Noble has implemented CCTP, the cross-chain transfer protocol for Circle, on its mainnet. This will reportedly enable the native minting of USDC within the inter-blockchain communication protocol (IBC) of Cosmos.

CCTP employs a burn-and-mint mechanism, where USDC is taken out of circulation (burned) on the source chain and then recreated (minted) on the destination chain after being verified.

Accessibility is key

With the integration of CCTP, Circle aims to enhance the usability of USDC by facilitating seamless cross-chain transactions on Noble. This move is anticipated to positively impact the market capitalization of USDC, which has experienced a prolonged decline.

Noble, along with platforms like Arbitrum, Avalanche, Base, Ethereum, and Optimism, now supports the direct minting of USDC through CCTP, while the protocol is currently in the testing phase on Solana.

Users can therefore leverage CCTP to generate Noble USDC, which can be subsequently transferred to other Cosmos applications such as Osmosis or dYdX. The total supply of Noble USDC has also already surpassed $20 million, as reported by MintScan.

A wise approach

It is worth noting that this approach, emphasizing direct asset transfers, is different compared to token bridging, a method where assets are locked on one chain in exchange for equivalent wrapped tokens on another. The burn-and-mint method has gained preference over time, especially in light of security concerns associated with token bridging.

For users looking to withdraw USDC through Cosmos using CCTP, the process must go through Noble. Circle warns that attempting to transfer funds to a Circle account via any other IBC app may result in a loss of funds.

Lastly, as a centralized entity, Circle choosing to invest in a permissionless cross-chain protocol aligns with the broader trend of centralized crypto projects enhancing their decentralized finance (DeFi) offerings. Recent reports also suggest that Circle is contemplating an initial public offering in early 2024.

With a keen focus on crypto, a reputable Swiss bank known as Seba has recently undergone a substantial transformation and rebranded itself as Amina Bank AG. This change is driven by ambitious plans to expand upon pre-existing global trading services and is motivated by the bank needing to have a separate identity to the similarly named SEB Bank in Sweden.

Amina CEO Franz Bergmueller explained that both banks mutually agreed to change their names in 2023, leading to the establishment of Amina. The name Amina is derived via transamination, a term associated with the transfer of compounds between elements.

Going global

The aforementioned decision signifies the overall mission statement of the bank to unify various aspects of traditional, digital, and cryptocurrency banking. In contrast, the previous name was a reference to its founder, Sebastien Merillat, who expressed a passion for technology.

The bank also recently obtained a license by the Hong Kong Securities and Futures Commission, enabling it to provide cryptocurrency trading services in the region. In 2022, it acquired financial services permission by the Abu Dhabi Global Market and established an office in Abu Dhabi.

Amina CEO Franz Bergmueller outlined their vision for 2024, emphasizing accelerated growth in key strategic locations such as Switzerland, Hong Kong, and Abu Dhabi, with a continued focus on Switzerland, Abu Dhabi, and the Asia-Pacific region, including Hong Kong and Singapore.

Services will not be interrupted

Despite the name change, existing clients of Amina Bank, formerly Seba Bank, can anticipate uninterrupted service, as the transition will not impact ongoing operations. Amina operates globally, offering clients both traditional and cryptocurrency banking services.

Launched in 2018, Amina plays a significant role in the cryptocurrency ecosystem, facilitating different kinds of provisions pertaining to crypto-related services. In November 2023, St.Galler Kantonalbank, one of the largest banks in Switzerland, collaborated with the institution, then operating under the Seba brand, to provide digital asset custody and brokerage services to its clients.

According to CoinGecko, Bitcoin (BTC) managed to break through the $38,000 mark, but it is difficult to say how long it will stay there. Altcoins, too, experienced a price increase as Ethereum (ETH) soared past $2,100 and SOL went above $60. IOTA has emerged as the top performer among the top 100 digital assets, soaring by over 30% in a day. The total crypto market cap has slightly decreased to $1.420 trillion.

Crypto gains momentum but falls short

Last Friday, Bitcoin witnessed a surge, propelling it to an 18-month peak of $38,500. However, the momentum could not be sustained, leading to a drop below $38,000 almost immediately. Over the weekend, BTC traded in a range between $37,000 and $37,500. As of this writing, it was trading at $38,300.

Monday and Tuesday brought more challenges as Bitcoin fell to a multi-day low of $36,700. Bulls managed to regain control, pushing BTC to $38,400 on Wednesday. However, the cryptocurrency could not sustain this upward trend and is now trading below $38,000. Its market capitalization is below $740 billion, with dominance over altcoins at 52%.

