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- Brazil’s USDT Adoption Soars In 2023 🇧🇷🪙
Brazil’s USDT Adoption Soars In 2023 🇧🇷🪙
PLUS: Salvadoran pro-Bitcoin President Nayib Bukele launches reelection bid. Crypto thief steals $4.4M in a day as toll rises from LastPass breach.
Manan Vora
October 30, 2023
Snapshot Web3
October 30, 2023
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Regulatory and Legal News
Salvadoran President Nayib Bukele, a proponent of Bitcoin, has officially filed paperwork for his reelection bid in the country's upcoming 2024 presidential election. Bukele, who gained popularity for his efforts against crime and his pro-tech policies, was nominated by his party, Nuevas Ideas. However, critics, including some legal experts, argue that the country's constitution prohibits Bukele from seeking a second consecutive term. Despite this, El Salvador's Supreme Court ruled in September 2021 that presidents can run for consecutive elections. Bukele's government has been known for its tech-friendly policies, including making Bitcoin legal tender and eliminating taxes on technological innovations. The presidential election is scheduled for February 4, 2024.
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Innovation and Launches
CryptoRobotics is a platform that offers automated trading on cryptocurrency exchanges, allowing users to implement popular trading strategies. It emphasizes community-driven trading by enabling users to benefit from each other's successful strategies. Unlike many projects that focus on generating commissions and fees, CryptoRobotics aims to create a trading index that fosters a community with common goals. The platform has already gained significant traction with over 55,000 registered users, 20 trading robots, and over 50 popular strategies. It saw over $1 billion in trading volume in 2022. CryptoRobotics has been selected as a promising Web3 and crypto startup by the Cointelegraph Accelerator program.
dYdX, a decentralized cryptocurrency exchange, has launched its layer-1 blockchain, dYdX Chain. This new blockchain will operate using native DYDX tokens and distribute all fees to validators and stakers in USD Coin (USDC). The blockchain is built on Cosmos SDK and uses CometBFT as its consensus protocol. Validators stake DYDX to secure the blockchain and participate in network governance. The transition from dYdX’s original Ethereum-based layer-2 protocol to the new layer-1 chain was facilitated by community votes and governance outcomes, expanding the utility of the DYDX token for staking, securing the network, and governance on the dYdX Chain.
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NFT, Gaming and Metaverse
Mintable CEO Zach Burks has expressed concern that the UK government might regulate NFTs in a manner that doesn't align with the technology's true potential. Burks believes that a recent report from a UK parliamentary committee, which emphasized the role of NFTs in copyright infringement, doesn't fully grasp the broader applications of NFTs beyond digital art. He argues that NFTs are evolving beyond speculative art and into utilities used by brands for various purposes. While he acknowledges the importance of copyright protections, he suggests that these issues are internet-wide challenges rather than specific to NFTs. Burks suggests that regulators should adopt a more nuanced approach to understanding NFTs based on their specific use cases.
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Scams and Hacks
A significant security breach involving the password storage software LastPass in 2022 has led to the theft of around $4.4 million in cryptocurrencies from at least 25 individuals. The breach, which occurred in August 2022, allowed an attacker to access a LastPass employee's credentials and decrypt stored customer information, including a backup of encrypted customer vault data. The attacker could potentially decrypt this data if they successfully guess the account's master password. This recent incident highlights the ongoing impact of the LastPass breach, which has seen over $35 million in crypto stolen from around 150 victims since 2022. Those who have stored wallet seeds or private keys in LastPass are advised to migrate their crypto assets immediately.
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Resource of the Day
Open-source protocols are publicly accessible codes allowing examination, modification, and sharing. They provide transparency, accessibility, and rely on community evaluation. Notable examples include Linux, Android, and in crypto, Bitcoin and Ethereum. Their development involves conceptualization, prototyping, and continuous feedback. Open-source protocols are copyrighted, and licenses define usage rules, with permissive (e.g., MIT) and copyleft (e.g., GPL) being common types. They play a crucial role in innovation and interoperability, with a growing focus on sustainability. P2P internet protocols are expected to continue advancing, enabling direct communication between systems without intermediaries.
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Interesting Reads
The adoption of the stablecoin Tether (USDT) has experienced a significant surge in Brazil, accounting for 80% of all cryptocurrency transactions in the country in 2023. Data from Brazil's revenue service agency reveals that as of mid-October, USDT transactions amounted to $271 billion Brazilian reais (about $55 billion USD), nearly double the volume of Bitcoin transactions, which were $151 billion reais (around $30 billion USD). This highlights a growing preference for stablecoins, which are designed to maintain a stable value, often pegged to fiat currencies like the U.S. dollar and the Brazilian real.
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Quick Links
Connext, Chainsafe, Sygma, LiFi, Socket, Hashi, Across, Celer and Router issued a joint statement criticizing the new token.
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Miscellaneous
The ProShares Bitcoin Strategy ETF (BITO) and the Grayscale Bitcoin Trust (GBTC) have experienced significant trading volume in the week ending on October 27. BITO, the first futures-based ETF to be approved in the US in 2021, traded $1.7 billion, marking one of its highest volumes since its debut. Meanwhile, GBTC saw $800 million in volume, leading to a reduction in its discount to the Bitcoin spot price to its lowest point in two years. This surge in activity suggests growing demand for Bitcoin investment products amid anticipation of possible regulatory changes allowing a Bitcoin spot price-based ETF.
The Wall Street Journal (WSJ) corrected an article misstating how much Hamas and other groups funded activities with cryptocurrencies. Initial figures suggested Palestinian Islamic Jihad (PIJ) raised $93 million in crypto from August 2021 to June 2023. However, blockchain firm Elliptic clarified these funds might not be for terrorism. Research from Chainalysis showed only $450,000 went to a known terrorism-affiliated wallet. The corrected data indicates PIJ and Hezbollah exchanged up to $12 million in crypto since 2021. WSJ's initial figures were based on a misinterpretation of Elliptic's data. This highlights that crypto funding for these groups is a small part of their total sources.
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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.
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