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- Ethereum Sprints Past Microsoft And Adobe! 🏃🚀
Ethereum Sprints Past Microsoft And Adobe! 🏃🚀
PLUS: SEC defers approval of ETH ETFs. Tencent joins CBDC pilot in China.
Manan Vora
September 28, 2023
Snapshot Web3
September 28, 2023
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Regulatory and Legal News
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on spot Ethereum exchange-traded funds (ETFs), mirroring a similar delay for a Bitcoin ETF. The approval decision for ARK 21Shares and VanEck Ethereum ETFs is postponed until the end of 2023, with different dates set for each. The SEC published the proposed rule change for Ethereum ETFs on Nasdaq but received no comments. This comes after a previous delay for the ARK 21Shares Bitcoin ETF, now extended to January 10, 2024. There's anticipation that firms, including VanEck, might secure approval for an Ethereum Futures ETF by October.
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Innovation and Launches
Tencent, operator of WeChat and WeChat Pay, joins China's digital yuan interoperability project. The initiative, led by the People’s Bank of China, aims to enhance cross-border payments and explore financing options. WeChat Pay and Alipay hold 15% of China's payment market. Digital yuan, while growing, is a small fraction. The PBoC emphasizes coexistence with private alternatives. The project involves BIS, Hong Kong, and UAE central banks.
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NFT, Gaming and Metaverse
The Meta Quest 3 is Meta's latest standalone headset, offering advanced mixed reality capabilities and improved controllers at a fraction of the price of its predecessor, the Quest Pro. Priced at $500 for the 128GB model and $650 for the 512GB model, it features a 4K "Infinite Display," slimmer visor, and outward-facing cameras for mixed-reality experiences. It releases on October 10 and boasts twice the graphics power of its predecessor, powered by the Snapdragon XR2 Gen 2 chip. The headset is compatible with over 500 existing games and apps, with more to come by the end of 2023, including support for Xbox Cloud Gaming in December.
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Scams and Hacks
Former IcomTech CEO, Marco Ruiz Ochoa, pleaded guilty to wire fraud conspiracy for orchestrating a Ponzi scheme. Operating from 2018 to 2019, IcomTech falsely claimed to be a crypto mining and trading company, promising daily returns to investors. Despite hosting events and creating its own token, the company didn't engage in crypto mining, leading to its collapse in 2019. Ochoa faces a potential 20-year prison term. This development comes after Pablo Rodriguez, co-founder of AirBit Club Ponzi, received a 12-year sentence. In a separate case, Mosaic Exchange and its CEO Sean Michael face charges from the CFTC for deceptive practices in cryptocurrency trading.
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Interesting Reads
Ethereum ($ETH) has surpassed $10 billion in protocol revenue, achieving this milestone faster than tech giants like Microsoft and Adobe. It took Ethereum 7.5 years, while Microsoft and Adobe took 19 and 20 years, respectively. This revenue came from transaction fees and various network activities, including DeFi and NFTs. Despite a 77% drop in network revenue since the previous year, projections suggest Ethereum could reach $51 billion annually by 2030 with continued user base growth. However, post-Shanghai upgrade, it struggled to meet institutional interest expectations. Key indicators like daily transactions and DeFi value locked have seen a recent decline.
This article discusses the potential of Bitcoin mining to address the volatility in energy demand and provide a consistent revenue stream for energy generators. By redirecting excess energy to the grid during periods of high demand, Bitcoin miners can stabilize energy production. This approach incentivizes the expansion of energy infrastructure, benefiting both the energy industry and Bitcoin mining. The article emphasizes the importance of energy in economic growth and suggests that monetizing energy generation through Bitcoin mining could revolutionize the energy sector. Additionally, it highlights the efficiency and collaborative nature of mining pools in generating a steady income for miners.
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Quick Links
Gensler answered this question: “I think Bitcoin is not a security because it does not comply with the Howey test. I think Bitcoin is not a security.”
Ethereum developers have proposed a new update called EIP-7514, which aims to reduce overload on the Ethereum consensus. The proposal was put forward by Dapplion and Tim Beiko and will be included in the upcoming Dencun update.
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Funding
The Uniswap Foundation seeks approval for a $62 million funding tranche, decided by on-chain vote on Oct. 4. These funds will fuel operations and research grants, with a 10% buffer for price fluctuations. The foundation's focus is on strengthening core protocol metrics and incentivizing DEX stakeholders. They plan to develop a software kit for Uniswap v4 and support its migration, following an initial $17.3 million funding. Over the past year, $4.8 million was allocated for research grants and $3.15 million for operations. They intend to disburse $10-$15 million annually from their remaining grants capital.
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Miscellaneous
Kraken, a U.S.-based crypto exchange, is set to launch stock and ETF trading services through its new division, Kraken Securities. The exchange has obtained regulatory permits in the U.K. and is in the process of securing a broker-dealer license from the U.S. Financial Industry Regulatory Authority. While confirming their interest in broadening offerings, Kraken refrained from specific comments. This expansion follows Kraken's recent successes in Europe, where it obtained an E-Money Institution license and bolstered its presence. However, in the U.S., regulatory challenges persist, including a recent SEC charge and an ongoing IRS investigation.
Binance, the leading crypto exchange, has seen a notable departure of ten key executives in 2023. The exodus started in July, with departures including top positions like CEO of Binance.US and VPs. Executives have described their resignations as routine, and CEO Changpeng Zhao has refuted any negative sentiments surrounding the departures. This trend has raised questions, especially given the mounting regulatory challenges facing the exchange.
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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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