Prometheum has angered nearly everyone in the crypto community, not merely due to their existence, but because of their approach to the industry. While other crypto firms are struggling to navigate tightening regulations, Prometheum has been aligning closely with regulators, causing controversy.

Why is it so despised?

The company began attracting negative attention in May 2023 when it became the first to obtain a special-purpose broker-dealer license by the SEC and FINRA. This license enables them to manage digital assets, a capability that major players like Coinbase and Robinhood have been striving to obtain for years without success. Unsurprisingly, the crypto community reacted negatively to this development.

The Blockchain Association criticized it as a sweetheart deal, and some Republican Congress members even called for a DOJ investigation to uncover how Prometheum achieved this. The situation was further aggravated because Coinbase and Robinhood had been repeatedly denied this license. Prometheum asserts they simply adhered to regulations, but many are skeptical.

Reading Between The Lines

Beyond acquiring the contentious license, Prometheum went on to classify major tokens such as ETH, UNI, and ARB as securities on their platform. This decision sparked outrage because the SEC has not yet clarified the status of Ethereum as a security. By labeling ETH, UNI, and ARB as securities, Prometheum appeared to overstep.

Critics noted the inconsistency, questioning how Prometheum could designate these tokens as securities when the SEC itself has yet to provide clarification. Despite the backlash, the company remained resolute. Ben Kaplan, CEO of Prometheum Capital, the subsidiary with the broker-dealer license, stated that their aim is to integrate the top 50 digital assets into the platform, and that Uniswap and Arbitrum are among them.

The timing is also noteworthy. As the SEC aggressively pursued legal action against various companies for selling unregistered securities, Prometheum managed to launch its services. Following Aaron Kaplan, Prometheum CEO, testifying before Congress, questions about who the early financial backers for the company, including a Chinese crypto firm, and its profitability have intensified.

Sony Group and Startale have unveiled their new joint blockchain venture, Soneium, which is their initial Ethereum Layer-2 solution designed to enhance scalability and user experience with the goal of mainstream adoption.

Last December, SBI Holdings, the primary cryptocurrency finance group of Japan, and Saudi Aramco, the second largest company in the entire world, disclosed a strategic collaboration. The partnership aimed to delve into mutual investment in their respective digital asset portfolios and the development of semiconductor facilities in both countries.

Supporting Web3 Applications

Upon its introduction, Soneium aims to support Web3 applications in various domains such as entertainment, gaming, and finance, according to Sony Block Solutions Labs. Sony Group has robust distribution networks across numerous industries and a large user base in everyday life, stated Sota Watanabe, Founder of Astar Network and Director of Sony Block Solutions Labs.

The venture is currently preparing for an upcoming testnet launch, although the specific date has not yet been announced. Technical details regarding the platform and its tools as well as developer requirements will be revealed in the coming weeks, according to Sony Block Solutions Labs.

Enhancing Liquidity

For the testnet phase, Astar Network will integrate its zkEVM assets and infrastructure with Soneium to enhance the initial liquidity of the new blockchain. Sony Block Solutions Labs mentioned that future applications of Soneium could include safeguarding creator rights and establishing new methods for equitable profit-sharing between creators and their audience.

Additionally, it was reported last month that Sony is working on launching a local cryptocurrency trading platform in Japan. The Asian country is quickly becoming a popular destination for crypto due to its advanced technological infrastructure, supportive regulatory environment, and high levels of public interest and adoption in digital currencies.

Recent reports indicate that Robert F. Kennedy Jr. is expected to no longer participate in the 2024 US Presidential Election. This news has caused PolitiFi tokens to increase by over 15% in the past 24 hours. While tokens related to RFK Jr. have decreased, Trump-themed meme coins have surged by 40%.

Moreover, it is becoming increasingly likely that Trump will end up winning the election and become United States President once again, especially since Kamala Harris has not done herself any favors by recently stating she will appoint SEC Chair Gary Gensler as Treasury Secretary if she wins.

Endorsing Trump

During this election cycle, meme coins have become a prominent narrative, with the crypto community closely tracking events through these tokens, including the forthcoming November US presidential elections.

