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September 16,2024

Worldcoin Being Investigated By Singaporean Authorities For Potentially Violating Regulations

Singaporean authorities are reportedly investigating unauthorized sales of Worldcoin accounts, raising concerns about potential misuse for money laundering or terrorism financing. The development comes during a time when Singapore is looking to become a global hub for digital assets and innovation, which also means local regulations are becoming increasingly tightened.

Previously, Paxos secured a preliminary license in Singapore by local authorities, paving the way for Paxos Digital Singapore Pte. Ltd. to initiate digital payment token services under the Payments Services Act.

 

Operating Without A License

In Singapore, an inquiry targets seven individuals allegedly involved in illegal transactions of Worldcoin accounts and tokens. Deputy Prime Minister Gan Kim Yong, who also heads the Monetary Authority of Singapore (MAS), revealed this investigation during a parliamentary session on September 9th. The individuals are under scrutiny for operating payment services without the required licenses, which may breach the Payment Services Act (PS Act) of 2019.

The Singapore Police issued a public advisory against Worldcoin account transfers on August 7th, warning that such accounts might be used for illicit activities. Gan advised caution against offers to transfer control of digital payment wallets or World IDs, highlighting the risk of exploitation by third parties.

 

Data Privacy Concerns

The Personal Data Protection Act (PDPA) in Singapore regulates personal and biometric data. Yong emphasized the need for stringent security measures for organizations handling such data. Worldcoin, which uses biometric verification like iris scans, has repeatedly faced global regulatory scrutiny.

As a matter of fact, several countries, including India, China, Germany, Brazil, and Kenya, have investigated the company, with European authorities in Spain even suspending its biometric data collection in March 2023 due to GDPR concerns. Despite these challenges, Worldcoin has grown rapidly, reaching over 10 million users globally as of April 2023.

 

September 16,2024

Flappy Bird May Be Revived In Web3 Format Despite Original Creator Not Being Involved

The creator of the short-lived mobile game Flappy Bird is reportedly not involved with a group claiming to revive the game after a decade. Dong Nguyen took to X on September 15th, rejecting any association with the planned re-release and expressing his disapproval of cryptocurrency.

 

An Arduous Process

The Flappy Bird Foundation, which acquired the trademark via Gametech Holdings LLC, announced its return on September 13th. They claimed that re-releasing the game involved acquiring legal rights and working with the corresponding predecessor. Nguyen responded firmly that he did not sell anything and emphasized he does not support crypto.

Launched in May 2013, Flappy Bird was a viral hit, topping the App Store and earning $50,000 a day before Nguyen pulled it down in 2014, citing its addictive nature. It got to the point where people were going out of their way to purchase smartphones at ludicrous prices just to play the game.

 

Involving Crypto

Hints suggest the new version might involve cryptocurrency. Hidden pages on the official website hinted at a token and a Web3 model, with references to Solana (SOL) and Play-to-Earn (P2E) mechanics. A prototype also mentioned a $FLAP token and rewards linked to the Telegram-based TON blockchain.

Michael Roberts of 1208 Production, leading the project, has yet to comment. Researcher Varun Biniwale speculates the revival could be more about cashing in on nostalgia and crypto than simply relaunching the beloved game.

 

September 16,2024

Web3 Fundraising Deals - 10th To 16th September, 2024

Universal Health Token (UHT) secured $1.20M in Pre-Seed funding with help by Animoca Brands. Universal Health Token is a gamified healthcare platform that incentivizes preventive healthcare using blockchain technology.

 

 

INFINIT obtained $6M in Undisclosed funding with assistance by Hashed Fund. INFINIT is a DeFi Abstraction Layer that simplifies the process of launching and scaling DeFi ecosystems across various blockchains, including Layer 1s, Layer 2s, and modular chains.

 

 

Titan Network acquired an undisclosed amount in Seed funding with support by Arrington XRP Capital. Titan Network is a digital resource platform that connects idle community resources with global demand, enabling users to engage in DePIN (Decentralized Physical Infrastructure Network) services.

 

 

OpenEden secured an undisclosed amount with help by Binance Labs. OpenEden offers a smart contract vault managed by a regulated entity, providing 24/7 access to U.S. Treasury Bills (T-Bills) through the OpenEden TBILL Vault.

