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- PM Modi Wants Global Crypto Consensus 🇮🇳🤝🌎
PM Modi Wants Global Crypto Consensus 🇮🇳🤝🌎
Prime Trust discovers $45 million in old ETH holdings. Friend.tech pronounced 'dead'.
Manan Vora
August 28, 2023
Snapshot Web3
August 28, 2023
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Regulatory and Legal News
In the past 10 months, over 100 Web3 companies have established themselves at Hong Kong Cyberport following the government's virtual asset policy statement. These companies primarily operate in finance, entertainment, and related fields. Despite Hong Kong's slower digitization process compared to other regions, Cyberport aims to expedite progress, including the launch of a digital Hong Kong dollar wallet. The CEO, Ren Jingxin, noted that while many newcomers are from abroad, mainland Chinese experts in blockchain technology have also joined, having left China due to the ban on virtual currencies in 2018. Cyberport continues its Web3 promotion and development efforts, emphasizing talent training, industry growth, and awareness.
Prominent figures in the crypto world are criticizing President Biden's proposed crypto tax reporting rules. The IRS wants stricter regulations for reporting digital asset transactions. Many fear these rules could stifle the industry's growth in the U.S. Messari CEO Ryan Selkis doubts the industry's success under these rules, and others worry they will hinder innovation and privacy. The debate highlights concerns about the U.S.'s competitive stance in the global crypto landscape.
Indian Prime Minister Narendra Modi emphasized the need for a global consensus on cryptocurrency regulation and other emerging technologies. In a conversation with Business Today, Modi stated that resisting technological change is futile and called for an inclusive and standardized approach to embrace advancements. He argued that regulations for emerging technologies, including cryptocurrencies, should be internationally standardized and not limited to any single nation. Drawing parallels with the aviation sector's global norms and standards, Modi proposed a similar approach for technologies, considering the concerns of all nations. He also highlighted India's role in driving cryptocurrency discussions during its G20 presidency, aiming for a shared understanding and norm-setting based on consensus.
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Innovation and Launches
Tether's CTO, Paolo Ardoino, clarified that a recent photo showing a Tether Energy logo on a container was related to their upcoming Bitcoin mining site in South America. The logo was part of a calculated media strategy to garner attention. Ardoino also announced Tether's new mining software called Moria, designed to enhance transparency in Bitcoin mining. Moria will offer energy production analytics and optimization, particularly for renewable sources. The mining operations are expected to commence soon.
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NFT and Metaverse
Aptos, a Layer-1 blockchain network, and South Korea's Lotte Group have teamed up to expand into the Web3 space. They will start by creating Pink Bear NFTs featuring Lotte Home Shopping's mascot, Bellygom. Aptos will provide backend support for the development of a reward system called "Super Jelly" within the Bellyland universe. This collaboration aims to explore Web3 initiatives across various business areas of Lotte Group. Earlier, Lotte's affiliate, Daehong Communications, partnered with Polygon to migrate Bellygom NFTs to the Polygon blockchain. NFTs have also been utilized to engage customers with Lotte entities such as Lotte World and Lotte Hotels.
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Scams and Hacks
The Balancer DeFi protocol was exploited for almost $900,000 shortly after disclosing a vulnerability. The attacker's Ethereum address received significant DAI stablecoin transfers. Balancer's team took mitigation measures but couldn't pause the affected pools, urging users to withdraw from them. The initial vulnerability affected boosted pools across different networks, and Balancer had previously warned users to migrate to safe pools or withdraw. The exploit occurred after the protocol's recent disclosure on August 22.
Brazilian soccer icon Ronaldinho is reportedly under investigation for his alleged involvement in a cryptocurrency scam linked to the company "18kRonaldinho," accused of offering unrealistic profits. He missed a court appearance and has been summoned again, facing potential enforcement if he fails to comply. Ronaldinho's legal team contends he's a victim of the scam. Earlier, he entered the legal crypto space by partnering with Graph Blockchain's subsidiary and launching his own token, RON, through a decentralized exchange.
Former Pepecoin promoter Jeremy "Pauly" Cahen accuses the Pepecoin team of insider trading after the reported theft of 16 trillion PEPE tokens. He reveals team members' wallet activities and identities, alleging they hold around $16-17 million worth of PEPE tokens. Instead of selling, insiders moved tokens from a centralized exchange wallet to establish a major short position. On-chain analyst Yazan reports insider selling of 400 billion PEPE tokens, aligning with Pauly's claims. The Pepecoin price has fallen due to team selloffs, currently at $0.00000090.
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Interesting Reads
The author, a former engineer at Alameda Research, shares their experience working under Sam Bankman-Fried, founder of Alameda Research and FTX. They recount the initial meeting, the unassuming office, and the contradictions in Sam's decentralized finance advocacy while operating a centralized exchange. The author highlights opulent experiences, international travels, and interactions with notable figures. However, they also mention poor risk management and financial losses within the company. The story concludes with Sam's incarceration.
JPMorgan analysts suggest the cryptocurrency market's downturn could be ending, citing completed long position liquidations. The decline in open interest in Bitcoin futures contracts on CME suggests a potential weakening of the current price trend. This is seen as a sign of limited downside for the crypto market in the near term. The recent crypto downtrend is attributed to regulatory concerns in the US and external factors like rising US real yields and concerns about China's economic growth.
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Quick Links
Fenix International, the parent company of OnlyFans, invested around $20 million in Ether between 2021 and 2022. Despite an $8.5 million reduction in Ether value by November 2022, OnlyFans thrived with a 16.6% revenue increase, 47% more creators, and 27% more subscribers. The company reported $5.6 billion in 2022 user spending.
Prime Trust discovered an old wallet address holding $45 million, primarily in ETH tokens. CEO Jor Law admitted losing access to devices storing customer tokens, highlighting security concerns. Incomplete wallet migration allowed customer transactions to the old address, raising questions about proper execution during technical transitions involving valuable assets.
The decentralized social network Friend.tech has been labeled "dead" shortly after its launch due to a rapid decline in activity, fees, and volume. Despite a strong start on Coinbase's Base, the platform's fees and transactions drastically dropped, leading to a significant loss of user engagement and key prices. Critics attribute the failure to factors like greed and poor execution.
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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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