Coinbase Global, the preeminent cryptocurrency exchange in the United States, has officially declared the inclusion of Solana (SOL) and Avalanche (AVAX) in its global futures exchange. Despite a tumultuous 2022, the company insists that crypto is not dead and adoption is still increasing at an exponential rate.

Getting involved

The genesis of Coinbase International, unveiled in May of this year, is a direct result of the company trying to tap into the vacuum left by the infamous collapse of FTX in the futures market. Notably, Coinbase had not gotten involved in this particular market segment before, but the company has nevertheless expressed its intention to cater to institutional users for perpetual futures trading in eligible countries outside the United States.

With that in mind, the SOL-PERP and AVAX-PERP markets are slated for launch on November 14th, 2023. The launch is also contingent upon meeting certain parameters and liquidity requirements, as outlined in the official announcement.

A new opportunity

In a bid to diversify revenue streams and mitigate the impact of lackluster stock performance, particularly after underwhelming quarterly earnings reports, Coinbase has decided to try different trading techniques and tap into new markets, not just spot trading.

With that in mind, the exchange notes that perpetual futures trading constitutes a substantial portion of the overall global cryptocurrency trading volume, up to 75% in fact. In addition, the company is proactively managing regulatory uncertainties by spreading out risks, aligning with its broader strategy for a more resilient business approach. Coinbase representatives informed the press to stay tuned for further updates down the line.

As the crypto industry continues to become more popular and widespread, many notable corporations are slowly adopting the new digital asset class. Google is no different, as it was recently revealed that Bonsai Pay through RISC Zero introduced the testnet version of its ZK-protected escrow, enabling smooth Ethereum (ETH) transfers to Google accounts.

A unique approach

This unconventional cryptocurrency application, employing zero-knowledge proofs (ZKPs), explores a unique approach to Web2-Web3 collaboration. Bonsai Pay transforms each Google account into a non-custodial crypto wallet seamlessly, allowing Ether to be sent to Gmail accounts through ZK proofs. The platform, built on the Sepolia Ethereum testnet, presents a cutting-edge method of replacing complex Ethereum wallet addresses with familiar email contacts.

According to the team, any active Google account is compatible with the service and necessitates no additional setup to receive ETH funds. Cryptocurrency transactions occur through an escrow contract on the Ethereum network, and recipients can access their assets by logging into Gmail and generating a ZKP. The product is also supported by JSON-based identity tokens and the OpenID Connect Protocol, with its core codebase crafted in the Rust programming language.

The future is bright

Bonsai Pay also utilizes the RISC Zero zkVM, which can be accessed by third-party developers through API keys. So far, the team has launched a live demo on the Sepolia testnet, encouraging developers to stress-test the platform and provide feedback on GitHub.

As zero-knowledge proofs are a cryptographic method allowing the prover to confirm the truth of a statement without revealing additional information, these provide the basis for the entire protocol. Notably, several ZK-powered projects, such as Polygon zkEVM, zkSync Era, and Scroll, have demonstrated substantial increases in total value locked (TVL) on the Ethereum mainnet in the past 24 hours, with even higher gains being recorded on a weekly basis. Needless to say, ZKPs are going to play a significant role in a wide variety of areas going forward.

Poloniex, a popular centralized cryptocurrency exchange (CEX), appears to have experienced a security breach involving one of its wallets, identified as Poloniex 4 on Etherscan. An examination of the apparent hot wallet reveals various suspicious outflows, indicating a substantial impact on its funds. The estimated value of these outflows linked to the incident, based on on-chain data, now surpasses $100 million.

Over $100 million at risk

Although the exchange has not officially disclosed the affected amount, preliminary assessments via analyst firms PeckShield and Arkham Intelligence suggest that crypto assets exceeding $100 million may have been compromised.

The exchange acknowledged the situation through its customer support X account, stating that the wallet in question has been disabled for maintenance and that regular updates will be provided. Having functioned as a centralized exchange since 2014, Poloniex was acquired by Tron founder Justin Sun in 2019.

