TLDR CRYPTO 2023-07-04

HONG KONG STACKS WEB3 TASK FORCE WITH TOP FINANCE REGULATORS

Hong Kong has launched a dedicated task force for web3, another step in its decision to embrace crypto companies and blockchain tech. Led by Financial Secretary Paul Chan, the 15-member team includes professionals from various sectors, such as university professors, government officials, and financial regulators. Financial Secretary Chan highlighted the potential for blockchain tech to drive innovation across multiple sectors.

NFT PRICES SLUMP AS POPULAR COLLECTION TUMBLES FOLLOWING DEBUT

The NFT market has seen a precipitous drop in the past couple weeks, with prominent collections' prices declining by over 30%. Notably, Azuki’s floor price fell by over 60%. The decrease followed the controversial launch of a new Azuki collection, Azuki Elementals, which seemed like a repeat of a previous collection. The launch caused an uproar in the Azuki community, leading to widespread selling. In addition to drastic floor price declines, the resultant fallout has also prompted a wave of defaulted loans in the NFT lending industry.

SEGA DIVING INTO WEB3

SEGA, the famed Japanese gaming company, is taking a leap into web3 gaming. It plans to roll out 12 non-mobile games this year. The company's first web3 game is a remake of the successful Web2 IP, Sangokushi Taisen. Developed by double jump Tokyo, the game, targeted for a late 2023 release, will initially be available in English and Japanese on PCs, with more languages planned for 2024. SEGA has earlier shown its interests in blockchain technology by launching its first NFTs called Virtua Fighter.

TON BLOCKCHAIN LAUNCHES ON-CHAIN ENCRYPTED MESSAGING FEATURE

The TON Foundation has unveiled an on-chain encrypted messaging feature for the TON network. Forked from Telegram's abandoned project, TON now enables private communication between users through encrypted messages, enhancing the personalization of transactions. Interestingly, the feature could also be a reliable communication method should traditional servers fail. Currently supported on several retail wallet apps, the facility is set to be included in the mobile wallet Tonkeeper in future updates.

This tool allows Uniswap users to align trading hours with the New York Stock Exchange. The v4 hook in this repo will revert trades conducted outside the standard hours of 9:30 AM to 4:00 PM ET on weekdays, excluding holidays. Special functions will return the current state of the market, identify holidays, and determine daylight savings. The platform will also celebrate the opening bell, with the initiator of the first daily swap receiving recognition. The feature is live on both Goerli and Mainnet networks, incorporating a pre-calculated NYSE holiday calendar and daylight savings timestamps up to 2123.

OPTIMISM, APTOS, AND APECOIN SET FOR LARGEST TOKEN UNLOCKS IN JULY

Optimism, Aptos, and ApeCoin are preparing for substantial token unlocks this July, releasing over $100 million worth of this crypto into circulation. ApeCoin's unlock is the largest, releasing 15.6 million APE tokens on July 17, a 4.23% increase in circulating supply. Aptos’ token release will cause a token supply increase of 2.17%, while Optimism’s token circulating supply will rise by 3.75%. This could potentially affect the prices of these tokens, so it might be helpful to keep the timing of these releases in mind.

STABLECOIN SETTLEMENTS

This article from Coinbase explains how the company is aiming to modernize the financial system by developing crypto-based alternatives to the ACH direct deposit method. Coinbase says that the current ACH system, established in the 1970s, is slow and lacks standardization, resulting in inefficiencies. By swapping ACH for blockchain-based stablecoin settlement, Coinbase asserts that transaction confirmation times could be dramatically reduced, saving costs and minimizing price volatility. It would also eliminate intermediaries, streamline transactions, and promote transparency.

SINGAPORE WANTS CRYPTO FIRMS TO KEEP CLIENT FUNDS IN A TRUST

Singapore's Monetary Authority has introduced a new mandate for crypto firms to separately store their customers' digital assets in a trust by year-end, enhancing protection against potential insolvency and misuse. Measures include daily reconciliation, maintenance of proper records, custody services operation, and clear risk disclosures to customers. Crypto platforms will additionally be restricted from facilitating lending and staking services to retail customers, save for self-staking. These developing regulations aim to protect consumers from the volatility of crypto trading while urging increased vigilance in dealing with unregulated entities. The proposed regulations are open for public response until August 3.

LENDING SERVICES

Thailand and Singapore have banned crypto exchanges from offering lending services, focusing on investor protection.

CRYPTO ATM COMPANY BITCOIN DEPOT LAUNCHES ON NASDAQ

Bitcoin Depot, a top US Bitcoin ATM operator, has gone public on the Nasdaq following a merger with GSR II Meteora. It's the first such US operator to do so.

POLY NETWORK HACKER MINTS BILLIONS OF TOKENS FROM THIN AIR

Poly Network, a cross-chain bridging protocol, has suffered another hack. The hacker created billions of tokens on various networks. Despite limited liquidity, the hacker reportedly made out with at least $10.1 million. Poly Network has suspended services and alerted authorities.

WHY

Argentine hacker Federico Jaime stole $200 million from DeFi platform Euler Finance but returned it all in a stated attempt to promote ethical hacking and negotiation with attackers. This interview is the hacker’s first public attempt to explain the motives behind his hack.