Cronos Labs, a leading Web3 accelerator, has announced a collaboration with Matter Labs to launch Cronos zkEVM on the Ethereum mainnet. This zkEVM is the first Layer-2 ZK chain beyond the ZKsync Era. According to the announcement, Matter Labs, which is known for ZKsync, along with Crypto.com, VVS Finance, Fulcrom Finance, Veno Finance, and 20 other digital asset entities, will spearhead the introduction of Cronos zkEVM on Ethereum (ETH) mainnet.

Harnessing Top Blockchain Technologies

Introduced in February 2023, Cronos zkEVM has already reached 3 million unique addresses and processed millions of transactions. The new addition to the Ethereum mainnet will join Cronos EVM and Cronos POS within the Cronos ecosystem, which boasts user assets exceeding $6 billion.

Kem Timsit of Cronos Labs stated that the Cronos team excels at harnessing top blockchain technologies to create innovative use cases while contributing to open-source projects. With the launch of Cronos zkEVM and the integration with ZKsync, Cronos aims to advance Ethereum in terms of infinite scalability and widespread adoption.

Furthermore, Cronos zkEVM will leverage CROFam, providing a long-term boost to the scaling solution. The official press release noted that the ecosystem encompasses around 100 million people, with top developers planning to expand to the new chain.

Several Benefits

The Cronos DeFi ecosystem offers various transaction fees and triple yield benefits. Users can earn returns by staking tokens like zkCRO, vETH, and vUSD, benefiting via DeFi applications on the blockchain, and receiving loyalty points for various activities within the Cronos ecosystem.

Cronos zkEVM will also feature the Pioneer Program, rewarding end-users with loyalty points for active participation and specific actions. The reward pool includes 5 million ZK tokens collected through the ZK Nation airdrop.

The release outlined that users can complete quests such as bridging funds, sending transactions, and using eligible dApps to earn points, which can later be redeemed in various participating cryptocurrencies. The alpha phase of the Cronos zkEVM mainnet will run until late September 2024, after which the transition to the beta phase will mark a significant milestone for the blockchain ecosystem.

The Australian Securities and Investments Commission (ASIC) has taken legal action against ASX, a local stock exchange, in Federal Court, accusing it of making misleading and deceptive claims about its now-canceled initiative to upgrade its outdated systems using blockchain technology.

On August 14th, ASIC stated that the Australian Securities Exchange (ASX) misrepresented the status of its project to replace the Clearing House Electronic Subregister System (CHESS) trading platform. ASX had claimed that the project was on track for go-live in April 2023 and was progressing well, but ASIC contends that these statements were misleading.

Lack Of Progress

According to the regulator, the project was not adhering to the planned schedule when the aforementioned statements were issued in early February 2022, and that ASX had no reasonable basis to suggest that it would be completed by that time.

ASIC Chair Joe Longo remarked that the project was indeed not progressing well as of February 10th, 2022, contrary to what ASX said. He added that the current situation reflects a collective failure by the ASX Board and senior executives at the time. ASIC has yet to decide on the specific penalties it will pursue.

Change Of Plans

In response, ASX referenced a statement by Managing Director and CEO Helen Lofthouse, who acknowledged the significance and serious nature of these proceedings. Lofthouse stated that they fully cooperated with the investigation and are now carefully reviewing and considering the allegations.

The exchange initially planned to replace CHESS with blockchain technology, a plan which began in early 2016, aiming to update the system used for managing share transactions and holdings since the mid-1990s. After nearly two years, it opted for a distributed ledger technology-based system.

However, by November 2022, following five years of development, several delays, and an expenditure of $170 million, ASX decided to pause the project after consulting firm Accenture identified significant challenges with the solution design and its ability to meet the necessary requirements. The exchange eventually abandoned its blockchain initiative to consider more traditional solutions.

BYDFi Exchange has doubled its user base to 30 million by offering no-KYC access and focusing on meme coins, successfully navigating crypto market challenges.

The meme coin sector, driven by tokens inspired by animals, celebrities, and political figures, has become a billion-dollar industry and significantly influenced the $2.2 trillion cryptocurrency market. Despite this growth, regulatory barriers can hinder access for many users.

