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- Hong Kong Chief Embraces Web 3.0 🇭🇰🌐, Binance Files A Motion Against The SEC's "Fishing Expedition" 🎣
Hong Kong Chief Embraces Web 3.0 🇭🇰🌐, Binance Files A Motion Against The SEC's "Fishing Expedition" 🎣
Kraken Ventures to raise $100M in second fund. Is Ethereum a better investment than Bitcoin?
Manan Vora
August 15, 2023
Snapshot Web3
August 15, 2023
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Regulatory Updates
Hong Kong's Chief Executive, John Lee Ka-chiu, embraces the transformative potential of Web 3.0 and highlights the city's commitment to fostering innovation and creativity in the virtual asset sector. Hong Kong aims to create a supportive environment for both established and emerging businesses, positioning itself as a hub for entrepreneurial endeavors. This forward-thinking approach aligns with the decentralized nature of Web 3.0 and its potential to reshape data ownership and user privacy in the digital landscape.
Binance has filed a motion for a protective order against the SEC, accusing the regulator of a "fishing expedition." The exchange argues that the SEC is seeking irrelevant communications dating back to November 2022 and requesting depositions from employees, including CEO Changpeng "CZ" Zhao, who have already been available for questioning. Binance asserts that the SEC's demands have no bearing on customer assets.
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Innovation and Launches
Web3 gaming platform Immutable has started testing its zkEVM in partnership with Polygon Labs. The zkEVM aims to lower game development costs and enhance security by leveraging Ethereum's ecosystem. Over 20 gaming companies, including GameStop and TokenTrove, are involved. About 12 games are under development on zkEVM, with MetalCore set for a beta launch on September 15. The testnet uses zero-knowledge proofs for secure transfers and is fully compatible with Ethereum applications. Immutable's CTO believes the network will be appealing to developers and create a strong ecosystem for Web3 games.
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Trending DApps
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Funding
Kraken Ventures, known for early stage investments, aims to raise $100 million for its second fund. Focusing on supporting early stage founders from initial capital to IPO, the fund aligns with cryptocurrency exchange Kraken's mission for an open financial system. While preferring smaller funds for a hands-on approach, a significant part of the fund will be dedicated to follow-up investments. With a track record of backing various tech sectors, Kraken Ventures seeks to contribute to blockchain-based products and projects.
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Scams and Hacks
China's legal battle against Filecoin company Shikongyun has exposed an alleged $100 million pyramid scheme. The court is prosecuting individuals for promoting a deceptive investment scheme through Shenzhen Space-Time Cloud Technology and filpool.io. This incident highlights broader investigations into Chinese Filecoin companies, reflecting the government's focus on market transparency. The trial process has been expedited, with both prosecution and defense presenting arguments.
RocketSwap Labs, a Base project, has shared its emergency plan following an $865,000 exploit on August 14. The team will redeploy a new farm contract, give up minting rights, and attempt to engage with the hackers for asset return. The hacker took 471 ETH and created 90 trillion "LoveRCKT" tokens, moving them to Uniswap with 400 ETH. The exploit resulted from a brute force attack on the protocol's server, prompting RocketSwap Labs to halt the farm. RocketSwap, a decentralized exchange on Base, aims to transition to community ownership through a decentralized autonomous organization.
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Interesting Reads
Ethereum and Bitcoin are prominent cryptocurrencies with distinct strengths. Ethereum's versatility is fueled by its smart contracts, while Bitcoin is seen as a store of value. Both have experienced significant growth and hold long-term potential, but Ethereum faces scalability challenges and Bitcoin's extreme price volatility carries risk. The choice depends on an investor's comfort with these factors and their understanding of the assets' roles in the evolving crypto landscape.
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Quick Links
Delphi Digital co-founder Kevin Kelly suggests that the crypto market could be entering a new bull run. He points to on-chain metrics and historical patterns that indicate the beginning of a fresh cycle. Kelly notes that Bitcoin's four-year cycles often align with peaks in the Institute of Supply Management (ISM) manufacturing index, hinting at a connection between economic recovery and the crypto market's performance. Despite recent stagnation, experts believe factors like ETF approvals and Ethereum scaling upgrades could rejuvenate the crypto market.
Coinbase has launched its services in Canada, offering a 30-day trial called Coinbase One with zero trading fees and priority support. This move comes amid regulatory challenges in the US. Canadian users can deposit and withdraw funds in CAD using Interac e-transfers, and additional features are planned for later in 2023. Coinbase praised its collaboration with Canadian regulators, in contrast to its issues with the SEC in the US. The expansion is driven by Canada's regulatory framework and local interest in cryptocurrency.
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Miscellaneous
Grayscale Investments could receive a decision on its lawsuit againNst the SEC for a spot Bitcoin ETF conversion this week. This timing aligns with the court's law clerk cycle. Analysts suggest the decision might come as early as August 15. Grayscale sued after the SEC rejected its application in 2022. Figures like Cathie Wood express optimism about Grayscale's chances. The company also advocates for simultaneous approvals of all Bitcoin spot ETF applications for fairness.
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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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