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October 11,2024

Tether CEO Initiates Transparency Campaign And Wants Big Four Audit

Tether has consistently faced scrutiny regarding the transparency of its reserves. While the company claims that its USDT token is fully backed on a one-to-one basis by its reserves, it has not yet completed a full audit, leaving lingering doubts.

In an effort to improve the situation, Tether CEO Paolo Ardoino expressed a willingness to pursue an audit by a Big Four firm. Such an audit could significantly address concerns about the financial stability of the company.

 

Reputational Risk

To enhance its reputation, Tether informed Fox Business that the firm is increasing its collaboration with law enforcement to tackle crypto-related crimes, investing in emerging technologies like AI, and contemplating a Big Four audit for greater transparency.

However, Ardoino noted that finding an accounting firm for a complete audit may prove difficult due to challenging regulatory conditions in the United States. He highlighted specific rules that complicate the ability of audit firms to work with crypto companies, particularly those based outside the U.S.

Despite these challenges, Ardoino remains optimistic that the regulatory environment might improve after the upcoming presidential election, which could reduce restrictions and make a full audit more attainable. Still, CPA Blake Oliver remarked that none of the Big Four accounting firms are willing to take on Tether for an audit, citing concerns about reputational risks.

 

More Than Meets The Eye

This drive for transparency emerged after a 2021 investigation by the New York Attorney General (NYAG), which revealed that assertions made by Tether concerning a dollar-for-dollar backing were in fact misleading. The inquiry uncovered that Tether had been moving funds between its parent company, Bitfinex, to cover losses and mixing user funds.

Since then, Tether has utilized accounting firm BDO for quarterly attestations, with the most recent report indicating a surplus of $11.893 billion in assets compared to liabilities. While the quarterly attestations represent a positive step, it is essential to recognize that these attestations are limited, offering only snapshot reviews of specific financial aspects, such as reserves, rather than a comprehensive assessment of all financial records. In contrast, audits provide a thorough evaluation which delivers greater assurance to both investors and regulators.

October 10,2024

Optimism Allocates Over 10 Million Tokens To Users In Fifth Airdrop

Layer 2 network Optimism has launched its fifth airdrop, distributing 10.3 million OP tokens (valued at approximately $16 million) to 54,700 user addresses. This airdrop specifically recognized users engaging with Superchain, a network of blockchains built with the OP Stack.

 

Rewarding Users

Activity on various chains, including OP Mainnet, Base, Zora, Mode, Metal, Fraxtal, Cyber, Mint, Swan, Redstone, Lisk, Derive, BOB, Xterio, Polynomial, Race, and Orderly, was taken into account. Wallets that interacted with at least 20 contracts on the Superchain between March 15th and September 15th, 2024, are eligible for the airdrop. Users have until February 13th, 2025, to claim their tokens.

Optimism stated that this particular airdrop rewards power users who have contributed to the growth of the Superchain Ecosystem. Additionally, there were bonus criteria that increased individual allocations, such as delegating a minimum amount of OP or participating with seven chains on the Superchain.

 

An Impressive Feat

Through five airdrops, Optimism has now distributed over 265 million OP tokens, with around 550 million OP tokens remaining for future distributions. The initial airdrop took place on May 31st, 2022, followed by a second on February 8th, 2023, and a third on September 13th, 2023.

The third airdrop allocated 19.4 million OP, valued at $26 million at that time, to nearly 32,000 addresses involved in the delegation activities of the Optimism Collective. A fourth airdrop occurred in February 2024. Presently, the circulating supply of OP tokens stands at 1.3 billion, with a market cap of $1.9 billion.

 

October 10,2024

FBI Ensnares Cryptocurrency Scammers Via NexFundAI

A covert operation is typical for the U.S. Federal Bureau of Investigation (FBI). However, this marks the first effort by the agency to create its own crypto token aimed at achieving justice. On Wednesday, an unsealed indictment charged Gotbit, CLS Global, MyTrade, ZM Quant, and 18 individuals with artificially raising token prices through fake transactions in exchange for payment.

 

The Importance Of NexFundAI

One of the aforementioned tokens was NexFundAI, an Ethereum-based cryptocurrency developed by the FBI to target crypto market manipulators. Jodi Cohen, a Special Agent with the FBI Boston Field Office, described it as an unprecedented step.

The NexFundAI token currently has a market capitalization of $177,000, according to DEXScreener. Over the past 24 hours, trading volume for the token reached $3.5 million, reflecting a whopping 5,000% surge.

