Quiz 5 + 6

Which of the following statements are true about bitcoin? Select ALL that apply:

• A new block is issued about every 10 minutes, amounting to about 7 transactions per second.

• Bitcoin mining reward is about 3 bitcoins; it is divided by 2 about every 4 years.

• Total supply is unlimited + It uses Proof of Stake (PoS) consensus protocol +

  It is based on a centralized ledger. 

• Total supply is limited to 21 million bitcoins, out of which over 19 million have been minted already.

• The first block minted is called Genesis block + Introduced by white paper in 2008 + Launched by Satoshi Nakamoto in 2009.

Which of the following statements are true about PayPal USD? Select ALL that apply:

• It can be used to buy any of the supported by PayPal cryptocurrencies.

• It is a stablecoin designed to maintain a stable $1 USD value.

• It cannot be send or used outside of PayPal platform.

• It was launched in 2023 on the Ethereum and Solana blockchains.

• It is backed by secure and highly liquid assets (dollar deposits, U.S. treasuries, and cash equivalents).

Which of the following statements are true about Facebook's Libra? Select ALL that apply:

• Originally it was supposed to be backed 1:1 by a basket of fiat currency deposits (including U.S. dollar, Euro, Pound Sterling, Japanese Yet, etc.), but it refocused to be backed only by one currency (USD) in 2020.

• After numerous unsuccessful attempts (red-lighted by the U.S. Treasury) to pilot, Libra was abandoned in 2022 and technology behind it (Diem blockchain) was sold to Silvergate Capital Corporation.

• It was announced by Facebook in 2019 and was to be built upon a "permissioned" blockchain platform + PayPal, Visa, Mastercard, Stripe, and eBay were part of the initial 28 members of the Libra Association.

• Originally the Libra Association was based in Switzerland, but it relocated to the United States in 2021.

• It was supposed to be built upon a public (permissionless) blockchain + JPMorgan Chase and Goldman Sachs were part of the Libra Association.

Which of the following crypto exchanges had been shut down and are no longer functioning? Select ALL that apply:

• Coinbase + Gemini

• BitInstant

• Binance + Kraken

• Mt. Gox

• FTX

Which of the following statements are true regarding cryptocurrency exchanges? Select ALL that apply:

• Centralized exchanges are more prone to hacks.

• In centralized exchanges, exchange controls funds.

• Decentralized exchanges are anonymous + In decentralized exchanges, user controls funds.

• Uniswap is a decentralized exchange.

• Centralized exchanges are anonymous.

Which of the following statement are true about Initial Coin Offering (ICO)? Select ALL that apply:

• ICOs are intended to promote specific projects and become currencies for transactions, when the project is deployed + ICOs allow companies to raise funds from investors by offering them the right to buy digital tokens to fund a project.

• Telegram returned $1.2 billion (out of $1.7 billion raised in ICO) to investors to settle SEC charges for unregistered offering of digital tokens and violating the federal securities laws.

• Regulations for ICOs are well-defined and clearly established. 

• Most ICOs did not offer any controlling rights of the company + Fewer than half of all ICOs survived 4 months after the offering. 

• Ethereum ICO raised $18 million in 2014, “Ether” tokens are required for building apps on the platform + EOS is the largest ICO to date with $4.1 billion raised in 2018 at $10 per token (currently worth $0.46 per token). 

Which of the following statements are true about the Uniformed Commercial Code (UCC)? Select ALL that apply:

• It was founded in 1896 to create uniform commercial laws + It is not a federal law, but a uniformly adopted state law.

• Amendments were introduced to the UCC to govern digital assets in 2022 to be adopted by the states by 2025.

• Under the revised Article 1 definition of money, existing types of cryptocurrency (including bitcoin) are not and can never be “money” under the UCC because they existed before any government adopted them as money.

• It is a set of laws governing all commercials transactions in the U.S.

• Existing cryptocurrencies can still be “controllable electronic records” (CERs) under new Article 12.

Which of the following statements are true regarding crypto futures and ETFs? Select ALL that apply:

• "Spot" bitcoin and ether ETFs have been approved by the SEC in 2024.

• BlackRock's bitcoin ETF is a trust that manages pools of bitcoin and issues shares.

• Bitcoin futures were first launched on the Chicago Mercantile Exchange (CME) in 2017 + Bitcoin ETFs were approved by the SEC in 2021.

• Dogecoin ETF had been approved by the SEC in 2018.

• The term “spot” ETF simply means that it holds actual bitcoin (ether), rather than a derivative tied to the price of bitcoin (ether).

Based on the materials discussed in class, which of the following statements are true? Select ALL that apply:

• Total value of crypto market (cryptocurrencies) is about $2.8 trillion.

• Total U.S. money supply (as measured by M2) is currently around $21.6 trillion.

• Currency component of M1 (total value of U.S. dollar bills and coins) is about $2.3 trillion.

• Cryptocurrency market includes over 17,000 crypto tokens.

Which of the following are true about Ethereum? Select ALL that apply:

• Raised $18 million in ICO in 2014.

• Ethereum blockchain was launched in 2015.

• Ethereum Foundation is based in Switzerland.

• Introduced by white paper by Vitalik Buterin in 2013.

• Uses Proof of Work (PoW) consensus protocol.