- Snapshot Web3
- Posts
- Leading Indian Crypto Exchange CoinDCX Lays Off 12% of Workforce 📉 ✂️
Leading Indian Crypto Exchange CoinDCX Lays Off 12% of Workforce 📉 ✂️
Binance US renews banking push with MoonPay deal. BlockFi pushes back on repayments.
Manan Vora
August 23, 2023
Snapshot Web3
August 23, 2023
👨⚖️
Regulatory and Legal Updates
Presidential candidate Robert F. Kennedy Jr. is championing Bitcoin's role in safeguarding personal freedoms, considering it a symbol of financial autonomy and privacy. He supports cryptocurrencies' potential to empower individuals in a tech-driven world and accepts Bitcoin donations for his campaign. Conversely, he opposes the Federal Reserve's CBDC efforts, claiming they might impinge on personal liberties. His stance highlights the growing political attention cryptocurrencies are receiving and their potential impact on the upcoming election.
The Reserve Bank of Australia has completed a CBDC pilot program, finding potential benefits in four main areas: enabling complex payments, supporting financial innovation in debt markets, promoting innovation in private digital money sectors, and enhancing resilience and inclusion in the digital economy. The pilot highlighted benefits like "atomic settlements" and programmability. However, the report noted that similar benefits could be achieved through other means like tokenized bank deposits or stablecoins. The report suggests more research is needed to understand the full potential of a CBDC.
🚀
Innovation and Launches
South Korean K-pop sensation Blackpink is entering the Roblox metaverse with a dedicated fan hub, becoming the first K-pop group to do so. In "Blackpink: The Palace," fans can celebrate the band's music, engage in interactive experiences, and even recreate their iconic choreography. Users can take photos with avatars of band members, purchase custom outfits, and participate in challenges to earn in-game currency. Developed by British studio Karta, the Roblox world launches on August 25 and offers a virtual space for global fans to connect beyond physical constraints. This move follows K-pop's increasing presence in the metaverse for worldwide engagement.
The Stellar Development Foundation has joined the Bytecode Alliance, a group promoting the development of WebAssembly (Wasm), an alternative computation engine to Ethereum Virtual Machine (EVM) for executing smart contracts. Stellar implemented smart contracts using Wasm in 2022, citing its suitability for scalability and efficiency compared to EVM. The Bytecode Alliance, which includes companies like Amazon, Microsoft, and Intel, leads Wasm development. Stellar's involvement aims to influence Wasm standards and tooling, ensuring the ecosystem supports a broader range of applications, including smart contract platforms. This move signifies Wasm's increasing presence in the Web3 world dominated by EVM.
♾️
NFT and Metaverse
The US Attorney's Office sentenced Chastain to three months in prison for insider trading in the NFT market. Chastain is also subjected to additional penalties, including home confinement, supervised release, and a $50,000 fine. OpenSea has implemented new policies prohibiting employees from using insider information for trading NFTs.
The entertainment icon, Snoop Dogg has made a multi-year partnership with Sketchers. The combination of comfort and street style is tweeted by him which can be often worn at parties as well as while traveling. The new style is shown with Dr. Bombay imprinted with leather and block prints.
📵
Scams and Hacks
Liquidity protocol Balancer has disclosed a "critical vulnerability" impacting more than 100 of its v2 pools across eight blockchains. Approximately 80% of the affected pools have been mitigated, but the remaining 20% represent about 4% of Balancer's total value locked (TVL). The project has activated its emergency subDAO to allow users to exit affected pools and has listed them on GitHub. Balancer's native token BAL initially dropped by over 4% in response to the news but has since recovered to $3.47. The incident highlights that smart contract audits do not guarantee complete security in DeFi protocols.
📚
Interesting Reads
Decentralized Autonomous Organizations (DAOs) face issues of voter disengagement and skewed power dynamics due to concentrated voting control. Token-based voting often results in a small group holding significant influence. To counter this, emerging multi-stakeholder governance models are aiming to ensure diverse representation and fair voting power distribution. Initiatives like credential-based voting and proof-of-participation systems seek to grant voting rights based on engagement and expertise. These efforts are crucial for maintaining decentralization and effective decision-making in DAOs, ensuring a more inclusive and equitable future for decentralized governance.