While some larger-cap altcoins showed significant gains recently, the current landscape has shifted. Ethereum went down by 2%, and various other altcoins like Binance Coin, Ripple, Tron, Toncoin, Avalanche, and MATIC also declined by similar percentages.

Solana, Cardano, and Polkadot have experienced more than a 3% decline. Interestingly enough, Dogecoin (DOGE) is the only top 10 alt in the green, while mid-cap alts like LEO, RUNE, UNJ, and MNT show gains.

Other markets

In the European equity futures market, there were gains despite a slip in Asian stocks following the  third-largest monthly gain of the MSCI All Country World Index within the past decade. European contracts rose ahead of eurozone manufacturing data and comments by Federal Reserve Chair Jerome Powell, while US futures were slightly lower.

Elsewhere, the MSCI Asia-Pacific stock index fell, but Chinese shares recovered after reports of an unidentified state institution buying exchange-traded funds to bolster markets. The United States Dollar weakened against major peers as US inflation eased, supporting expectations of the continued pause by the Fed in the tightening cycle. The Bloomberg Dollar Spot Index also fell in November by the most in a year.

Meanwhile, the US stock market had an exceptional month, with the S&P 500 posting its second-best November since 1980, up 8.9%. Oil steadied after a tumble following the promise of further output cuts, with Brent crude trading near $81 a barrel and West Texas Intermediate around $76. The alliance announced 900,000 barrels a day of fresh output cuts starting next January, but the details remain unclear, and Saudi Arabia will extend its 1 million barrel-a-day reduction through the first quarter.

SoFi Technologies, a reputable financial technology firm, has declared its intention to exit the cryptocurrency business. This decision arises in the face of heightened regulatory pressures in the United States, signaling a shift in the cryptocurrency industry.

Headquartered in San Francisco, SoFi has played a significant role in the cryptocurrency market, enabling users to trade more than 20 different digital currencies, including Bitcoin, Dogecoin, and Ethereum.

No more crypto for SoFi

Despite its previous involvement, the company has announced the cessation of its cryptocurrency services on December 19th, 2023. After this date, eligible customers can either transfer their accounts to Blockchain.com, a platform based in the UK, or close their accounts altogether. It is worth noting that this decision does not apply to cryptocurrency users in New York, where state regulations impose restrictions on such migrations.

The strategic shift reflects the broader challenges confronting the cryptocurrency industry, which has witnessed the downfall of several key players since the previous year. The notable collapse of FTX, led by Sam Bankman-Fried, stands out among these challenges. Despite a recent upturn in investor sentiment, primarily fueled by the filing of spot Bitcoin ETFs, the industry remains under intense scrutiny.

Regulators still at large

The context of the exit is further complicated by recent developments involving Changpeng Zhao, the former CEO of Binance. Zhao recently pleaded guilty to violating US anti-money laundering laws, resulting in a substantial $4.3 billion settlement. Zhao underscored the security of user funds amid the upheaval, stating that he is proud to point out that in the resolutions with the US agencies, they do not allege that Binance misappropriated any user funds and do not allege that Binance engaged in any market manipulation.

This case underscores the increasing scrutiny of the cryptocurrency market by the US Securities and Exchange Commission (SEC) and other regulators. In any case, the exit of SoFi could be interpreted as a proactive measure to navigate an increasingly intricate and closely scrutinized market. The choice to collaborate with Blockchain.com for the migration of its cryptocurrency services indicates a strategic alignment with a platform that operates under a more established regulatory framework in the UK.

FTX, the infamous and currently bankrupt crypto exchange, has received approval to sell approximately $873 million worth of trust assets, as disclosed in a filing in a Delaware bankruptcy court on November 29th, 2023.

Time to pay up

The assets, sourced through the stakes FTX placed in various trusts by Grayscale Investments and Bitwise, aim to repay creditors affected by the notorious collapse in 2022. Notably, the $873 million includes $807 million via the Grayscale trusts and $66 million by Bitwise. The court document initially mentions $744 million in assets as of October 25th, 2023, but their value has since increased.

The approval follows a motion filed by FTX debtors on November 3rd to sell six cryptocurrency trusts, including GBTC, ETHE, and Bitwise 10 Crypto Index Fund. FTX owns over 22 million units of GBTC, valued at $691 million, and 6.3 million shares of ETHE, valued at around $106 million. Additionally, FTX can sell the Grayscale Ethereum Classic Trust, Litecoin Trust, and Digital Large Cap Trust to recover funds for affected customers.