This investigation, the first of its kind, uncovered numerous fraudsters within the cryptocurrency sector. Wash trading has long been banned in financial markets, and cryptocurrency is no exception, stated Acting United States Attorney Joshua Levy. The FBI is urging individuals impacted by the trading of fraud-related tokens to reach out to them. The agency has included its own token among others like Saitama, Robo Inn, VZZN, and Lillian Finance.

 

Clarity Needed

The U.S. Securities and Exchange Commission (SEC) has also taken legal action against Gotbit Consulting, ZM Quant Investment, and CLS Global. Onchain activity suggests that wallets associated with the FBI have recently conducted a number of meme coin transactions, as noted by Coinbase director Conor Grogan.

It remains unclear whether the FBI was aware of this, but they inadvertently revealed their wallets. The wallet that funded the FBI wallet quickly allocated resources to several other wallets, resulting in numerous transactions. Grogan remarked on X that it seems FBI wallets hold at least 75% of the token supply.

In addition, Grogan identified that wallets connected to the FBI hold coins like Pornrocket, EthereumMAX, and BONE. It remains uncertain if other users transferred those coins to the FBI-linked wallet addresses.

 

October 09,2024

Hex Trust Will Work Alongside Clearpool To Launch Ozean Blockchain

Hex Trust, headquartered in Hong Kong, has announced a partnership with the DeFi credit protocol Clearpool via X. They also shared this news in a blog post on October 8th. Ozean, a platform focused on real-world asset (RWA) yields, claims to operate using the CPOOL token and is backed by Optimism.

 

Impressive Progress

Ozean aims to leverage the lending expertise provided by Clearpool alongside the regulated infrastructure and institutional clients offered by Hex Trust to enhance adoption within the RWA ecosystem.

Thus far, Clearpool has facilitated over $620 million in loans for firms such as Flow Traders, Wintermute, and Jane Street. Hex Trust is poised to significantly influence Ozean and its development, with more than $5 billion in assets under custody and over 270 institutional clients.

 

Mutual Benefit

Certain clients of Hex Trust, including banks, exchanges, funds, and decentralized applications, may tap into the RWA ecosystem. Hex Trust will bring its extensive and expanding client base, along with our advanced technology infrastructure, to elevate Ozean and unlock this trillion-dollar market opportunity, stated Hex Trust CEO Alessio Quaglini.

Ozean will also benefit via the rising adoption of USDX, a US dollar-pegged stablecoin launched by Hex Trust in May. USDX has integrated with LayerZero to provide cross-chain liquidity and has partnered with Velodrome as its primary decentralized exchange. At present, the company offers services and products across several countries, including Singapore, Hong Kong, Dubai, and France.

 

October 09,2024

Investment In Spot Ethereum ETFs Reaches All Time Low

Institutional investments in Ethereum (ETH) through ETFs hit a significant but disappointing milestone yesterday, as no net new US dollars were added to spot Ether ETFs throughout the day on Wall Street. In related news, according to a recent report by on-chain analyst EmberCN, a sharp decline in ETH prices triggered a wave of liquidations among leveraged ETH whales.

 

The Difference Between Inflows And Outflows

Referred to as daily total net flow or simply flows in the crypto community, this metric tracks the total investments in spot Ether ETFs (inflows) against withdrawals (outflows) each day. The purpose of this measurement is to illustrate the impact that spot Ether ETFs, which are different compared to other investment options like direct purchases or derivatives, have on the daily price of ETH.

Calculations are usually in US dollars and encompass all buying and selling activities across the nine spot Ether ETFs available on US exchanges, managed by sponsors such as BlackRock, Fidelity, Bitwise, 21Shares, Franklin, VanEck, and two Grayscale offerings.

 

More Net Outflows

Ether ETF flows have fallen short of expectations. The $0 figure reported on Monday sharply contrasts with optimistic forecasts by bullish investors who anticipated spot Ether ETFs would signal a wave of institutional adoption, with price predictions reaching as high as $15,000 per ETH. Currently, ETH trades around $2,450, which is about half of its peak value.

In the first quarter following the introduction of various Bitcoin (BTC) spot ETFs, bitcoin saw inflows exceeding $12 billion. In comparison, Ether has unfortunately recorded net outflows since its ETFs launched. Notably, Wall Street entities had initially funded the nine spot Ether ETFs with $10.2 billion, most of which originated via Grayscale, creating a pool of capital that could be withdrawn.

 

An Intriguing Opportunity

Taking advantage of the aforementioned situation, investors have consistently withdrawn funds through the spot Ether ETFs since their US introduction, leading to a total of $548 million in net outflows since July 23rd. Several factors influence investors and their decisions to no longer invest capital into spot Ether ETFs.