Accessibility Is Key

BYDFi addresses the aforementioned challenges by providing a platform that is accessible globally, regardless of local regulations. After going through a rebrand in 2023, BYDFi operates under the motto BUIDL Your Dream Finance and is known for its lack of KYC requirements, which allows users to engage without mandatory identity verification. Users can trade up to 10 BTC daily by providing additional information.

With a user base of over half a million across more than 150 countries, including those with stringent crypto regulations like the U.S., Canada, and the Netherlands, BYDFi facilitates KYC compliance where needed. The platform offers features like crypto deposits and withdrawals, copy trading, P2P trading, and crypto derivatives trading, with a native point system rewarding BYD points for trading.

No KYC 

The no-KYC policy appeals to users seeking privacy and fewer regulatory barriers, aligning with the demand for less restrictive crypto platforms. BYDFi also features a section dedicated to meme tokens on its Spot trading page, including popular ones like DOGE and SHIB, allowing users to invest in this growing sector.

Security is paramount for BYDFi, which protects assets with offline cold wallets and two-factor authentication (2FA). The no-KYC approach helps maintain user anonymity and reduces data theft risks. The platform also has a fast onboarding system that simplifies account creation and crypto purchases which help distinguish it compared to other platforms with more complex registration processes.

Telegram Messenger raised $1M for Televerse in its Seed round with support by Summer Capital. Televerse is building a gaming infrastructure on the TON blockchain. It provides developer gamekits and a gamebox platform for mini-games, enabling Web2 game developers to easily bridge and publish their games to Telegram while integrating blockchain technology.

BasedVC garnered $2M in Seed funding with Crypto Banter leading the way. BasedVC is a decentralized venture capital tool that allows retail investors to invest alongside major venture funds like a16z crypto and Coinbase Ventures. 

375ai received $5M in Seed funding with help by 6th Man Ventures. 375ai is developing a decentralized edge data intelligence network that utilizes AI and blockchain for real-time data processing and analysis. 

Pentagon Games brought in a whopping $6M in Seed funding with support by The Spartan Group. Pentagon Games is a zkEVM chain game publisher focused on powering the XR Metaverse through deep learning and Web3 technologies.

TONX raised $4M supported by SNZ Holding. TONX is a platform focused on leveraging AI technology to enhance productivity and automation. It aims to provide solutions that optimize workflows, improve decision-making, and streamline operations across various industries. 

Quantlytica completed a Private Token Sale, raising $1.09M with backing by P2 Ventures. Quantilytica is an assets management platform helping individuals, DAOs, and other protocols automate capital flow.

Moonveil Entertainment raised $3.6M in Pre-Series A funding with help by The Spartan Group. Moonveil is comprised of a team of seasoned professionals with extensive expertise in the gaming industry.

Blockscout secured $3M in Seed funding with support by 1kx. Blockscout is an open-source blockchain explorer designed to provide insights, transaction confirmations, and analytics across multiple blockchain networks.

DeAgentAI raised $6M in Seed funding with Waterdrip Capital on board. DeagentAI is an AI-based layer dedicated to building a fully decentralized network platform.

Andrena (DAWN) achieved an impressive $18M in Extended Series A, led by Dragonfly Capital. Andrena is the developer of a Solana based decentralized physical infrastructure network (DePIN) protocol aimed at providing decentralized internet services.

Solayer Labs received an undisclosed amount of funding with support by Binance Labs. Solayer leverages economic security and premium execution to enable a higher degree of consensus and blockspace customization for application developers.

Curio Research raised $5.7M in Seed funding with support by Bain Capital Crypto. Curio is a gaming studio building foundational infrastructure for composable on chain crypto games, starting with its own social strategy title.

The Cosmos-based layer-1 blockchain Canto has announced plans for an upgrade on August 12th to resolve a 33-hour outage, which they attribute to a consensus issue. Launched in August 2022, Canto positions itself as a permissionless, general-purpose blockchain suited for decentralized finance (DeFi) applications and compatible with the Ethereum Virtual Machine (EVM).

Damage Control

The Canto blockchain has been inactive for over a day, with the last recorded transaction, block 10847516, occurring on August 11th. According to CantoScan, no new transactions have occurred in the last 33 hours, and only two transactions have been recorded in the past 46 hours.

Canto representatives posted an update on August 12th via their official X account where they confirmed a temporary halt in the chain did indeed occur due to the issue with consensus. The team stated that an upgrade to address the problem is scheduled for 12:00 PM UTC on August 12th. The consensus mechanism is responsible for validating and authenticating transactions on the blockchain.

