On Thursday, Bybit announced it will be exiting the French market due to regulatory developments as various new cryptocurrency legislation changes in Europe continue to impact the landscape for digital assets.

MiCA In Full Effect

Starting August 13th, French users can only withdraw existing funds, with the platform switching to a close-only mode, restricting new positions or purchases. Bybit has faced plenty of controversy in France, with the AMF previously warning that it was operating outside national regulations and had been blacklisted for non-compliance. The AMF emphasized that exchanges must register as digital asset service providers (DASP), which Bybit had not done.

The exit aligns with the Markets in Crypto-Assets (MiCA) regulation, introduced by the European Commission in September 2020 and ratified in April 2023. MiCA, which enforces rules for crypto providers and stablecoin issuers, began affecting stablecoins in June and will extend to other cryptocurrencies and services starting December 30, 2024.

The Controversy Continues

Bybit has faced challenges globally, exiting Canadian and U.K. markets in 2023 due to stricter regulations. The exchange no longer serves the U.S., the U.K., China, Hong Kong, Singapore, Canada, and other restricted regions. Despite these restrictions, Bybit remains the second-largest exchange by trading volume, with $5.5 billion traded on Thursday, behind Binance which has $11.4 billion.

Also in France, the controversy surrounding the Paris 2024 Olympics centers on issues such as the high costs, potential environmental impact, and concerns over security and the displacement of local communities. Critics argue that the event could exacerbate social inequalities and cause significant disruptions, and that the focus should be on solving these issues rather than alienating international companies like ByBit.

Do Kwon, the ousted co-founder of Terraform Labs, is poised to be extradited to South Korea following a court ruling in Montenegro. This decision rejects the U.S. request for his extradition. Currently, no date has been set for the extradition.

What Happened

The Appellate Court of Montenegro supported an earlier ruling by the High Court of Podgorica to return Kwon to South Korea rather than the U.S., as CoinDesk reported on Thursday. This recent ruling is anticipated to resolve the ongoing dispute over the extradition location.

Although previous appeals against U.S. extradition were successful, the decision to send him to South Korea faced delays due to the Supreme Court of Montenegro. The ultimate decision regarding the extradition will be made by Montenegro Minister of Justice, according to the Office of the Supreme State Prosecutor.

Why It Matters

The legal battle against Terraform Labs and Do Kwon has been ongoing for over two years. In April, a U.S. District Court determined that Terraform Labs and Kwon had defrauded investors during the dramatic collapse of stablecoin TerraUSD (UST) and its associated cryptocurrency Terra (LUNA), events that resulted in a loss exceeding $40 billion and instigated a massive cryptocurrency market downturn.

In June, Terraform Labs reached a $4.47 billion civil settlement with the SEC after being found guilty. This settlement includes $4.05 billion in disgorgement plus interest, and a $420 million civil penalty. In September 2022, Interpol issued a red notice for his arrest. He was detained in Montenegro in March 2023 while attempting to use a counterfeit Costa Rican passport to travel to Dubai. Despite an initial four-month sentence for using false documents, Kwon remained in custody until his release on bail in March of this year.

On Wednesday, Senator Cynthia Lummis, R-Wyo, introduced a bill to the U.S. Senate aimed at establishing a national Bitcoin reserve, reflecting growing political interest in the flagship cryptocurrency.

Boosting The Economy

Named the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024, the bill seeks to enhance the global financial position of the USD (United States Dollar). Lummis first announced it at the Bitcoin conference in Nashville, Tenn.

Finance professor Nikhil Bhatia predicts the bill will not be voted on until after the U.S. Presidential election, given the current political climate. He believes it stands a better chance in 2025. The proposed Act would create a strategic reserve of Bitcoin to boost the American economy internationally, similar to historical gold reserves.

Growing Pains

However, the bill faces obstacles in a divided Congress amid a contentious election. Bitcoin has become a prominent issue in the 2024 race, with former President Donald Trump endorsing it, while Democrats, including Sen. Elizabeth Warren, criticize it as a tool for crime and a threat to the dollar.

Bhatia notes that while most of the support that Bitcoin has may seem right-leaning, it also has progressive advocates who view it as a tool for financial empowerment. He supports the exploration of Bitcoin as a strategic asset for the U.S. without endorsing the bill outright.

Despite recent price drops, Shiba Inu (SHIB), the dog-themed meme coin, has shown notable improvements in key metrics, suggesting a potential price recovery after a period of decline.

Positive Metrics

As the second-largest meme coin by market capitalization, Shiba Inu has seen significant gains in several metrics. IntoTheBlock reports a 430% increase in the 7-day volume of large transactions, now at $32.5 million, and a 0.22% rise in net network growth, signaling bullish sentiment.