In response to the incident, Sun asserted that Poloniex is actively investigating the hack and committed to reimbursing all affected user funds. He claims that the team is currently looking into the incident, before adding that Poloniex maintains a healthy financial position and will fully reimburse the affected funds.

Damage control

Sun also proposed a 5% whitehat bounty to the attacker, contingent on a complete fund return, setting a seven-day deadline before considering legal action with law enforcement. Addressing the situation later in the day, Sun reported that the Poloniex team has successfully identified and frozen a portion of the assets associated with the addresses of the hacker.

According to Justin, the losses are presently within manageable limits, and the operating revenue generated by Poloniex should be able to cover these losses. Additionally, he mentioned that the team has restored all Poloniex systems, preserved relevant evidence, and aims to gradually resume deposits and withdrawals, ensuring 100% security.

As per CoinGecko, the cryptocurrency market experienced a relatively positive week, as both Bitcoin and Ethereum stood resilient around crucial resistance levels. Notably, altcoins had a noteworthy period, displaying substantial increases that indicate potential further expansion in the immediate future.

Elsewhere, while the Fed approaches further rate hikes cautiously, Chairman Jerome Powell noted their readiness to act if needed. Notably, he did not declare policy settings sufficiently tight for the price stability goal outlined by the central bank.

Altcoins performing well

Among the top 20 cryptocurrencies, certain altcoins emerged as the most significant gainers of the week. Ethereum (ETH) has undoubtedly dominated the headlines as of late, as news of an Ethereum Spot ETF application put forth by BlackRock helped the second biggest crypto by market capitalization surge to reach over $2,100. 

Elsewhere, other altcoins like XRP, ADA, BNB, and SOL all experienced price increases as well, with BNB leading the charge at fourth place right behind Tether (USDT) and Ethereum. Beyond the well-established altcoins, other popular tokens like LINK, TON, and MATIC also recorded gains in their respective weekly charts. NEAR Protocol in particular was among the biggest winners of the week.

Bearish outlook remains

In the currency market, the United States Dollar (USD) rose in response to surging US Treasury yields which faced headwinds because of political issues and a gloomy Eurozone economic outlook. The Bank of England aims to appear resolute against rate cuts, but there is a neutral to bearish outlook.

In the energy market, oil bulls expect a modest positive correction considering geopolitical tensions and concerns about Iranian oil implications. Despite fears of an Iran-related embargo and weaker Asian demand, record-high US shale production suggests challenges to a sustained oil price rebound beyond the $78 to $80 range.

The Dollar Index may stay below 106, pushing the Euro towards 1.07. EUR/JPY could test 162 with a potential initial decline, while USD/JPY might face resistance at 152, signaling a likely downturn. The Australian Dollar is strongly bearish, anticipating a drop to 0.63. The Pound may experience a brief bounce but could eventually fall to 1.21. USD/CNY is expected to gradually rise while USD/RUB may slowly decline. Elsewhere, Dow Jones has fallen as the resistance level of 34200 has held. While below 34200, the outlook is bearish. DAX has the potential to test 15400-15500 before descending.

BlackRock has officially submitted an application for an Ethereum Spot ETF (Exchange Traded Fund). The request, found in documents on the Nasdaq website, details a proposed rule change for listing and trading iShares Ethereum Trust shares under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares).

BlackRock makes its move

Various documents recently surfaced on the Delaware Department of State Corporations Division website, revealing a registration of iShares Ethereum Trust put forth by none other than BlackRock. This move was interpreted as a precursor to applying for an Ethereum Spot ETF, and the speculations proved accurate.

Before seeking approval for a Bitcoin Spot ETF, BlackRock followed a comparable procedure, registering documents and subsequently submitting the Ethereum ETF application to the SEC a week later. Notably, BlackRock acted more swiftly for Ethereum, filing the ETF application on the same day.

ETH surges

Unsurprisingly, ETH experienced a price increase and has since surpassed $2,100, marking its highest level since May. After news of the BlackRock Ethereum ETF filing emerged, ETH witnessed a clear uptrend with the 50-day SMA and 20-day EMA serving as dynamic support.

Nevertheless, the RSI stands at 80, indicating an overbought condition and suggesting a potential short-term overextension in the rally. This could trigger a pullback or consolidation as the indicator cools off.