No Cause For Concern

Originally, the Callisto upgrade was scheduled for August 9th at 14:30 PM UTC. Canto has not clarified whether this upgrade was completed or if it might be related to the current outage. Despite the disruption, Canto reassures users that there is no cause for concern. They expect normal operations to resume once the consensus issue is resolved. All funds are secure, and when the chain is back online, users will have access to all functionalities as usual, stated Canto.

Canto had previously announced plans to transition to the Ethereum Network as a layer-2 solution in September 2023. However, this decision was reversed in March 2024, and Canto remains a layer-1 blockchain. According to DefiLlama, while blockchain activity peaked in February 2023, it has since declined, placing it as the 80th largest blockchain by total value locked.

Tether has officially rejected the lawsuit put forth by Celsius Network Limited concerning a $2.4 billion Bitcoin (BTC) liquidation, calling it unfounded and blaming Celsius for poor financial management.

The Blame Game

Filed on August 9th in the United States Bankruptcy Court for the Southern District of New York, Celsius alleges that Tether wrongfully liquidated Bitcoin collateral in June 2022 and is seeking its return. Tether, however, claims the liquidation was conducted with the consent granted by Celsius which was also based on the price of Bitcoin at the time.

In 2022, Tether provided USDT to Celsius, which used Bitcoin as collateral. When Bitcoin plummeted in June, Celsius faced a margin call and should have added more collateral to prevent liquidation. Instead, Celsius directed Tether to liquidate the Bitcoin to settle an $815 million USDT debt. Tether argues the lawsuit misrepresents the law and the agreement terms, aiming to shift the blame onto them instead of Celsius.

Fighting Back

Tether plans a strong defense and is confident in a favorable outcome, stating that they will not yield to meritless litigation. This case highlights the complexity of financial agreements in the crypto sector and the importance of clear contracts. As it unfolds, the lawsuit could influence how similar disputes are handled and impact cryptocurrency lending and collateral management practices.

As one of the most important companies in the crypto sector, Tether issues the USDT stablecoin, which is pegged to the United States Dollar (USD) to maintain a stable value. Stablecoins like USDT are crucial because they provide a stable store of value and facilitate transactions within the cryptocurrency market, helping to bridge the gap between volatile cryptocurrencies and traditional fiat currencies.

James Fickel, the founder of the Amaranth Foundation, which supports longevity research, is also known as the fifth richest crypto investor globally. On August 10th, Fickel partially closed a multi-million dollar long Ethereum (ETH) position against Bitcoin (BTC) due to recent news related to Wrapped Bitcoin (wBTC).

A Lookonchain report reveals that Fickel began initiating long positions on Ethereum against Bitcoin on January 10th. He employed a sophisticated decentralized finance (DeFi) approach involving lending, borrowing, and trading assets.

Diamond Hands

Fickel provided lending liquidity on Aave (AAVE) as collateral to borrow 3,061 Wrapped Bitcoin (wBTC). He utilized this $172 million wBTC loan to acquire 56,445 ETH over the past seven months. Lookonchain estimates an average ETH/BTC exchange rate of 0.05424.

As of April 2024, James Fickel was the fifth richest cryptocurrency investor globally, with a net worth exceeding $446 million. Data provided by Arkham Intelligence on August 11th indicates his crypto net worth has risen to $457.39 million. His portfolio primarily includes 133,516 AETHWSTETH ($420 million) and 10,601 AETHWETH ($28.49 million), along with smaller amounts of wETH, ETH, USDC, Optimism (OP), and other cryptocurrencies.

Risk Management

In addition to his active role in cryptocurrency investing and enthusiasm for Ethereum, Fickel and his Amaranth Foundation are engaged in cutting-edge research on longevity and neuroscience, focusing on solutions for aging.

His recent trading activity reflects his strong belief that ETH will outperform BTC in 2024. However, with his latest transactions, there is speculation about whether his confidence remains as firm. Alternatively, his recent comments on the BitGo and Justin Sun partnership concerning wBTC might suggest that the repayment is part of a risk management strategy rather than a sign of diminished belief in Ethereum.

Charles Hoskinson has criticized the current Biden-Harris administration for its antagonistic stance toward the cryptocurrency industry in the United States. He cautioned that supporting Kamala Harris in the upcoming November presidential election could further damage the emerging sector.