Shibburn also notes a dramatic 7,334.38% increase in SHIB burn rates, with over 2.37 million SHIB sent to dead wallets. Additionally, CryptoQuant shows that inflows into exchanges have greatly exceeded outflows, hinting at a shift towards self-custody methods.

Potential For Price Recovery

Previously, Shiba Inu experienced a decline, with key metrics dropping sharply in July. Open interest fell 40% to $80 million, and daily transactions on Shibarium dropped by 50%, contributing to a lower SHIB price. Burn rates also fell by 98.79% during this period.

Despite recent metric improvements, HIB has been relatively stable in terms of its price, with a 5.22% drop over the past week and a 16.07% decrease in 24-hour trading volume. However, the positive changes in metrics may signal a potential recovery. Crypto exchange Changelly predicts a rise to $0.0000263 by August, up from the current $0.000016.

The Securities Commission of The Bahamas has revealed that Parliament has enacted the Digital Assets and Registered Exchanges Act, 2024, which enhances oversight of digital assets and cryptocurrencies.

Introducing Extensive Reforms

The latest legislation in The Bahamas builds upon the legal framework established by the DARE Act 2020, introducing extensive reforms to address the evolving nature of digital asset markets. Christina Rolle, Executive Director of the Securities Commission, stated that DARE 2024 sets a new benchmark for digital asset regulation.

The goal is to ensure investor protection and foster responsible innovation, positioning The Bahamas as a leader in global digital asset regulation, Rolle explained. DARE 2024 aligns with international standards and recommendations issued by the International Organization of Securities Commissions and the Financial Action Task Force. This new legislation reflects extensive global benchmarking and consultations with key stakeholders and industry experts.

Improving The Economy

Key features of DARE 2024 include rigorous standards for managing conflicts of interest and third-party relationships. It categorizes non-fungible tokens as either financial or consumer assets, mandates liquidity and reporting requirements, bans privacy tokens, and prohibits proof-of-work mining.

The introduction of DARE 2024, alongside the Securities Industry Act 2024, represents an overall commitment by The Bahamas to maintaining its position as a leading financial center. These legislative measures aim to provide top-tier consumer and investor protection while fostering a conducive environment for innovation in fintech.

The game plans to allocate 60% of the HMSTR token airdrop to Hamster Kombat players, demonstrating its dedication to rewarding its extensive user base. Although the airdrop was set for this month, it has encountered several delays due to technical issues.

Impressive Progress

A recent whitepaper by the anonymous Hamster Kombat team reveals that the game now boasts 300 million players. This represents a significant portion of the 950 million active users on Telegram. Consequently, the token launch on The Open Network has encountered difficulties, causing uncertainty about the airdrop schedule.

The rapid expansion of the game has not gone unnoticed. Just a month ago, Telegram CEO Pavel Durov announced that there were 239 million Hamster Kombat players. Shortly after, the team confirmed an additional 250 million players. This latest figure surpasses major free-to-play titles like Fortnite and Roblox, each with over 200 million monthly active users.

Token Value Depends On User Demand

The growth pattern of Hamster Kombat parallels that of Notcoin, another game on Telegram that had a significant airdrop earlier this year. Drawing inspiration via Notcoin and its success, Hamster Kombat aims to develop a broader ecosystem through its airdrop.

The developers emphasized that the token will not be supported by venture capital, meaning its value will be driven solely by the demand derived through Hamster Kombat players. Currently, the game maintains 50 million daily active users and operates in 190 countries, setting a significant milestone for the upcoming airdrop and future development.

The individuals behind a recent governance attack on the lending and borrowing protocol Compound Finance have agreed to retract their controversial proposal and replace it with an alternative. The proposal by the Compound governance voting bloc known as Golden Boys narrowly passed on July 28th despite opposition by the community, leading to accusations of a governance attack.

Aligning Interests

Proposal 289 aimed to create a wrapped goldCOMP token and a treasury utilizing 499,000 COMP tokens, valued at approximately $25 million at the time, to generate passive income for COMP holders, though the investment decisions would be made at the discretion of the Golden Boys.

As of July 30th, however, a member of the Golden Boys, using the pseudonym Humpy, has agreed to retract the controversial proposal in favor of a new one. Bryan Colligan, CEO of the growth team at AlphaGrowth, shared on July 30th that Humpy requested the agreement to pursue a different proposal.

The new proposal suggests implementing a staking product that aligns with the interests of the Golden Boys while safeguarding Compound DAO governance, according to Colligan. The revised proposal recommends allocating 30% of both existing and future market reserves to COMP stakers based on their stake amount.

Plenty Of Support

The proposal notes, The Compound Growth Program, supported by key delegates within the Compound community, will proceed with the commitments following the immediate cancellation of Proposal 289.

Humpy endorsed the new proposal in the comments, stating that he fully approves this message. Other significant Compound stakeholders, such as blockchain service provider Gauntlet and WintermuteGovernance, expressed support for exploring a Compound staking product.

