Snapshot Web3

December 5, 2023

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Regulatory and Legal News

IRS team reports rise in crypto tax investigations

The Criminal Investigation Unit of the United Internal Revenue Service (IRS) has reported a surge in investigations related to digital asset reporting. In the fiscal year 2023, the IRS CI Unit initiated over 2,676 cases, identifying over $37 billion in tax and financial crimes. The increase in digital asset use has led to a rise in investigations related to cryptocurrency, particularly focusing on unreported income resulting from the failure to disclose capital gains, income from mining, and income received in the form of cryptocurrency. The IRS has been actively addressing cryptocurrency-related tax evasion and has seized over $10 billion in digital assets since intensifying efforts in 2015.

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Innovation and Launches

Tokenization of RWAs Gets Push in Europe as AXA, Generali Buys SocGen's Green Bonds on Ethereum

French banking giant Societe Generale (SocGen) has completed its first tokenized green bond issuance on the Ethereum network, issuing €10 million ($10.8 million) worth of digital green bond tokens. The tokens were registered by SG-FORGE, Societe Generale's digital asset-focused arm. Traditional financial institutions AXA Investment Managers and Generali Investments purchased the tokenized bonds. The move highlights the growing interest of traditional financial institutions in utilizing blockchain-based technologies, including tokenization and stablecoins. Societe Generale aims to use the net proceeds from the bond sale to finance or refinance sustainable activities. The tokenized bonds offer greater transparency, traceability, and faster transactions and settlements. The issuance is seen as a step toward using blockchain as a data repository and certification tool for transparency on environmental, social, and governance (ESG) and impact data on a global scale.

Hedera Hashgraph to power new environmental asset management service

At the UN Climate Change Conference (COP28), Envision Blockchain showcased new emissions tracking and carbon credit platforms utilizing blockchain and artificial intelligence technology. Envision Blockchain has introduced a Managed Guardian Service (MGS) built on Hedera Hashgraph (HBAR) technology to simplify creating and managing digital environmental assets like carbon credits. The service aims to bring more efficiency, transparency, and growth to the voluntary carbon market. The platforms feature enhanced search methodologies, comparison of project data, and alignment with reporting standards to increase transparency in emissions tracking and enable growth in voluntary carbon markets. The innovations include digitized UNFCCC methodologies, AI-guided search, and the integration of the Global Blockchain Business Council’s dMRV Specification for digital reporting and verification of carbon data.

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Resource of the Day

Explore How Hedera Network Works and Benefits of the HBAR Token

The Hedera Hashgraph network is a decentralized public network designed for building secure, fair applications with near real-time consensus. It utilizes the Hedera Consensus Service (HCS) as a trust layer, enabling the creation of an immutable and verifiable log of messages for any application or permissioned network. The network, founded by Dr. Leemon Baird and Mance Harmon, employs a proof-of-stake (PoS) model to enhance efficiency in transaction verification. Key services offered include the Consensus Service (HCS) for message negotiation and the Hedera Token Service (HTS) for token creation and management. The native token, HBAR, powers applications on the network, serving as a means of payment for network services, transaction fees, and more. The unique Gossip-about-Gossip protocol and features like gas token functionality and network protection contribute to the distinctiveness of Hedera Hashgraph. HBAR is traded on various exchanges, including Binance, Bittrex, and Huobi Global, with an all-time high of $0.569229 and an all-time low of $0.00986111.

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Scams and Hacks

Stargate Snapshot Platform Hit by Phishing Scam

A phishing scam targeted the Stargate Snapshot platform, leading to significant financial losses. A scammer orchestrated a deceptive proposal vote on the Stargate platform, manipulating over 1,000 users into staking STG tokens. The scammer created a fake proposal, misleading users into participating in the vote and profiting over $43,000. PeckShieldAlert, a security entity, confirmed the figure and is actively tracking the scammer's digital activities to identify wallet addresses and related transactions. Discord has become a frequent target for scams, with hackers exploiting its open nature to deceive users in the cryptocurrency and NFT space. Stargate has not yet issued an official statement on the incident. Users are cautioned against clicking links on Discord or Snapshot related to the platform.

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Interesting Reads

Brian Armstrong of Coinbase Is Crypto's Last Big Man Standing

Brian Armstrong, CEO of Coinbase, stands out as one of the most influential figures in the cryptocurrency space, having led Coinbase for over a decade. As other industry leaders like Changpeng "CZ" Zhao of Binance and Sam Bankman-Fried of FTX face challenges or step down, Armstrong remains a key player. Coinbase has expanded its offerings, launching a layer-2 blockchain and entering the derivatives trading market. Additionally, it is poised to provide custody services for bitcoin exchange-traded funds (ETFs) pending regulatory approval. Despite regulatory challenges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC), Armstrong is actively involved in political and regulatory strategies, defending the industry and advocating for crypto-friendly policies. Coinbase's proactive stance and Armstrong's leadership position the platform for continued success in the evolving crypto landscape.

The Future of Trust in a Digital World – Self-Sovereign Identity

The article delves into the concept of self-sovereign identity (SSI) as a pivotal element in fostering trust within the digital realm. It underscores the transactional nature of human interactions, emphasizing the importance of trust in various scenarios, from online gaming to banking. SSI is presented as a solution to privacy concerns in the data economy, allowing individuals to selectively disclose relevant information. The trust triangle, involving the issuer, verifier, and recipient, is introduced, and the role of blockchain in implementing a trust registry is highlighted. The article concludes by emphasizing SSI's role in providing a privacy-preserving framework, granting individuals control over their identities in the ever-evolving digital landscape.

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Funding, Investments and Acquisitions

Qatar’s Sovereign Wealth Fund Eyes $500B Bitcoin Investment

Qatar's Sovereign Wealth Fund (QSWF) is reportedly exploring a substantial $500 billion investment in Bitcoin, signaling a noteworthy shift in traditional financial institutions' approach to cryptocurrencies. If realized, this move could significantly impact the cryptocurrency market, solidifying Bitcoin's position as a mainstream investment option and encouraging other institutional investors to explore opportunities in the digital asset space. The decision aligns with the growing trend of major corporations and wealth funds diversifying their portfolios by embracing digital assets, emphasizing the potential for high returns and long-term value in the evolving financial landscape.

Riot purchases BTC miners worth $290M from MicroBT

Bitcoin mining company Riot Platforms, Inc. (NASDAQ: RIOT) has made its largest hash rate purchase, acquiring 66,560 miners from Bitcoin mining hardware manufacturer MicroBT for $290.5 million. The new order is for MicroBT's M66S model, known for its efficiency of 18.5 Joules per terahash. This follows Riot's earlier purchase of 33,280 miners. Riot CEO Jason Les stated that the company has updated its long-term purchase agreement with MicroBT, allowing the option to acquire up to 265,000 additional miners at the same terms as the newly announced order. If Riot completes future purchases, its self-mining capacity could rise to over 100 EH/s. The news boosted Riot's stock price, which rose 8% on the day and nearly 24% in the past week, reaching $15.07.

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Miscellaneous

El Salvador’s Bitcoin Investment Profits $3.6 Million

El Salvador's President Nayib Bukele has announced that the country's bold move to embrace Bitcoin as legal tender is proving financially fruitful.

OKX reveals sponsorship of key events at India Blockchain Week

OKX, a Web3 tech leader, sponsors significant events during India Blockchain Week (IBW), scheduled for December at the Sheraton Grand Whitefield, Bangalore. As part of this week-long initiative, OKX will support Polygon Connect and ETH India, in addition to co-hosting two developer mixers.

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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.