOs).
Will cryptocurrencies take off? Understanding the potential future of the crypto market can help investors make informed decisions about their investments.
11 Significant Crypto Predictions for 2023
By examining the past trends and indications in the crypto market, it appears that the future of crypto holds exciting opportunities for investors. Here are some notable crypto predictions to keep an eye on in 2023:
Continued Popularity and Growth
Some analysts predict that the popularity and value of cryptocurrencies, particularly Bitcoin, will continue to rise in 2023. This could be due to increased acceptance by businesses and higher demand for Bitcoin exchange-traded funds (ETFs).
Steep Crash
However, others believe that the crypto market is unstable and vulnerable to a crash. In 2022, Bitcoin's price fell by roughly 40% due to factors such as slowing economic growth and rising interest rates. This bearish market may continue into 2023, leading to a potential crash.
Volatility and Regulation
Regardless of whether the market experiences growth or a crash, it is likely that Bitcoin and other cryptocurrencies will continue to be volatile. This volatility could be mitigated by increased regulation of the crypto market, which some predict will play a more significant role in 2023.
DeFi and DAOs
The shift toward decentralized finance (DeFi) and autonomous organizations (DAOs) is expected to continue in 2023. DeFi aims to remove the need for middlemen in traditional financial products, while DAOs are a new type of internet community based on blockchain technology. These developments could help to increase the stability and growth of the crypto market.
Bitcoin's Price
Some analysts predict that Bitcoin's price will continue to rise, potentially reaching $100,000 by the end of the year. Others believe that the market is unstable and could experience a crash.
Increased Adoption
It is predicted that over 500 million people worldwide will invest in and own Bitcoin by the end of 2023. This could be due to increased awareness and acceptance of the cryptocurrency.
ETF Approval
The approval of the first spot Bitcoin ETF in the US is possible in 2023. This would allow investors to have direct exposure to the cryptocurrency itself, rather than just tracking Bitcoin futures contracts.
DeFi and DAOs
The shift toward DeFi and DAOs is expected to continue and could become the highest growth areas of the crypto market.
Ether's Performance
Some analysts predict that Ether, the second-largest cryptocurrency by market value, will outperform Bitcoin again in 2023.
Regulation
It is possible that regulation of the crypto market will play a more significant role in 2023, potentially helping to stabilize the market.
Altcoins
The performance of altcoins, or alternative cryptocurrencies, is uncertain. Some may experience growth, while others could struggle. It is important for investors to carefully research and evaluate individual altcoins before making any investments.
Key Takeaways
When we see crypto from the growth perspective, there is a fair chance of getting the climb in 2023, especially for Bitcoin. However, Ether can take over the throne owing to the stats of 2022.
If you are seeking expert research and analysis to inform your investment decisions, consider signing up for Token Metrics. Our platform can provide you with access to the best performing cryptocurrencies with just a click. Explore our plans to learn more.

What is Crypto Burning: Meaning, Definition, and Explanation
In this article, we will explain what crypto burning is, how it is done, and why it is done. We will also discuss the potential benefits and risks of burning crypto, as well as the role of developers and miners in the process. By the end of this article, you will have a better understanding of how crypto burning works and whether it is something that you may want to consider for your own crypto investments.
What Does it Mean to Burn Crypto?
Crypto burning is the process of removing cryptocurrency from the blockchain. This concept originated from traditional stock markets and is facilitated by smart contracts. When tokens are burned, it can increase the value of the asset and make it more attractive to investors. It can also have benefits for tax regulations.
How is Crypto Burned?
The process of burning involves sending tokens to an invalid wallet address, where they cannot be accessed. This is typically done by developers or miners to manipulate the supply of tokens and potentially increase their value.
Why Burn Crypto Coins?
Developers burn tokens for many reasons, including to increase the value of the asset, create hype, and improve the business model. By decreasing the supply of tokens in circulation, they can also help to combat the effects of inflation and make the market more stable.
Can You Burn Crypto?
Technically, anyone can burn crypto. However, it is not advisable for individual investors to burn their own tokens as the coins will be permanently lost. Instead, they may want to consider staking or trading their crypto.
What is Crypto Buyback?
Crypto buyback is the process of repurchasing tokens from circulation. This is typically done by developers to decrease the supply of tokens and potentially increase their value. Buybacks are regulated by smart contracts, which ensures that the removed tokens will never resurface. This can be a good way for investors to encourage long-term holding (HODLing) of the tokens.

