Silver Spring, MD, April 27, 2022 (GLOBE NEWSWIRE) — BTCS Inc. (Nasdaq: BTCS) (“BTCS” or the “Company”), a blockchain technology-focused company, announces the addition of Kava (“Kava”) to its blockchain infrastructure operations. Growing from a $3M Initial Exchange Offering in 2019, Kava is now a $913M layer-1 blockchain protocol with a decentralized lending platform at its core.
What is Kava?
Kava is the native token of the Kava.io platform, which allows users to borrow the stable coin, USDX, and deposit a robust variety of other digital assets to earn a high yield. Kava uses price oracles to maintain the USDX price with the U.S. dollar. Price oracles can be thought of as data feeding bridges that are able to receive pricing information from the outside world and bring that data to a network.
In addition to decentralized lending, Kava is used for validator rewards that are distributed for maintaining the network. Kava can also be staked to earn voting rights that can determine proposal outcomes such as expansion decisions, new crypto asset support, and new features on the platform.
Kava’s Unique “One Network, Two Chains” Approach
Kava takes a cross-chain approach to decentralized finance (“DeFi”). Upon its launch, it became the first DeFi project deployed on the Cosmos blockchain. Instead of just relying on one cryptocurrency, Kava allows its users to leverage and hedge almost any asset that they want, supporting a multitude of different assets. Yet, despite being built on Cosmos, Kava supports Ethereum by enabling Ethereum’s developers and decentralized applications to build on the Kava platform. To this end, Kava founded a $750M initiative called Kava Rise aimed at onboarding developers to its platform.
“Kava’s cross-chain infrastructure speaks to a major part of the BTCS mission because it runs on two different Proof-of-Stake blockchain networks already supported by our infrastructure operations – Cosmos and Ethereum,” Michael Prevoznik, Chief Financial Officer of BTCS, said.
In addition to holding 250,543 Kava with a fair market value of approximately $1.3M, the Company secures Ethereum’s consensus layer by running 240 Ethereum validator nodes, which is similar to Bitcoin mining, and has staked 8,213 ETH. Further, the Company has staked 83,716 ATOM, the native token of Cosmos.
BTCS Kava Validator Node Generating Revenue
In addition to generating revenue by running a Kava validator node, BTCS has completed the technical work to integrate Kava into its planned staking-as-a-service platform once launched. The process of blockchain validation includes special intellectual property (IP), technical know-how, and regular maintenance to ensure efficiency. Staking allows users to generate an annual percentage yield (“APY”) on their staked assets whereas validator node operators charge a fee on users’ staked asset rewards in addition to earning an APY on staked crypto. The highly scalable nature of both staking Kava as well as allowing users to stake Kava to earn token rewards is the premise behind BTCS’ Staking-as-a-Service platform that is currently being developed.
BTCS is an early mover in the blockchain and digital asset ecosystem, and the first “Pure Play” U.S. publicly traded company focused on blockchain infrastructure and technology. Through its blockchain infrastructure operations, the Company secures Proof-of-Stake blockchains by actively validating blockchain transactions and is rewarded with native digital tokens. The Company is developing a proprietary Staking-as-a-Service platform to allow users to stake and delegate supported cryptocurrencies through a non-custodial platform, which it plans to integrate with its Digital Asset Dashboard, now in beta release. BTCS’ proprietary Digital Asset Platform currently supports six exchanges and over 800 digital assets, and the Company plans to further broaden its suite of performance-tracking tools, add additional centralized and decentralized exchanges, as well as wallets, and stake pool monitoring. For more information visit: www.btcs.com.
Cautionary Note Regarding Forward-Looking Statements.
Certain statements in this press release, constitute “forward-looking statements” within the meaning of the federal securities laws including statements including its plans for its staking as a service platform and its non-custodial platform. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation the rewards and costs associated with staking or validating transactions on blockchains, continued drop in crypto prices, significant decrease in value of our digital assets and rewards while locked up, loss or theft of the private withdrawal keys resulting in the complete loss of digital assets and reward, unanticipated issues which delay the development of our platforms, and regulatory issues as it relates to our planned platform and activities as well as risks set forth in the Company’s filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2021. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
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