This week, Cardano (ADA) experienced the most significant surge among larger-cap altcoins, gaining over 10% in value overnight. Also, after a brief period of moving south and trading in the vicinity of or below the $41,000 mark, Bitcoin (BTC) bulls reemerged, propelling the asset beyond $43,000. As of the time of this writing, BTC is trading at just over $42,600.

Altcoins, according to information provided by CoinGecko, are also displaying positive momentum, with ADA standing out prominently, followed by DOT, SHIB, AVAX, and SOL. The total crypto market cap surged by over $60 billion at one point, yet it currently remains below $1.6 trillion.

BTC regains momentum

Following its peak at $44,700, BTC faced a less favorable outlook. It retraced to $44,000 over the weekend and experienced a significant drop on Monday, falling below $41,000. The situation worsened on Tuesday, dipping to $40,200. However, bulls defended that level, pushing BTC to around $42,000. After a failed attempt to reclaim this level on Tuesday, the asset surged once more yesterday evening, surpassing $42,000 and even reaching $43,000.

Moreover, while most alternative coins were in decline, the market managed to take a positive turn. As previously mentioned, ADA leads the way among larger-cap altcoins, with a daily surge of over 12%, currently trading close to $0.65. Solana, Polkadot, and Shiba Inu are following suit. Avalanche, Ethereum, Ripple, Dogecoin, Chainlink, and Polygon also recorded gains of up to 4%. Further gains were also evident in BONK, Helium, WOO Network, and Injective.

Other markets

Asian stocks saw advancement, boosted by the Chinese Central Bank injecting $112 billion into the financial system. Treasuries experienced a slight decrease, while the MSCI AC Asia Pacific Index rose 1%, reaching its highest point since early August, with Hong Kong stocks rallying 3%. US equity futures inched higher, and the Nasdaq 100 declined after a more than 50% surge in 2023.

Elsewhere, contrary to consensus, some major money managers, including Fidelity International and HSBC Holdings, anticipate a stronger dollar next year. Some experts argue that a global economic slowdown will lead traders to favor USD going forward as it is still the global reserve currency.

However, some analysts are becoming increasingly skeptical about the sustainability of US consumer spending into the next year. Despite American shoppers displaying surprising resilience amid persistent inflation and elevated borrowing costs, sell-side analysts have reduced profit projections for the consumer discretionary sector over the past 12 weeks.

Yearn Finance, a key player in the yield-farming sector, recently disclosed a significant flaw in its multi-signature script that caused an unintended transfer and subsequent swap of a substantial part of its treasury, resulting in an estimated loss of $1.4 million.

During what was termed as a routine fee token conversion for the treasury, a faulty script erroneously exchanged 3,794,894 lp-yCRVv2 tokens for 779,958 yvDAI tokens. The mistake originated through sending the entire treasury balance of lp-yCRVv2, comprising both Position of Liquidity and fees, to a trading multisig.

This transfer exceeded the intended fees portion. The flawed script, lacking proper output checks and containing a logical flaw, failed to restrict the trade size, leading to significant price slippage and massive losses.

Market impact and subsequent measures

The unexpected trade caused notable market disruptions, with the price swiftly correcting back to normal levels. Yearn Finance urged users who benefitted via this price movement to return a reasonable amount to the main multisig wallet. Prior to any such returns, the losses constitute approximately 2% of the entire treasury.

In response to the incident, Yearn Finance outlined various corrective measures. The team intends to segregate funds into dedicated manager contracts, improve the readability of output messages in trading scripts, and enforce stricter price impact thresholds. These actions aim to bolster the protocol against similar mishaps in the future.

Security challenges context

This is not the first time that Yearn Finance has faced a security challenge. Earlier this year, an exploit targeting an early version of the protocol, known as iEarn, resulted in losses of $11.6 million, as reported by PeckShield, a blockchain security firm. Additionally, in February, another exploit led to the theft of $11 million in cryptocurrencies.

While not directly impacting user funds, the most recent incident highlights the ongoing security and operational challenges in the decentralized finance space. The proactive response and commitment shown by Yearn Finance to enhancing its systems showcase both resilience and adaptability in addressing these challenges.

In September, Invesco entered the cryptocurrency ETF competition by introducing the Invesco Galaxy Ethereum ETF in collaboration with Galaxy Digital Funds. Notably, this particular ETF was designed to directly hold Ethereum as opposed to Bitcoin.