Potential resistance lies around current highs and psychological thresholds beyond $2,000, while support might be found around key moving averages. If the uptrend persists, Ethereum could target new highs surpassing $2,100. However, the overbought conditions increase the likelihood of a correction, potentially retesting previous lows if the trend shifts bearish.

Various experts believe that Ritual, an AI infrastructure startup, can be instrumental in tackling emerging applications in the crypto space, like autonomously adjusting risk parameters for lending protocols based on current market conditions.

The decentralized artificial intelligence network recently unveiled a $25 million Series A funding round led by Archetype. A consortium of investors, including Balaji Srinivasan, Accomplice, Robot Ventures, Accel, Dialectic, Anagram, Avra, and Hypersphere, participated in the funding round. The funding will be allocated to help Ritual expand its developer network going forward.

Ease of access is key

While AI adoption continues to rise across various business sectors, challenges such as substantial computational expenses, restricted hardware accessibility, and centralized APIs impede the complete realization of the existing AI framework.

The overarching vision for Ritual is to serve as the central hub for AI within the Web3 ecosystem, evolving the current version of the Internet into a modular suite of execution layers that can easily interact with other foundational infrastructure components, allowing any blockchain protocol and application to employ Ritual as an AI co-processor.

The link between AI and crypto

The integration of such AI models into the crypto realm can help facilitate novel applications, such as automatically regulating risk factors for lending protocols in response to real-time market conditions. With that in mind, Ritual provides a protocol diagram that reveals the implementation of adaptable execution layers centered around AI models. The GMP layer, encompassing layer 1, rollups, and sovereign entities, acts as a bridge between existing blockchains and the Ritual Superchain, which functions as an AI co-processor for all blockchains.

Lacking knowledge

The lack of clarity in the recent executive order on AI safety issued by the Biden administration has raised concerns among the AI community. The order introduced six new standards for AI safety and security, encompassing broad mandates such as sharing safety test results with authorities for companies developing any foundational model posing significant risks to national security, economic security, or public health and safety. It also emphasizes the acceleration of developing techniques related to preserving privacy.

Still, many believe that the Biden administration is ill-equipped to adequately deal with the rapid technological advancements that the world is going through. Congressman Ted Lieu stated that the US government is still in learning mode when it comes to new technologies like AI, emphasizing caution so as to avoid stifling innovation in the country.

The United States Securities and Exchange Commission (SEC) has initiated discussions with Grayscale Investments, exploring the possibility of transforming the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF (Exchange Traded Fund).

This development follows the recent legal victory Grayscale attained against the SEC, which could have a significant impact on the cryptocurrency market and make Bitcoin (BTC) more accessible to ordinary investors.

Renewed scrutiny

The ongoing talks between Grayscale and the Division of Trading and Markets, as well as the Division of Corporation Finance, stem via a federal court ruling that criticized the initial rejection put forth by the SEC concerning the ETF application as arbitrary and capricious. This court decision has revived the prospect of a spot Bitcoin ETF and subjected the application to renewed SEC scrutiny.

Grayscale Chief Legal Officer Craig Salm reaffirmed the idea that the company will happily collaborate with the Division of Trading and Markets. He acknowledges persistent challenges but remains hopeful, citing the progress made by other financial giants like BlackRock and Fidelity in their Bitcoin ETF applications. Craig stated that the discussions have been positive, and that it is now a matter of when, not if, the application will be accepted.

Hope still remains

While the SEC has not publicly commented on these discussions, there are elevated expectations and scrutiny. SEC Chair Gary Gensler has not discussed the application specifically but nevertheless underscored the role the agency has in handling evolving technology and business models, which will be pivotal in evaluating all ETF applications.

According to ETF analysts James Seyffart and Eric Balchunas, there is a high probability of Bitcoin ETF approval by January 10th, 2024, even if approvals are not granted this month. So far, the SEC has issued delay orders for companies like BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie simultaneously.

Still, it is likely that the agency will permit all applicants to launch, especially given the recent court victory that Grayscale secured. Elsewhere, many banks like JPMorgan have suggested that the SEC could face legal challenges if it does not approve these applications, and some policy experts criticize the commission for potentially overstepping its authority.