How to Create a Crypto Coin? 3 Ways to Do It
In today's world of decentralization and blockchain technology, creating your own cryptocurrency has become a viable option for individuals and businesses alike. But how exactly does one go about creating a cryptocurrency? In this post, we will explore three methods for creating a cryptocurrency, ranging from the most difficult to the easiest. Whether you want to create your own blockchain, fork an existing one, or launch a token on an existing platform, this guide will provide a comprehensive overview of the steps involved. Let's dive in!
How To Create A Crypto Coin?
We are going to explain three ways to create a cryptocurrency, from basic to advanced.
Create your own blockchain (advanced)
- Choose a consensus mechanism: Determine how transactions will be validated on your network
- Design the blockchain architecture: Define who can create blocks, validate transactions, and access data
- Create a user interface: Make sure the user experience is enjoyable
- Audit crypto and code: Hire experts to review your code to ensure security and compliance
Fork an existing blockchain (intermediate)
- Choose a blockchain to fork: Decide on an existing blockchain that aligns with your goals
- Clone the blockchain: Create a copy of the chosen blockchain's code
- Modify the code: Make any necessary changes to the code to suit your needs
- Launch your blockchain: Deploy your modified blockchain and begin mining
Launch a token on an existing platform (basic)
- Choose a blockchain: Decide on a blockchain that supports the creation of tokens, like Ethereum
- Follow the platform's instructions: Each platform will have its own process for creating and launching a token - you can also use sites like Token Factory to launch your token
- Promote and distribute your token: Once your token is live, market and distribute it to potential users.
What is the Difference Between a Coin and a Token?
A coin and a token are both types of cryptocurrency, but they have some key differences. A coin is a cryptocurrency that runs on its own blockchain, meaning it has its own independent infrastructure and user base. Examples of coins include Bitcoin and Litecoin.
On the other hand, a token is a cryptocurrency that is built on top of an existing blockchain, using the infrastructure and user base of that blockchain. Tokens are often created to represent a specific asset or utility, such as rewards points or event tickets. Examples of tokens include Tether and Shiba Inu.
Another key difference between coins and tokens is their relative scarcity. Since there can only be one coin on a given blockchain, the supply of coins is limited. This can give coins a certain level of value and scarcity, which can make them attractive to investors. In contrast, there can be an unlimited number of tokens on a given blockchain, which can make them less scarce and potentially less valuable.
It's important to understand the differences between coins and tokens when creating your own cryptocurrency. Depending on your goals and requirements, you may decide to create a coin or a token, or even both. With a clear understanding of the differences between the two, you can make an informed decision and choose the right approach for your project.
A Few Things to Consider Before Designing Your Crypto Coin:
There are several important things to consider before designing your crypto coin. These considerations will help you make informed decisions and increase the chances of success for your project.
First, you should consider the utility of your cryptocurrency. What value does it offer to users? Why would someone want to buy and use your cryptocurrency? What problems does it solve? Answering these questions will help you understand the potential value of your cryptocurrency and determine its utility.
Second, you should consider any regulatory and legal requirements. Cryptocurrency is a rapidly evolving field, and laws and regulations can change quickly. It's important to understand any compliance issues in your area and make sure your project adheres to all relevant regulations.
Third, you should consider the tokenomics of your cryptocurrency. Tokenomics is the study of the economics of a crypto project, including factors such as initial pricing, supply, emissions, distribution, market capitalization, and potential value. Understanding the tokenomics of your project will help you make informed decisions about how to structure your cryptocurrency and maximize its potential value.
Overall, it's important to carefully consider these factors before designing your crypto coin. By taking the time to understand your goals, requirements, and the economics of your project, you can increase the chances of success for your cryptocurrency.

Bullish in Crypto: Definition, Meaning, and Explanation
In the world of cryptocurrency, the terms "bullish" and "bearish" are commonly used to describe an investor's confidence in the potential growth of a particular crypto asset. But what do these terms really mean, and how do they apply to the crypto market? In this article, we will provide a comprehensive explanation of these terms, including the concept of a "bull run" and how it applies to both cryptocurrencies and non-fungible tokens (NFTs).
What Does Bullish Mean in Crypto?
The terms "bullish" and "bearish" are commonly used in the financial market to describe the confidence an investor has in the potential growth of a financial asset. In the context of the crypto market, a "bullish" investor is one who believes that a particular cryptocurrency or non-fungible token (NFT) will rise in value. This confidence is often seen when the market is experiencing growth and gains are being made.