Regarding delays, Invesco, like other asset managers, received news by the United States SEC about a delay in its application. The SEC also granted a 45 day extension for the decision on the application put forth by Grayscale for a spot ETF, pushing the expected verdict to the new deadline of January 25th, 2024.

Invesco going all in

Invesco is a significant contender for a spot ETF for Ethereum, adding a dynamic twist to the landscape. Previously, Invesco and Galaxy had jointly submitted an application for a physically backed Bitcoin ETF but later withdrew it.

Invesco clarified that, while they have decided not to pursue a Bitcoin futures ETF in the immediate future, they remain committed to working with Galaxy Digital to provide investors with a comprehensive range of products related to this transformative asset class, including exploring a physically backed digital asset ETF.

SEC taking its time

Similarly, the SEC has sought public feedback on the proposed rule change by Fidelity for a similar product, with the asset manager awaiting what the regulator will decide. In fact, the entire crypto industry is eagerly awaiting what the SEC will choose to do regarding spot Bitcoin ETF applications by BlackRock, Fidelity, WisdomTree, and various other companies.

With just four weeks left in the short approval window, optimism remains high among crypto proponents that the SEC will rule favorably, potentially marking the first approval of a spot Bitcoin ETF in the United States.

Artificial Intelligence has brought improvements to various industries. One industry that has benefited from this tool is the trading industry. AI-powered trading tools are the best tools for traders and investors. They are offering data-driven strategies, automation, and predictive analytics. Before you start using these platforms, you should know everything about it.

• The Role of AI in Trading

Artificial Intelligence trading tools like quantum ai use advanced algorithms to analyze historical data and predict future market movements. These predictions can range from short-term price fluctuations to long-term trends. By using machine learning techniques, the tool can reveal patterns and relationships. Some of these patterns sometimes need to be more complex to discern. Artificial Intelligence trading tools help manage risk through monitoring and decision-making. They can analyze different amounts of news, social media, and other data sources to gauge market sentiment. The tools can execute trades on behalf of traders automatically. 

• Benefits of AI Trading Tools

Artificial Intelligence trading tools can process and analyze many datasets, making them more efficient and accurate. They can identify market opportunities and assess risks at a speed and scale that humans cannot match. Your emotions can always lead to irrational trading decisions. Artificial Intelligence tools do not succumb to these emotions. This will help you because you will stick to your strategies and avoid actions that can lead to losses. The device also enables you to backtest your strategy on historical data. This can be important for the optimization of trading algorithms. They can operate 24/7, continuously monitoring markets and executing trades. This ensures that you take advantage of all opportunities under various market conditions.

• Consideration

The effectiveness of Artificial Intelligence trading tools relies on the quality of data they are trained on. Only accurate data can lead to correct predictions or trading decisions. Therefore, you need to be cautious about the data sources used by AI tools. Note that their models can be prone to overfitting. This mainly occurs when they perform well on historical data but fail in live trading. Such challenges can be due to an inability to adapt to changing market conditions. In this case, you should conduct the best model selection, and parameter tuning is essential to mitigate this risk. The use of Artificial Intelligence in trading is subject to regulatory oversight. You must ensure that their AI tools comply with financial regulations in their jurisdiction if they operate in a professional or institutional capacity.

• Innovations

The introduction of quantum computing in the industry could enhance AI trading tools. They work by solving complex optimization problems more efficiently. This technology could revolutionize risk assessment and portfolio management. As AI algorithms become more advanced, there is a growing need for transparency and interpretability. The development of explainable Artificial Intelligence models will help you understand why AI systems make confident decisions.

Note that Artificial Intelligence like quantum ai is not limited to retail trading. It is increasingly integrated into institutional finance, including asset management, risk assessment, and investment analysis. This trend is likely to continue, reshaping the finance industry. They have found a strong foundation in cryptocurrency trading. With this, they offer unique strategies according to the nature of digital assets. The intersection of Artificial Intelligence and blockchain technology will provide the best opportunities for you. These are the few things you should keep in mind about Artificial Intelligence.

Senator Elizabeth Warren is advocating for a legislative measure that many view as detrimental to the American public. Known for her criticism of both cryptocurrency and many major banks, she has presented a bill, termed the Digital Asset Anti-Money Laundering Act, aimed at addressing the alleged involvement of crypto in illicit financial activities.