Policies surrounding cryptocurrencies have become increasingly important among voters, especially since the Biden administration has often taken stringent regulatory actions against the industry. Consequently, candidates who support crypto have garnered substantial backing by the crypto community.

RFK Jr. has been a notable supporter of Bitcoin and blockchain technology throughout his campaign. However, recent reports suggest he will exit the race and endorse former President Donald Trump. Trump has recently engaged with the crypto industry and has begun accepting various cryptocurrencies for donations.

MAGA Skyrockets

Trump-themed meme coins have led the surge, with PolitiFi tokens rising by 15.5% in the last day.  The leading Trump-themed token, MAGA (TRUMP), experienced a significant increase. After a drop in value since late July, when it traded above $6, TRUMP had fallen to below $3 following market declines in August, marking a 41.5% decrease over the past month.

Nevertheless, TRUMP surged by 55.6% to approximately $4.14 on Thursday, currently trading at $3.70, reflecting a 40% rise in the last 24 hours. Other meme coins associated with Donald Trump also saw notable gains.

Exchange-traded funds (ETFs) are increasingly viewed as a crucial means for institutional investment in cryptocurrencies, providing a regulated channel for investors to engage with these digital assets. Typically, in many regions, including the United States, ETFs are primarily available for Bitcoin (BTC) and Ethereum (ETH).

However, there is optimism among Solana (SOL) investors that this might soon change, as Brazil has recently attracted attention with its active support for Solana ETFs. The country is set to list its first Solana-based ETF on the B3 exchange, with a second one receiving regulatory approval.

Furthermore, SOL enthusiasts are hopeful that ETF approvals can help the struggling project, especially after a lot of the meme coins on the platform were recently called scams by ZachXBT.

Advancements With Solana ETFs

On August 21st, 2024, a second Solana ETF managed by Hashdex was approved by the Brazilian Securities Commission (CVM). This ETF is now in the pre-operational stage, with further details regarding its public offering and listing to be revealed.

The move also follows the earlier approval of the inaugural Brazilian Solana ETF by the regulator. This initial fund, introduced by QR Assets and managed by Vortx, marks a significant step in the Brazilian government trying to integrate emerging technologies into its financial sector. For institutional investors, ETFs provide a more accessible route to crypto investments.

Why Institutions Prefer Crypto ETFs

Crypto ETFs may not be appealing to all investors, as their performance often lags behind the underlying assets and they incur management fees. For Solana ETFs, the trading value can exceed the actual asset value significantly, leading to potential market corrections. Despite these factors, ETFs offer considerable advantages for major institutional investors.

ETFs additionally reduce entry barriers for those interested in crypto but wary of managing digital assets directly. Institutional investors face regulatory and technical hurdles when dealing with exchanges, including risks of hacks and errors, and counterparty risks highlighted by events like the infamous FTX collapse.

Thus, ETFs enable firms, which hold most of the global capital, to invest in crypto more easily. This is why Solana investors are hopeful for a positive price impact due to these ETF approvals. Some institutions like BlackRock and VanEck have indicated that the approval of Solana ETFs may have a modest effect on the price of SOL.

The Shiba Inu (SHIB) ecosystem has advanced with the release of the Shiba Eternity closed beta, its first game on the Shibarium blockchain. Lucie, the Shiba Inu marketing lead, announced the update on X, marking a major shift towards a utility-focused ecosystem.

She also warned against scams and that users should only connect their wallet through official platforms and avoid links via unknown sources in addition to always verifying the official website address before connecting.

Making History

Lucie revealed that the latest version of Shiba Eternity is a complete overhaul rather than a simple update, before going on to claim that this is not just the old game with a few tweaks as it is instead a full transition to Web3 with major upgrades.

The game operates on the Shibarium mainnet and supports NFTs, allowing a decentralized gaming experience where inventory cards are NFTs, ensuring verifiable ownership and tradeability. The infrastructure of the game is also now built on the Shibarium blockchain, providing secure asset management and transactions. In addition, it features a ranked mode with 15 day tournaments, rewards based on performance, and exclusive events for top players.

