In the much anticipated hearing yesterday between Binance and the SEC, a US judge refused to grant either side their petitions. Instead, the judge urged both sides to manage discovery requests together rather than coercing the other side to produce documents. The judge asked the SEC to reduce its broad demands for information but granted permission to question certain shareholders. On the other side of the fence, Binance was asked to share further information about its relationship with its service provider, Ceffu.
Blockchain Capital has announced two new funds amounting to $580m. The majority of these funds will go towards an early-stage fund, with the remainder set aside for their first-ever "opportunity fund". The targets for investments out of these funds are DeFi, CeFi, centralized infrastructure, decentralized infrastructure, gaming, and consumer or social sectors. The firm plans to deploy this capital over three years but could move as quickly as two years and as slowly as five years.
Citigroup has launched a new product called Citi Token Services, which will tokenize customer deposits with the aim of enabling 24/7 transfers. Currently housed under the company's treasury and trade solutions division, the new service employs a private blockchain and eliminates the need for clients to create their own personal digital wallets. It is integrated directly into the bank’s existing infrastructure. The initiative is expected to streamline cross-border payments and settlements, advancing transactions within trade finance.
Blockchain startup Bastion has raised $25 million in a funding round led by a16z crypto, an impressive raise in the midst of a brutal bear market and lackluster funding environment. The startup, co-founded by former executives from a16z crypto, is looking to solve problems with wallet custody and compliance in crypto.
The increasing utilization of blockspace across different chains has sparked the search for dynamic pricing models. Strategies for efficient use and more accurate pricing of resources, such as storage and bandwidth, can prevent mispricing and wastage. The paper "Dynamic Pricing for Non-Fungible Resources" explores the use of multidimensional blockchain fee markets, optimization of fees for system-wide benefits, and appropriate resource pricing to prevent transaction spam attacks. By factoring in the marginal cost of each resource used, the proposed pricing model could herald a new standard in blockchain transaction efficiency.
Over 730,000 smart accounts have been deployed on Ethereum and Eth L2s, with 53% of those being created in the last month, driven by greater adoption of the ERC-4337 standard. Usage of this new standard has topped 1.6 million transactions, driven by heavy utilization by social network CyberConnect and NFT project ZTX. In addition to simplifying user experiences, dApps using ERC-4337 have also sponsored $430,000 worth of gas fees for users.
Canto is transitioning to an Eth L2 network, using zero-knowledge proofs for enhanced privacy. The move will rely on Polygon's Chain Development Kit. Canto, which primarily focuses on real-world assets, initially launched as an L1 blockchain with an EVM-compatible execution layer. This transition follows similar moves by other L1 blockchains, focusing increasingly on Ethereum.
Japan is set to revise its legislation to give startups, particularly those operating in the crypto space, the green light to raise funds through digital assets, such as cryptocurrency, from venture capital firms. The amendment, expected to be presented to parliament in 2024, will diversify the asset range accessible to limited partnerships and boost investment into a relatively underexplored sector in the country. Japan is also considering crypto and token tax exemptions to further encourage investment.
Nine US Senators are backing Senator Warren's Digital Asset Anti-Money Laundering Act, a bill targeting crypto's illicit use, with the stated aim of enhancing regulatory tools.
This thread discusses the challenge of bots on social platforms that distort value, especially for real users. Solutions to this problem include tools like Worldcoin and zkCaptcha.
Gemini has expressed opposition to Genesis' bankruptcy recovery plan, calling it misleading. Genesis, along with parent company DCG, proposed the remuneration deal, but Gemini is arguing that creditors, including Gemini Earn users, will be wildly under-compensated under DCG and Genesis’ jointly proposed plan. DCG reportedly owes over $1.65 billion to Genesis, which in turn owes about $1.2 billion to Gemini.
Crypto exchange JPEX is in a liquidity crisis, with operations frozen and withdrawal fees marked up. The company is blaming third-party market makers for maliciously freezing its funds. Amidst all of these issues, Hong Kong's regulators have warned JPEX about misleading statements concerning claims about its licenses and partnerships, as well as unusually high returns for interest-bearing products.
Crypto company Layer N has obtained $5 million in seed funding from prominent investors. Layer N, an L2 built on top of Ethereum, aims to boost transaction capacity and speed to create experiences more similar to traditional financial markets. The founders intend to attract crypto traders and decentralized exchanges. Layer N also has ambitions to enable centralized exchanges to create decentralized offerings. One of the most interesting aspects of this raise is that Peter Thiel’s Founders Fund was in on the round.
BNB Chain’s L2, built on the OP stack, has gone live on mainnet, giving the BNB ecosystem an EVM-compatible L2. This move allows for substantial gas fee reductions, supporting broad accessibility to the BNB ecosystem. The network will offer monetary and non-monetary aid to developers, alongside extensive learning resources and technical support, aiming to nurture and engage the developer community.
This blog post compares building smart contracts to building aircraft - asserting that both should be built with the assumption of failure and have safety nets in place. The post suggests analyzing potential faults in the design phase and implementing precautions. Additionally, it underscores the importance of utilizing existing technologies instead of creating new ones and promoting iterative testing methods for different components of a project.
