Snapshot Web3

August 25, 2023

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Regulatory and Legal News

Oman’s visionary bitcoin endeavor: A $1.1 billion leap into the future

Oman has surprised many by announcing a $1.1 billion investment in bitcoin mining infrastructure, signaling its commitment to economic diversification. Omani startup Exahertz is leading the effort, launching a pilot bitcoin mining site just 22 days after receiving a license. The facilities are designed for sustainable energy consumption, utilizing wasted flared gas and hydro energy. This move showcases Oman's forward-thinking approach and determination to diversify its economy beyond oil. The investment aligns with the nation's ambition to become a digital powerhouse, supporting various tech projects and positioning itself as a hub for digital advancement.

Regulatory Pressure Sees Binance Cease Card Offering in the Middle East

Binance, a leading crypto exchange, is ending its card services in the Middle East and Latin America due to regulatory pressures. Users in these regions have until September 21 to use their Binance cards. This move comes amid increasing regulatory scrutiny and follows Binance's focus on the Asian market, acquiring licenses in Thailand and planning a platform for Japanese customers. The exchange is promoting its "Binance Pay" platform as an alternative for crypto payments.

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Innovation and Launches

Num Finance introduces Colombian peso stablecoin on Polygon

Num Finance, based in Argentina, has launched nCOP, a stablecoin pegged to the Colombian peso on the Polygon platform. Aimed at the remittance market, nCOP allows users to earn rewards and targets Colombia's $6.5 billion annual remittances. Num Finance previously introduced stablecoins tied to the Argentinian peso and Peruvian sol. Colombia's central bank is also exploring a potential central bank digital currency (CBDC) but is considering holding and transaction limits. The launch reflects the growing importance of stablecoins in reshaping the financial landscape and bridging traditional finance with the digital world, especially in remittances.

Australian Central Bank’s Pilot CBDC Experiment Unveils Transformative Potential

The Reserve Bank of Australia and the Digital Finance Cooperative Research Centre conducted a CBDC pilot experiment, showcasing its transformative potential. Programmable CBDCs demonstrated the ability to revolutionize payments through smart contracts, automate processes, and foster financial innovation like asset tokenization. The experiment revealed CBDCs could improve inclusivity by providing alternative payment options during disruptions. However, challenges in legal and technical aspects were also identified, underlining the need for further investigation to fully understand their potential features.

ARK, Glassnode propose Bitcoin economic analytics framework using new metric

ARK Invest and Glassnode have proposed a new framework for analyzing Bitcoin on-chain metrics called "Cointime Economics." This method introduces a new measure called the "coinblock" to represent Bitcoin's economic state. It takes into account the time Bitcoin has been held when transacted, giving more weight to transactions involving long-held Bitcoin. This approach aims to provide improved valuation metrics and a new analytical tool for measuring Bitcoin activity. The authors suggest that the value of a Bitcoin should vary based on how long it has been held, reflecting the behavior of different market participants.

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NFT and Metaverse

NFT collectors focus on generative art and historical significance amid market rout

Despite a general decline in the NFT market, there are subsectors showing strength. Generative art and historically significant collections are gaining attention as collectors seek long-term value. The Nansen Art-20 index for art NFTs is down only 40%, with generative art collections like Chromie Squiggles and Terraforms remaining relatively stable. Historical collections like CryptoPunks are also performing well, outstripping newer offerings like Bored Ape Yacht Club. Overall, the NFT market is challenging, with the Nansen NFT-500 index down 56% year-to-date.

Metaverse Project DeLux Network To Launch on XRP Ledger

The DeLux Network (TDN) is launching on the XRP Ledger to enable metaverse interoperability. It plans to collaborate with creators, conduct a TDN Token presale on September 1 with three tiers, and offer interoperability between XRPL and Coreum blockchain. The team aims to introduce staking and NFT programs in Q4 2023 and list TDN tokens on multiple exchanges.

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Scams and Hacks

Crypto Community Shaken: $13.3M Vanishes in 54 SIM Swap Hits – Urgent Security Wake-Up Call!