A significant reason for their lackluster performance could be the absence of yield in these ETFs. Also, while large ETH holders can earn a 3.3% yield through Proof-of-Stake (PoS), most Ether ETFs do not offer any yield and instead charge management fees.

 

October 08,2024

South Korean Military Doubles Down On Internal Bad Actors

A South Korean investigation into soldiers allegedly using their military passwords as collateral for loans to purchase cryptocurrency has revealed 29 additional incidents of compromised military secrets.

Among these is a case involving a captain who transmitted confidential documents regarding the wartime missions of a special forces brigade. According to TVChosun, the captain shared this sensitive information with someone who then sent crypto assets valued at approximately $35,700 in return.

Previously, South Korean regulators engaged in discussions with officials representing ASEAN, the Association of Southeast Asian Nations, and the OECD regarding cryptocurrency policy in Seoul on March 18th, 2024.

 

Damage Control

Previously reported findings indicated that at least three active-duty soldiers this year provided Level 3 military passwords and secret documents to loan sharks to invest in crypto or settle crypto investment debts. Earlier this month, the Ministry of National Defense disclosed that a court handed down a suspended jail sentence to one captain, leading to his discharge.

Several other soldiers are suspected of similar actions, and prosecutors have charged three loan sharks for accepting military secrets in exchange for illegal cash loans. The ensuing controversy has prompted legislative involvement. Kang Dae-sik, a member of the National Assembly Defense Committee, claims that as of October 6th, acting soldiers have leaked secrets on 29 separate occasions since 2021.

 

Attitude Adjustment

The ministry recorded six incidents in 2021, eight in both 2022 and 2023, and seven cases up until July 2024. One case in 2021 also involved a captain trading military secrets for money, while another instance saw a captain take photos of a Korean Joint Command and Control System terminal with his cellphone and send them to an unnamed recipient via the Telegram app.

The findings also include examples of senior soldiers selling information to private defense firms for cash, as well as a soldier who sold copies of a top-secret military manual. Some incidents stemmed due to a lax attitude toward security. In one case, a soldier sent videos of secret military equipment to his girlfriend using the KakaoTalk app, claiming he wanted to share his daily life in the army with her.

 

October 08,2024

New FTX Bankruptcy Plan Ensures Full Repayment With Interest

A Delaware judge has finally approved the FTX bankruptcy plan, allowing for cash repayments to customers along with interest, marking a crucial step in addressing the ongoing financial challenges for the now defunct crypto exchange.

Back in 2022, investigations revealed that FTX founder Sam Bankman-Fried and other executives misappropriated customer funds and produced misleading financial statements, leading to fraud allegations by both users and U.S. authorities.

 

Mixed Reactions

The approved plan could distribute up to $16 billion in recovered assets to FTX creditors. Judge John Dorsey of the U.S. District of Delaware Bankruptcy Court granted approval on October 7th. This decision follows two years after the cryptocurrency exchange collapsed, impacting thousands of customers worldwide.

The plan received support via 94% of claimants, with 98% of creditors expected to receive 118% of their claims in cash. However, not everyone agreed with the cash repayment option. Sunil Kavuri, representing the largest creditor group, advocated for repayments in-kind, particularly in cryptocurrencies. Judge Dorsey rejected this proposal, citing the drastic decline in the value of both FTX and its native token alongside the slim chance of recovery.

 

A Long Time Coming

The settlement effectively concludes the increasing number of cases surrounding FTX and its bankruptcy. Shortly after the Chapter 11 filing, Bankman-Fried and several top executives were arrested. Following a swift trial, he was convicted and sentenced to 25 years in prison. He has since filed an appeal, claiming judicial bias.

Caroline Ellison, who served as the former co-CEO of Alameda Research and was romantically involved with Sam, was dismissed regarding her position at Alameda and subsequently became a key witness in the criminal proceedings against Bankman-Fried.

 

October 07,2024

SHIB Developer Believes UAE Will Become The Crypto Capital Of The World

Shytoshi Kusama, the enigmatic lead developer of the Shiba Inu (SHIB) ecosystem, commended the UAE government for its decision to exempt cryptocurrency transactions when it comes to value-added tax (VAT).

In related news, Chainalysis previously announced that they would enlist UAE-based skilled professionals with expertise in traditional finance, regulatory compliance, and Web3 technologies to operate out of its Dubai base.

