Snapshot Web3

August 24, 2023

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Regulatory and Legal Updates

US Government Arrests Tornado Cash Founders: Is This The Largest Crypto Seizure Ever?

The founders of Tornado Cash, a privacy-focused Ethereum mixing service, have been arrested by the US government for allegedly laundering $1 billion in cryptocurrency. This incident could lead to the largest crypto seizure ever, potentially causing Fear, Uncertainty, and Doubt (FUD) in the market. While Tornado Cash offers privacy benefits, this arrest highlights the misuse risks associated with crypto mixers. The situation raises debates about the ethics of such services. The event's unfolding details may influence regulatory attitudes toward privacy tools in the cryptocurrency ecosystem, suggesting potential market volatility and uncertainty ahead.

Thailand’s Incoming Prime Minister Signals Crypto Embrace

Thailand's incoming Prime Minister, Srettha Thavisin, a former CEO of Sansiri, a major real estate developer, secured his position with 482 out of 747 parliamentary votes. His background in cryptocurrency and involvement with Sansiri's crypto initiatives suggest potential shifts in Thailand's crypto stance. Sansiri invested $225 million in XSpring Capital and introduced the "SiriHub Token." Thavisin's political party proposed a crypto airdrop of 10,000 Thai baht ($300) for citizens. His blend of real estate and crypto experiences could lead to innovative policies. Thailand previously introduced tax breaks for investment token issuers, reflecting increasing political crypto engagement.

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Innovation and Launches

China Unveils Blockchain-Powered Data Exchange

China has unveiled the Hangzhou Data Exchange, a blockchain-powered platform for seamless buying and selling of Web3 data across enterprises. Over 300 companies, including Alibaba Cloud and Huawei, participated in the launch, demonstrating a move towards decentralized technology for data management. The exchange utilizes blockchain to ensure unalterable and traceable transactions. The exchange integrates advanced technologies like research blockchain and privacy computing to create a secure environment for data sharing. Despite complex views on blockchain, China has been active in both regulating private blockchain enterprises and promoting government-led blockchain initiatives, such as the digital yuan and metaverse development.

SOL could regain its lost confidence thanks to Solana’s latest integration

Solana Pay's integration with Shopify enables WEB3 payments, benefiting merchants by avoiding transaction fees. This marks a milestone for Solana's network utility, potentially boosting SOL demand. Investor sentiment improved as seen through increased social dominance and weighted sentiment. Despite market lows, SOL showed relative strength and maintained a premium from June lows. The integration positively influenced SOL's recent price rally. However, sustaining market confidence is crucial for future growth.

Unstoppable Domains launches instant messaging with XMTP

Unstoppable Domains launches messaging for Web3 usernames via XMTP protocol. Owners of .crypto, .polygon, and others can message across compatible apps like UD iOS, Coinbase Wallet, and Lens protocol apps. The system encrypts messages using XMTP, ensuring accessibility even if Unstoppable Domains discontinues. This expands the use of Web3 usernames beyond payments. An Android version is forthcoming. Unstoppable Domains previously partnered with Binance.US and reconciled with Ethereum Name Service for .eth name sales.

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NFT and Metaverse

Singapore’s biggest bank DBS unveils metaverse concept for reducing food waste

DBS Bank, Singapore's largest bank, is introducing the "DBS BetterWorld" metaverse experience in The Sandbox. Set to launch this year, it demonstrates how virtual platforms can create positive impact, focusing on reducing food waste through gamified activities inspired by DBS Foundation-supported businesses. The move follows DBS Bank's acquisition of virtual real estate in The Sandbox last year. Similarly, HSBC purchased land in The Sandbox to engage with sports, esports, and gaming enthusiasts.

​​NFT marketplace Rarible sees uptick after commitment to royalties

NFT platform Rarible's trading volume surged by 585% in 24 hours after pledging to uphold NFT creator royalties. This move countered OpenSea's backtrack on royalty support, resulting in trading volume drops for OpenSea and LooksRare. Rarible intends to cease aggregating orders from OpenSea, LooksRare, and X2Y2 by September 30. Rarible's co-founder stressed the significance of valuing creativity and compensation in the NFT space. OpenSea had lost ground due to its lack of creator royalty enforcement.

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Scams and Hacks

Betrayal In Blue: Former NJ Officer Charged With Crypto Fraud

Former New Jersey police officer, John A. DeSalvo, is charged by the US SEC for a fraudulent crypto scheme targeting law enforcement. He allegedly raised $620,000 through unregistered Blazar Token offering, misusing funds and making false claims. DeSalvo also faces charges for an earlier investment scam. The SEC emphasizes his exploitation of fellow officers' trust. He's accused of violating antifraud and offering registration provisions of securities laws. The U.S. Attorney’s Office for the District of New Jersey has also filed criminal charges against him.

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Interesting Reads

GOP Debate: Where Do the Candidates Stand on Bitcoin?

In the upcoming Republican debate, candidates have varied stances on cryptocurrency. Florida Governor Ron DeSantis supports Bitcoin and criticizes central bank digital currencies. Entrepreneur Vivek Ramaswamy is pro-Bitcoin and seeks to reform the U.S. central bank. Senator Tim Scott supports crypto regulation and was part of the Senate's Financial Innovation Caucus. North Dakota Governor Doug Burgum acknowledges his state's role in crypto mining. Some candidates, like Donald Trump and Miami Mayor Francis Suarez, have expressed views on crypto. Others, such as Chris Christie and Nikki Haley, haven't publicly addressed the topic.

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Quick Links

Bitcoin Mining Difficulty Reaches Unprecedented Levels: A New All-Time High

Bitcoin mining difficulty has hit a new all-time high, requiring around 239 sextillion hashes to find a block. This signifies increased network security and a maturing crypto space. However, it may impact miner profitability and energy consumption. Outdated equipment might lead to unprofitable mining operations, and higher difficulty could worsen concerns about Bitcoin's environmental impact. As the industry evolves, addressing these issues will play a role in shaping Bitcoin's future trajectory.

Ex-Goldman Executive Predicts Crypto Hits $10,000,000,000,000 Valuation After Family Offices and Institutions Arrive

Former Goldman Sachs executive Raoul Pal predicts that the total market capitalization of cryptocurrencies will reach $10 trillion as institutions enter the space. Pal anticipates that family offices will lead the way in taking on higher risks and investing in cryptocurrencies, with financial institutions following suit. He believes that institutional investment will drive the market cap of digital assets beyond its 2021 peak of $3 trillion. Pal envisions that institutional involvement will result in a broader adoption curve and the introduction of more products for clients, ultimately leading to a $10 trillion-plus market cap for the crypto space.

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Resource of the Day

How Tornado Cash Works (Funds are mixed with Sifu)

A short, simple and effective explainer by Degen Defi on how tornado cash works

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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.