The cryptocurrency community is grappling with a security crisis as $13.3 million has been stolen through 54 SIM swap attacks in the last four months. Fraudsters are using sophisticated methods to deceive users and gain access to their cell accounts, exploiting a sense of urgency to steal assets. Major US telecom firms like T-Mobile, Verizon, and AT&T are criticized for lax security. Even protected accounts are vulnerable. Experts recommend abandoning SMS-based 2FA for more secure alternatives. The crypto industry must unite to fortify defenses against this growing threat, emphasizing collective vigilance and stronger security measures.

Friend.tech Frenzy: MEV Bots Pocket Over $2 Million On Platform By Sniping “Keys”

Friend.tech, a decentralized social media platform on the Base network, has seen over $2 million earned by MEV (maximal extractable value) bots sniping "keys." These keys allow private messaging to X accounts. Around 125 MEV bots made $2.1 million since Friend.tech's August 11 launch, sniping over 21,800 profiles in less than two weeks. The most profitable bot earned over $500,000 by sniping 96 keys. The platform has also experienced a large number of failed transactions from MEV bots, and its growth has impacted the Base network's activity significantly.

DEA gets duped: Agency loses $55K in address poisoning scam

The US Drug Enforcement Administration (DEA) lost $55,000 in a seized Tether (USDT) scam earlier this year. The agency seized $500,000 worth of USDT from two Binance accounts suspected of money laundering. A scammer used address poisoning to trick a DEA agent into sending $55,000 to the wrong address. The funds were converted to Ether and Bitcoin before action could be taken. The DEA and FBI are investigating the incident, seeking the perpetrators behind the attack.

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Funding

Vessel Capital secures $55M to invest in Web3 infrastructure

Vessel Capital has secured a $55 million fund to invest in Web3 infrastructure and applications. The venture capital firm, co-founded by individuals with experience in startups, aims to provide guidance and assistance to early-stage crypto founders. The fund will be deployed over a five-year period, with a focus on understanding entrepreneurs' needs and offering practical advice. The move comes at a time of a downturn in crypto venture capital, but interest in Web3 infrastructure investments remains strong due to its potential to redefine the internet economy.

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Quick Links

Citi Survey Shows That 74% Firms Are Keen to Adopt Crypto

A recent Citi survey indicates that 74% of companies are interested in adopting crypto and blockchain technology. The survey highlights the growing prominence of distributed ledger technology (DLT) and the anticipation of viable central bank digital currencies (CBDCs) by 2026. While technology isn't a major hurdle, adoption challenges relate to people. Different regions have varying approaches, with Latin America and Asia focusing on adoption, Europe on regulation, and North America on diverse asset classes. DLT is rapidly growing, with 87% of custodians using it, offering transparency, automated contracts, secure voting, identity protection, and unchangeable transaction records. The survey indicates positive trends in blockchain adoption across industries.

Dropbox ditches unlimited storage offering, blaming crypto cloud miners

Dropbox has ended its unlimited storage plan, switching to metered storage, citing resource-intensive usage like cryptocurrency mining. New users now receive 15 terabytes of storage. Dropbox noted a surge in users consuming much more storage than business customers, often for activities such as crypto mining. This change follows similar moves by Microsoft and Google to scrap unlimited storage plans. Dropbox explained the move as necessary to prevent unsustainable and difficult-to-regulate usage.

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Resource of the Day

What Are ETFs And How Can Crypto Investors Invest In It

Crypto Exchange-Traded Funds (ETFs) are investment options that track collections of crypto assets or blockchain-related companies, traded on stock exchanges for easier access. They include options like ProShare Bitcoin ETF (BITO) tracking Bitcoin futures, BLOK focusing on blockchain-related companies, Valkyrie Bitcoin ETF (BTF) investing in Bitcoin futures contracts, and Valkyrie Bitcoin Miners ETF (WGMI) targeting firms involved in Bitcoin mining operations. To invest, open a brokerage account (cash or margin) and choose an ETF based on risk appetite and desired exposure, considering factors like volatility and asset diversification.

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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.