 

 

GasHawk obtained $1.60M in Pre-Seed funding with assistance by Alchemy. GasHawk is a free tool designed to help users save on Ethereum gas fees by submitting transactions when fees are lower.

 

 

Wingbits acquired $3.50M in Seed funding with help by Tribe Capital. Wingbits is focused on improving aviation safety and efficiency using advanced flight tracking technology. It incentivizes users to set up hardware to capture Automatic Surveillance-Broadcast (ADS-B) transmissions through commercial aircraft. 

 

 

Castile raised $8M in Undisclosed funding with support by SevenX Ventures. Castile is an AAA-quality rogue-like idle card RPG developed by Nytro Lab. It showcases the Play and Trade model, where players can enjoy a high-quality gaming experience while trading in and out of the game.

 

 

Blum secured an undisclosed amount with help by Binance Labs. Blum is a hybrid exchange that facilitates trading across multiple chains without the need to switch chains or pay native token gas fees.

 

 

 

Huma Finance obtained $38M in Series A funding with assistance by HashKey Capital. Huma is an income-backed lending protocol that allows businesses and individuals to borrow against future income by connecting with global investors on-chain.

 

 

BTA Protocol secured an undisclosed amount in Extended Series A funding with help by Crypto Labs. BTA Protocol is a decentralized ecosystem that offers various features, including Staking, Liquidity Provision, a Reward Sharing Program (RSP), Launchpool, and Lending protocols, providing users with multiple ways to engage and earn within the ecosystem.

 

September 15,2024

BTC Finally Starts To Recover As Total Crypto Market Cap Up By $70 Billion

Bitcoin (BTC) saw its price surge over the past 24 hours, breaking through $60,000 and hitting a multi-week high just above $60,500. Numerous altcoins are also on the rise, pushing the total cryptocurrency market cap up by over $70 billion since yesterday.

 

BTC Hits $60,500

After a dip to $52,500 last Friday, BTC made a strong recovery over the weekend. On Monday, it jumped $4,000 in just 24 hours, briefly topping $58,000. Despite mid-week volatility following the US CPI data, the bullish trend resumed. By Friday, it approached $60,000 and this morning, it surged past that mark, reaching a 16-day peak of just over $60,500.

This rally follows a significant shift in US spot Bitcoin ETFs, which saw over $400 million in net outflows last week. Additionally, the announcement by MicroStrategy pertaining to a $1.1 billion BTC purchase further fueled the surge. BTC remains up 4% today, with its market cap rising to $1.185 trillion and its dominance over altcoins exceeding 54% on CoinGecko.

Meanwhile, ETH and BNB are up about 2%, trading above $2,400 and $550, respectively. Other significant altcoin gains include DOGE (4%), TON (4%), AVAX (3%), LINK (5%), PEPE (6%), TAO (10%), and IMX (5%). TRX is among the few with minor losses in the past day.

 

Other Markets

The $1.7 trillion private credit boom is increasingly benefiting a select group of credit managers. On Wall Street, traders are placing bold bets on Federal Reserve rate decisions, with futures markets recently speculating about a significant rate cut after initially dismissing it. As global markets experience a turbulent 36-hour period of rate fluctuations, anticipation for Federal Reserve easing grows.

Elsewhere, smaller markets are gaining attention as the global equities rally broadens, while Australian retirees are facing a savings shortfall with less than half the amount needed for a comfortable retirement. In Mexico, the second phase of the El Insurgente commuter train has launched, and the country is shifting focus to sustainable bonds internationally. Petroperu is offering December fuel oil via the Talara Refinery, and Peru will take on all remaining debt payments on behalf of Petroperu for this year.

Axel Springer SE and KKR are close to a &euro13.5 billion deal, indicating a major change for the media group. Nigeria is preparing for the opening of the $21 billion Dangote mega oil refinery, following an agreement on gasoline distribution. Finally, a regulatory clash is set to shape the future of annuities and pensions, with private equity and insurance competing for a $15 trillion retirement market.

 

September 14,2024

Coinbase Wrapped BTC Reaches Impressive Milestone In Just 24 Hours

Coinbase recently launched cbBTC, a tokenized version of Bitcoin on Ethereum and its Layer-2 network Base. This new token quickly reached a market capitalization exceeding $100 million shortly after its debut.