Release Schedule

Significant improvements include an updated tutorial, refined menu, streamlined armory management, and enhanced performance. The new reward system offers better quests and faster progression, with special gifts for players who previously played the Web2 versions of the game.

The closed beta, accessible since August 21st, 2024, is available to LEASH token stakers who can connect their smart wallets via ShibaSwap. On September 5th, access will expand to holders of specific Shiba Inu NFTs, including The Shiboshis and The Shiba Eternity Lore collections. An open beta release will be announced later.

Despite recent price drops, Shiba Inu has shown notable improvements in key metrics, suggesting a potential price recovery after a period of decline.

Binance and its former CEO, Changpeng Zhao (CZ), are facing a class action lawsuit by three crypto investors who claim they could not recover their stolen assets because Binance failed to prevent money laundering. Previously, Binance.US had its license revoked by The North Dakota Department of Financial Institutions (DFI).

A Tough Spot

On August 16th, the plaintiffs filed their complaint in the U.S. District Court for the Western District of Washington. They argue that their stolen crypto was sent to Binance by thieves to hide its origin and make it untraceable. The lawsuit alleges that Binance played a key role in the laundering process, violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.

Bill Hughes of ConsenSys expressed doubt about the lawsuit and its ability to prove its claims but acknowledged that it puts Binance in a tough spot. He noted that if the case advances, it could test the effectiveness of blockchain analytics and asset recovery.

No Confidence

CZ admitted guilt in November 2023 for violating U.S. money laundering laws, leading to his resignation and Binance agreeing to pay $4.3 billion in fines. CZ received a four-month prison sentence in April and began serving it in June.

Additionally, the SEC has sued Binance and CZ for misleading statements about market controls and inflated trading volumes, with most of the case allowed to proceed as of June 28th. In any case, trust in Binance has waned due to allegations of failing to prevent money laundering, misleading regulators, and inflating trading volumes, despite the exchange trying to help the industry in the past.

A federal judge in Texas has halted a new Federal Trade Commission (FTC) rule that would have simplified the process for employees to leave their jobs and join competing firms.

Overstepping Authority

On Tuesday, U.S. District Judge Ada Brown ruled in favor of a summary judgment request by the U.S. Chamber of Commerce and other plaintiffs, denying the request made by the FTC for a ruling in its favor. Judge Brown determined that the FTC had overstepped its legal authority with the rule, labeling it as arbitrary and capricious, and also found that it would result in significant, irreparable damage.

Consequently, the FTC will not be able to enforce the rule, which was scheduled to take effect on September 4th, as per the decision made by the judge. However, this ruling does not stop the agency when it comes to addressing non-compete agreements through individual enforcement actions, according to FTC spokesperson Victoria Graham.

Appealing The Decision

The FTC is also considering whether to appeal the decision, Graham noted. In April, the FTC decided to ban employers across the nation when it comes to entering into new non-compete agreements or enforcing existing ones, arguing that such agreements limit workers in terms of their freedom and overall wages.

Crypto remains to be very popular in Texas due to the favorable regulatory environment in the state alongside low energy costs, and strong tech infrastructure. These factors attract investors and companies looking for a supportive environment for digital currency ventures.

The Cardano Lace Wallet has now upgraded its paper wallet with Pretty Good Privacy (PGP) encryption to enhance security. To prove confidence in this advancement, Cardano Founder and Input Output (IO) CEO Charles Hoskinson has announced a $1 million reward for anyone who can breach the Lace paper wallet.

Crypto wallets are essential for managing digital assets and come in various forms, each with different benefits and risks. Paper wallets are simple but vulnerable to damage and theft, while hardware wallets offer added security through PIN codes or biometrics.

Hack The Paper Wallet for $1M

At the Rare Evo blockchain event in Las Vegas between August 15th to 17th, 2024, Hoskinson introduced the aforementioned new PGP encrypted paper wallet. This upgrade aims to resolve the issues of compromised private keys found in traditional paper wallets.

Public keys are openly shared for transactions, while private keys are usually secured by a seed phrase. The updated paper wallet features both keys as QR codes, with added PGP encryption for the private key.

Despite being shareable, unauthorized access is blocked by the encryption. The wallet includes an NFT, which will be exchanged for $1 million in USDM stablecoin if successfully hacked. This bounty is available until the end of 2024 or until the wallet is breached.