 

Updating Regulations

In a post on X, Kusama reacted to the news of the aforementioned exemption with a GIF featuring Vegeta, a popular character in the anime series DragonballZ. The pseudonymous figure referred to the UAE as the cryptocurrency capital.

Last week, the UAE Federal Tax Authority updated local VAT regulations, which, according to PricewaterhouseCoopers (PwC), will remove taxes on the transfer and conversion of virtual assets. PwC noted that these exemptions would take effect retroactively on January 1st, 2025. It is worth mentioning that the UAE does not impose federal income tax on individuals, though a 5% VAT applies to goods and services.

 

Why It Matters

This exemption marks another move by the UAE government to position the country as a global hub for cryptocurrencies, blockchain development, AI, and Web3 in general. Earlier this year, Binance, the largest cryptocurrency exchange globally, obtained a full regulatory license in Dubai, enabling it to offer virtual asset services to a wider audience.

Additionally, Ripple Labs received preliminary approval to provide blockchain-based payment services via the Dubai International Financial Centre (DIFC). Kusama has previously expressed admiration for the local cryptocurrency environment and has appreciated the Emirati culture alongside his connections in the region.

 

October 07,2024

Crypto Analyst Promotes Meme Coin While Remaining Bullish On BTC

A well-known crypto analyst has exciting news for investors, as he believes a specific meme asset that has skyrocketed 300x in under a year is poised to kick off another substantial rally. As is the case with all cryptocurrencies though, particularly, meme coins, it is imperative to conduct your own research beforehand.

 

Vast Potential

Altcoin Sherpa, a pseudonymous trader with a following of 223,600 on the platform X, recently shared his bullish outlook on the memecoin Popcat ($POPCAT). He highlights that the asset has successfully broken through its last major resistance level at $1, setting the stage for potentially explosive growth.

Sherpa believes that $POPCAT could surge by over 60% compared to its current price. When a coin breaks out of a trading range, you want to see that momentum continue, he explains. Of course, the overall movement will depend on Bitcoin, but I am optimistic about $POPCAT. Honestly, I would not be surprised to see it hit around $2, he added.

 

Bounce Back Seemingly Inevitable

As of now, $POPCAT is trading at $1.23, reflecting a notable increase of over 7% in just the past 24 hours. To put this into perspective, back on January 5th, this meme coin was valued at a mere $0.00379, leading to astonishing gains of more than 324x.

Turning our attention to the leading cryptocurrency by market capitalization, Sherpa is equally optimistic about Bitcoin (BTC). He anticipates that BTC will bounce hard in the near future, suggesting it is in the process of forming a local bottom. For what it is worth, I genuinely believe BTC is set to make a strong rebound soon. A bottom seems to be taking shape, he asserts.

October 07,2024

Web3 Fundraising Deals - 1st To 7th October 2024

Sophon Labs raised an undisclosed amount with assistance by Binance Labs. Sophon is a platform which focuses on providing consumers with an engaging and culturally rich ecosystem of diverse yet practical applications.

 

 

Pallete secured an undisclosed amount in M&A funding with help being provided by Aptos Foundation. Palette is a blockchain optimized for all kinds of digital content, though mainly NFTs, covering a variety of fields such as anime, sports, and music.

 

 

Synnax Technologies obtained $550K in Strategic Funding thanks to support by Wintermute. Synnax is a protocol that combines credit intelligence to provide forward-looking credit ratings through a decentralized consensus model.

 

 

SecondLive raised $12M in a Private Token Sale via assistance by Crypto.com. SecondLive is a diversified metaverse focused on building social networks and supporting creator economic activities.

 

 

RD Technologies secured $7.8M in Pre-Series A Funding with help by Solana Foundation. RD Technologies is a fintech company focused on facilitating payments and commerce with trust, stability, and efficiency. The company is developing HKDR, a Hong Kong Dollar-backed stablecoin, aiming to enhance the capabilities of digital money and contribute to the global Web3 economy.

 

 

MeshMap acquired $4M thanks to support granted by by Andreessen Horowitz. MeshMap is a decentralized platform for creating and sharing 3D maps collaboratively. It leverages decentralized infrastructure to enable users to contribute, validate, and access highly detailed 3D maps without relying on centralized mapping services.

 

Roolz secured an undisclosed amount with Animoca Brands once again providing the support. Roolz is a platform that combines anime, mobile apps, and digital collectibles, powered by the $GODL token.

October 06,2024

Bitcoin Briefly Crosses $62K As Elon Musk Joins Donald Trump

The cryptocurrency market experienced significant volatility over the past 24 hours, with Bitcoin (BTC) taking the spotlight and surpassing $62,000. This rise has allowed smaller altcoins to bounce back, including a popular meme coin that surged by as much as 25% during the day.

