Crypto Weekly 10/1/2023
A weekly summary of the latest crypto news...
Crypto weekly is co-authored by @serdave
PRICE CHANGE: WTD/YTD
- BTC ($27,148): +2% / +64%
- ETH ($1,676): +5% / +40%
- SOL ($22.94): +17% / +135%
- UNI ($4.54): +6% / -12%
- MATIC ($0.56): +7% / -26%
MARKET CAP CHANGE: WTD/YTD
- Crypto Market Cap ($1.08T): +3% / +36%
- BTC Dominance: 49%
- ETH Dominance: 19%
- Tether ($83B): 0% / +26%
- USDC ($25B): -3% / -44%
NFT 3M TRADING VOLUMES
THIS WEEK IN CRYPTO
- The criminal trial against former FTX CEO Sam Bankman-Fried is expected to start next week and last four to six weeks. Key witnesses include CEO of Alameda Research Caroline Ellison and top FTX executives Gary Wang and Nishad Singh, all who have already plead guilty to charges related to the crypto exchange’s collapse in November 2022. Link. Link.
- Global crypto exchange Binance now handles about half of all trades where cryptocurrencies are bought and sold, down from about 70% from the start of the year. Link.
- JPMorgan Chase UK will decline crypto transactions made by users via bank transfer or debit cards beginning Oct 16, in an effort to combat an uptick in fraud and scams. Link.
- 22% of the total supply of ETH is now being staked to secure the network across over 840,000 validators. Given strong demand, APR for staking is currently 3.9%. Link. Link. Link. Q2 Staking Report (PDF).
- Su Zhu, co-founder of bankrupt crypto hedge fund 3AC, was arrested in Singapore while attempting to flee the country. Zhu and business partner Kyle Davies, who remains at large, were sentenced to 4 months in prison for failing to cooperate with bankruptcy proceedings. Link. Link. Link.
- Blockchain infrastructure provider Blocknative will no longer operate an Ethereum relayer, leaving only four other major relayers to handle most Ethereum blocks. Relayers cost $500k to $1 million a year to operate and are not paid, though they provide services like rejecting transactions from specific wallets to comply with government sanctions. Link.
- SEC Chair Gary Gensler faced scrutiny from lawmakers regarding the agency's stance on cryptocurrency regulation, including questions about bitcoin's classification as a commodity or security, the agency’s interactions with the crypto exchange FTX, and the potential of tokenized assets like Pokemon cards being considered securities. Link. Investment contract video. BTC video. FTX video.
- NFT collection Pudgy Penguins’ is selling its toyline in 2,000 Walmart stores across the US. Link. Link.
- Ripple said it was backing out of its deal to acquire crypto custodian Fortress Trust. Link. Tweet.
- Binance exited its Russia business by selling it to CommEx, a crypto exchange that officially launched earlier this week. Link. Link. Blog Post.
- Buenos Aires is launching a digital ID service with zkSync, where documents like birth and marriage certificates will be stored and accessible on chain. Link.
- The SEC approved the first ETH futures ETF. Asset manager Valkyrie plans to convert its BTC futures ETF to a combination of BTC and ETH futures ETF. The SEC has yet to approve a any spot crypto ETFs. Link.
- According to a new report, Ethereum is the most popular network for developers in the US while BNB Chain is the most popular in Europe and Asia. In the US, Ethereum makes up 39% of node requests, BNB 31%, Polygon 17%, Avalanche 5%, and Solana 2%. Link.
- Crypto startup IYK announced raised a $16.8 million seed round led by a16z. IYK provides software for embedding NFTs on NFC chips, as provenance for physical ownership. Link. Link.
- The expected payout for FTX creditors has increased from 10 cents to 37 cents on the dollar, per OTC markets. The bankrupt exchange has recovered $7.3 billion to date. Link.
- Representative Beyer has drafted legislation requiring centralized crypto exchanges to report off-chain transactions to the CFTC. Link. Draft Bill (PDF).
- The SEC delayed making a decision on four BTC spot ETF applications. It has delayed three times since April. Eight applications remain active, including one for Grayscale which recently won a lawsuit against the SEC for its continued rejection of its spot ETF application. Link. Link. Link. Statement.
- US crypto exchange Kraken is exploring adding traditional stock and ETF trading to its platform in 2024. Link. Link.
- Investors have filed $128 million in claims against unregulated crypto exchange JPEX and social media influencers who promoted the platform, for operating in Hong Kong without a license. 19 people have been arrested so far. Link. Link.
- Fireblocks acquired tokenization platform Blockfold for $10 million so it can better service its banking customers with tokenization projects. Link.
- US presidential candidates have come out against a US central bank digital currency (CBDC). Link.
- Blockchain oracle Chainlink now supports Coinbase layer-2 network Base. Link.
- Crypto influencer Ben ‘BitBoy’ Armstrong was arrested after livestreaming a visit to confront his former business partner at his home. Link. Link.
- IBM and Microsoft formed a coalition to tackle post-quantum cryptography. Current cryptography schemes used in blockchains are not crackable by traditional computers but should be crackable in the distant future by quantum computers. Link.
- Leaked documents from the FTC’s case against Microsoft suggest the next-generation Xbox console may feature a crypto wallet integration. Link.
- Privacy blockchain Zcash has seen a pool of miners grab more than 51% of power on its network, making it vulnerable to attack. Link.
- Coinbase gained approval to offer perpetual futures to retail customers outside the US. 75% of global crypto trading volume comes from derivatives markets. Link. Link.
- Circle, the company behind the USDC stablecoin, filed an amicus brief in the SEC’s case against Binance, arguing that stablecoins are not securities without taking either party’s side. The SEC’s lawsuit called the BinanceUSD stablecoin an unregistered security, even though the CFTC and Federal Reserve have suggested stablecoins are commodities. Link. Filing (PDF).
- Crypto venture fund Paradigm filed an amicus brief in the SEC’s case against Binance, arguing that the regulator’s stance "would upend what we know about securities law in several critical ways." Link. Filing (PDF).
- The CFTC charged crypto trading platform Mosaic Exchange and its founder, Sean Michael, for misappropriating millions in investor money for personal use. Link. Press Release.
- The Musee d’Orsasy in Paris announced a year-long partnership with the Tezos Foundation to display NFTs in the museum’s galleries and exhibitions. Museum visitors will also be able to collect on-chain digital souvenirs featuring Van Gogh. Link.