Data provided by Dune Analytics, initially highlighted by Crypto Briefing, shows that the market cap of cbBTC has officially surpassed $100 million just a day post-launch, with over 1,700 tokens in circulation, predominantly on Ethereum.

The news comes after Coinbase previously introduced Shiba Inu (SHIB) futures contracts on July 15th, expanding its cryptocurrency derivatives lineup. These contracts, denominated in SHIB tokens priced at $0.00001 each, were cash-settled and margined. Each contract also represented 10 million SHIB and traded under the code SHB.

 

Multiple Possibilities

Coinbase Wrapped BTC (cbBTC) is an ERC-20 token fully backed by Bitcoin held by Coinbase. Wrapped tokens enable users to utilize their Bitcoin holdings in various decentralized finance (DeFi) applications.

With cbBTC, users can contribute Bitcoin as liquidity to DeFi protocols, use it as collateral for borrowing other cryptocurrencies, and engage in a wider array of on-chain activities. The token is already integrated with major DeFi platforms, such as Aerodrome, Curve, Sky Protocol, Compound, Maple, and Aave.

 

A MIxed Bag

Day one for cbBTC was impressive, achieving a market cap of over $100 million. Most activity is currently directed towards Univ3 pools ETH/cbBTC, wBTC/cbBTC, and USDC/cbBTC. While some industry experts have praised the token for its redeemability on Coinbase, which avoids reliance on low-liquidity trading pools for exchanging tokenized Bitcoin, others have voiced concerns.

Luke Youngblood, a contributor to Moonwell DeFi, noted that the launch could enable over $20 billion in retail and $200 billion in institutional Bitcoin to be utilized on Base. Conversely, critics argue that Coinbase has the ability to freeze and blacklist addresses involved with cbBTC transactions through its smart contract, unlike BitGo, the firm behind Wrapped Bitcoin (wBTC), which cannot impose such restrictions.

 

September 13,2024

United States SEC Admits Several Cryptocurrencies Are Not Securities

In the ongoing legal battle between the U.S. SEC and Binance, the SEC has filed a motion to revise its original complaint. This follows a recent district court decision that rejected an attempt by Kraken to dismiss similar charges.

However, many crypto businesses are hoping that a new US Supreme Court doctrine will set a legal precedent that could theoretically force the SEC to step aside, however federal regulators remain skeptical. In any case, most are hopeful that Donald Trump will win the upcoming U.S. Presidential Election, as he has promised to fire SEC Chair Gary Gensler if he does.

 

SEC Acknowledges Critical Error

The new request by the SEC to amend its complaint against Binance, Binance.US, and co-founder Changpeng Zhao reveals a significant shift in its position. The updated filing acknowledges that some tokens, such as Solana (SOL), Cardano (ADA), and Polygon (MATIC), should not be classified as securities on their own.

This change comes after a court decision in the Kraken case challenged the broad definitions of what constitutes a security which was previously provided by the regulatory agency. The amended complaint aims to correct earlier misconceptions and align with the findings. The revised documents also  include a redlined version showing the specific changes and additionally feature the court order relating to the Kraken case to provide context for the updated stance.

 

Experts Respond

Paul Grewal, Chief Legal Officer at Coinbase, quickly responded to the new filing on X, pointing out a key detail, which is that the SEC has acknowledged potential confusion in labeling certain tokens as securities.

Ripple Chief Legal Officer, Stuart Alderoty, also commented on the change, noting that while Ethereum (ETH) seems to have avoided scrutiny by the SEC, numerous other tokens still face regulatory challenges. Despite this, the SEC continues to argue that these assets are sold as investment contracts and plans to pursue regulatory action against them.

As for Binance, the exchange is expected to respond to the request by October 11th, 2024. The updated complaint and the evolving position of the SEC highlight ongoing efforts by the regulator to assert control over the crypto industry.

 

September 13,2024

OpenAI Releases New AI Model Series To Support Smart Contract And Blockchain Capabilities

OpenAI has released a new series of AI models known as OpenAI o1, designed to improve reasoning capabilities for solving complex problems. According to OpenAI, these models enhance their cognitive processes through training, which allows them to experiment with various approaches and identify errors.

