This week, Solana developers discreetly addressed and resolved a major vulnerability with little public attention. On one hand, the covert nature of the fix prompts questions about the decentralization of the blockchain, which ranks third in terms of total-value locked. On the other side, it is somewhat reassuring that the vulnerability did not result in a network outage.

Discord Saves The Day

In a post titled Anatomy of a Patch on August 8th, the pseudonymous Laine revealed that the rapid resolution was facilitated by advance notice given to major validators. A Discord alert on August 7th indicated that core contributors had identified a critical vulnerability requiring immediate action. Within minutes, validators controlling over 70% of the Solana network had implemented the fix.

According to Solana Beach, the network currently has 1,515 validators, with Helius, Galaxy, and Coinbase holding the largest stakes at 3.39%, 3.36%, and 2.89% respectively. Laine mentioned that the Discord alert advised validators to anticipate a follow-up message about the imminent patching scheduled for 10AM EST on August 8th.

Questions of Decentralization

Through ongoing research by Solana Foundation members and projects like Anza, Jito, Jump, Firedancer, and others, the community managed to achieve initial consensus through 19% of validators, which then grew to a supermajority of 67% to apply the patch. Once the supermajority was secured and the network appeared ostensibly safe, Solana contributors reached out to other validators to prompt the upgrade.

Still, many have asked if Solana truly embodies decentralization, how could a critical vulnerability be detected and patched by 70% of the validator set so quickly. Additionally, why is it that coordination occurred behind closed doors while much of the Solana ecosystem remained unaware of a potential threat.

Laine suggests that maintaining confidentiality was crucial to deter malicious actors. In response to concerns about centralization, Anza engineer trent.sol defended the approach, stating that this sort of patch need not be disclosed to the public as doing so would only complicate matters.

Immutable, a blockchain company focused on gaming and non-fungible tokens (NFTs), has announced it will be discontinuing its NFT marketplace to concentrate on broadening its ecosystem through new partnerships.

Key Details

The company plans to officially cease operations of the marketplace on August 13th. The marketplace was initially developed to demonstrate the capabilities of the Immutable software development kit (SDK).

Since its inception, Immutable noted that various projects utilizing the SDK have already emerged and expanded. The company also encouraged users to explore other marketplaces within its ecosystem.

Regarding user assets and listings, Immutable assured that assets will remain accessible as they are permanently recorded on the blockchain. These assets are tied to user wallet addresses and will be available regardless of the marketplace or game used.

Additionally, Immutable highlighted that its marketplace operates with a global order book. Consequently, marketplaces sharing this order book will display similar listings for buying or selling. Users need to connect their wallets to view existing listings across any marketplace.

Declining Sales Volumes

The announcement coincides with a decline in NFT sales volumes. In the second quarter of 2024, NFT sales volume fell by 45% compared to the previous quarter. While the first quarter of 2024 saw digital collectibles reaching $4.1 billion in volume, the market failed to maintain this growth. The second quarter saw a decrease to $2.24 billion, the lowest since Q3 2023.

July further exemplified this decline with the lowest NFT sales volume of 2024, amounting to just $429 million. Despite these trends, industry professionals remain optimistic about NFTs. CryptoSlam founder Randy Wasinger has stated that despite reduced volumes, NFTs are here to stay.

Russian President Vladimir Putin has sanctioned legislation aimed at reducing dependence on the US dollar in international trade. Set to take effect in November 2024, the law will permit authorized mining companies to register through a state database to engage in cryptocurrency mining. Additionally, small-scale individual miners can mine digital currencies without formal registration, provided their energy usage stays below a specified limit.

Decreasing Dependence On The Dollar

Oversight of the newly regulated mining sector will be divided among the Bank of Russia, the Ministry of Finance, and a designated group of ministers who will define more specific regulatory measures in the coming months. The legislation also includes a prohibition on widespread cryptocurrency advertising within Russia.

The BRICS group, namely Brazil, Russia, India, China, and South Africa, consists of emerging economies increasingly looking to reduce their reliance on the US dollar for international transactions.