Binance, the largest cryptocurrency exchange worldwide in terms of trading volume, has introduced a self-custody wallet integrated into its native app. The announcement was made during the Binance Blockchain Week conference held in Istanbul during which the exchange highlighted that millions of its users now have the opportunity to explore and engage with Web3 without the associated risks of seed phrase loss or complicated onboarding procedures.

Bridging the gap

One of the main objectives that Binance has is to encourage its clientele to utilize the aforementioned wallet for activities such as trading thousands of tokens across more than 30 networks, exploring decentralized applications (dApps), transferring funds between the exchange and the wallet, and generating yield via digital assets.

Binance founder Changpeng Zhao emphasized the importance of bridging the gap between centralized and decentralized systems to efficiently foster Web3 adoption. The wallet therefore simplifies the process for users to achieve full self-custody of their assets while also actively engaging with Web3.

Safety is key

While blockchain technology includes numerous inherent safety features that make hacking difficult, it is not infallible. Although a hacker can take over a blockchain, they are more likely to steal tokens through wallets or cryptocurrency exchanges directly. This is why trustworthy security measures are critical, especially as the world becomes more technologically advanced.

By employing Multi-Party Computation (MPC) technology, the new wallet reportedly ensures robust security and protects users against malicious entities. Private keys are divided into three smaller components known as key-shares, strategically located in separate locations, which enhances key security and mitigates the risk of compromise, making the system less vulnerable. The funds held in the wallet are the sole property of the user and can only be accessed by them.

Despite the recent uptick in cryptocurrency prices, primarily led by Bitcoin (BTC), Binance saw its market share experience a gradual decline, dropping to 50% last month comparative to being around 75% last December. BNB, the native token of the crypto exchange, is currently ranked fourth worldwide in terms of market capitalization. 

Ripple, the cryptocurrency-based network for money transfers and payments introduced in 2012, will reportedly collaborate with payments fintech Onafriq to extend remittance capabilities throughout Africa and connect with several Gulf nations, the United Kingdom, and Australia.

Ever since the infamous lawsuit was filed against Ripple back in 2020, the company has gradually gained recognition within the global cryptocurrency community for its continued defiance of the United States Securities and Exchange Commission (SEC), which is often seen as overbearing and reactionary.

Going global

At the annual Swell conference in Dubai, three novel blockchain-driven payment routes were unveiled, connecting Onafriq users in Africa with customers of PayAngel in the UK, Pyypl in the Gulf Cooperation Council (GCC), and Zazi Transfer in Australia.

Ripple President Monica Long expressed her enthusiasm at this development, highlighting the prominent role Onafriq has in the African payment landscape where it has provided over 400 million mobile wallets to date. Monica believes that this will greatly help Ripple expand across 90% of foreign exchange markets.

Concurrently, the value of XRP surged this week following approval being granted to the token by the Dubai Financial Services Authority as well as Ripple continually being involved in a central bank digital currency (CBDC) initiative with the National Bank of Georgia (NBG).

Slowly gaining momentum

Ripple has unveiled various product enhancements and licensing updates thus far, with a keen focus on facilitating payments between enterprises and small businesses. The company has been steadily acquiring licenses all over the world, including money transmitter licenses in the United States, an institutional payments license in Singapore, and has recently filed for licenses in the United Kingdom and the European Union as well.

Earlier this year, Ripple won a partial victory in its legal battle with the Securities and Exchange Commission, thanks to a court decision that provided some regulatory clarity for the cryptocurrency industry.

The SEC, on the other hand, will not go down without a fight, as both the agency and Ripple have until November 9th to collectively present a briefing schedule with solutions to the charges levied against Ripple for its alleged XRP sales to institutional investors.

Cathie Wood has stated that she views Bitcoin (BTC) as a reliable hedge against inflation and deflation amid volatile financial markets. She favors BTC over gold, citing its digital gold status, transparency, and potential for long-term profit. Her company ARK Invest, of which she is also the CEO, supports the idea of digital currencies as safe havens during market turbulence.