In various evaluations, the upcoming model update matched the performance of PhD students on tough benchmark tasks in physics, chemistry, and biology. This new reasoning model notably surpassed earlier versions, solving 83% of problems on a qualifying exam for the International Mathematics Olympiad, compared to 13% for GPT-4.

 

Crucial Improvements

For developers, the o1 series boasts improved coding skills, achieving the 89th percentile in Codeforces competitions. The OpenAI o1-mini, a smaller and more affordable version, is 80% less expensive than o1-preview and excels in generating and debugging intricate code.

These improvements could impact the crypto sector, where advanced coding and mathematical reasoning are essential. The enhanced reasoning and coding capabilities of the o1 models might support smart contract development, blockchain protocol analysis, and security auditing.

OpenAI has also introduced a new safety training method for these models, enhancing their adherence to safety and alignment guidelines by reasoning through policies in a step-by-step manner. In challenging jailbreaking tests, the o1-preview model showed a significant improvement in maintaining safety compliance compared to GPT-4.

 

New Opportunities

OpenAI President Greg Brockman, notes that o1 technology offers new opportunities for safety and has demonstrated enhancements in reliability, reduced hallucinations, and increased resilience to adversarial attacks. He emphasizes that the models have a step-by-step reasoning capability which helps facilitate System II thinking, allowing them to tackle more complex tasks.

Currently, the o1 models are accessible to ChatGPT Plus and Team users, with Enterprise and Edu users expected to gain access soon. Developers with eligible API usage levels can begin prototyping with both models, although some features like function calling and streaming are not yet available.

 

September 12,2024

Inaugural Congressional Hearing About DeFi Takes Place

U.S. House lawmakers recently held the first-ever Congressional hearing on decentralized finance (DeFi). The House Financial Services Committee met with industry experts to discuss the future of digital assets and blockchain technology.

Crypto has also become a key point of discussion for the upcoming United States Presidential Elections, where both Donald Trump and Kamala Harris have expressed their views on the subject. While Harris remains skeptical about Bitcoin (BTC), Trump aims to fully embrace the digital asset, with his son recently announcing his very own cryptocurrency project.

 

Mixed Opinions

The House Subcommittee on Digital Assets, Financial Technology, and Inclusion organized a session titled Decoding DeFi: Breaking Down the Future of Decentralized Finance. Chair French Hill, R-Ark., stated that the hearing aimed to explore emerging financial topics like tokenization and blockchains.

Not all lawmakers shared the same enthusiasm as Hill however. Some Democrats, including Rep. Brad Sherman, D-Cali., questioned what utility DeFi could possibly have, suggesting it might primarily facilitate tax evasion for the wealthy.

 

Regulatory Concerns

What Sherman had to say did not sit well with everyone, as his remarks led to a rebuttal by Peter Van Valkenburgh, director of research at Coin Center, who attributed non-compliance in the crypto sector to unclear regulations. Van Valkenburgh emphasized that clearer guidelines could help users better meet tax obligations.

The hearing also highlighted various DeFi risks, such as fraud. Rep. Maxine Waters, D-Cali., noted a recent scam involving the World Liberty Financial project, where fraudsters used hacked social media accounts to promote a fake token, leading to losses of $1.8 million by about 2,000 people.

The hearing, featuring five industry experts, lasted about 90 minutes. Lawmakers will remain in session until September 27th before breaking for the election recess. With the September 30th funding bill deadline approaching, discussions on DeFi and blockchain regulation are expected to continue.

 

September 12,2024

Cardano Hits New Network Milestones As Hoskinson Debunks Faulty Staking Claims

Cardano founder Charles Hoskinson has rejected the falsehoods and misinformation about the network and its staking procedures. In a post on X dated September 11th, 2024, Hoskinson voiced his frustration over the spread of false claims concerning ADA, clarifying that the network does not lock its staked tokens.

He commented that this kind of misinformation about Cardano has reached unprecedented levels. The founder would go on to say that staking on Cardano does not involve locking, yet for some reason the lies persist.