This is a comprehensive security guide providing several strategies for storing private keys securely. The guide emphasizes the use of different types of wallets such as cold hardware wallets, operational wallets, and even brain wallets. It also highlights the necessity for reliable VPNs and notes specific steps for EVM-based blockchains. The author cautions against using online key generation services and proposes yearly audits of keys, among other measures. They conclude by emphasizing the importance of a solid understanding of threat models and adversaries in maintaining good operational security.
NounsDAO has successfully executed its first-ever fork. Unlike previous well-known forks, NounsDAO holders had to choose which fork their tokens would be in, instead of maintaining a balance in both. Both forks retain equal public domain rights to the project's artwork. The new governance system underscores the broader potential of DAOs and how forks can encourage faster innovation.
This article explores the concept of blockspace as a digital commodity. It analyzes the properties of blockspace, including security and decentralization. The article notes differences among varying types of blockspace and the importance of their availability and flexibility. It delves into the roles of producers and consumers, market valuation, and trading opportunities related to blockspace.
SBF's leaked writings reveal his perspectives following his crypto empire's collapse. In these writings, he continues to deny responsibility for the $8 billion loss, blaming others, including his ex-girlfriend, while seemingly regretting only his tarnished public image.
In 104 days, Lazarus Group has stolen nearly $240 million across multiple platforms, shifting its focus back to centralized services due to increased security in decentralized systems.
Experts are warning against CBDCs, citing potential government control and limited economic benefits. These experts suggest alternatives and public-private partnerships with constitutional protections.
Genesis, a crypto firm and subsidiary of DCG, is discontinuing its spot and derivatives trading operations. The change will take effect immediately, with existing open derivatives positions being honored until expiry. A spokesperson confirmed that the company no longer offers trading services through any of its business entities. This decision follows a similar move last week, when Genesis Global Trading ended its crypto spot trading operations, citing strategic reasons.
Deutsche Bank has partnered with Swiss crypto company Taurus to offer cryptocurrency and tokenized asset custody services for its institutional clients. Even though the firm hasn’t publicly announced any immediate plans to roll out crypto trading, the move marks Deutsche Bank's entry into crypto custody. The initiative comes with careful considerations around regulation and risk management, ensuring it does not impact the bank's other activities.
Sui has streamlined web3 onboarding by introducing a feature that enables users to log into decentralized applications using their Google, Facebook, or Twitch credentials, eliminating the need for an external crypto wallet or seed phrase. This development aims to overcome the common difficulties users encounter when signing up for blockchain services, such as confusing transaction signatures and maintaining seed phrases, ultimately making using crypto more accessible to mainstream users.
Circle announced that it had teamed up with Grab to trial new web3 services to consumers through the “Grab web3 Wallet.” The wallet enables users to create a blockchain-based wallet, accumulate rewards, and use NFT vouchers. This partnership presents a practical application of the Monetary Authority of Singapore's Project Orchid initiative, allowing the use of the SG Pitstop Pack NFT vouchers at select places during the upcoming F1 Singapore Grand Prix.
Friend.tech has been gaining steam over the past couple of weeks after a couple of weeks of cooling off. This report breaks down how the decentralized platform permits users to monetize its social media presence and is currently generating more revenue than established protocols like Lido and Aave. The app is built on Base, an Ethereum L2, and recently announced a funding round led by Paradigm. While the initial traction has been impressive, this report suggests that Friend.tech needs to lessen its dependency on speculation and token incentives to have staying power.
This report covers the concept of two-tiered staking for Ethereum. The mechanism separates staked Ethereum into two groups, slashable node operator bonds and non-slashable delegated stake, each earning different rates. The two-tiered system allows for more capital efficiency and removes slashing risk for delegated stakeholders. However, it raises questions about interest rate sensitivity, further centralization, implications of having all Ethereum staked, and possible dynamic setting for interest rates.
Sam Bankman-Fried's parents, Barbara Fried and Joseph Bankman, have had long, distinguished careers in law. Their reputations and connections were considered instrumental to the company's success, raising questions about their roles and involvement in the scheme. Despite charges against their son, including fraud, money laundering, and bribery, prosecutors have not accused Fried or Bankman of wrongdoing.
Ethereum co-founder, Vitalik Buterin, has warned crypto projects looking to set up in Hong Kong to first consider the stability of the city's crypto-friendly attitude. Speaking at a summit in Singapore, he highlighted that future regulatory, political, and other uncertainties may change the landscape. Buterin also expressed his admiration for the level of engagement in Asia’s developer communities.
The SEC’s lawsuit against the celebrity-backed Stoner Cats NFT collection raises plenty of questions about how these types of cases should be resolved.
Singapore's central bank has banned Su Zhu and Kyle Davies for nine years due to their failures at their crypto hedge fund Three Arrows Capital, which collapsed in 2022.