What Is Bull Run
A "bull run" in the crypto market is a period of time during which there is high demand for cryptocurrencies and NFTs, leading to an increase in prices. This increase is driven by confidence in the market, as investors are more likely to buy when they believe prices will continue to rise. A bull run typically includes an increase in the value of well-known cryptocurrencies such as Bitcoin, Ethereum, Binance, and Solana, as these have the highest market capitalizations.
Bullish On NFTs
The concept of a "bull market" also applies to the market for non-fungible tokens (NFTs). In this context, a bull market is characterized by high demand for NFTs, which drives up their prices. Factors that can lead to increased demand for NFTs include strong marketing and community support from the development team, as well as the utility and scarcity of the NFTs. A collector, trader, or creator may feel bullish about a particular NFT project if they believe it has strong potential for growth. This bullish sentiment can lead to higher prices for the NFTs and a decrease in market supply.
Final Thoughts
It is important for investors to understand the terminology used in the crypto market in order to make informed decisions about their investments. The terms "bullish" and "bearish" are commonly used to describe confidence in the potential growth of a crypto asset. A "bull run" is a period of time during which there is high demand for cryptocurrencies and NFTs, leading to an increase in prices. In the NFT space, a bull market is characterized by high demand for NFTs, which drives up their prices.

What are NFTs? NFT Art Explained | Future of NFTs
You may have heard of CryptoPunks, Bored Ape Yacht Club, and VeeFriends, but you may not understand what they are. These names may sound like random combinations of words, but they actually represent some of the most valuable non-fungible token (NFT) projects that have emerged in the past few years.
The world of crypto art and NFTs may appear complex and mysterious, with a mix of celebrities, influencers, and internet experts. But it's not as confusing as it seems. Let's start from the beginning.
What Is An NFT?
Nearly all crypto art that has been introduced to the market has been done so through the minting of non-fungible tokens (NFTs). NFTs are digital assets that have verified proof of ownership. While "fungible tokens" like the US dollar can be easily traded (like exchanging 4 quarters for a dollar), each NFT is unique and cannot be easily traded. For example, imagine a sketch of "Starry Night" by Vincent Van Gogh that has been authenticated by a fine art appraiser as an original. This sketch would be non-fungible because you could not easily exchange it for, say, an original sketch by Leonardo da Vinci. This concept is easy to understand with tangible items like art pieces or collectible cards, but when digital assets can range from a celebrity tweet to an iconic meme to a picture of a pimped out animated ape, it may be confusing.
How Can We Ensure Unique Authenticity?
This is where NFTs enter the scene. Say you are a graphic design artist who just finished your newest 1-of-1 piece of work and you want to sell it as an NFT. Whoever purchases this piece would not only receive the artwork but they would also receive a “digital receipt” that proves that this exact piece is original, unique and authentic.
“But What If I Just Screenshot This Digital Artwork? Wouldn’t I Technically Own the Piece as Well?”
This is the first question that many have mockingly asked on social media and internet forums. The easy answer: yes, you can screenshot practically all digital artwork, but no, that does not mean you own it.
For example, millions of people swarm into the Louvre every year, waiting patiently amidst a giddy crowd, just to capture a picture of the priceless Mona Lisa. Obviously, a picture of the Mona Lisa saved on your iPhone camera roll does not mean that you own that painting.
NFTs work the same way.
Just as the Louvre paid millions of dollars to own, maintain, and display the Mona Lisa in their museum, NFT buyers do the same. However, the main difference is that instead of paying dollars to house the art in a fancy museum, they are paying with cryptocurrency and housing their art in a virtual showcase, so to speak.
This is the basis for how NFTs, cryptocurrency, and blockchain technology are establishing a new and lucrative market for digital art and artists.
The Art of Being Digital
In a 2021 interview, Gary Vaynerchuk (founder of Vayner Media and creator of VeeFriends) made the following statement regarding NFTs. The interviewer remarks on the tangibility of NFTs stating, "the digital aspect, like, you can't see it" — Gary jumps in:
"Well, you can't see a blue check on Instagram? I don't walk around the world with a blue check tattooed on my forehead, but everybody sees it. You can't see my 9 million followers on Instagram, or can you? I would argue the reverse. I would argue that people can't see most of the fancy things you have in your house; that people can see more digital than real life."
And he's onto something, and I'd like to call that something "The Art of Being Digital". In our highly digitized world, our online outreach and interconnectivity is wildly amplified. Gary Vee currently has 9.9 million followers on Instagram — but without access to the internet — he has no way of interacting with that community and tapping into the true power of those 9.9 million people.