Still a ways to go

On December 11th, five Democratic lawmakers, including three via the Senate Banking Committee which were Senators Raphael Warnock (D-GA), Laphonza Butler (D-CA), and Chris Van Hollen (D-MD), joined as co-sponsors. This committee holds considerable influence in shaping laws regulating a major economic sector in the United States, making their support significant.

Despite this, the aforementioned bill faces considerable obstacles to passing due to typical challenges in US governance, such as partisan politics, internal conflicts, and legislative gridlock. While this may be beneficial for the crypto industry, whose leaders have expressed strong opposition to the bill, it is also advantageous for the general public. Still, the proposed anti-money laundering act, despite its well-intentioned origins, raises concerns due to attached conditions.

The future is uncertain

It is worth noting that the bill put forth by Senator Warren, in its current form at least, is unlikely to gain approval for various reasons, including constitutional concerns raised by industry lobbyists. The legislation could be deemed unconstitutional. Additionally, US legislators, following the FTX and Terra incidents, are focused on implementing genuine regulatory reforms in the crypto space.

The bill, however, narrowly concentrates on surveillance issues, neglecting broader concerns in blockchain that contributed to events like the FTX fiasco. This narrow focus raises questions about the value of the bill and the time allocation factor of several lawmakers, considering other pressing matters.

In any case, the timing of the bill is noteworthy. Similar to another concerning congressional proposal, it appears to seek unconstitutional expansion of surveillance over various components of popular digital technologies.

The US Securities Exchange Commission (SEC) has accused Richard Heart of conducting unregistered securities offerings through his Hex, PulseChain, and PulseX blockchains. Initial reports suggested that Heart evaded the legal complaint, but a recent filing by the SEC confirmed that he was ultimately served in Finland.

Despite filing the initial court complaint in July, serving Heart with legal documents proved challenging amid rumors that he intentionally avoided contact with the securities agency. However, the SEC provided an update on December 11th, stating that Heart was served under Finnish law and the rules governing civil and commercial matters under the Hague Convention on October 31st through Substitute Service.

Understanding the case

Substitute service involves delivering the defendant a copy of the complaint where personal service is not possible. This could involve leaving a copy of the complaint at the property of the defendant or via email, allowing the legal process to continue even if the defendant deliberately avoids personal service.

An SEC exhibit supporting the December 11th filing outlined multiple unsuccessful attempts to deliver personal service, including leaving a contact request form on two occasions and receiving no response to phone and text messages. Under substitute service, the court documents were left at a nearby police station, with Heart informed of the location of the documents.

With the court papers considered served, the case against Heart can move forward. The SEC alleges that Heart committed fraud by marketing Hex, PulseChain, and PulseX as profit-generating investments without proper disclosures or securities registration, raising over $1 billion through the offerings.

Caution must be exercised

The complaint includes various issues, such as Hex being touted as capable of providing investors with a 10,000x return on their investment, the use of investor funds to create fake volume, and the misappropriation of $12 million for luxury items like expensive watches and cars. The SEC is seeking disgorgement of ill-gotten gains, civil penalties, and permanent injunctions against Heart and his companies, preventing further violations of securities laws.

This case holds significance as even if founders believe their crypto projects are not securities and are fully decentralized, the economic realities determining investor profit may still categorize them as securities under US law.

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

Covering all bases

The collaboration will reportedly concentrate on three primary domains, namely collective investment in the digital asset sector, backing Japanese startups in the digital asset arena seeking to broaden their presence in Saudi Arabia, and finally diverse investment initiatives in the semiconductor sector, encompassing the establishment of manufacturing plants in both nations.

In connection with this initiative, SBI intends to establish SBI Middle East in Riyadh to facilitate the entry of Japanese digital asset startups into the Saudi Arabian market. This step aligns with ongoing endeavors of SBI in the Middle East, such as the establishment of an investment fund in partnership with local entities.

A paradigm shift

In the semiconductor area, SBI presently possesses Power Crystal Manufacturing Co. (PSMC), a Taiwanese manufacturing company, and also plans to set up a facility in Miyagi Prefecture for its Japanese manufacturing operations. The company has indicated the potential expansion of its collaboration with Aramco, contingent on mutual agreement.

In any case, the aforementioned deal has the potential to be one of the biggest of its kind, as it involves two genuine heavyweights in the world of investment and finance. Time will tell how the deal will play out, as both Japan and Saudi Arabia look to become global financial hubs going forward.