 

Community Reaction

The aforementioned remarks followed allegations suggesting that the substantial market capitalization of Cardano was due to investors being unable to sell their ADA holdings, as their assets were purportedly locked. These claims were made during a recent podcast featuring several crypto experts, including InvestAnswers, CTO Larsson, MartyParty, and Mando.

During the podcast, MartyParty argued that the large market cap did not accurately reflect its value. Instead, he contended that it stemmed via investors being unable to liquidate their ADA holdings, having been deceived into locking their assets in the staking pool.

Besides Hoskinson, several Cardano holders swiftly countered these claims, denouncing the false accusations. PRIDE, a prominent stake pool operator in the network, highlighted that Cardano stands out among the top 20 crypto projects by offering native liquid staking, meaning ADA tokens are never locked.

 

Staking Rewards And Overall Development

Various reports indicate that over 22 billion ADA tokens have been staked to enhance network security and facilitate block validation. The annual reward rate for staking ADA currently stands at 2.82%. The debate over ADA staking comes as Cardano has recently achieved notable milestones in its network development.

On September 1st, 2024, Cardano finally completed the initial phase of its eagerly awaited Chang Hard Fork, which introduced decentralized governance to the network. Leading up to the upgrade, the Cardano Foundation reported an increase in key metrics in August, with the number of smart contracts, transactions, and wallet interactions rising by approximately 1% each. A recent meme coin launchpad also helped the company reach record transaction volume.

 

September 11,2024

Nucoin Will Be Discontinued As Holders Given Option To Convert To BTC Or USDC

Brazilian digital bank Nubank has declared an immediate halt to trading of its native cryptocurrency, Nucoin, effectively ending its operations. The token, which launched in March 2023, will no longer be available for purchase or sale within the next 15 days due to concerns over potential market volatility.

Recently, the Brazilian Securities and Exchange Commission granted the green light for the first spot Solana ETF, a milestone managed by QR and Vortx, with a launch anticipated within the next 90 days. QR, a firm experienced in managing Bitcoin and Ethereum ETFs, will play a key role in overseeing the ETF and all corresponding operations, in partnership with Vortx. The collaboration is crucial as it will enable both parties to mutually benefit while simultaneously ensuring that the ETF functions smoothly.

 

Exchanging For Other Crypto

Nubank has provided a conversion option for those holding at least 100 Brazilian reais in Nucoins. These customers can choose to exchange their holdings for either BTC or USDC, with the conversion period open until December 9th.

In an email to its customers, Nubank explained that the immediate suspension aims to safeguard users and all participants in terms of potential market fluctuations triggered by this update. For those who do not convert their tokens, Nucoins will be repurposed for the updated rewards program being provided by the bank.

 

A Difficult Decision

Despite the Nucoin blockchain explorer reaching half a billion transactions, Nubank has decided to discontinue its crypto trading activities. Moving forward, Nucoins will solely be used for redeeming benefits within the Nubank ecosystem, such as discounts on its shopping platform and exclusive brand experiences.

To ease the transition, Nubank is launching a prize campaign for its 16 million Nucoin holders. This includes 30 monthly prizes of 1,000 Brazilian reais, a monthly prize of 100,000 reais, and a grand prize of 1 million reais at the end of the campaign.

Nubank, a major digital banking platform supported by investors like Berkshire Hathaway, previously collaborated with Polygon in 2022 for the launch of Nucoin and its associated loyalty program. At that time, the general manager of Nucoin highlighted their commitment to blockchain technology.

 

September 11,2024

PayPal And Venmo Will Integrate Ethereum Name Service For Crypto Transfers

Venmo and PayPal users will now have the ability to transfer cryptocurrency using Ethereum Name Service (ENS) names. On September 10th, ENS Labs revealed this integration, which is projected to reach over 270 million users across the United States.

An ENS name serves as a user-friendly alias for a blockchain address. Rather than sending tokens to a lengthy, complex address composed of letters and numbers, users can register a simple name like yourname.eth for cryptocurrency transfers.

 

The PayPal Effect

ENS Labs stated that this new integration makes it easier to transfer between wallet addresses, minimizing errors and the risk of losing funds. Khori Whittaker, the executive director of ENS Labs, mentioned that this integration will extend ENS naming features to millions of users via Venmo, PayPal Mobile, and PayPal Web.