Joseph Lubin, Ethereum co-founder and ConsenSys CEO, believes US regulators will eventually see blockchain and cryptocurrency as aligned with US philosophies, despite current legal disputes regarding crypto securities.
The SEC charged crypto-project Stoner Cats for conducting an unregistered NFT offering that raised $8 million. One of the arguments the SEC used was that the entity promoted the potential for its NFTs' prices to increase in the secondary market. Stoner Cats agreed to pay a $1 million penalty and to destroy all NFTs in its possession but did not have to admit that it was guilty of the charges.
Yesterday, FTX received approval from a US bankruptcy court to sell and hedge its crypto holdings, valued at over $3.4 billion - $1.16 billion worth of solana and $560 million in bitcoin, and the rest in other tokens. The court ruling permits FTX to use the funds raised in this liquidation to repay its creditors. FTX claims that hedging its assets will limit downside risk, while staking certain digital assets will generate low-risk returns for creditors. FTX also requested to hire Mike Novogratz from Galaxy Digital as an adviser in this process.
Telegram, in conjunction with the TON Foundation, announced the introduction of a self-custodial crypto wallet named TON Space at Singapore’s Token2049 crypto conference. The wallet, linked with the Telegram Open Network blockchain, was developed by the Open Platform, a company aligned with the TON ecosystem. The wallet offering follows Telegram's three million-user-strong custodial wallet version. Launching in November, TON Space expands Telegram's functionality and freedom while excluding certain jurisdictions like the US.
Coinbase CEO Brian Armstrong announced that the crypto exchange will integrate the Bitcoin Lightning Network, enabling faster, cheaper transactions. This signifies a shift for Armstrong, who was previously opposed to this solution. Armstrong also acknowledged Bitcoin as the "most important" digital asset, backing its position in the industry. While the timeline for the integration is not yet clear, the decision underscores Coinbase's focus on enhancing the Bitcoin experience for users.
In this article, Ethereum infrastructure company Astria emphasizes the need for decentralized sequencers in rollup protocols over the centralized ones used currently. Although centralized sequencers offer faster transaction validations, they pose risks such as potential invalid commitments and manipulation for the operators' own benefit. To counter this, Astria suggests either a simple leader rotation mechanism or a Byzantine Fault Tolerant consensus algorithm for rollup decentralization, bringing more security and redundancy while avoiding single-party dependency.
The fourth annual Chainalysis Global Crypto Adoption Index has been released. The index measures grassroots crypto adoption in various countries. It considers factors such as on-chain data and real-world data to identify countries where average people are embracing cryptocurrencies the most. The index evaluates each country's cryptocurrency usage through centralized exchanges, retail transactions, peer-to-peer exchanges, and DeFi protocols.
This article analyzes the potential scenario of the Federal Reserve continuing to raise rates instead of cutting them. It questions what would happen if there was no recession, inflation didn't fall, and there were no financial system breakdowns. The article also discusses the concept of real yields and argues that they should match nominal GDP growth. It examines the current state of real yields in the US and discusses the implications for future growth. Despite uncertainties, the current environment is bullish for cryptocurrencies like Bitcoin.
This statement from SEC commissioners presents dissenting views on a recent NFT settlement against Sonter Cats spearheaded by Chair Gensler. The application of securities laws to NFTs is criticized for lacking clear guidelines and potentially stifling artistic creativity. The release compares NFTs to physical collectibles and highlights the importance of providing artists with clear guidance on how securities laws apply to their work. The dissenting views argue that the enforcement action against Stoner Cats inhibits artists from utilizing NFTs to monetize their talents and engage their fan bases.
Rep. Tom Emmer sponsored an amendment restricting the SEC's digital asset enforcement funding, criticizing Chair Gary Gensler's overreach. Emmer emphasizes the need for regulatory clarity and supports other crypto-related legislation.
Binance.US CEO Brian Shroder resigned three months after SEC charges were levied against the firm. The firm announced a second round of layoffs, totaling over 100 staff members.
Ohio Senator Sherrod Brown criticized the crypto industry for fraud and abuse in yesterday’s SEC senate hearing, arguing for stricter oversight and regulation. SEC chair Gary Gensler continued to voice his skepticism about the sector in the hearing. Brown's stance matters because his approval is critical in passing crypto legislation, potentially shaping the industry's regulatory landscape. Any bills regarding stablecoin or crypto market oversight are unlikely to make it without his support.
Franklin Templeton, a leading asset manager, has entered the race for a Bitcoin spot ETF with the "Franklin Bitcoin ETF". The aim of many of these leading institutions applying for ETFs is to attract large institutional investors, which could potentially bring trillions of dollars into the crypto industry. Franklin Templeton's ETF will be based on a mix of cryptocurrency exchange Bitcoin prices to deter price manipulation.
Coinbase Prime has announced the launch of its web3 Wallet, allowing institutional and enterprise clients a secure way to transact on-chain. This new offering provides access to crypto, NFTs, dApps, and DeFi - all through an interface integrated into Coinbase Prime. The web3 Wallet provides customers with an easy way to follow web3 activity.