Why Do NFTs Have Value?
The value of an NFT is determined by the collective intentionality of those who are willing to buy and sell them. In other words, the value of an NFT is based on what people are willing to pay for it. This is similar to the way that the value of traditional art is determined by the market, with the value being based on factors such as the artist's fame and the rarity of the work.
The Tom Brady example illustrates this idea. On the surface, it might seem strange that someone would pay $430k for a digital picture of a cartoon ape. However, if we consider the fact that the buyer was Tom Brady and the seller was the well-known digital artist Trevor Jones, it becomes clearer that the value of the NFT was determined by the collective intentionality of those involved in the transaction.
Furthermore, the digital art of NFTs offers more than just a digital file and a high price tag. NFTs provide the ability for digital artists to monetize their work and for collectors to own and trade unique digital items. This opens up new opportunities for artists and collectors alike, and has led to the growth of a vibrant and exciting market for NFTs.
Join The Club
Celebrities such as Tom Brady, Post Malone, Steph Curry, and Jimmy Fallon have been buying Bored Ape NFTs. Bored Ape NFTs were introduced by the Bored Ape Yacht Club (BAYC) in April 2021 at a price of 0.08 Ethereum (ETH) each, or about $190 at the time. Since then, the price of Bored Apes has increased significantly, yielding substantial returns for early investors.
In addition to the potential for financial gain, buying a Bored Ape NFT also grants the buyer access to the BAYC community. This includes access to the BAYC Discord, where buyers can connect with other members of the club, including celebrities, and collaborate on NFT-related projects. BAYC also gives members priority access to future NFT drops, allowing them to expand their collections.
Minting and selling NFTs can also be highly lucrative for those who create their own NFT projects. This is another reason why celebrities and others may be interested in the NFT market. Creating and selling NFTs allows artists and other creators to monetize their digital work and gives collectors the opportunity to own unique digital items. The growth of the NFT market has created new opportunities for both artists and collectors, leading to a vibrant and exciting market for NFTs.
Blockchain, Smart Contracts, and Secondary Sales
Blockchain technology is used to record the conversion of traditional currency into cryptocurrency, such as Ethereum (ETH), in the NFT market. This transaction is recorded on the blockchain as public information that is easily accessible to anyone who wants to view it. This ensures transparency and helps to prevent fraud in the NFT market.
Smart contracts are programs stored on the blockchain that allow NFT creators to stipulate the conditions of resale. For example, a creator could draft a smart contract that allows them to earn a 10% commission on any subsequent resales of their NFT. This allows creators to continue to benefit from the success of their work, even after the initial sale.
Smart contracts also facilitate secondary sales in the NFT market. When the value of an NFT increases, the smart contract associated with that NFT can automatically distribute any profits from the sale to the relevant parties, such as the creator or the NFT platform. For example, if the value of Tom Brady's Bored Ape NFT increased from $430k to $530k, the smart contract could automatically distribute the $100k profit to the Bored Ape Yacht Club, if that was stipulated in the contract.
This use of smart contracts helps to ensure that all parties are fairly compensated for their contributions to the NFT market, and it allows for efficient and transparent transactions without the need for intermediaries.
The Future Of Crypto-Art
Grammy-winning artist Tyler, the Creator recently questioned the value of NFTs, stating that most of the examples he has seen are not "beautiful art." While art is subjective and many NFTs are AI-generated, there are still many ways in which NFTs can offer value in the real world.
First, NFTs can be used to represent tangible experiences and achievements. Instead of framing a concert ticket or a season pass, these items could be represented as NFTs, allowing individuals to proudly display their experiences and achievements in the digital world. This could be especially beneficial for VIP experiences and exclusive memberships.
Second, NFTs can provide a level of authenticity and scarcity that cannot be achieved with physical items. This is especially useful for limited edition items and collectibles, which can be authenticated and traded easily on the blockchain.
Third, the use of smart contracts can ensure that all parties are fairly compensated for their contributions to the NFT market. This allows for transparent and efficient transactions without the need for intermediaries.
Overall, while some may dismiss NFTs as "silly little digital artworks," they have the potential to reshape not just the art world, but the world itself.

What is WETH: Wrapped Ethereum? [Answered]
If you are wondering what is WETH, short for Wrapped Ethereum, this is the place to be.
Cryptocurrencies have gained a lot of popularity in recent years, with many investors looking to invest in the digital assets. However, the use of these cryptocurrencies on decentralized applications (dApps) can be limited due to compatibility issues. This is where wrapped tokens come in. Wrapped tokens are tokenized versions of cryptocurrencies that can be pegged to the value of the original coin and used on different blockchain networks. In this article, we will explain what WETH is and how it works.