China has recently introduced RealDID, a blockchain-based initiative aimed at verifying the identities of its 1.4 billion citizens. The move comes amid global apprehensions and heightened security and regulatory measures by the United States. 

Tightening security measures

Utilizing DID addresses and private keys, the service ensures the segregation of business data and personal details. In contrast to various social media platforms in China, which mandate real names for content creators with substantial followings, RealDID stands as the inaugural national-level real-name decentralized identity system in the world, according to the BSN (Blockchain Service Network).

BSN China, managed by the National Information Center, China Mobile, and China UnionPay, oversees domestic operations, while BSN Global handles international functions separately. Concurrently, a bipartisan U.S. bill proposes a new policy which could disallow federal officials to employ China-manufactured blockchains, such as iFinex, citing potential national security threats.

Issues still persist

Spearheaded by the Chinese Ministry of Public Security in collaboration with the Blockchain Service Network, RealDID enables users to register and access websites without disclosing personal information.

Still, despite the Chinese Institute of Forensic Science no longer being a part of the trade sanctions lists by the United States, which were designed to combat fentanyl trafficking, human rights concerns persist. In response to a circular by the National Narcotics Control Commission regarding the risks associated with foreign law enforcement, China has cautioned its chemical manufacturers against producing fentanyl precursors.

On behalf of the Web3 community, we would like to extend our warmest congratulations to the companies that announced their success in fundraising between 5th December and 11th December 2023. We are thrilled to see such tremendous support from all involved. Well done! 

Ten (Obscuro) raised $7.5M - Ten is excited to announce that they have raised $7.5 million to complete their mission of bringing Encryption to Ethereum.

Endless Clouds raised $2.5M - Endless Clouds successfully raised more than $2.5 million in its latest funding announcement. This investment round draws support from influential entities and individuals across the gaming and blockchain sectors.

$FLOKI raised $1.25M - FLOKI is the people's cryptocurrency and utility token of the Floki Ecosystem. What started as a meme has developed into an industry-leading utility project.

Shadow raised $9M - Crypto data platform startup Shadow, which says it can reduce development costs on Ethereum, has raised $9 million in a seed round led by Paradigm.

Curvance raised $3.6M - DeFi platform Curvance has raised $3.6 million in a seed funding round from over 20 DAOs and developers, including Offchain Labs.

Pyth Network of the "strategic fundraising round" announced this week, some of the largest players in the crypto industry.

Carv raised $4M - Carv, a self-sovereign identity (SSI) oracle and data-sharing protocol with its first flagship AI-powered gaming superapp, secured strategic funding earlier this year from HashKey Capital and a $100B Global Big Tech.

QANplatform (QANX) raised $15M - QANplatform, the quantum-resistant hybrid blockchain platform enables developers and enterprises to rapidly build software applications like DApps.

SYMMIO raised $11M - SYMMIO is thrilled to announce that they have closed a $1.1M OTC round. The round was led by 0x_Messi, with participation from a veteran group of investors.

Theta Token raised $100M - Theta Labs&lsquo video streaming solution, which is powered by blockchain technology, and which has announced that its token presale has reached $12 million.

Sona raised $6.9M - Alongside the launch news, the company also announced its $6.9 million seed funding round from Polychain Capital, Haun Ventures and Rogue Capital.

Versatus (VRRB Labs) raised $3.7M - Versatus (formerly VRRB Labs) has raised $2.3 million in seed funding at a valuation of $50 million.

CyberTitans raised an undisclosed amount - A multiplayer strategy game with crazy mechanics where you lead your Titans against the world.

MAP Protocol raised an undisclosed amount - MAP Protocol has announced receiving strategic investments from Waterdrip Capital and DWF Labs.

To stay updated with news about future Web3 Funding Rounds, Follow CryptoWeekly

The notable and deliberate connection between Cardano and Ada Lovelace holds significance. Cardano, recognized for its scientific philosophy and research-oriented approach as a blockchain platform, derives its name via Gerolamo Cardano, a Renaissance mathematician. Conversely, the cryptocurrency operating on the Cardano blockchain is named ADA in homage to Ada Lovelace.

The contributions of Ada Lovelace

Born on December 10th, 1815, Ada Lovelace was an English mathematician and writer who gained prominence for her contributions to the Analytical Engine designed by Charles Babbage, which was one of the early mechanical general-purpose computers. Her notes on the engine encompass the first algorithm intended for machine processing, establishing her as one of the initial computer programmers.