Hoskinson also responded to Tyler Winklevoss, co-founder of Gemini, who claimed that Operation Choke Point 2.0 remains in effect. Winklevoss highlighted that the Fed is now effectively determining who can open a bank account and thereby restricting the operational capabilities of all American crypto companies. Tyler also suggested that if Harris were to win the election, the approval rate for crypto companies could approach zero.

Harris Threatens Crypto

Hoskinson contends that the Biden-Harris administration is actively undermining the crypto sector, with no indication of a policy shift or improvement. He warned that electing Kamala Harris could harm the American cryptocurrency industry, suggesting she would perpetuate the current war on crypto.

His remarks followed the recent enforcement action by the US Federal Reserve against the crypto-friendly Customers Bank, which observers view as an excessive measure that could stifle innovation in the cryptocurrency field. The enforcement action against Customers Bank requires the institution to provide a 30-day advance notice before establishing any new banking relationships with crypto companies.

The Worst Is Yet To Come

Winklevoss added that this enforcement action is just the beginning, as the Fed is currently behaving with restraint due to the upcoming election. If Harris wins in November, the situation could become much more severe. Before Joe Biden decided to no longer participate in the 2024 Presidential race, Winklevoss and Hoskinson had warned that re-electing Biden could devastate the American crypto industry.

In contrast, former President Donald Trump has consistently expressed support for cryptocurrency during his campaign. Trump recently proposed using a small amount of Bitcoin to address the massive $35 trillion national debt. At the Bitcoin Nashville Conference, Trump received enthusiastic applause when he vowed to fire Gary Gensler if he were to return to the White House, signaling an end to what he views as an anti-crypto crusade.

The price of Bitcoin (BTC) stalled just below $63,000 but has managed to maintain the $60,000 mark after a swift drop. Altcoins have been relatively slow on a daily basis, with XRP, ETH, and SOL showing declines, while TON has increased by over 4%.  The total crypto market capitalization has decreased slightly over the past day, now standing at $2.217 trillion on CoinGecko.

BTC Dominance On The Rise

The primary cryptocurrency faced a challenging weekend. Following a significant drop to nearly $60,000 by Sunday morning, the situation worsened with a fall to $57,000 later that day. Monday saw a further decline to just under $50,000, marking its lowest point in about six months.

Support arrived when the bulls intervened, halting any additional declines. BTC began to recover, rising to $53,000 on Tuesday and $57,000 by Thursday. Another rise on Friday pushed the cryptocurrency close to $63,000. However, Bitcoin could not sustain its upward trajectory and has since lost some momentum. It has slid toward $60,000 but has managed to hold that level, currently trading around $700 above it.

Growing Dominance

Bitcoin saw its market capitalization slightly decrease to $1.2 trillion, but its dominance over alternative coins continues to grow. This metric now stands at 54% on CoinGecko, the highest since April 2021.

Meanwhile, most major altcoins experienced minor retracements. Ethereum fell by over 1% in the past 24 hours but remains above $2,600. Solana and Ripple dropped by 2-3%, to $155 and $0.58, respectively. DOGE, AVAX, SHIB, and ADA also showed slight declines. In contrast, TON increased by more than 4% and trades above $6.7. CRO is the top performer among mid-cap altcoins, having surged by over 9%.

Other Markets

San Francisco is working to rebuild its global image by hosting the APEC Summit. In the US, earnings growth is emerging beyond major tech firms, while global markets face increased selloff pressure due to rising risks. Experts suggest the recent VIX spike was misleading, and Japanese stocks are recovering after a severe decline into bear market territory, which has removed excess speculation within the $6 trillion market.

Kamala Harris and her running mate are touring battleground states, with Harris asserting she will not interfere with the Federal Reserve. In Mumbai, SEBI Chair Madhabi Puri Buch faces scrutiny following allegations of a conflict of interest with Adani. Blackstone has released its earnings figures, and the private credit sector is seeking higher margins on loans. In Serbia, a major lithium mining project is met with new protests. Meanwhile, climate activists are targeting Wall Street bankers, with protests outside Citigroup focusing on fossil fuel lending.

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

Discord Saves The Day

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

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

Questions of Decentralization

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

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

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

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

Key Details

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

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

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

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

Declining Sales Volumes

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

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

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

Decreasing Dependence On The Dollar

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

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

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

Skepticism Remain

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

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