🔗
Quick Links
Amid a sharp decline in the value of its native token BNB, Binance, the world's largest crypto exchange, is reportedly selling customers' Bitcoins to support BNB's price. The allegations, though unconfirmed, suggest a possible strategy akin to what the now-defunct FTX exchange employed before its collapse last year. The decline in BNB's price pushed it to a 14-month low of $207 recently. While Binance users have faced temporary withdrawal suspensions, opinions within the crypto community on platforms like X (formerly Twitter) are divided on the veracity of the claims, with some speculating about extreme measures due to recent challenges, similar to FTX's actions that led to a significant collapse.
Binance US, after discontinuing its fiat on- and off-ramp services a month ago, appears to be reversing its decision with a renewed push for fiat support. The exchange is reportedly working on integrating new US dollar on-ramp solutions through a partnership with third-party payment provider MoonPay. It's not yet clear which cryptocurrencies will be supported for buying and selling in dollars through this partnership, but an update on the Binance US app suggests that Tether's USDT may be the initial supported asset. MoonPay supports debit and credit cards as well as ACH transfers. This move comes after Binance US had transitioned to a crypto-only exchange due to regulatory uncertainties.
BlockFi, a bankrupt crypto lender, is opposing repayment attempts by FTX and Three Arrows Capital (3AC). BlockFi argues that its clients and creditors are the ultimate victims of FTX's fraud and claims that FTX's efforts to recover $5 billion from BlockFi's bankruptcy estate would harm its creditors. BlockFi maintains that it was a victim of FTX and that FTX's fraudulent actions caused its bankruptcy. Similarly, BlockFi contends that 3AC used fraud to borrow funds and is not entitled to repayment. The ongoing legal battles with FTX and 3AC could potentially cost BlockFi's customers up to $1 billion, reducing payouts to its creditors amid its bankruptcy, which ranges from $1 billion to $10 billion.
🌐
Miscellaneous
Former Chinese official Xiao Yi has received a life sentence for aiding a secret large-scale Bitcoin mining operation and unrelated corruption. Yi admitted guilt, returned stolen funds, and saw seized assets. The mining operation in Fuzhou consumed 10% of the city's power, and Yi attempted to conceal it with fabricated reports. The case reflects China's crypto crackdown, despite its significant share of the global Bitcoin hash rate. Yi was also charged with corruption spanning from 2008 to 2021 in various positions.
Indian cryptocurrency exchange CoinDCX has reduced its workforce by around 12% due to challenges posed by the prolonged bear market and India's Tax Deducted at Source (TDS) policy on domestic exchanges. The founders, Sumit Gupta and Neeraj Khandelwal, stated that the decision was challenging but necessary to ensure profitability and sustainability amidst tough macroeconomic conditions. Approximately 71 employees out of CoinDCX's total workforce of about 590 in Mumbai are affected. The company is providing a comprehensive support package to mitigate the impact on these employees. CoinDCX remains committed to driving crypto adoption despite the setback.
Titan Global Capital Management, a fintech investment adviser, settled with the US SEC, agreeing to pay over $1 million in fines for misleading investors about its crypto offering. The SEC charged Titan with contradictory information and deceptive statements about hypothetical performance. Titan claimed gains of up to 2,700% through its Titan Crypto strategy, but the returns were based on a theoretical period with no trading. Titan will pay disgorgement, interest, and a civil penalty, compensating affected clients. This case marks the first instance of breaching the SEC's new marketing rule, emphasizing accurate information presentation to investors.
📈
Trending DApps
👨🎓
Resource of the Day
Successful branding in Web3 is a science, not magic. In a world of choices, clear decisions matter. Effective branding requires a consistent, succinct message that leaves a mark. Powerful brands focus on a single unique selling proposition (USP) – Volvo for safety, Coca-Cola for authenticity, Nike with "Swoosh" and "Just do it." To find your brand's sweet spot, start with your current perception, align with customer needs, and tie it to your capabilities and vision. Good branding creates harmony in marketing efforts, team clarity, and higher profits. It's a psychological science, not guesswork, that shapes a unique selling idea and a single brand story.
Liked the newsletter? Share it with your network.
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.
Reply