Snapshot Web3

October 4, 2023

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Regulatory and Legal News

Ripple gets formal approval for Singapore payments license

Ripple has officially obtained a digital payment tokens license from the Monetary Authority of Singapore, solidifying its status as a major payments institution in the country. The approval comes after receiving initial consent in June. Ripple's CEO, Brad Garlinghouse, emphasized Singapore's role as a prominent fintech and digital asset hub, praising its approach to innovation and consumer protection. He noted that Singapore has been crucial to Ripple's global operations, as it hosts their Asia Pacific headquarters. This development coincides with a U.S. judge's rejection of the SEC's motion for an interlocutory appeal in the case against Ripple.

Argentinian presidential candidate wants CBDCs to 'solve' hyperinflation

Argentinian presidential candidate Sergio Massa has proposed the introduction of a central bank digital currency (CBDC) to combat the country's persistent inflation crisis. Massa, currently the Minister of Economy, emphasized the importance of defending the national currency rather than advocating for dollarization. Meanwhile, rival candidate Javier Milei, a pro-Bitcoin advocate, aims to abolish Argentina's central bank and has expressed interest in adopting the U.S. dollar as the national currency. The election is set for October 22, with Massa slightly trailing Milei in polls. Argentina faces one of the highest inflation rates globally, trailing only Venezuela and Lebanon.

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Innovation and Launches

Ecosystem developers bring Bitcoin to Cosmos network

Ecosystem developers are integrating Bitcoin into the Cosmos network via Osmosis, the largest decentralized exchange on Cosmos, along with Nomic and Kujira. Through Osmosis' Nomic bridge, users can transfer Bitcoin to Cosmos, receiving Nomic Bitcoin (nBTC) in return, an IBC-compatible token issued by Nomic Chain. nBTC can be traded and used for liquidity on Osmosis and is compatible with over 50 Cosmos-linked app chains. This integration aims to create a DeFi ecosystem for Bitcoin and establish it as a primary store of value within Cosmos. The nBTC Interchain Upgrade is set to launch on October 27, activating on October 30, with plans for Nomic DAO governance to control capacity limits in the future.

Optimism network launches testnet fault-proof system in pursuit of decentralization

OP Labs, creator of Optimism network, has launched a fault-proof system on its testnet, a crucial move towards decentralization and efficiency. Currently on Optimism Goerli, this system addresses vulnerabilities in centralized transaction processing. It allows users to submit fraud proofs, enhancing security. The modular design empowers networks to customize fraud prevention. This aligns with OP Labs' goal of establishing an interconnected blockchain network, the "Superchain."

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NFT, Gaming and Metaverse

How the actor model could enable better blockchain gaming apps

Blockchain gaming faces challenges in delivering high-quality experiences. Existing 2D gaming DApps on blockchains like Ethereum struggle with scalability and performance for AAA games. The "actor model" offers a solution, allowing parallel computing and asynchronous messaging. This improves efficiency, scalability, and resilience, addressing issues like transaction throughput and latency. It enables non-blocking transaction processing, supports event-driven architectures, and provides real-time feedback for a smoother user experience. Asynchronous messaging opens the door to powerful, AAA-style decentralized gaming DApps, enhancing the potential of blockchain technology in the gaming sector.

'Grand Theft Auto' dev's first crypto game sees $5 million in NFT trading

Zynga, a subsidiary of Take-Two and developer of popular games like FarmVille, introduced the Ethereum-based game "Sugartown" in August. Within three weeks, its access tokens, called Oras, have generated over 3,000 ether (about $5 million) in trading volume on OpenSea. This success stands out amid a general decline in NFT market activity. Oras' floor price is currently around $430. While they initially planned to release 10,000 tokens, only 6,000 NFTs were launched in September. Players utilize Oras tokens to access and progress in the game, earning in-game currency.

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Scams and Hacks

Five Held In Himachal Pradesh's $25 Mln Crypto Scam

A crypto scam operating for five years in Himachal Pradesh, India, has defrauded thousands of investors, resulting in losses exceeding ₹200 crore ($25 million) beginning in 2018. Fraudsters enticed victims with promises of high returns in exchange for investing in KRO and DGT coins, employing a Ponzi-style scheme. While five individuals have been arrested, the alleged mastermind remains at large. The scammers used misinformation, deception, and threats to manipulate coin prices. The case underscores the risks associated with digital currencies, urging investors to exercise extreme caution in the crypto world. Authorities are intensifying efforts to apprehend the masterminds.

Crypto suffered 153% YoY increase in hacks and scams in Q3: Immunefi

In Q3 2023, the crypto and Web3 sector saw a staggering 153% YoY increase in attack incidents, surging from 30 incidents in the same period of 2022 to 76, resulting in losses of nearly $686 million, according to a report by Immunefi. The Mixin hack on September 25 accounted for the highest loss, draining around $200 million. The Multichain hack followed, causing over $126 million in unrecovered losses. Additionally, the Lazarus Group was responsible for over $208 million in crypto theft through various attacks on centralized services. Decentralized finance (DeFi) hacks constituted 72.9% of total losses.

Binance collaborates with Royal Thai Police to seize $277M from scammers

Binance, working with Thai police and US Homeland Security, dismantled a crypto scam syndicate in Thailand, resulting in five arrests and the seizure of $277 million in assets. Over 3,200 victims have sought compensation. The operation, dubbed "Trust No One," was aided by Binance's intelligence. The exchange continues its efforts to combat scams and cybercrime, aiming to restore trust in the digital asset space. This follows Binance's success in recovering stolen assets from the Curve Finance hack in 2022.

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Interesting Reads

How Venmo's Stablecoin Integration Can Grow the Bitcoin Economy

The integration of PayPal's PYUSD stablecoin with Venmo, one of the largest mobile financial applications with over 78 million users, is viewed as a significant development for the Bitcoin market. Stablecoins, particularly those pegged to the US dollar, play a crucial role in the broader digital asset ecosystem. PayPal's foray into the stablecoin market with PYUSD, along with the integration into Venmo, is expected to further increase the influence of the US dollar on Bitcoin. This move is likely to facilitate broader adoption of cryptocurrencies, with the dollar acting as a bridge into the digital asset space.

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Quick Links

The 12 People That Will Decide Sam Bankman-Fried's Fate

Disgraced crypto mogul Sam Bankman-Fried's trial has kicked off with jury selection, which could continue into Wednesday. Bankman-Fried's case is expected to last about six weeks.

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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.