In addition, market sentiment has also shifted to neutral, an improvement compared to a fearful atmosphere experienced last week.

 

Bitcoin Bulls Return
Yesterday, Bitcoin was hovering around $61,000 for an extended period, with bears pushing it down to a local low near $60,800. Nevertheless, buyers regained control, lifting it back over $61K. Currently, positive momentum continues, as BTC is trading at approximately $62,250.

The recent price movements are crucial, and how BTC behaves within this range will indicate its future trajectory. Moreover, despite various fluctuations, the derivatives sector felt the impact. In the last 24 hours, over $110 million in leveraged positions were liquidated, predominantly short positions totaling $64 million.
Most altcoins are also showing positive trends, though many are registering only modest increases. Major cryptocurrencies such as XRP, ADA, AVAX, SOL, BNB, and ETH have risen between 0.5% and 1.5%. The meme coin sector has thrived over the past day, with an average increase of 9%, particularly driven by cat-themed coins. For instance, POPCAT has risen by 25%, while larger meme coins like DOGE and SHIB have gained around 1%.

 

Other Markets

French strikes have left millions of barrels of oil stranded on tankers, while a wave of oil tourists rushes into the market amid the most significant rally in two years. This week, a key measure of market volatility surged to a two-year high, prompting Saudi Arabia to raise oil prices for Asia as uncertainty grips the market. Meanwhile, banks are activating funds for leveraged buyouts as interest rates decline, and US inflation is expected to reassure a labor market-focused Federal Reserve.

In the political arena, Elon Musk amplified his presence by joining Trump on stage, declaring the upcoming presidential election to be the most crucial election of our lifetime. Kamala Harris has pledged support during her visit to storm-affected North Carolina, while Biden is set to announce additional student loan relief ahead of his upcoming trip.

In China, imagery of a high-speed railway in Laos highlights the ambition the Chinese have in terms of infrastructure plans, as its bullet trains extend toward Singapore, despite ongoing debt concerns. Southeast Asian nations are embracing investments by Beijing aimed at knitting the region closer together through a network of interconnected projects.

 

October 05,2024

Ubisoft Announces Plans For New Ethereum Game NFT Mint

Ubisoft plans to introduce a collection of 10,000 NFTs on the Ethereum scaling network Arbitrum in the upcoming weeks, utilizing the Magic Eden marketplace. These NFTs will give holders early access to the highly anticipated top-down shooter, Captain Laserhawk: The G.A.M.E.

Set in a dystopian world influenced by the Netflix series Captain Laserhawk: A Blood Dragon Remix, the competitive multiplayer game will feature well-known characters representing different franchises like Rayman, Prince Of Persia, Beyond Good & Evil, and more.

Ubisoft, previously partnered with the Wemix Blockchain Node Council to help run validator nodes on the new Wemix 3.0 network, an Ethereum-compatible EVM blockchain.

 

A Collaborative Ecosystem

Minted on Arbitrum, the new Niji Warrior ID NFTs will provide early access to the game, facilitate participation in its governance model, and monitor player achievements. As players improve their scores, the NFT will evolve, unlocking additional benefits and enhancing governance capabilities. Holders will also have opportunities to earn rewards and access user-generated content, although specific details regarding this are still pending.

By integrating Web3, the platform is empowering its community to play and influence the future of the game, stated Didier Genevois, Web3 Executive Producer at Ubisoft. This initiative aims to create a collaborative ecosystem where player choices and creativity significantly affect the development of the game, allowing for a truly personalized experience.

This partnership also marks the introduction of Arbitrum support on the Magic Eden NFT marketplace, which has previously accommodated projects on Solana, Bitcoin, Ethereum, Polygon, and Base.

 

A New Experience

Announced in August, Captain Laserhawk: The G.A.M.E. is described as a transmedia experience, with its foundational elements being constructed on Arbitrum. The community will play a crucial role in shaping the narrative through Web3 governance, accessible via the upcoming Niji Warrior ID mint.

Following a closed beta in late August, limited footage has surfaced online, reportedly due to NDA agreements preventing beta testers from sharing images or details. However, snippets shared on Twitter suggest a vibrant game environment filled with intense combat scenarios.

The NFT collection is expected to mint soon, with many potential minters already securing spots by participating in the beta and completing Discord tasks. This minting represents the final milestone in the roadmap before the release of the game, indicating that Captain Laserhawk: The G.A.M.E. is on the horizon.