Justice prevails

FTX administrators, led by John J. Ray III, have been working on asset recovery since the aforementioned collapse that occurred last November, securing around $7 billion, with nearly half of that amount coming through cryptocurrencies. This past June, debtors estimated $8.7 billion in misappropriated customer assets. Meanwhile, disgraced FTX founder Sam Bankman-Fried was convicted on seven fraud-related charges on November 2nd and is currently awaiting sentencing on March 28th, 2024. He is presently located in the Brooklyn Metropolitan Detention Center.

Sam was accused of spending lavishly and engaging in speculative trading with FTX customer funds through Alameda Research, the sister hedge fund of the FTX crypto exchange. Prosecutors used emails, bank statements, and wire transfers to detail how customer funds were allegedly spent.

Chainlink, a popular decentralized computing protocol, has reportedly enhanced its native staking mechanism by introducing Chainlink Staking v0.2, which features a larger pool capacity of 45 million LINK.

Commencing today, there is a 9 day priority migration phase for existing v0.1 stakers to move their staked LINK and rewards to the updated version. Subsequently, access will broaden for other participants through early access and general access stages starting on December 7th and December 11th, respectively, allowing users to stake a maximum of 15,000 LINK.

The importance of staking

With the expansion of the staking pool to 45 million LINK, equivalent to 8% of the existing circulating supply, Chainlink aims to attract a more diverse range of LINK token holders. This enlargement aligns with the Economics 2.0 strategy, designed to enhance overall network security.

Chainlink staking contributes increased functionality to the token and affords LINK holders the opportunity to support the performance of oracle services, earning rewards for their role in securing the network. Initially, staking was exclusively available for securing the Ethereum ETH/USD price feed, with a capped pool of 25 million LINK tokens.

Security is key

The new version is intended to provide a more flexible mechanism which will allow users to withdraw their staked tokens more efficiently, as well as improved security guarantees. Its modular architecture aims to facilitate greater adaptability, making future upgrades and improvements easier to incorporate.

Lastly, Chainlink Staking v0.2 also includes dynamic rewards mechanisms that can seamlessly support new sources of rewards in the future, according to the team. Observing a consistent rise in the value secured by and transacted over the Chainlink Network, enhancing crypto based security becomes increasingly crucial, noted Chainlink co-founder Sergey Nazarov. Sergey further stated that v0.2 introduces crucial new security features and positions the system for further expansion in the upcoming year.

Cristiano Ronaldo, one of the most successful and popular footballers of all time, is potentially facing a class action lawsuit regarding his endorsement of Binance, which is currently entangled in legal disputes. A filing in a Florida District Court alleges that Ronaldo engaged in the promotion, assistance, or active participation in the offering and sale of unregistered securities in collaboration with the crypto exchange. The plaintiffs claim that the endorsement of the platform resulted in massive financial losses.

Ronaldo in hot water

In 2022, Ronaldo collaborated with Binance to publicize his collection of non-fungible tokens (NFTs). Those opposing the endorsement argue that they were more inclined to utilize Binance and its services for other cryptocurrency related activities. The users assert that this led to investments in unregistered securities through Binance, including its BNB and cryptocurrency yield programs.

The various promotions that Ronaldo did, as per the complaint, encouraged Binance to solicit investments in unregistered securities by urging his millions of followers to invest in the Binance platform. Given his extensive influence and fanbase, Ronaldo played a significant role in the growing user base of Binance. The lawsuit suggests that although Ronaldo did not directly promote Binance, he should have been aware of the potential consequences of his actions.

The celebrity problem

The United States Securities and Exchange Commission (SEC) has cautioned celebrities to disclose if they receive payment for endorsing cryptocurrencies and related assets. According to the lawsuit, Ronaldo failed to make such disclosures.

Binance is currently facing legal challenges, with its founder Changpeng Zhao and the company under scrutiny by the Department of Justice. Following a $4.3 billion settlement for money laundering charges, Zhao has resigned as CEO and is potentially facing 18 months in prison.

The elephant in the room however is the fact that celebrities such as Ronaldo and various others like Lionel Messi, Logan Paul, Jake Paul, Lindsey Lohan, and KSI, have millions of followers worldwide. All of these celebrities have endorsed crypto in one way or the other in the past, and in doing so have inadvertently caused substantial losses for their supporters.

Jito Foundation, the entity supporting a liquid staking protocol based on Solana (SOL), is introducing a governance token for the management of the Jito Network. A liquid staking token is a token that represents the staked amount of a given cryptocurrency on a Proof-of-Stake (PoS) blockchain. Liquid staking tokens enable people to participate in staking while still being able to buy, sell, or trade the token, providing greater flexibility and liquidity.