At the 11th BRICS Summit in 2019, the bloc initially proposed an alternative digital currency. Although this proposal has gained significant attention, it faces considerable challenges, including disagreements among major member countries about how a unified currency would function.

Skepticism Remain

In 2023, Russia renewed its focus on creating a unified BRICS currency. State Duma Deputy Chairman Alexander Babakov reportedly mentioned that key BRICS members were working on a new currency for international trade settlements. The Bank of Russia and the Russian government also announced plans to establish special entities to facilitate cross-border transactions using digital assets.

Macroeconomist Lyn Alden has expressed skepticism about a gold-backed BRICS currency replacing the US dollar. Alden highlighted the historical issue of gold-backed currencies issuing more paper claims than the actual gold reserves, which could lead to monetary devaluation and potential currency collapse.

The Brazilian Securities and Exchange Commission has given 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.

Overseeing The ETF

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.

Although the ETF is in its nascent stages and still requires further regulatory approval by B3, the financial exchange in Brazil, the expectation is for it to become available to investors within the upcoming three months.

Reliability And Transparency

Currently, investors can trade Solana ETPs on the SIX Swiss Exchange, where the 21Shares Solana ETP is listed under the ticker ASO, and on Deutsche Börse Xetra in Germany, where the CoinShares Physical Solana and the ETC Group Physical Solana are available.

At any rate, the newly approved Solana ETF will utilize the CME CF Solana Dollar Reference Rate F as its benchmark price, ensuring a reliable and transparent representation of Solana and its value in USD.

Judge Analysa Torres has ordered Ripple to pay $125 million in civil penalties and cease any further violations of securities laws, concluding a nearly four-year legal struggle with the U.S. Securities And Exchange Commission (SEC). This penalty is favorable for Ripple, given that the SEC had originally sought a $2 billion fine.

The War Is Over

As per the official verdict, the SEC motioning for remedies and the entry of final judgment is granted in part and denied in part. The Court shall issue a final judgment restraining Ripple in terms of facing additional securities law violations and imposing a civil penalty of $125,035,150.

As of the latest update, XRP is priced at $0.6, experiencing a surge of over 17% in a day, with a 24-hour trading volume around $1.68 billion. The market capitalization of the altcoin is currently $29.5 billion.

Identifying Key Triggers For Recovery

According to TradingView and their 1-day technical analysis, the outlook for XRP appears bearish despite the aforementioned verdict. The summary and moving averages indicate a sell recommendation with 11 and 10 signals respectively, while oscillators remain neutral with a reading of 8.

This recent court ruling marks a crucial development for Ripple, and investors are optimistic that the favorable resolution could lead to a significant increase in the price of XRP. In any case, the crypto community can finally breathe a sigh of relief as the multi-year war between the SEC and Ripple finally comes to a close.

Diego Olivia, the CEO for The Starknet Foundation (SNF), will officially be leaving the company after leading it since its launch in March 2023. Under Diego, The Starknet Foundation grew rapidly, expanding to thirty full-time professionals in a year.

A Successful Journey

The SNF successfully launched Seed Grants and DeFi Spring projects, collaborated with over 100 organizations, and created developer support programs. Diego Olivia was appointed as CEO in 2023 due to his strong background and experience.

Under his guidance, the SNF undertook several ecosystem projects, including Catalyst and Propulsion programs, and expanded initiatives like Hacker Hose and Basecamp.

Time For A Change

Now that the team and structure are in place, leadership is transitioning to James Strudwick, who joined the SNF in January 2024. Strudwick, with his Web3 expertise and successful project history, will continue the values of strong work ethic that the SNF has tried to uphold since its inception.

Eli Ben-Sasson of StarkWare Ltd. praised Olivia for his contributions and welcomed Strudwick as the new Executive Director, expressing satisfaction with the transition. As of right now, it remains unclear as to which direction Diego will take his career going forward.