TradFi cannot keep up

The CEO emphasized the unique features that Bitcoin has, contrasting them with the opacity of traditional banks. She noted that centralized traditional financial institutions (TradFi) often face deposit outflows and would therefore usually sell securities to cover losses.

She also highlighted the historical performance that Bitcoin has experienced over the years compared to the United States stock index and argued for its security as a long-term investment. Wood emphasized the risks of centralized authorities and TradFi which led to her acknowledging the appeal of a decentralized currency like Bitcoin alongside its potential as a store of value.

Bitcoin seems to be the answer

According to Cathie, Bitcoin is a superior choice for a decade-long investment with substantial profit potential, particularly among younger generations. The finance veteran firmly believes that Bitcoin offers some much needed stability and resilience, thanks to the transparency of blockchain technology as well as the hedging capabilities against inflation and deflation that BTC provides.

Wood also expressed her optimism about the intersection of Bitcoin and artificial intelligence (AI) after hinting at the transformative potential in the dynamic synergy between AI and crypto, highlighting the potential and beneficial effects the technologies hold for various industries as well as the broader economic landscape.

Cardano, the popular Layer 1 blockchain developed by former Ethereum co-founder Charles Hoskinson, reportedly intends to leverage the foundational structure of Polkadot, a rival Layer 1 blockchain created by fellow Ethereum co-founder Gavin Wood. Cardano envisions a global network of interconnected blockchains through its partner chain concept.

Cardano looking to improve

Cardano will be adopting a strategy involving the utilization of the Substrate framework provided by Polkadot. Through it, Cardano hopes to implement its upcoming partner chain initiative, as announced by Input Output Global (IOG), the developers behind Cardano, on November 3rd.

Following the announcement, the ADA token saw a 2.2% increase, reaching its highest level since July of this year, while the DOT token remained relatively stable, aligning with BTC and ETH, according to CoinGecko. 

Introducing partner chains

The implementation of partner chains is a novel concept that is poised to transform the manner in which new blockchains are launched and managed by amalgamating modular blockchain technology with the proven security, liquidity, and dependability of the Cardano platform.

Moreover, the partner chain model facilitates seamless interactions among independent chains. To streamline this process, the modular structure and flexible design provided by Substrate render it suitable for various chain configurations, a fact which was the basis for the Cardano and Polkadot partnership.

Through this move, Cardano will no longer be a solitary blockchain framework, as instead it shall transition to a network of numerous chains, each possessing distinct strengths and capabilities. Hoskinson is hopeful that this will also help the platform compete with others trying to become the ultimate altcoin, such as Solana, Polygon, and Ethereum.

Render Network (RNDR) has chosen to migrate to the Solana (SOL) blockchain, enhancing both scalability and speed as well as crucial factors in artificial intelligence and cryptocurrency operations. RNDR, valued at $864 million as of this time, is rapidly gaining attention for its innovations in the AI and crypto sectors.

Innovation is key

The move to Solana showcases the overall commitment Render Network has to cutting-edge technology, providing scalability and resilience for its operations alongside improved services for its users. This transition exemplifies how RNDR has adopted a forward-thinking approach while simultaneously highlighting its dedication to innovation.

As such, Render Network is launching a large-scale incentive program for node maintainers to strengthen its network. The program encourages GPU users to integrate RNDR software, synchronize nodes, and share computational capacity, particularly for AI and ML research.

An exciting time

Ryan Shea, an advisor to the Render Foundation, expressed excitement about welcoming new node operators and powering AI, ML, and GPU-intensive compute needs. Thus far, Render Network has allocated 1.14 million RNDR tokens, currently valued at $2.67 million, for the incentive program, demonstrating its commitment to network expansion. 300,000 RNDR tokens will also be distributed in the coming year, ensuring sustained engagement with node operators.

In summary, both the shift to Solana and the incentive program helps position RNDR as a significant player in the crypto and AI community going forward. In turn, Solana will receive a reputable blockchain network powered by crypto, one which helps individuals provide unused GPU power to assist projects in successfully rendering motion graphics and other visual effects in exchange for RNDR tokens.