Improving community engagement

Jito Labs constructs infrastructure to counteract adverse effects of MEV (Maximum Extractable Value) on Solana. The launch of the token aims to enable community members to directly influence decision making as well as the overall course of the Jito Network itself.

The Solana Foundation revealed that almost a third of the stake is flowing through the Jito Labs client. In the recent announcement, Jito Foundation highlighted that the Jito MEV network of validators is currently utilized by over 40% of the stake weight.

As such, a total of 1 billion JTO tokens have been generated to organize network management, encompassing the establishment of fees for the JitoSOL staking pool and overseeing revenue and the DAO treasury.

So far so good

Initially, 115 million JTO tokens will be in circulation. Community growth is allocated 34% of tokens, with 25% for ecosystem development, 24.5% for core contributors, and 16% for investors. As a recognition of their contribution to bootstrapping the network, 10% of the tokens will be airdropped to Jito community members, allowing them to engage in governance immediately.

Finally, the foundation advises community members to stay vigilant for updates on the airdrop. Noteworthy investors in Jito Labs include Solana Ventures and Solana Labs co-founder Anatoly Yakovenko. In the preceding year, the company also secured $10 million in a Series A funding round.

South Koreans will have the opportunity in the coming year to utilize deposit tokens based on a CBDC (Central Bank Digital Currency) through a pilot initiative overseen by the Bank of Korea (BOK). The pilot program will reportedly enable 100,000 individuals to make purchases using deposit tokens issued by commercial banks in the form of CBDCs, functioning akin to a voucher at retail establishments.

The announcement by the BOK occurs shortly after Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), advocated for countries to take a more proactive stance toward CBDCs. 11 countries, including some in the Caribbean and Nigeria, have already launched CBDCs, while over 120 countries are exploring their implementation.

CBDC adoption remains slow

During a speech in Singapore, Georgieva emphasized the need for the public sector to provide guidance to act as a catalyst, ensuring safety, efficiency, and countering fragmentation. Despite her efforts, several countries implementing CBDCs have experienced limited adoption. Georgieva likened the efforts to a nautical journey, urging an increase in speed to keep pace with the rapidly changing world.

The IMF, concerned about the lack of agreement on a common CBDC platform, warns that a vacuum could potentially be filled by cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The organization has also released a virtual handbook to assist countries in implementing interoperable CBDCs.

An underlying fear

As cryptocurrencies are decentralized and not tied to any government or central authority, they could become a preferred means of international trade, potentially revolutionizing the global financial system. The IMF cautions that this shift could lead to market manipulation and criminal activities, however the cryptocurrency community was quick to answer back by saying these illicit operations have been a recurring issue in several other markets even before crypto existed.

Nevertheless, the IMF, expressing palpable concern, emphasizes the need for strong cryptocurrency regulation. Georgieva suggests that if regulation fails, banning these assets to prevent financial stability risks should be considered. While these varied views on cryptocurrencies may stem via concerns about money laundering, terrorist financing, consumer protection, and market volatility, experts believe that the underlying fear of the IMF may be that crypto can be used to improve financial services and promote financial inclusion in a way that CBDCs and centralized institutions cannot.

On behalf of the Web3 community, we would like to extend our warmest congratulations to the companies that announced their success in fundraising between 21st November and 27th November 2023. We are thrilled to see such tremendous support from all involved. Well done!

IntentX raised $2.5M - As we move forward, IntentX is positioned to make significant strides in the decentralized derivatives space.

Blast raised $20M - Blast raised over $20 million in a round led by Paradigm and Standard Crypto and is headed by pseudonymous figurehead PacmanBlur, one of the co-founders of NFT marketplace Blur.

Privy raised $18M - Privy is a developer tools platform aimed at securely collecting data to improve the crypto user experience. Privy offers application programming interfaces (APIs) that developers can use to manage and integrate user data.

Zeal raised an undisclosed amount - Zeal's skill combines user-friendly design, security measures, and comprehensive visibility into online assets.

Blur raised $40M - Blur is the NFT marketplace for pro traders. Blur started because people wanted a faster platform for trading NFTs ourselves. None existed with the capabilities needed, so Blur built it. 

Zash raised an undisclosed amount - CoinGecko aligns perfectly with Zash mission and ethos, whilst acknowledging the responsibility of ensuring accurate and trusted data is accessible to all.

Vistara Labs raised an undisclosed amount - Vistara is building a Hardware Availability Layer (HAL) to enable the adoption of the modular web on a global scale. With Vistara's HAL, engineers, hardware providers, and users can collaborate to share and access resources on demand.