What is WETH or Wrapped Ethereum?
WETH is the abbreviation for Wrapped Ether, which is a tokenized version of the cryptocurrency Ether (ETH) that is pegged to its value. This means that the value of WETH remains the same as ETH, but it allows for increased interoperability between Ethereum and other blockchain networks.
How Does Wrapped Ethereum Work?
In order to create Wrapped Ethereum, a custodian must hold the collateral (in this case, ETH). This custodian can be a merchant, multi-signature wallet, or a smart contract. To create WETH, an investor sends their ETH to the custodian, and in return, a wrapped version of the ETH is created. This process is similar to how stablecoins are created, as they are essentially "wrapped USD" that can be redeemed for fiat dollars at any time.
What Makes Wrapped Ethereum Unique?
Wrapped tokens like WETH allow investors to hold onto their ETH while using it on other blockchain networks. This increases liquidity and capital efficiency, as investors can wrap their assets and deploy them on other chains. Wrapping Ether can also reduce transaction times and fees, as Ethereum often suffers from high gas fees. However, using wrapped tokens also means relying on a custodian and taking on additional risks.
Are ETH and WETH Different?
Yes, ETH and WETH are different. ETH is the original cryptocurrency, while WETH is a wrapped version of ETH that is ERC-20 compatible. This means that it can be easily used on a wide range of decentralized applications (dApps), but it is equivalent to ETH in terms of value. Investors may need to convert their ETH to WETH in order to use certain dApps.

What Causes Crypto To Rise? [Answered]
Do you want to know what causes crypto to rise? This is the place to be.
Cryptocurrency prices are highly volatile and can fluctuate rapidly, which can be both good and bad for investors. To understand what causes crypto to rise in value, it's important to first understand how cryptocurrencies differ from traditional government-controlled currencies. Unlike fiat currencies, which are backed by a central authority and have value because consumers trust them, cryptocurrencies are decentralized and not controlled by any one entity. This means that cryptocurrencies gain value in different ways than traditional currencies. In this article, we will explore some of the factors that can cause the value of cryptocurrencies to increase.
What Causes Crypto to Rise?
Let's find out what causes cryptocurrencies to rise in value.
Supply and Demand
The value of cryptocurrency is determined by supply and demand, just like any other asset. When demand for a particular cryptocurrency is higher than the supply, its value will increase. For example, if there is a scarcity of a certain cryptocurrency, its value will rise due to the unequal balance between supply and demand.
Each cryptocurrency project typically announces its plans for minting and burning tokens, which is the process of creating and destroying tokens to control the supply. Some cryptocurrencies, such as Bitcoin, have a fixed maximum supply, while others, such as Ether, have no limit on the number of tokens that can be created. Some cryptocurrencies also have mechanisms in place to burn tokens in order to prevent the circulating supply from growing too large and causing inflation.
The demand for a cryptocurrency can increase for a variety of reasons, such as increased awareness of the project or increased utility of the token. So, one factor that can cause the value of a cryptocurrency to rise is consumer demand for that particular coin.
Exchange Availability
Popular cryptocurrencies like Bitcoin and Ether are typically available on multiple exchange platforms, which makes them easily accessible to a large number of investors. However, smaller cryptocurrencies may only be available on a few exchange platforms, which can limit their reach and make them less attractive to investors.
If a cryptocurrency is listed on many exchange platforms, it can increase the number of investors who are able to buy it and drive up demand. As we know, when demand for a cryptocurrency increases, its price will also rise. So, another factor that can cause the value of a cryptocurrency to increase is its availability on exchange platforms.
Competition
There are thousands of different cryptocurrencies and new projects and tokens are being launched all the time. Because the entry barriers to creating a new cryptocurrency are relatively low, the most important aspect of a cryptocurrency's success is building a network of users. Applications built on blockchain technology can help to build networks quickly, especially if they have an advantage over competing applications.
In a situation where a new competitor gains traction, it can take value away from the incumbent cryptocurrency, causing its price to drop as the new competitor's price rises. Overall, competition is an important factor to consider when looking at the value of a cryptocurrency.
Internal Governance
Cryptocurrency networks typically operate according to a fixed set of rules. Some cryptocurrencies, known as governance tokens, allow stakeholders to have a say in the future of the project, including how the token is used or mined. In order for changes to be made to the protocol of a token, there must be agreement among stakeholders.
