Snapshot Web3

January 18, 2024

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Regulatory and Legal News

Coinbase takes its turn in court, arguing the tokens it listed are not securities

Coinbase appeared in court as part of the Securities and Exchange Commission's (SEC) lawsuit against the exchange. Coinbase is accused of operating as an unregistered exchange, broker, and clearing agency. The SEC claims that tokens listed on Coinbase, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO, are securities. Coinbase is seeking the dismissal of the case, arguing against the SEC's regulatory approach. The judge has yet to make a decision, and if the case proceeds, it could go to trial in 2025.

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Innovation and Launches

Unstoppable Domains launches badge-gated group chat feature for username holders

Unstoppable Domains, a Web3 username protocol, has introduced a group chat feature allowing username owners to create badge-gated group chats. This means only wallet accounts with specific characteristics can participate. The feature uses the Web3 communication system Push Protocol, and group admins can restrict membership to those holding certain badges, awarded based on verifiable on-chain characteristics. This aims to enhance communication within verified community members and project teams, reducing the spread of misinformation in crypto groups. The Unstoppable Domains app now supports both individual and group messaging, enabling decentralized communication. Group membership can be semi-automated based on predefined criteria.

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NFT, Gaming and Metaverse

Soonaverse brings NFTs to Cardano

The Soonaverse, in collaboration with NMKR, is expanding into the Cardano NFT universe. NMKR is a leading NFT platform in the Cardano ecosystem, and through this partnership, Soonaverse users will be able to mint and trade Cardano NFTs using Soonaverse's marketplace and modules. The collaboration aims to explore interoperability between Cardano, Shimmer (Soonaverse's L1), and IOTA, enabling cross-platform NFT transactions. The organizations also intend to standardize NFTs that can seamlessly traverse both ecosystems, fostering growth and innovation in Cardano, Shimmer, and IOTA. This initiative is led by the Soonaverse Community TaskForce, showcasing progress made in UI improvements, recruitment, and ecosystem expansion.

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Scams and Hacks

Reddit User Loses $250,000 in ETH to Crypto Airdrop Scam — How Can Investors Stay Safe?

A Reddit user recently fell victim to a cryptocurrency phishing scam, losing $250,000 in Ether (ETH) after responding to a fake airdrop. The scam involved the victim depositing 100 ETH into Aave for lending purposes to generate interest. However, the user noticed that 100 ETH was transferred out of their account unknowingly after interacting with what appeared to be a legitimate Frames airdrop. Airdrop scams, where fraudsters use fake airdrops to phish credentials and steal funds, are becoming increasingly common. To stay protected, investors are advised to avoid interacting with suspicious links, use secure exchanges, enable 2-factor authentication, store assets in cold storage or hardware wallets, and be cautious of fake airdrops and giveaways.

Rocket Pool X account hacked, falsely reporting smart contract hack

The X account of Rocket Pool, the fifth-largest Ethereum decentralized application (DApp) with $2.9 billion in total value locked, has reportedly been hacked. The hackers posted messages falsely claiming that a vulnerability had been found in Rocket Pool's smart contracts and urged users to migrate their assets to ensure safety. Rocket Pool quickly issued warnings on other social media platforms, cautioning users not to respond to the messages on X. The incident follows a series of high-profile hacks and scams in the cryptocurrency space, highlighting the importance of vigilance and security measures.

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Funding, Acquisitions and Partnerships

Core Scientific Secures Approval to Emerge and Re-list on Nasdaq by January 2024

Core Scientific, a blockchain computing data center and software solutions provider, has received approval from the United States Bankruptcy Court for the Southern District of Texas for its Chapter 11 plan of reorganization. The approval sets the stage for Core Scientific to emerge from bankruptcy and relist on Nasdaq by the end of January 2024. Under the reorganization plan, shareholders will receive shares of Core Scientific's new common stock and warrants, constituting around 60% of the company's new equity. The plan involves equitizing approximately $400 million in secured and unsecured claims while reducing annual debt service by about $60 million. The company filed for bankruptcy protection in 2022 amid challenges faced by the Bitcoin mining industry during the crypto winter.

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Price Action

3 reasons why Ethereum (ETH) price is strengthening against Bitcoin

Ethereum (ETH) exhibits resilience with a stable price around $2,500 despite increased futures liquidations. The rise is attributed to a surge in ETH dominance against Bitcoin, reaching a three-month high, and a notable increase in Ether's share of open interest in perpetual futures. On-chain metrics reveal positive signs, including a significant rise in new Ethereum addresses and declining ETH supply on exchanges, suggesting growing market strength and potential outperformance against Bitcoin in the short term.

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Interesting Reads

Crypto Exchanges Trading Volume Hit $10.3T in 2023, New Data Shows

In 2023, the crypto market had a total trading volume of $36.6 trillion, experiencing a +53.1% increase in Q4 from Q3. Despite challenges, centralized exchanges dominated with a CEX-to-DEX spot trading volume ratio of 91.5% in Q4. Binance, Upbit, OKX, Bybit, and Coinbase led the top 10 centralized exchanges. The top 10 CEXes recorded $7.2 trillion in spot trading volume in 2023, representing a -23.4% YoY decline. Decentralized exchanges (DEXes) saw growth, with the top 10 DEXes recording $205.3 billion in spot trading volume in 2023 Q4. Ethereum had $99.3 billion of DEX trading volume in 2023 Q4. Solana and THORChain were significant gainers among DEXes, with Solana experiencing a 985.5% QoQ increase, and THORChain witnessing a 422.4% trading volume increase in Q4. Ethereum's dominance dropped below 50% in November and December 2023.

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Miscellaneous

9 out of 10 multichain devs work on an EVM chain: Electric Capital

EVM-compatible chains remain the network of choice for crypto developers, with 87% of all active mutlichain developers working on at least one EVM network, according to new data.

dYdX Tops Uniswap as Largest DEX by Volume

Decentralized exchange dYdX, which recently migrated from Ethereum to Cosmos, has topped one of Uniswap's markets to become the largest DEX by daily trading volume, according to data from CoinMarketCap.

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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.