Consensys expressed satisfaction with the resolution and appreciated the participation of all delegates in addressing the issue. Following this development, COMP saw a 6% increase over the past 12 hours, trading at $51.55 according to CoinGecko. Nevertheless, like many DeFi tokens, COMP has suffered a substantial decline, remaining 94% below its peak value of $910 in May 2021.

Recent data by Blockworks showed that during the week of July 22nd, Solana outpaced Ethereum in total weekly transaction fees for the first time, with Solana reaching about $25 million and Ethereum $21 million.

Solana also hit daily transaction fees of approximately $5.5 million, its highest in three months, including MEV tips. Dan Smith of Blockworks reported that 58% of this value came from MEV tips and 37% from priority transaction fees, mostly driven by spot DEX trading.

Making History

On May 12th, Solana surpassed Ethereum in total economic value (TEV) for a single day, accumulating over $2.2 million. Ethereum still leads in total value locked (TVL) with over $58 billion. DefiLlama notes that the TVL for Solana has increased by 25.68% over the past month, while that of Ethereum has decreased by 1.77%.

Solana has overtaken BNB as the 4th largest cryptocurrency by market capitalization. This follows a surge in the overall value of Solana due to its faster transaction speeds and lower fees. Moreover, the price of SOL has been rising, increasing by nearly 32% in the past month. This has pushed its market cap above $86.73 billion.

Solana Meme Coins Continue To Fall

The positive outlook for SOL is supported by potential spot ETF approvals, attracting institutional interest. Analysts are predicting further price increases, with the next resistance level to watch being $192.

Meanwhile, Solana meme coins face a decline, as various celebrity meme coins on Solana have dropped in value despite initial hype. Notable examples launched in June, such as $DADDY (inspired by Andrew Tate) and $JENNER (inspired by Caitlyn Jenner), saw over 70% depreciation. Most projects lost over 90% of their value, leading to significant investor losses.

A computer hacker based in the United Kingdom, who breached over 500 Coinbase accounts in 2018 and 2019 through phishing websites, has been sentenced to three and a half years in prison for his involvement in the fraud.

Elliot Gunton admitted to charges of conspiracy to commit fraud outside the UK and money laundering, as reported by North Norfolk News on July 27th. At ages 17 and 18, he and accomplices stole more than $900,000 through these accounts by redirecting login attempts to a fake website, according to court information.

Damage Control

Judge Alice Robinson of Norwich Crown Court described the crime as highly sophisticated involving extensive planning and technical skill. Gunton avoided incarceration by fulfilling a 12-month rehabilitation order. Additionally, he was required to repay £407,359 after hacking several prominent Instagram accounts.

In the United States, a federal court has mandated that Abner Alejandro Tinoco and his company, Kikit and Mess Investments, reimburse over $31 million following their fraudulent cryptocurrency and foreign currency schemes. Tinoco allegedly misused investment funds, paying fake profits to clients in a manner similar to a Ponzi scheme. Instead of investing the funds as promised, he used them to finance his extravagant lifestyle, including chartering private jets and purchasing luxury properties.

Frauds On The Rise

Tinoco, Kikit, and Mess have been ordered to repay $6.2 million to nearly 200 defrauded victims, an additional $6.2 million in disgorgement of illicit gains, and a civil penalty of $18.8 million. This penalty is roughly three times the amount of unlawful funds collected, according to a July 26th statement by the U.S. commodities regulator.

The fraudulent activities began in September 2020, amassing $7.2 million via victims before the Commodity Futures Trading Commission took legal action about a year later. The Washington State Department of Financial Institutions has issued a fraud alert regarding a potentially deceptive crypto platform named Vims.One, advising investors to avoid it.

Patrick O'Grady, the VP of Engineering at Ava Labs and a key player in the Avalanche blockchain development, is preparing to leave the company to launch his own initiative, as he revealed on X.

A Shared Goal

O'Grady recently worked on the Vryx scaling solution, which Ava Labs aims to utilize for scaling the Avalanche blockchain to 100,000 transactions per second. This goal is shared by other modern blockchains like Monad, MegaETH, and TON.

Although O'Grady plans to stay on as a Technical Advisor for Ava Labs, he has provided limited details about his new project. However, he hinted at its focus in a direct message to The Block, where he also discussed various other important factors.

Accessibility Is Key

O'Grady emphasized that application developers should have access to robust and high-performance frameworks to enhance on-chain experiences through innovative combinations of networking, storage, and consensus. He noted that successful web applications strive for exceptional performance and efficiency to offer greater value to users, and believes that the leading applications in the on-chain era will follow a similar path.

He concluded his announcement with a message about his commitment to advancing a credible internet, expressing enthusiasm for continuing his contributions in the blockchain space.