For example, the Ethereum network upgraded from a proof-of-work to a proof-of-stake consensus mechanism, making much of the expensive mining equipment obsolete. This will likely have an impact on the value of Ether.
In theory, governance tokens should rise in value as stakeholders see fit. However, the slow process of improving protocols and updating software can limit the appreciation of cryptocurrency values.

What is KYC in Regard to Crypto? [Answered]
KYC, or "know your customer," is a term used to describe the identity and background checks that financial institutions are required to conduct on their customers. These checks are important for risk mitigation and are part of the Anti-Money Laundering (AML) regulations that these institutions must follow. In the cryptocurrency space, KYC regulations are becoming increasingly important as more and more people use digital assets for financial transactions. By conducting KYC checks, cryptocurrency exchanges and other financial institutions can help prevent money laundering and other illegal activities.
History of Know Your Customer
The United States government has implemented a number of measures to help financial service institutions detect and prevent financial crimes. These measures were established by the USA Patriot Act of 2001 and were finalized in 2002, making KYC (know your customer) checks mandatory for all US financial institutions. In 2016, the Department of Treasury's Financial Crimes Enforcement Network (FinCEN) expanded these regulations to include the FinTech sector, which resulted in virtual currency exchange platforms being declared official money services businesses under the Bank Secrecy Act. This means that these platforms are subject to all AML (anti-money laundering) and KYC requirements.
KYC in Practice
While it is up to regulated entities (banks, crypto exchanges, and other financial institutions) to implement the specifics of KYC and AML regulations, the KYC practices and programs generally include three essential components:
- Customer Identification Program (CIP): Through CIP, firms verify the customer's identity through independent data. This includes the client's name, address, and date of birth. Some firms even request a form of identification (passport or ID), social security number, or a video and selfie from their customers to verify their identity.
- Customer Due Diligence (CDD): CDD is the process of screening the background of a prospective client. Thorough background checks are essential to understand the risks that a new customer could bring to the firm. This process can expose fraudulent activity that potential new clients may have taken part in. If necessary, firms will perform enhanced due diligence (EDD) to get a deeper look into the new customer's past in order to mitigate risk further.
- Ongoing Monitoring and Risk Management: Even after Customer Identification Programs and Due Diligence take place, firms will continue to monitor and manage the potential risks of new customers. They will continue to oversee their customer's transactions and flag anything unusual. This ensures ongoing risk mitigation which is essential for the trust between financial firms and their clients.
Why is KYC/AML Important?
KYC regulations aim to discern that customers are who they say they are. This helps to prevent money laundering, terrorist financing, and fraud within the financial market.
Know Your Customer and other Anti-Money Laundering regulations benefit both financial institutions and their clients. These rules improve security and mitigate risk by keeping bad actors off the books. This acts as an assurance for customers and leads to a more trustworthy company-client relationship.
KYC and Cryptocurrency
The cryptocurrency industry is still relatively new, and its decentralized nature can make it difficult to implement KYC (know your customer) measures. Crypto regulations are also still evolving as regulators seek to prevent financial crimes using cryptocurrencies and blockchain technology. As mentioned, crypto exchanges are considered official money services businesses and are therefore subject to KYC rules. These rules require exchanges to conduct identity and background checks on their customers, which may include requiring a photo ID. Many exchanges only allow transactions to occur once KYC is completed, especially for large sums of money.
However, some exchanges may try to avoid these rules by establishing their companies in countries with less stringent regulations. Exchanges that do not follow KYC and AML laws may not be available to use in countries that have these laws. This is why implementing KYC practices can actually increase an exchange's global reach by making it available in countries that have these laws, such as the US.
As the FinTech industry continues to grow and develop, it is important to regulate and mitigate risks to prevent illegal or suspicious behavior. AML laws are essential for ensuring fairness and equity in the emerging financial technology industry. Over time, regulations will continue to evolve to keep pace with the rapidly changing market.
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Token Metrics Media LLC is a regular publication of information, analysis, and commentary focused especially on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies.
Token Metrics Media LLC does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Token Metrics Advisers LLC registered as an investment adviser or broker-dealer in any jurisdiction.
Information contained herein is not an offer or solicitation to buy, hold, or sell any security. The Token Metrics team has advised and invested in many blockchain companies. A complete list of their advisory roles and current holdings can be viewed here: https://tokenmetrics.com/disclosures.html/
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All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Ratings and price predictions are provided for informational and illustrative purposes, and may not reflect actual future performance.