PayPal is actively involved in the blockchain space. As reported by CoinMarketCap, PayPal USD (PYUSD) recently surpassed a total market capitalization of $1 billion. In May, PayPal launched PYUSD on the Solana network, collaborating with Crypto.com, Phantom, and Paxos to onboard users.

Marta Cura, the director of business development at ENS Labs, explained that partnering with PayPal and Venmo helps reach newcomers to the space and those who favor the familiarity of Web2 payment systems.

 

Focusing On Expansion

ENS is a blockchain-based, open-source protocol designed to replace intricate addresses on the Ethereum network. Its developer, ENS Labs, has been focused on expanding the protocol. In May, the company announced its transition to a layer-2 network to reduce gas fees and improve transaction speeds.

The company is also involved in a patent dispute. In May 2024, ENS Labs challenged the validity of a patent granted to Unstoppable Domains by the US Patent and Trademark Office. ENS argues that the patent lacks originality and infringes on the open-source technology developed by ENS. ENS Labs stated that the challenge is intended to keep the web as a collaborative environment.

 

September 10,2024

Notorious Crypto Scammer Exploits Uniswap To Steal Funds

Crypto scams are widespread, a fact well-known to many. However, some of these scams are notably more severe than others. Certain scammers repeatedly execute the same type of rug pull, and their misdeeds sometimes extend beyond mere financial theft.

Recently, someone reached out to share their story with the public. Below is an account detailing a notorious crypto scammer along with a distressing testimony by a victim of his schemes.

 

Alleged Crypto Scammer Jeremy Cahen, Aka Pauly0x

The online pseudonym Pauly0x belongs to an individual with a troubling history of alleged crypto fraud. Hackernoon reveals that Jeremy Cahen, among others, faced a lawsuit by Yuga Labs in June 2022. The lawsuit accused Cahen, along with the controversial artist Ryder Ripps, of selling NFTs that infringed upon trademarks belonging to Yuga Labs as well as those of the Bored Ape Yacht Club, defrauding buyers of millions.

In February 2024, Cointelegraph reported that a judge sided with Yuga Labs, mandating that the defendants pay over $9 million in damages collectively. Although the original post on Reddit about Pauly0x allegedly stealing $286k in under an hour has been deleted, users on X (formerly Twitter) have publicly denounced Pauly0x for his fraudulent activities.

 

Opinions On Pauly0x

It is pertinent to understand the thoughts of former collaborators of Pauly0x, such as OG_Kenobi_Hello, on the long-term impact of what Pauly0x has done. Kenobi believes that this is just the tip of the iceberg regarding the accusations against Pauly0x.

Jeremy Cahen, also known as Pauly0x, seems to be notorious for executing a classic pump-and-dump crypto scam repeatedly. This method is familiar to many within the crypto community and follows a predictable pattern:

  1. Launch a token.
  2. Promote the token extensively on social media.
  3. Either sell the tokens immediately after people invest or steal funds directly via a DeFi platform.

While variations exist, the core strategy remains consistent. The token may be hyped through mainstream social media like Twitter or through private channels on Discord or Telegram. Once investors purchase the tokens, their funds often become irretrievable, either through loss in value or outright theft.

A Cautionary Tale

Evidence shows that Cahen used a Solidity contract to enable users to provide millions in liquidity to Uniswap in exchange for a negligible amount of a scam token called PNDX. This token allowed others to transfer funds via wallets without the consent of the users.

Shortly after, the liquidity provided by users was siphoned off. Three hours post-launch, when the liquidity was already drained, Pauly0x finally warned against using Uniswap for PNDX purchases, but by then, the funds had already disappeared.

The ETH wallet ending in 6faf initiated the mining contract, a multi-signature wallet, and added liquidity to Uniswap just 30 minutes before Pauly0x shared the contract address. The developer exploited this contract and then sold through Uniswap. This information, publicly accessible through breadcrumbs and ETH scan, mirrors the outcome of another Pauly0x scheme, yougetnothing.eth, detailed in this Reddit thread: https://www.reddit.com/r/CryptoCurrency/comments/14f4drl/twitter_user_pauly0x_had_told_people_to_send_him/, where contributors to Pauly0x received nothing in return.