Snapshot Web3

August 3, 2023

Regulatory Updates

Ukrainian Government Demands Financial Information from Crypto Firms

The Ukrainian government's National Bank has requested financial information from local crypto firms, including Kuna, CoinPay, GEO Pay, and Qmall. The firms have been asked to provide financial statements and data on operating volumes within seven days. The CEO of Kuna exchange confirmed the request and expressed concerns about the NBU's actions. Despite the challenges, Kuna plans to focus on the European B2B market. The NBU has not yet provided any explanations for its request.

Australian regulator sues eToro over ‘high-risk’ leveraged derivative product

The Australian regulator ASIC has sued eToro, accusing it of breaching design and distribution obligations for its high-risk leveraged derivative contract products. ASIC claims the target market was too broad, and nearly 20,000 users lost money trading the products. eToro is considering the allegations and stated it now operates with a revised target market determination. In June, eToro delisted four cryptocurrencies in the U.S. after legal action against Coinbase and Binance.

Innovation and Launches

Bitcoin Lightning Network may receive a much-needed boost

Coinbase CEO, Brian Armstrong, plans to integrate Bitcoin's Lightning Network following a suggestion from former Twitter CEO, Jack Dorsey. The Lightning Network's growth has been slower than Ethereum's layer-2 networks, possibly due to its complexity for developers. More exchanges embracing the Lightning Network could enhance Bitcoin's utility in payments.

Push Protocol updates app with new social features, including live “Spaces” feature

Push Protocol has updated its app, introducing new social features like Push Spaces, a live audio feature similar to Twitter Spaces. The update also includes Incentivized Chat, customized profile pictures, and new staking pools to earn yield farming rewards with its native token, PUSH. Despite positive developments, PUSH token experienced slight losses in the recent market downturn, with a 1.2% dip. Its market cap stands at $9.3 million.

MIT Digital Currency Initiative introduces at-scale, programmable CBDC platform

MIT's Digital Currency Initiative (DCI) has introduced the PArSEC platform for programmable central bank digital currency (CBDC) transactions. PArSEC runs on the ERC-20 standard, achieving impressive speed with 118,000 transactions per second. It supports ERC-20 tokens and enables cross-border contracting and supply chain innovations. Privacy and programmability in CBDCs remain contentious. PArSEC is a result of Project Hamilton, a collaboration between MIT DCI and the Federal Reserve Bank of Boston.

Trending DApps

OpenChat

A decentralized chat app governed by the people for the people. OpenChat is a fully featured chat application running end-to-end on the Internet Computer blockchain.

NFT and Metaverse

Despite Name Brand NFT Deals, Nifty's Shuts Down

Nifty's, a Web3 creators portal, has shut down due to challenges in a tough market and lack of sufficient investment. The platform offered NFTs based on popular franchises but couldn't sustain its operations. Nifty's decentralized its NFT media and thanked its partners and investors for the opportunity to be part of the Web3 story.

Bruce Lee avatar to teach martial arts in the metaverse

Legendary martial artist Bruce Lee will be teaching martial arts in the metaverse through a tribute event hosted by Byte City. Participants can mint avatars of Bruce Lee on Ethereum and Polygon blockchains to use in the Byte City metaverse game. The event is in collaboration with Bruce Lee's daughter Shannon Lee and Samsung Gaming to celebrate his 50th death anniversary. Previously, a Bruce Lee NFT collection called The House of Lee was released, but its floor price has dropped significantly.

Resource of the Day

What is Metcalfe’s Law, and why does it matter?

Metcalfe's Law is a principle that applies to cryptocurrencies, stating that a network's value increases exponentially with the number of users. This law matters in the crypto space as it emphasizes network adoption, decentralization, market valuation, scalability, and utility. For Bitcoin, Metcalfe's Law partially explains its price rise, as more users and adoption drove up its value. However, other factors like market sentiment and technology also play a role in cryptocurrency prices.

Interesting Reads

48% Of All Bitcoin Lightning Network Nodes Run On Amazon And Google Cloud

Around 48% of Bitcoin Lightning Network (LN) nodes are hosted on centralized cloud services like AWS and Google Cloud. This ensures high uptime and reliability but raises concerns about decentralization. Many node operators use cloud services to avoid downtime. The total LN capacity is over $138.4 million, but more BTC has been moved to Ethereum for DeFi purposes.

Quick Links

KPMG touts ESG benefits from Bitcoin, counters misperceptions in new report

KPMG's report on Bitcoin and ESG highlights its benefits across environmental, social, and governance aspects. It compares Bitcoin's energy usage to clothes dryers and its emissions to be lower than commonly thought. The report suggests using more renewable energy for mining. It also notes Bitcoin's minimal role in money laundering and showcases positive use cases like fundraising and electrification. It emphasizes Bitcoin's robust governance due to decentralization. The report aims to address misconceptions about Bitcoin and its environmental impact.

Binance’s CZ warns crypto community about emerging scam

Binance's CZ warned about a new crypto scam where scammers create fake wallet addresses similar to the user's original one. They send small transactions to trick users into sending funds to the scammer's wallet. One user lost $20 million, but Binance helped freeze the funds. Security experts suggest using blockchain domains and being cautious when copying addresses. Coinbase users have also reported similar scams and phishing attacks.

Worldcoin to allow government and businesses to use ID system: Report

Worldcoin plans to allow governments and businesses to use its iris-scanning and identity-verifying technology to expand its operations. The company aims to build a large financial and identity community and intends to open-source the technology for wider use. However, its data collection methods have faced regulatory scrutiny in different countries, and Kenya recently banned its operations.

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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.