In an interview with CNBC on August 5th, Tezos Co-Founder Kathleen Breitman pointed out how Bitcoin recently fell below $50,000, attributing it to broader market worries. She mentioned concerns about a potential global recession and a notable sell-off in Japanese stocks as major factors exacerbating the decline.

Drawing Parallels

Breitman also connected the drop to ongoing geopolitical tensions and recent adjustments in Federal Reserve interest rates. She highlighted rumors of significant liquidations by Jump Trading, which have further pressured the value of Bitcoin.

She further critiqued Bitcoin and its alleged effectiveness as a store of value, labeling it as Internet pretend money due to its speculative nature. She drew parallels between the current market reaction and the early disruptions caused by COVID-19, where economic uncertainty led to a swift sell-off of speculative assets.

Still A Crucial Asset

Despite the volatility of Bitcoin, Breitman still views it as a crucial asset in the cryptocurrency realm. She argues that Bitcoin is important in terms of its value and utility as it goes beyond the traditional store-of-value perspective, even amid ongoing market fluctuations.

Breitman is just one of many people who have been critical of both Bitcoin and the wider crypto industry while also acknowledging its mainstream popularity and influence. Although the market is currently facing a recession, many believe that crypto will be able to bounce back stronger than ever.

The proposal passed with an impressive 95% of votes in favor. Over the next six months, 3 billion $JUP tokens, valued at more than $2.37 billion, will be burned.

Tackling Supply Issues

The initiative to burn $JUP team tokens is designed to tackle supply issues and increase the value of the remaining tokens. By eliminating these tokens regarding the circulation, the intention is to reduce supply and potentially enhance the value of the remaining ones. With fewer $JUP tokens available, Jupiter Exchange aims to increase the scarcity of the token and thereby its value.

The $JUP team tokens, initially allocated to the team, will now be systematically burned. This action demonstrates the dedication by the project toward aligning its tokenomics with the interests of the wider community. This decision, influenced by feedback by $JUP holders, reflects a broader trend within the cryptocurrency sector and aims to improve transparency and accountability.

Key Details

The gradual nature of the burn will allow the market to adjust to the reduced supply smoothly, minimizing potential disruptions. Throughout this period, the Jupiter Exchange team will provide regular updates on the progress.

The success of the proposal, supported by 95% of the votes, highlights strong community backing for the token burn strategy and reflects the trust given by the community in Jupiter Exchange and its overall commitment to enhancing the value of $JUP.

A new bipartisan bill, the Combating Money Laundering in Cybercrime Act of 2024, seeks to expand the authority of the United States Secret Service in terms of investigating and prosecuting digital asset crimes.

Preventing Crimes

Introduced by Senators Amy Klobuchar, Chuck Grassley, and Catherine Cortez Masto, this legislation aims to address the growing threat of illegal activities involving cryptocurrencies by enhancing the role of the Secret Service in combating financial crimes.

The bill proposes that the Secret Service gain more power to tackle issues such as financial fraud and unlicensed money transmission related to digital assets. It also requires a Government Accountability Report to evaluate the effectiveness of the law enforcement in detecting and preventing money laundering.

Collaboration Is Key

The rise of cryptocurrencies has created new challenges for law enforcement, prompting this bill to strengthen regulatory measures. It acknowledges the need for better threat assessments and collaboration between agencies to address digital currency crimes effectively.

With bipartisan support, the bill represents a key step in improving the U.S. response to digital asset-related crimes and enhancing national security. It also highlights the importance of ongoing collaboration between government agencies and lawmakers to tackle issues in the digital currency market.

Senator Cynthia Lummis has proposed a bill to make Bitcoin a U.S. strategic reserve asset, which has attracted bipartisan interest and significant public support. Announced at a Bitcoin conference in July, the bill directs the U.S. Treasury to acquire one million BTC, valued around $60 billion, over five years.

Strengthening The Dollar

Lummis equates this initiative to the U.S. Strategic Petroleum Reserve, suggesting it could strengthen the dollar and help manage the national debt, which exceeds $35 trillion. In the past three days, 2,200 letters urging support for the bill have been sent to senators, with the majority going to Democrats.

The bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs for review. If approved, it will be debated and possibly amended by the Senate before proceeding to the House of Representatives and, if passed there, to the President.

A Key Issue

Despite recent market declines and volatility in the cryptocurrency sector, the bill highlights the growing influence of digital assets in U.S. politics. If successful, it could reshape the approach to digital currencies in the U.S. and set a precedent for global financial systems.

Cryptocurrency is a significant political issue for American youth because it represents financial innovation and independence, offering new opportunities for wealth-building and economic participation. Many young people are drawn to the potential of digital assets for their transparency, decentralization, and potential for high returns.

Additionally, as digital natives, they are more attuned to the technological advancements and future potential of cryptocurrencies, making it a key topic in discussions about financial reform and policy.

According to a recent report by on-chain analyst EmberCN, a sharp decline in Ethereum (ETH) prices triggered a wave of liquidations among leveraged ETH whales.

A Broader Downturn

Several whale addresses were compelled to sell their ETH to cover loans, including an address starting with 0x1111, which liquidated 6,559 ETH to repay a 277.9 WBTC loan, and an address starting with 0x4196, which sold 2,965 ETH to settle a 7.2 million USDT loan. Another address, beginning with 0x790c, offloaded 2,771 ETH to address a 6.06 million USDC loan, while an address starting with 0x5de6 sold 2,358 ETH to cover a 5.17 million USDC loan.

These liquidations happened amid a broader market downturn over the past 24 hours. Crypto Briefing reported that Bitcoin (BTC) fell 12% to $53,000, while ETH experienced a drop of over 20%, wiping out the gains that Etreheum had obtained for the year. The correction, which started on Friday, seems to have been influenced by disappointing employment data and rising geopolitical tensions.

Heightened Liquidation Pressures

By Saturday, Bitcoin had fallen below $60,000 due to increasing recession fears. With bearish conditions dominating, ETH and other altcoins also suffered considerable losses. ETH, for example, plunged to $2,300 in the past week, reflecting a decline of over 30%, according to CoinGecko.

Contributing to the downturn were heightened liquidation pressures and rumors about significant ETH sales by Jump Trading. The cascading effect of these events led to an extraordinary $100 million in liquidations within a single hour, with the total for the day exceeding $445 million.

Chateau raised an undisclosed amount in Pre-Seed funding with help by Hack VC. Chateau is a protocol that brings private equity and fund investments on-chain, providing DeFi participants access to private market opportunities.

Signum Capital helped Pichi Finance secure $2.5M. Pichi Finance is a trustless points protocol, allowing users to trade points from leading protocols pre-TGE. 

Morpho Labs raised $50M in Strategic funding with support by Ribbit Capital. Morpho is a decentralized P2P lending protocol on Ethereum and Base L2.

Icebreaker Labs secured $5M in Seed funding with support by CoinFund. Icebreaker is a Web3 professional network for proving qualifications and making verifiable recommendations.

Layer2 Financial raised $10.70M in Series A funding with help by Galaxy. Layer2 Financial is designed to provide fintech companies and their customers with fully compliant payments, banking, and digital asset wallets for multiple currencies. With just one API, users can access all these services seamlessly and easily.

Mask Network helped jokerace successfully raise $3M. Jokerace is a governance platform that allows projects to create on-chain allowlists.

Lukka raised an undisclosed amount in Strategic Funding with help by Animoca Brands. Lukka is a technology company serving businesses that regularly interact with crypto assets with institutional-grade data and software solutions.

Raad Labs secured $2.25M in Seed funding with support by CoinFund. Raad Labs is a project focused on modernizing data management and collection for weather intelligence.

Hyperbolic raised $7M in Seed funding with help by Polychain Capital. Hyperbolic is an Open-Access AI Cloud where users are given accessible and affordable computing resources.

Mintify Inc obtained $3.4M with support by Amber Group. Mintify is an NFT multi-chain aggregator, analytics platform and trading terminal.