A Strong Security Record

Since its launch in 2017, Cardano has maintained a strong reputation for reliability and security, with no network breaches. Its decentralized, open-source platform uses scientifically validated technology to ensure reliable transactions and smart contract audits. This design helps reduce potential vulnerabilities and attack vectors.

In June, Cardano faced a spam attack that caused some network slowdowns but was otherwise managed effectively with minimal disruption. Regardless, PGP encryption is considered nearly unbreakable, and integrating it with blockchain technology shows the evolving security practices in crypto.

The expansion of Lace to support multiple assets and chains highlights an overall push by Cardano for greater interoperability. The $1 million bug bounty is impressive, but the real significance lies in the development of Lace as a secure and versatile alternative to MetaMask.

Kamala Harris is considering appointing Gary Gensler as the next Treasury Secretary if she wins the 2024 election. This is the same Gary Gensler who currently leads the United States Securities And Exchange Commission (SEC) and has caused significant unease among crypto firms.

A Divisive Decision

According to some senior Senate staffers, Kamala is serious about this move, and Republicans are expected to react strongly against it. Minnesota representative Tom Emmer, a known critic of Gensler, has made his stance clear by stating that Gary needs to move on, and that his career in government should be over. Emmer also criticized Gensler for frequently initiating lawsuits without achieving many victories.

Republican Senate staffers are gearing up to resist Gensler and his potential nomination, believing it could negatively impact the economy, especially if his current regulatory approach continues at the Treasury.

On the Democratic side, there might be some support for Gensler. Figures like Elissa Slotkin and Ruben Gallego, who have connections to the crypto industry through backing via groups like Fairshake PAC, could potentially endorse him. However, both have been quite critical of crypto policies in Congress, leaving their support uncertain.

The Uncertainty Continues

There is also speculation that Gensler might step down before the upcoming presidential election, allowing Joe Biden to select a new SEC chair. If Gensler does take up the Treasury position, it could lead to increased scrutiny for crypto firms and potentially tougher regulations for other financial institutions.

This uncertainty regarding securities could make it challenging for crypto companies to operate effectively, possibly prompting them to seek more favorable environments abroad, which could impact the leadership of the United States in terms of crypto innovation.

BlackRock has recently surpassed Grayscale to become the top holder of cryptocurrency ETFs, marking a significant change in the investment landscape. As the largest asset manager globally, BlackRock now leads in crypto ETFs with $21.2 billion in assets, just ahead of Grayscale.

Previously, the BlackRock Ethereum ETF, known as $ETHA, was listed on the Depository Trust and Clearing Corporation (DTCC), following approval by the United States Securities and Exchange Commission (SEC). The move came shortly after the SEC approved several spot Ether ETFs.

BlackRock Over Grayscale

The success of BlackRock is largely due to its two key funds, the IBIT (spot Bitcoin ETF) and the ETHA (spot Ethereum ETF). In comparison, Grayscale offers four funds but has fallen behind in ETF holdings, despite maintaining a larger overall balance thanks to its GDLC fund, which holds $460 million.

Since its January launch, the IBIT has shown strong performance, with minimal outflows, helping it become a preferred choice for Bitcoin investors. Meanwhile, GBTC has struggled, facing a net outflow of $19.65 billion and losing its leading position. Major investment banks like Morgan Stanley and Goldman Sachs have also shifted their support to BlackRock and its iShares Bitcoin ETF. This trend highlights a growing institutional preference for more stable crypto ETFs.

Bitcoin Over Ethereum

While Bitcoin ETFs perform well, Ethereum ETFs have faced challenges, with a recent net outflow of $14.17 million compared to Bitcoin which has $32.57 million inflow. This indicates stronger market acceptance of Bitcoin ETFs over Ethereum.

The rise of BlackRock is expected to intensify competition among asset managers, driving further innovation in the market. However, the ongoing issues with Ethereum ETFs suggest that balancing risk and reward will be crucial as the market evolves. The ascension of BlackRock to the top of the crypto ETF market marks a major shift, with strong institutional backing positioning it for future leadership, while Grayscale works to regain its footing.

