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- Celsius Network's App Shutdown 📵, SBF Finally Gets Long-Awaited Jail Time ⏳
Celsius Network's App Shutdown 📵, SBF Finally Gets Long-Awaited Jail Time ⏳
Exploring potential catalysts of the anticipated crypto bull run. An ETF will bring a revolution in crypto.
Manan Vora
August 14, 2023
Snapshot Web3
August 14, 2023
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Regulatory Updates
Pro-Bitcoin candidate Javier Milei, an economist, has won Argentina's primary elections, appealing to voters, particularly the younger generation, with his commitment to Bitcoin, blockchain, and free-market policies. He aims to reduce taxes, cut bureaucracy, and attract foreign investment for a better economy and transparent governance.
Brazil's Congress is considering higher taxes on cryptocurrencies held overseas, treating them as "financial assets" for taxation in foreign investments. The proposed changes aim to promote equal tax treatment, with exemptions for earnings up to a certain limit. These rules would apply to exchanges without offices in Brazil and could encourage more local exchange activity and foreign players to establish offices in the country. The bill is up for a vote on August 28, with the potential tax changes taking effect in January 2024.
Binance has applied for registration in Taiwan under AML regulations, signaling its interest in the Taiwanese crypto market. The FSC has named Binance as a prospective entrant. This move follows AML guidelines introduced in Taiwan last year. Binance operates locally through Binance International Limited Taiwan Branch (Seychelles). It comes amid regulatory scrutiny in the US and Europe.
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Innovation and Launches
LBank Labs and Seoul Metropolitan Government organized the Seoul Web3 Festival 2023, promoting blockchain innovation and collaboration in the Web3 industry. The event included diverse experiences, a hackathon, startup demo day, NFT exhibition, and more. LBank Labs supports startups and Web3 funds, with a focus on growth and cooperation. The partnership aims to shape a promising future for the Web3 industry.
Visa is testing a method to pay Ethereum gas fees with Visa cards, aiming to simplify fee payments for users and reduce the need to hold ETH just for fees. This demonstrates Visa's ongoing interest in blockchain and cryptocurrency.
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NFT and Metaverse
Coca-Cola launches its first NFT collection on the Coinbase layer-2 network Base. Reddit's NFT collectible avatars on Polygon have reached 20 million, with sales exceeding $40 million. A new anime project based on Bruce Lee, called "House of Lee," has NFT connections through its animation studio and producer. Grimes, the musician, made significant profits from NFT sales. Trump holds assets in a cryptocurrency wallet linked to NFTs. CBS Studios plans to use the name "Star Trek Continuum" for NFTs and digital collectibles.
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Interesting Reads
A Bitcoin ETF is close to approval in the US, and Asia could follow suit. Critics worry about the inability to withdraw the underlying asset, but the potential for market growth, stability, and DeFi ETFs is significant. Institutional custody demand is rising, and regulations are becoming clearer globally. Hong Kong has introduced retail crypto trading, possibly leading to a spot crypto ETF in Asia. This ETF revolution could redefine finance, providing more transparency and market access.
AI chatbots like Google BARD, ChatGPT, and Ernie are revolutionizing business. They're key in Web3 development, offering natural language interfaces for dApps and extracting insights from blockchain data. Ernie, focused on Chinese language, may have limitations outside Chinese. Examples like the Hubspot chatbot builder and Alexa show the impact in the Web3 landscape. Continued research and development can enhance these chatbots for broader use in Web3, driving adoption and engagement.
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Quick Links
Celsius Network's app is shutting down amidst financial struggles, giving users 90 days for withdrawals. A new entity called "NewCo" will focus on crypto mining and staking, with plans to be listed on NASDAQ. The company has faced challenges, including the arrest of its former CEO and scrutiny from the SEC. Despite this, Celsius Network has committed to repaying creditors and aims for a fresh start with NewCo, supervised by the SEC and partnered with industry leaders. The company's ambition to list on NASDAQ indicates its determination to regain trust and move forward.
Sam Bankman-Fried (SBF), the founder of the now-defunct cryptocurrency exchange FTX, had his bail revoked due to alleged interference with key witnesses in his fraud-related trial. He had been under house arrest in California, but a federal judge in New York revoked the house arrest, leading to his custody. SBF's legal team plans to appeal, but the judge is proceeding with the case. SBF's trial is scheduled for October 2, 2023, and he must now prepare his defense while in jail. The new development marks a significant turn in SBF's legal battle following the collapse of FTX.
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Miscellaneous
Researchers from San Diego State University created an AI system, GiveawayScamHunter, to spot cryptocurrency giveaway scams on X (formerly Twitter). They identified 95,111 scam lists, collecting data on new scam websites and wallet addresses. Despite reporting to X, many associated accounts (43.9%) remain active, likely as spam accounts. The study estimated a $872,000 loss for over 365 victims during the study year.
In 2024, key drivers for a crypto price rally include the Bitcoin halving event, regulatory clarity, institutional adoption, emerging use cases, and growing interest from major players like Amazon and Ripple. Mass adoption, crypto ETFs, payment platform integration, endorsements from influencers like Elon Musk, and geopolitical uncertainty all contribute to positive sentiment. Recent funding for startups in the crypto sector, focusing on liquid staking and improved smart contracts, underscores ongoing investor interest. Additionally, the forthcoming Bitcoin halving, combined with reduced coin supply due to increased institutional holding, may lead to higher Bitcoin prices.
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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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