BlonkFi raised an undisclosed amount with support by Signum Capital in Pre-Seed funding. BlonkFi is a money market protocol on the Solana blockchain that enables users to collateralize volatile mid-market capitalizations, such as memecoins, to borrow stablecoins.

Mezo raised $7.50M with help by Ledger in Seed funding. Mezo, a Bitcoin Layer2 network, provides users with access to applications that enhance the utility of Bitcoin tokens.

BitFi secured an undisclosed amount with support by Fundamental Labs in Seed funding. BitFi is a digital financial platform that integrates secure staking mechanisms with innovative synthetic assets.

Multiple Network obtained $2M in Seed funding with support by OKX Ventures. Multiple Network is a Web3 DePIN project utilizing SD-WAN technology.

Kintsu secured $4M in Seed funding with help by Castle Island Ventures. Kintsu is a Liquid Staking Protocol (LSP) that is on a mission to boost the GDP of Proof-of-Stake (PoS) blockchains by allowing users to participate in on-chain activities while also benefitting via the yield-bearing staking that secures the blockchain.

Roxom raised $4.30M in Pre-Seed funding with help by Draper Associates. Roxom is an exchange that offers stock, commodities, and futures trading priced and denominated in Bitcoin.

Block Mining, Inc. secured a whopping $92.5M with help by Riot Blockchain. Block Mining is a bitcoin mining infrastructure and colocation service provider.

Caldera obtained $15M in Series A funding with support by Founders Fund. Caldera is a modular blockchain platform, enabling developers to deploy a rollup with EigenDA in one click.

Network3 raised $5.5M in Seed funding with help by IoTeX. Network3 is building a dedicated AI Layer 2 designed to assist AI developers worldwide in inferring, training, and validating models at scale quickly, conveniently, and efficiently.

assisterr secured $1.7M in Pre-Seed funding with support by Outlier Ventures. Assisterr is a platform designed to transform customer service and support through advanced AI and machine learning.

Bitcoin (BTC) responded positively to the mid-week dip below $63,500, rallying to exceed $68,000. While most altcoins are experiencing slight gains, XMR and MKR have both dropped by around 3-4% daily. More importantly, former United States President Donald Trump spoke at the Bitcoin Conference 2024 and announced big plans to promote crypto in the country if re-elected.

BTC Reaches $68K

Last Friday proved eventful for the top digital asset, which surged to $67,000 within hours. Over the weekend, volatility increased following an announcement by the current US President, Joe Biden, that he would not seek re-election despite his ongoing campaign.

Bitcoin fell by $2,000 immediately but regained momentum on Sunday evening and Monday. This led to a peak of over $68,400, marking a six-week high. However, bears quickly curtailed further gains, causing the asset to decline sharply on Thursday to a weekly low of $63,400.

Despite this, bulls intervened and drove the price up on Friday, reaching above $68,000 again earlier today, despite increasing inflows to exchanges. Although Bitcoin has recently reverted to around that level without making decisive gains, its market cap has risen to $1.340 trillion, with its dominance over altcoins nearing 53%.

Trump Speaks

During the aforementioned conference, Donald Trump emphasized his belief that the US will become the global crypto capital and a Bitcoin superpower. Trump also suggested that Bitcoin could surpass gold and predicted its remarkable ascent. Furthermore, he announced his intentions of making the flagship crypto a strategic reserve asset for the country upon re-election.

According to the former president, Bitcoin symbolizes freedom and independence from governmental control. He also announced that if re-elected, he will fire SEC Chairman Gary Gensler immediately, as Trump believes Gensler has done significantly more harm than good for the US economy during his anti-crypto regime.

Other Markets

Over the past year, the US economy has felt the impact of the Federal Reserve deciding to keep borrowing costs at their highest level in more than two decades. The consequences of this prolonged period of high rates have been both surprising and significant. Investors have been on edge, particularly following a sudden market drop that, while alarming, was anticipated by many as a long-overdue correction. As job growth shows signs of moderation, the Fed is expected to signal a forthcoming rate cut.

Meanwhile, San Francisco is grappling with an unprecedented office vacancy rate, and the pain associated with US office loans is only beginning to intensify. In the world of cryptocurrencies, activity is heating up as Bitcoin approaches a record high, prompting Cantor Fitzgerald to launch a new Bitcoin financing venture. Despite this, stock markets have experienced a rebound in the latter part of a strong quarter, though the rally has been tempered by growing doubts about AI and consumer spending.

Amidst these developments, short seller Andrew Left is reportedly living in fear due to federal scrutiny, with short sellers feeling the heat after US charges of fraud were leveled against him. On a different note, an interview with Hiromi Yamaji, head of the Japan Exchange Group, highlights the transformative impact he has had on the Japanese equity market. The former banker credited with a $1.7 trillion rally in Japan believes this is just the beginning, as Tokyo continues to emerge as one of the top-performing equity markets worldwide.