Cardano deciding to name its native token as ADA serves as a tribute to Ada Lovelace and her pioneering work in computing. The Cardano platform, with its emphasis on technological innovation and foundational research, resonates with the essence of the various contributions that Lovelace made to early computing and programming concepts. Commemorating her birthday on December 10th serves as a reminder of her profound impact on mathematics and computer science.

Cardano continues to grow

The Cardano platform continues to experience notable growth and advancement, particularly in the realm of stablecoins. A prominent figure in the Cardano community, known as ADA Whale, highlighted the accelerating rise of stablecoins on the Cardano blockchain, stating that the financial performance of ADA mirrors the increasing strength and adoption of the platform.

As of the time of this writing, ADA is trading at approximately $0.55, which is a slight dip compared to its previous position at just over $0.60 less than 24 hours ago. More remarkably, it has surged by 51.62% over the past week and an impressive 139.75% year to date.

This year, Solana (SOL) exhibited remarkable performance, emerging as a substantial challenge to supremacy shown by the biggest altcoin by market capitalization, Ethereum (ETH). In particular, Solana has garnered attention for its noteworthy on-chain activities and trading dynamics.

Solana dominates NFT market

Having surpassed Ethereum not only in on-chain engagement but also in the critical metric of NFT sales, Solana has demonstrated its prowess. While Ethereum has traditionally dominated the NFT industry with its trading volume, projects, and user adoption, persistent issues such as network congestion and escalating fees are causing its dominance to wane. Unsurprisingly, competitors like Solana are narrowing the gap.

The success shown by Solana in the NFT sector also reflects a growing recognition of its potential by investors and developers. While Solana lags significantly behind Ethereum in historical data, its ascent suggests a potential seismic shift in the market dynamics of the industry.

Still a ways to go

In a historic performance this year, Solana achieved over 800% in gains, establishing record DEX volumes and network transactions. On December 9th, 2023, Solana eclipsed Ethereum in NFT sales, recording over $16 million in transactions. Bitcoin (BTC) and Ethereum followed closely with sales of $13.4 million and $11.4 million, respectively.

On the flip side, it is essential to note that the aforementioned current NFT sales, while noteworthy, are still below the levels recorded by Solana in 2022, where it achieved over $1 billion in NFT volume. In comparison, the all-time NFT sales of Ethereum stand at $41 billion, while those of Solana stand at approximately $4 billion.

Tether, the entity responsible for the largest stablecoin in the cryptocurrency market, has implemented a proactive security measure by introducing a novel policy on wallet freezing. This decision, made on December 1st, 2023, is in accordance with the regulations of the U.S. Office of Foreign Asset Controls (OFAC), specifically targeting individuals listed on the Specially Designated Nationals (SDN) List. Tether wants to comply with existing laws, aiming to bolster the overall security of its platform and the broader cryptocurrency ecosystem.

A need to work with regulators

The move represents one of the initial significant actions undertaken by Paolo Ardoino, who recently became the Chief Executive Officer of Tether. Ardoino has been outspoken about this decision, underscoring the dedication that Tether has to maintaining rigorous safety standards and strengthening ties with global law enforcement and regulatory entities.

The newly implemented policy therefore entails the freezing of wallets already featured on the SDN List and any prospective additions. The strategy is being viewed as a deliberate choice to prevent the inappropriate use of USDT tokens.

Previously, Tether had been hesitant to freeze wallets linked to sanctioned entities, such as the Tornado Cash protocol. However, this change in stance signifies a notable shift in the approach taken by the company to compliance and security.

No room for malicious entities

Following the announcement, blockchain records revealed that Tether had designated contract addresses associated with Tornado Cash as blacklisted. This was done as part of an effort to combat illicit activities. In any case, the recent policy is anticipated to establish a new benchmark in the cryptocurrency industry. The company recently took a big step to improve safety by freezing over 40 wallets.

Also, by voluntarily enhancing its security protocols, Tether is not only giving precedence to the well-being of its users but is also contributing to the overall integrity of the cryptocurrency market. This move is regarded as progress toward fostering a more secure and dependable platform for the global community of Tether users.

Ardoino strongly believes that Tether has to meet the evolving needs and challenges of the industry. According to the announcement, the aim is to continue collaborating closely with global regulators and law enforcement to establish a stable and secure environment for digital asset transactions.