Matr1x raised $10M - Matr1x hopes an esports scene springs up for its namesake game, which is still in development.

Klever raised $10M - This significant infusion, equally distributed with $10 million dedicated to each of our KLV and KFI tokens, is a resounding vote of confidence in Klever vision to transform the world of blockchain and web3.

Bitfarms raised $44M - Bitfarms owns and operates blockchain farms that power a global decentralized financial economy. It brings expertise that goes well beyond crypto mining.

Open Campus raised $3.15M - The Open Campus Protocol is a decentralized solution for educators, content creators, parents, students, and co-publishers designed to address the major challenges in education today.

Waltio raised $1.97M - With this fundraising, Waltio wants to position itself as the first platform for automated tracking and crypto reporting, offering a simplified solution for managing tax obligations in this asset class.

To stay updated with news about future Web3 Funding Rounds, Follow CryptoWeekly
 

Jae Kwon, the founder of Cosmos, is rallying community members to initiate a split in the network. On November 25th, Kwon called on his followers to unite and orchestrate a division in response to Cosmos governance approving a proposal to decrease inflation in the staking rewards of the ATOM token.

Dealing with inflation

Cosmos employs a dynamic inflation mechanism, which increases the overall supply of ATOM by 10% to 20%, depending on the amount of staked tokens. Presently, with 65.7% of ATOM staked, inflation is growing at a yearly rate of 0.45%. According to Proposal 848, ATOM inflation will be capped at 10%. Additionally, staking rewards will decrease to an APR (Annual Percentage Yield) of 13.4%.

The proposal argues that the historically higher inflation of ATOM compared to its peers has negatively affected its monetary premium and led to constant sell pressure, impacting its price performance. However, key players in the Cosmos ecosystem express dissatisfaction with the outcome. Kwon expressed the need to coordinate a split following the passage of Proposal 848.

Resolving conflict

The aforementioned move by Kwon to fork the network comes after prolonged internal conflicts within the Cosmos ecosystem. John Galt, a Cosmos focused crypto influencer, suggested that a chain split could potentially resolve years of political tension within the network.

Kwon proposes the creation of a new network, informally named AtomOne, which would fork the Cosmoshub4 code to run the latest Cosmos software. He advocates for support for the fork to benefit ATOM, emphasizing the improvement of tokenomics.

Galt speculates that a fork could lead to the most substantial airdrop for ATOM holders. It would end up distributing a majority of a new ATOM1 token to Cosmos stakers, but those wallets favoring Proposal 848 would receive a reduced allocation.

Cosmos utilizes a delegated PoS (Proof of Stake) consensus, allowing ATOM holders to delegate their tokens to a select pool of validators for staking. Galt also speculates that a chain split could potentially benefit the original chain by removing dissidents and unsavory entities. He references the failure of the infamous 2022 ATOM 2.0 proposal, and how Proposal 848 has to do better.

Polkadot (DOT), the layer-1 Proof-of-Stake (PoS) protocol that has flourished with parachain auctions since its inception, has revealed plans to phase out this scheme in the future. The intention to replace parachain auctions with a new system has been confirmed by Pierre Aubert, the newly appointed VP of Engineering at Parity Technologies, the startup behind the Polkadot protocol.

Time for change

Pierre expressed alignment with the overall vision of the protocol, set to be encapsulated in what might be referred to as Polkadot V2. According to the outlined plans, the new initiative will be substituted with Agile Coretime or Bulk Coretime, paving the way for Polkadot to establish a genuine connection with Ethereum (ETH).

Additionally, the protocol will create a direct link with its canary chain, Kusama. Aubert detailed that the next six month roadmap for Polkadot aims to introduce features enhancing the user experience through the Agile Coretime.

Moreover, the emphasis for Polkadot now revolves around improving the developer experience, with one approach being the proposed Polkadot API. This tool is anticipated to simplify the process for developers in the creation of dashboards going forward.

A slow but necessary process

The aforementioned auction model, responsible for the introduction of networks like Moonbeam Network and Astar Network to the platform, is recognized as a groundbreaking and highly practical method for managing sidechains. The system involves community members supporting protocols vying for inclusion, rewarding their involvement with the relevant native token upon launch.

However, according to Pierre, the time for change is now if Polkadot wishes to keep up with its competitors alongside new technologies and practices. Notably, the precise details of Agile Coretime and Bulk Coretime are still in the design phase, but upon launch, they are expected to exemplify the seamless evolution characteristic of Polkadot.