Indian authorities have arrested Shailesh Babulal Bhatt, who is accused of kidnapping two people linked to the collapsed BitConnect crypto scheme to recoup his investment. On August 17th, the Enforcement Directorate (ED) revealed Bhatt had lost money in BitConnect Coin, a cryptocurrency tied to the now-defunct BitConnect platform, deemed a global Ponzi scheme.

A Lengthy Investigation

Allegedly, Bhatt and his accomplices abducted two employees of Satish Kumbhani, the founder of BitConnect, demanding a ransom of 2,091 Bitcoin, 11,000 Litecoin, and roughly $1.7 million USD.  During the investigation, Bhatt admitted to paying his accomplices $34 million, which was used to buy properties, gold, and other assets.

After a lengthy investigation by local authorities, Bhaty was arrested on August 13th under the Prevention of Money-Laundering Act (PMLA) and remains in custody after a court appearance in Ahmedabad, India. The investigation followed reports filed by the State Crime Investigation Department (CID) in Surat. So far, the agency has seized assets worth $52 million, with the probe still ongoing.

An Infamous Scam

BitConnect, launched in 2016 and collapsing in 2018, defrauded 4,000 people across 95 countries, resulting in losses of about $2.4 billion. The scheme has been accused of being a major Ponzi operation. BitConnect founder Satish Kumbhani faces charges in the US for running the scheme and remains unaccounted for.

In addition, key figures involved in BitConnect have faced legal action. Glenn Arcaro, a prominent US promoter, was sentenced to 38 months in prison in September 2022. John Bigatton, another major promoter, was convicted in July for providing unlicensed financial advice.

Holonym Foundation secured $5.50M in Seed funding with help by Paper Ventures. Holonym is a privacy-focused digital identity platform that uses zero-knowledge proofs to enable users to verify their identity without revealing personal information.

CrunchDAO closed a $3.50M Seed round with support by Multicoin Capital. CrunchDAO is an AI research community made up of data scientists who participate in distributed machine learning competitions.

WSPN raised a whopping $30.00M in Seed funding led by Foresight Ventures. WSPN is a global digital payments company that offers transparent, fast, and efficient payment solutions using Distributed Ledger Technology (DLT).

KIP Protocol raised $5.00M in a Private Token Sale with support by Animoca Brands. KIP Protocol is a foundational layer in the world of Web3, designed to enable AI models, applications, and data owners to securely transact and monetize their assets.

MyShell.ai secured an undisclosed amount which was funded by Binance Labs. MyShell is a Web3 enabled AI platform that lets users create personalized chatbots called Shells. The platform is for both content creators and consumers.

Chaos Labs completed a massive $55.00M Series A round with Haun Ventures. Chaos Labs is a platform that focuses on providing advanced risk management solutions for DeFi protocols.

Orderly Network raised $5.00M in a Strategic round with help by OKX Ventures. Orderly Network is a combination of an orderbook based trading infrastructure and a robust liquidity layer offering spot and perpetual futures orderbooks.

Satflow achieved $7.60M in Seed funding with help by Variant. Satflow provides infrastructure tailored for market makers and high-frequency traders.

Sling Money completed a $15.00M Series A with support by Ribbit Capital. Sling is an app designed to make sending and receiving money effortless.

Rivalz Network secured $9.00M with support by Delphi Ventures. Rivalz Network is an AI-driven DePin RollApp built on Dymesion.

Sahara AI raised $37.00M in Series A funding with support by Polychain Capital. Sahara is a decentralized AI network designed to create personalized Knowledge Agents (KA) for both individuals and businesses.

Rhinestone secured $5.00M in Seed funding with support by 1kx. Rhinestone provides distribution through a module marketplace and turnkey business models for monetization.

Parfin secured $10.00M in Series A with help by ParaFi Capital. Parfin is a digital asset management platform that provides secure and compliant solutions for managing cryptocurrencies and digital assets.

Autoverse Studios Inc. raised $8.00M with White Star Capital. Autoverse is a Web3 game studio that developed Auto Legends, a racing game that can be played on PC, Mac, iOS, and Android platforms.